Identifier
Created
Classification
Origin
06TOKYO800
2006-02-14 10:12:00
SECRET
Embassy Tokyo
Cable title:
PREVENTING USE OF THE DPRK AS A FLAG OF CONVENIENCE
how-toVZCZCXRO6221 OO RUEHFK RUEHKSO DE RUEHKO #0800 0451012 ZNY SSSSS ZZH O 141012Z FEB 06 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC IMMEDIATE 8639 INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 0586 RUEHSW/AMEMBASSY BERN PRIORITY 1765 RUEHBY/AMEMBASSY CANBERRA PRIORITY 1524 RUEHLO/AMEMBASSY LONDON PRIORITY 1418 RUEHMO/AMEMBASSY MOSCOW PRIORITY 0866 RUEHFR/AMEMBASSY PARIS PRIORITY 4856 RUEHUL/AMEMBASSY SEOUL PRIORITY 6777 RUEHGP/AMEMBASSY SINGAPORE PRIORITY 6494 RUEHWL/AMEMBASSY WELLINGTON PRIORITY 0839 RUEHFK/AMCONSUL FUKUOKA PRIORITY 4606 RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 7681 RUEHKSO/AMCONSUL SAPPORO PRIORITY 5809 RUEAIIA/CIA WASHDC PRIORITY RHMFISS/COMUSJAPAN YOKOTA AB JA PRIORITY RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY RHEHAAA/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY
S E C R E T TOKYO 000800
SIPDIS
SIPDIS
DEPARTMENT PLEASE PASS TO EAP/FO, ISN/FO AND ISN/WMDT
RUGGIERO
E.O. 12958: DECL: 02/13/2016
TAGS: PARM PREL MNUC KNNP EWWT PHSA KN JA
SUBJECT: PREVENTING USE OF THE DPRK AS A FLAG OF CONVENIENCE
REF: A. STATE 22855
B. STATE 204250
C. TOKYO 006357
D. WELLINGTON 000900
Classified By: POLITICAL MINISTER COUNSELOR W. MICHAEL MESERVE. REASON
S 1.4 (b),(d).
S E C R E T TOKYO 000800
SIPDIS
SIPDIS
DEPARTMENT PLEASE PASS TO EAP/FO, ISN/FO AND ISN/WMDT
RUGGIERO
E.O. 12958: DECL: 02/13/2016
TAGS: PARM PREL MNUC KNNP EWWT PHSA KN JA
SUBJECT: PREVENTING USE OF THE DPRK AS A FLAG OF CONVENIENCE
REF: A. STATE 22855
B. STATE 204250
C. TOKYO 006357
D. WELLINGTON 000900
Classified By: POLITICAL MINISTER COUNSELOR W. MICHAEL MESERVE. REASON
S 1.4 (b),(d).
1. (U) This is an action request. Please see para 4.
2. (S) While in Tokyo to participate in the Asian Senior
Level Talks on Nonproliferation (ASTOP III),ISN PDAS Frank
Record raised the points contained in reftel A nonpaper with
MOFA Northeast Asia Division Director Naoki Ito. Ito
responded by stating that Japan shares our concern that North
Korean flagged vessels be required to have legitimate P&I
insurance issued by reputable insurers. He stated that the
Maritime Mutual Insurance Association New Zealand (MMIA)
currently insures ten DPRK registered vessels and that all
ten policies will expire by the end of July. (Note: As
reported reftel C, MMIA has stated that it will no longer
insure North Korean vessels after those policies expire).
3. (S) South of England Protection and Indemnity Associated
(SEPIA),on the other hand, currently insures 75 DPRK vessels
and that number is rising, Ito said. He added that under
existing Japanese law, Japan accepts as valid any
"Certificate of Insurance or Other Financial Guarantee
Regarding Civil Liability for Oil Pollution Damage (CLC)"
issued by CLC signatory countries; certification that SEPIA
has properly obtained. Ito warned the policies currently
issued by SEPIA to the 75 DPRK vessels must be renewed by
mid-March and that if the Japanese government does not
intervene by that time, those vessels will be insured for
another year.
4. (S) ACTION REQUEST: MOFA requests that the U.S.
Government provide as soon as possible any and all
information we have on SEPIA that lead us to believe it is
not a legitimate P&I insurer so the Japanese government can
take informed and appropriate action before the March
deadline for SEPIA to renew these P&I policies.
5. (S) Director Ito informed PDAS Record that Japan will
require (in compliance with the CLC),a significant increase
in P&I insurance as of August 1, 2006. Under this
requirement, insurance for the DPRK ferry Mangyongbong 92
will increase from its current level of USD 60,000 per year
to USD 130,000, Ito said. He pointed out that the insurance
requirement has already reduced the amount of bilateral trade
between Japan and the DPRK. According to Ito, there were 770
total DPRK ship visits to Japan in 2005, down from 1,344 port
calls in 2002. He also pointed out that at the beginning of
the decade, China, Japan and the ROK each conducted
approximately USD 400 million in annual trade with the DPRK.
Last year, however, (after the P&I requirement went into
effect) Japan-DPRK trade dropped to less than USD 200
million, and now accounts for only 5.8 percent of total DPRK
trade.
SCHIEFFER
SIPDIS
SIPDIS
DEPARTMENT PLEASE PASS TO EAP/FO, ISN/FO AND ISN/WMDT
RUGGIERO
E.O. 12958: DECL: 02/13/2016
TAGS: PARM PREL MNUC KNNP EWWT PHSA KN JA
SUBJECT: PREVENTING USE OF THE DPRK AS A FLAG OF CONVENIENCE
REF: A. STATE 22855
B. STATE 204250
C. TOKYO 006357
D. WELLINGTON 000900
Classified By: POLITICAL MINISTER COUNSELOR W. MICHAEL MESERVE. REASON
S 1.4 (b),(d).
1. (U) This is an action request. Please see para 4.
2. (S) While in Tokyo to participate in the Asian Senior
Level Talks on Nonproliferation (ASTOP III),ISN PDAS Frank
Record raised the points contained in reftel A nonpaper with
MOFA Northeast Asia Division Director Naoki Ito. Ito
responded by stating that Japan shares our concern that North
Korean flagged vessels be required to have legitimate P&I
insurance issued by reputable insurers. He stated that the
Maritime Mutual Insurance Association New Zealand (MMIA)
currently insures ten DPRK registered vessels and that all
ten policies will expire by the end of July. (Note: As
reported reftel C, MMIA has stated that it will no longer
insure North Korean vessels after those policies expire).
3. (S) South of England Protection and Indemnity Associated
(SEPIA),on the other hand, currently insures 75 DPRK vessels
and that number is rising, Ito said. He added that under
existing Japanese law, Japan accepts as valid any
"Certificate of Insurance or Other Financial Guarantee
Regarding Civil Liability for Oil Pollution Damage (CLC)"
issued by CLC signatory countries; certification that SEPIA
has properly obtained. Ito warned the policies currently
issued by SEPIA to the 75 DPRK vessels must be renewed by
mid-March and that if the Japanese government does not
intervene by that time, those vessels will be insured for
another year.
4. (S) ACTION REQUEST: MOFA requests that the U.S.
Government provide as soon as possible any and all
information we have on SEPIA that lead us to believe it is
not a legitimate P&I insurer so the Japanese government can
take informed and appropriate action before the March
deadline for SEPIA to renew these P&I policies.
5. (S) Director Ito informed PDAS Record that Japan will
require (in compliance with the CLC),a significant increase
in P&I insurance as of August 1, 2006. Under this
requirement, insurance for the DPRK ferry Mangyongbong 92
will increase from its current level of USD 60,000 per year
to USD 130,000, Ito said. He pointed out that the insurance
requirement has already reduced the amount of bilateral trade
between Japan and the DPRK. According to Ito, there were 770
total DPRK ship visits to Japan in 2005, down from 1,344 port
calls in 2002. He also pointed out that at the beginning of
the decade, China, Japan and the ROK each conducted
approximately USD 400 million in annual trade with the DPRK.
Last year, however, (after the P&I requirement went into
effect) Japan-DPRK trade dropped to less than USD 200
million, and now accounts for only 5.8 percent of total DPRK
trade.
SCHIEFFER