S/P DIRECTOR KRASNER'S MAY 11 MEETING WITH ASIAN

C O N F I D E N T I A L SECTION 01 OF 03 TOKYO 002655

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/15/2031
TAGS: PREL APEC ARF CH KS IN JA
SUBJECT: S/P DIRECTOR KRASNER'S MAY 11 MEETING WITH ASIAN
AFFAIRS DG SASAE ON CHINA, ASIAN ARCHITECTURE, SOUTH KOREA
AND INDIA

REF: A. TOKYO 2575

B. TOKYO 2609

C. TOKYO 2610

D. TOKYO 2612

E. TOKYO 2637

F. TOKYO 2638

G. TOKYO 2639

H. TOKYO 2640

I. TOKYO 2650

TOKYO 00002655 001.2 OF 003


Classified By: Charge d'Affaires, a.i., Joe Donovan. Reasons:1.4(b/d).



1. (C) Summary: MOFA Asian Affairs DG Sasae told visiting
S/P Director Stephen D. Krasner that:

-- China is seeking to improve its relations with Japan;

-- Japan's participation in Asian regional groupings can and
will be consistent with U.S. and Japanese goals for APEC;

-- Sasae personally believed the EAS should merge with APEC;

-- Japan was trying hard to avoid confrontation with South
Korea and the ball is in the ROK's court; Japan will respond
to ROK's moves;

-- India should play a larger role in East Asia and global
affairs.

End Summary.

China
--------------


2. (C) During a May 11 meeting, MOFA Asian Affairs Bureau
DG Kenichiro Sasae told visiting S/P Director Stephen D.
Krasner that he had just returned from attending the May 7-9
vice-ministerial talks in Beijing (ref A) where it was
evident China is trying to improve its relations with Japan.
Realizing that Chinese complaints about Prime Minister
Koizumi's visits to Yasukuni Shrine had provoked a backlash
among the Japanese people, China now wants to take steps to
improve relations, Sasae believes. In Beijing, the two MFA
vice ministers agreed to seek an early meeting between FM
Taro Aso and FM Li Zhaoxing, with one possible venue being a
meeting on the margins of the late-May Asia Cooperation
Dialogue (ACD) meeting in Qatar.

Asian Regional Architecture
--------------


3. (C) Asked for his views on Asian architecture, DG Sasae
acknowledged that finding the proper configuration for an
effective regional grouping that combined Asian and Pacific
countries was a complicated matter. Asserting that Japan
believed that APEC and the ARF should continue to be the
basis for U.S. participation in multilateral organizations in
the region, even as it pursued involvement in pan-Asian
groupings, Sasae said that Japan's participation in other
regional and sub-regional organizations would be consistent
with its bilateral relationship with the United States and
its own participation in APEC and the ARF. Just as NAFTA
does not interfere with U.S. participation in trans-Pacific
groups, so could Japan's involvement in pan-Asian and
trans-Pacific groupings be complementary. He cited the need
to take up such functional challenges as energy and the
environment in pan-Asian regional organizations, particularly
to further press China.


4. (C) Sasae said it was his personal view that the East
Asia Summit (EAS) was but an intermediate step toward a
regional architecture and, ultimately, that the EAS should
merge with APEC. Noting that the memberships of such
organizations as the EAS, ASEAN Plus 3, APEC and others
tended to overlap and also to pursue much the same agenda,
such a merger made sense. Sasae stressed the importance to
Asian leaders of having the opportunity to meet and discuss
issues. The opportunity for personal interaction afforded by
these frequent meetings is often more important than the
agenda, he asserted. Sasae also strongly advocated U.S.
involvement in the EAS, if only as an observer. Noting that

TOKYO 00002655 002.2 OF 003


Russian participation was inevitable, Sasae urged the United
States to consider the strategic importance of its
participation in the EAS. Japan did not wish to see the
United States detached from this process, he stated. Asked
about the optic of the United States and Russia being in the
same category, Sasae said inclusion in whatever form was
better than not being present at all.


5. (C) Taking democracy as an organizing principle for
regional organization is important, but also challenging
because of China, Sasae observed. It will take years for
China to democratize, and pressing the PRC for more rapid
democratization will not work. He advocated separating
democratic transformation from other human rights issues that
can be pursued successfully in the near-term.

Japan-South Korean Relations
--------------


6. (C) Continuing the democracy theme, Sasae observed that
Japan's current problems with South Korea were a result of
the ROK having only very recently transitioned from
dictatorship to a democratic society. The current generation
of political leaders, including President Roh, formulated
their ideas while fighting dictatorial regimes and now want
to assert Korea's ability to determine its own destiny. Such
Korean nationalism has caused problems for Japan-ROK
relations. Sasae opined that while President Roh has his
unique style, wanting to show the ROK public how tough he can
be on Japan, Japan-ROK relations were unlikely to improve
markedly after Roh's departure from office, as these views
were widely held in Korean society and Korea's adjustment to
democracy will continue for some time.


7. (C) Recognizing the potential for an emotional Korean
reaction to bilateral issues, Japan is careful not to provoke
confrontation with Seoul, Sasae stated. Territorial issues
are a case in point. While Japan might be willing to pursue
creative solutions to conflicting territorial claims, Korea
sees the issues as non-negotiable. Therefore, Japan's
approach is to maintain the status quo and avoid getting into
a debate that might spin out of control. President Roh's
desire to change the status quo, however, has caused a number
of problems, he averred. The ball, he said, is in the ROK's
court. Japan will take no unilateral measures but would need
to respond to any Korean moves.


8. (C) The joint study of history with South Korea has
proven to be quite useful, Sasae noted. Although the Korean
scholars tend to take an emotional stance on the issues,
mindful of the ROKG's position, rather than taking a strictly
academic perspective, the study may make a positive
contribution to the textbook controversy. Sasae observed
that Japan was still trying to set up a similar process with
China, but had yet to work out how it might be done. The
treatment of Japan in Chinese textbooks is highly biased, he
lamented. The ball, he said, is in the ROK's court. Japan
will take no unilateral measures but would need to respond to
any Korean moves.

India
--------------


9. (C) Asked about India's role in East Asia, Sasae stated
that India should be invited to play a larger role in the
Asia-Pacific region. As a democracy, India has greater
potential than China to play a constructive role on global
issues, and Indian participation on energy and environmental
issues is vital. Observing that New Delhi was now pursuing a
"more mature diplomacy," Sasae noted changes in India's
relations with the United States, Japan, Russia and China
since the end of the Cold War. Moreover, he predicted,
China's market will plateau, but India's will remain a magnet
for multinational firms as its market continues to expand.
India, he said, is improving its relations with the United
States, Japan and China simultaneously. India and China
would most likely settle outstanding border disputes. Sasae
confided that Tokyo is seeking a visit to Japan by Prime
Minister Singh "before summer," during which the two sides
hope to announce the start of negotiations to conclude a
bilateral free trade agreement by next year.


TOKYO 00002655 003.2 OF 003



10. (U) Participants:

United States
--------------

S/P Director Stephen D. Krasner
Joe Donovan, Deputy Chief of Mission
Evan Feigenbaum, S/P Member
Steve Hill, notetaker
David Wolff, control officer

Japan
--------------

Kenichiro Sasae, Director General, Asian and Oceanian Affairs
Bureau, MOFA
Kazutoshi Aikawa, Director, Asian and Oceanian Affairs
Bureau, Regional Policy Division, MOFA
Osamu Izawa, Principal Senior Foreign Policy Coordinator,
Foreign Policy Bureau, Policy Coordination Division, MOFA
Toru Hotta, Deputy Director, Asian and Oceanian Affairs
Bureau, Regional Policy Division, MOFA


11. (U) S/P Director Krasner cleared this message.
DONOVAN