Identifier
Created
Classification
Origin
06TOKYO2952
2006-05-30 05:14:00
UNCLASSIFIED
Embassy Tokyo
Cable title:
MEDIA REACTION OIL AND GAS NATIONALIZATION -
how-toVZCZCXRO0540 PP RUEHFK DE RUEHKO #2952 1500514 ZNR UUUUU ZZH P 300514Z MAY 06 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 2608 RUEKJCS/SECDEF WASHDC PRIORITY RUCPDOC/USDOC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY RHMFIUU/COMUSJAPAN YOKOTA AB JA PRIORITY INFO RUEHFK/AMCONSUL FUKUOKA 6457 RUEHOK/AMCONSUL OSAKA KOBE 9682 RUEHBJ/AMEMBASSY BEIJING 2513 RUEHMO/AMEMBASSY MOSCOW 1052 RUEHUL/AMEMBASSY SEOUL 8693 RUCNDT/USMISSION USUN NEW YORK 0489 RHEHAAA/NSC WASHDC
UNCLAS TOKYO 002952
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: MEDIA REACTION OIL AND GAS NATIONALIZATION -
TOKYO
LEAD STORIES: Tuesday's business daily Nihon Keizai front-
paged an interview with World Bank President Wolfowitz
Monday in Tokyo, during which he called for an
international conference on reconstruction assistance for
Iraq.
UNCLAS TOKYO 002952
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: MEDIA REACTION OIL AND GAS NATIONALIZATION -
TOKYO
LEAD STORIES: Tuesday's business daily Nihon Keizai front-
paged an interview with World Bank President Wolfowitz
Monday in Tokyo, during which he called for an
international conference on reconstruction assistance for
Iraq.
1. "Market Concerned About Nationalization of Oil and Gas
Resources in Latin America" The top-circulation, moderate
Yomiuri editorialized (5/28): "There is a new cause for
concern in the international oil market, which is
currently seeing high prices, and that is the moves in
Latin America to nationalize oil and natural gas
resources. Japan needs to keep a close watch on how this
will affect the international competition for resources.
On May 1, Bolivian President Morales declared the
nationalization of his country's oil and natural gas
industries.... Morales's declaration was clearly spurred
by fellow leftist Venezuelan President Chavez, who relies
on his country's oil exports to provide backing for his
continuing anti-American performance.... In mid-May,
Ecuador began seizing oil fields managed by major US oil
firms....
2. "In the short term, nationalization will bring a huge
increase in revenues to nations rich in natural
resources. Doing so is an attractive option for
policymakers looking for an easy way to stimulate a
sluggish economy. Nevertheless, the side effects are
significant. In the mid- to long term, the flight of
foreign capital and technology will stifle development
and lower productivity.... As China has become a major
oil consumer, its procurement of petroleum supplies is
now one of Beijing's national strategic goals. China has
made inroads into Venezuela, which accounts for about 60
percent of global oil exports to the US. The Chavez
regime, which is looking to diversify its customer base,
plans to triple its exports to China this year."
SCHIEFFER
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: MEDIA REACTION OIL AND GAS NATIONALIZATION -
TOKYO
LEAD STORIES: Tuesday's business daily Nihon Keizai front-
paged an interview with World Bank President Wolfowitz
Monday in Tokyo, during which he called for an
international conference on reconstruction assistance for
Iraq.
1. "Market Concerned About Nationalization of Oil and Gas
Resources in Latin America" The top-circulation, moderate
Yomiuri editorialized (5/28): "There is a new cause for
concern in the international oil market, which is
currently seeing high prices, and that is the moves in
Latin America to nationalize oil and natural gas
resources. Japan needs to keep a close watch on how this
will affect the international competition for resources.
On May 1, Bolivian President Morales declared the
nationalization of his country's oil and natural gas
industries.... Morales's declaration was clearly spurred
by fellow leftist Venezuelan President Chavez, who relies
on his country's oil exports to provide backing for his
continuing anti-American performance.... In mid-May,
Ecuador began seizing oil fields managed by major US oil
firms....
2. "In the short term, nationalization will bring a huge
increase in revenues to nations rich in natural
resources. Doing so is an attractive option for
policymakers looking for an easy way to stimulate a
sluggish economy. Nevertheless, the side effects are
significant. In the mid- to long term, the flight of
foreign capital and technology will stifle development
and lower productivity.... As China has become a major
oil consumer, its procurement of petroleum supplies is
now one of Beijing's national strategic goals. China has
made inroads into Venezuela, which accounts for about 60
percent of global oil exports to the US. The Chavez
regime, which is looking to diversify its customer base,
plans to triple its exports to China this year."
SCHIEFFER