C O N F I D E N T I A L TOKYO 001984

SIPDIS

SIPDIS

DEPT PLEASE PASS USTR FOR AUSTR CUTLER
PLEASE PASS USDA FOR U/S PENN
PLEASE PASS FAS FOR TERPSTRA

E.O. 12958: DECL: 04/11/2026
TAGS: PREL ETRD EAGR MARR MNUC KNNP PARM KN IN IZ
JA
SUBJECT: EAP A/S HILL'S APRIL 12 MEETING WITH MOFA NORTH
AMERICAN AFFAIRS DG KAWAI


Classified By: Deputy Chief of Mission Joe Donovan. Reason: 1.4 (b)(d)
.

Summary
--------------


1. (C) During an April 12 meeting, MOFA North American
Affairs DG Kawai told EAP A/S Hill that Prime Minister
Koizumi hopes to resolve several outstanding bilateral issues
before he visits Washington in June 2006. Japan understands
issues remain concerning the relocation of some Marine Corps
assets to Guam and within Okinawa, but Kawai assured A/S Hill
that progress is being made and that he is satisfied with the
process. Kawai argued that public opinion is very skeptical
about the safety of U.S. beef, making it difficult for the
government to move ahead with efforts to resume trade. Kawai
added that the government cannot be seen as bowing to outside
pressure to resume trade at the expense of safety. On India,
Kawai acknowledged that India has a growing need for energy
resources, but argued that Japan must cautiously consider how
to approach the non-proliferation implications of the
proposed U.S.-India civil nuclear cooperation agreement. END
SUMMARY.

North Korea
--------------


2. (C) Assistant Secretary of State Chris Hill met on April
12 with MOFA Director General for North American Affairs
Chikao Kawai to discuss bilateral security and trade issues.
Japan appreciates the firm and direct U.S. approach with
North Korea, Kawai stated. He did not expect any criticism
from the Japanese press for the lack of direct meetings with
North Korea this time. A/S Hill said he was very satisfied

with the results of the week's meetings and commended Japan
and China on their close bilateral cooperation on North
Korea.

DPRI and Kitty Hawk Replacement
--------------


3. (C) Kawai observed that he would meet soon with DUSD/AP
Lawless to continue discussions on the relocation of Futenma
Marine Corps Air Station to Nago City. The issue is not yet
resolved, Kawai noted, but the GOJ is working with local
authorities to resolve any outstanding issues. There is some
continuing debate about the configuration of the proposed
runway for the Futenma replacement facility to avoid having
aircraft fly over neighboring communities. Kawai drew a
diagram for A/S Hill and explained that current thinking
favors a v-shaped configuration vice an x-shaped one. The
mayor of Nago City already has accepted the proposal, but
Okinawa Governor Inamine has not. Kawai told A/S Hill that
Inamine wants to see a final plan for reducing the number of
U.S. Marines on Okinawa before he accepts the new proposal
for Futenma.


4. (C) Japan is interested in relocating some Kadena-based
U.S. F-15 training flights to Honshu or Hokkaido to reduce
noise pollution in Okinawa, Kawai continued. Moving the
training would also provide joint training opportunities for
the U.S. Air Force and Japan's Air Self-Defense Force, he
pointed out. DCM Donovan reminded Kawai that the U.S.
pledged only to study the proposal in last year's 2 2
statement.


5. (C) Japan appreciates U.S. efforts to reduce its military
footprint in Okinawa, Kawai stated, but deciding cost-sharing
responsibilities for relocating U.S. military assets to Guam
has become a difficult issue for the Japanese government.
Opposition parties are staunchly opposed to Japan shouldering
a large share; such criticism is making it hard for the LDP
to sway public opinion to support the move. Kawai mentioned
he will meet with Keidanren officials later that week to
explain the benefits to Japan of the transformation and why
it is crucial to the security of Japan.


6. (C) Some people in Japan have argued that the move to
Guam primarily benefits the United States and that Japan
should not pay anything, Kawai observed. In turn, the LDP is

arguing that the move is in response to a long-standing
request by Japan for the U.S. to reduce its military presence
in Okinawa and Japan should therefore shoulder some of the
burden. Cost-sharing discussions will likely require more
time to reach a compromise.


7. (C) Japan is working closely with the U.S. to resolve the
Kitty Hawk replacement issue, Kawai continued. The mayor of
Yokosuka remains opposed to the porting of a nuclear aircraft
carrier there, but MOFA is confident that the process is
moving forward smoothly. A/S Hill pointed out the long
safety record of U.S. Navy nuclear powered warships and
extremely low likelihood that any sort of accident would
occur. Kawai argued that the Japanese public is very
sensitive on nuclear issues, making this an emotional issue
on which the GOJ must tread cautiously.

BSE
---


8. (C) Beef is another emotional issue Koizumi hopes to have
"pretty much" wrapped up before he visits Washington in June,
Kawai commented. He admitted that concerns about the safety
of U.S. beef have been exaggerated in Japan by the media;
Kawai cited a recent poll indicating 70 percent of the
Japanese public opposes resuming beef trade with the United
States. A/S Hill argued that the longer beef trade is
suspended the deeper the perception of a lack of safety is
ingrained in Japanese consumers, ultimately making it more
difficult to resume trade. The DCM urged Kawai to have Japan
provide a detailed road map designed to end the ban. Kawai
responded that the government currently is developing a
timeline to resolve the issue but remains uncertain about the
real prospects for reaching a decision before June. The
government hopes to avoid any perception that a resumption of
beef trade is linked to Koizumi's visit. Because consumer
preference is more psychology than science, he added, a
rational argument in favor of resuming beef trade may not be
sufficient to win over Japanese consumers.

India Nuclear Cooperation
--------------


9. (C) On India, Kawai noted that Japan needs more
information from the U.S. on the details of its agreement
with India and how the matter will be handled in the Nuclear
Suppliers Group. The fact that IAEA safeguards will cover
some Indian facilities is good, but explaining the possible
double standard the deal sets is difficult. Basing the
argument on India being a stable democracy might not be
sufficient. At the same time, Japan recognizes the
legitimate and growing demand for energy resources in India.


10. (C) A/S Hill noted that energy scarcity will become a
reality as India and China continue to develop and consume
more resources. Congress eventually will approve the India
agreement with some additions and conditions, he stated.
Kawai said Japan may not reach a decision on India for "weeks
or months," but relations with India are a high priority
topic in Japan these days due to a growing bilateral
strategic dialogue and attention from high-level politicians,
including PM Koizumi and Chief Cabinet Secretary Abe.

Iraq
--------------


11. (C) Kawai told A/S Hill that Japan is looking forward to
beginning working-level talks in London next week with
coalition partners to discuss how to transfer authority over
to the Iraqis. Kawai noted that stability in the Middle East
is vital to Japan's national security for energy and
non-proliferation reasons.

Participants
--------------


12. (U) Participants on the U.S. side were:

Christopher Hill, EAP Assistant Secretary
Victor Cha, NSC Director

Joe Donovan, Deputy Chief of Mission
Matthew Wallace, Embassy notetaker

Participants on the Japan side were:

Chikao Kawai, Director General for North American Affairs
Masaaki Kanai, Principal Deputy Director, First North
American Affairs Division
Osamu Izawa, Principal Senior Foreign Policy Coordinator
Mr. Mori, notetaker


13. (U) Assistant Secretary Hill did not have an opportunity
to clear this message.



SCHIEFFER