CUBA: JAPAN RESPONSE TO LIBERTAD ACT QUESTIONS

C O N F I D E N T I A L TOKYO 006889 SIPDIS SIPDIS DEPT FOR WHA/CCA E.O. 12958: DECL: 12/07/2016 TAGS: ETRD ETTC PREL JA CU SUBJECT: CUBA: JAPAN RESPONSE TO LIBERTAD ACT QUESTIONS REF: STATE 191752 Classified By: Economic Minister Counselor Hans G. Klemm for reasons 1. 4 b, d (C) In response to reftel request, Emboffs met on December 4 with Ministry of Economy, Trade and Industry (METI) Assistant Director for Latin America and Caribbean Office Yusuke Suzuki and on December 5 with MOFA Mexico and Central America Division Principal Deputy Director Daisuke Nakano to discuss Japan-Cuba economic relations. Below are answers to specific questions raised reftel. Q: What is the nature of investments (and names, if known) that host country businesses have in Cuba? A: There has been no reported Japanese direct or portfolio investment in Cuba in the past six months. (Note: The MOF reporting threshold for foreign investment is Y100 million (approx. $874,000). Any investment below this threshold is not included in the Balance of Payments Statistics.) Q: Are there any bilateral trade agreements between host country and Cuba? A: The Japan-Cuba Trade Agreement of 1960. Japan has no plans for new economic agreements with Cuba. Japanese exports to Cuba have grown sharply in recent years reaching JPY 19.2 billion (approximately USD 164 million) in 2005 up from JPY 3.5 billion in 2002. Over the same period, Japan's imports from Cuba were more stable reaching JPY 3.4 billion (USD 25 million) in 2005. Two-way trade is down for 2006 with exports of JPY 12.1 billion (USD 104 million) and imports of JPY 1.75 billion (USD 15.2 million) in the first 10 months of 2006 (USD 1= JPY 116.) According to Suzuki, about half of all exports are electronic equipment but the fastest growing sector is medical equipment, which has shown solid increases while other products were flat or declined slightly. On the import side, shrimp constitute the single largest import segment. According to Suzuki, Japanese companies are interested in increasing their purchases of Cuban nickel but have hesitated to do so given the continuing political uncertainty. The Cuban embassy in Tokyo has a biannual trade promotion event which Japanese officials usually attend but do not formally participate. Q: Are there any exchange programs between host country and Cuba? A: There are no official exchange programs. Cuban academics occasionally visit Japan and vice versa, but these trips do not involve government programs. Q: Has the host country, in Post's opinion, worked to promote the advancement of democracy and human rights in Cuba? A: Yes. Japan votes in favor of U.S.-backed resolutions condemning human rights abuses there every year, and supports civil society in Cuba through its Mission in Havana. Japan also held a "Dialogue on Human Rights" with Cuba twice, in October 2001 and May 2003. Japan regularly urges Cuba to implement reforms during high-level diplomatic visits. Q: Have there been any high-level diplomatic visits between Cuba and host country in the past six months? A: There have been three major high-level visits. In August, a group of Upper House parliamentarians visited Havana to &build friendship8 with the government of Cuba. Japan also sent five representatives including Parliamentary Vice Minister for Foreign Affairs Kiyohiko Toyama to the Non-Aligned Movement summit in Havana in September 2006. Cuban Vice Minister Marcos Rodriguez met with Japan Foreign Minister Aso in November as part of the annual Japan-Cuba policy dialogue. SCHIEFFER