UNSC/IRAN: AMBASSADOR BOLTON MEETS WITH JAPANESE

C O N F I D E N T I A L USUN NEW YORK 000834 SIPDIS SIPDIS E.O. 12958: DECL: 04/24/2011 TAGS: AORC IAEA KNNP JA IR SUBJECT: UNSC/IRAN: AMBASSADOR BOLTON MEETS WITH JAPANESE DG MOTOHIDE Classified By: Ambassador John Bolton for reasons 1.4 (b,d). ¶1. (C) Begin Summary. In an April 13 meeting, Director-General of Middle Eastern and African Affairs at the Japanese MFA Motohide Yoshikawa raised with Ambassador Bolton some of the economic and domestic pressures impacting Japanese government policy on Iran. He asked that U.S. statements not single out Japan's economic exposure to Iran, but also include references to India and China, which have similarly significant economic relationships. Motohide expressed concern about the "P5 plus 1" format for Iran discussions and said domestic criticisms in Japan have resulted. He sought more U.S.-Japanese discussion of Iran in New York and suggested G8 discussion of Iran would highlight Japan's role on the issue. Motohide noted that Japan is the third largest donor to the Palestinians after the U.S. and EU, but not a member of the Quartet and will not necessarily adhere strictly to the Quartet line. End Summary. ¶2. (C) Japan's Economic Interests: Motohide Yoshikawa, Director-General of Middle Eastern and African Affairs at the Japanese MFA, said he had been briefed in Washington on U.S. thinking about Iran, but wanted to share with Ambassador Bolton Japanese domestic concerns vis--vis Iran. He said Japan's economic exposure to Iran is significant. Total trade between the two countries is some $10 billion, and 90% of Japan's oil comes from Iran and the Persian Gulf countries. He regretted this exposure, but said it could not be redressed without nearby sources of oil or until Iraq increases oil exports. He noted some Japanese companies are taking steps to reduce reliance on Iranian oil purchases, but that is a long-term strategy. Motohide asked that U.S. statements on Iran not target Japan, but also include India and China, which have similar levels of economic exposure. ¶3. (C) Ambassador Bolton said the U.S. is concerned about Japan's ability to pressure Iran, given this economic exposure, and he noted the Azadegan oil field development. On the latter point, Motohide said there have been some delays: construction cannot begin until the Iranians finish minesweeping; some of the deal is being renegotiated, since prices of components, especially steel, have gone up, since it was made; and a delay in replacing the Iranian Oil Minister has slowed the functioning of the Ministry. ¶4. (C) Political Role for Japan: Motohide said Japan would support a UNSC Chapter VII resolution or be part of a "coalition of the willing" to pressure Iran, but the government is being criticized at home for not having a seat at the table in the "P-5 plus 1" format that includes Germany, but not Japan. In the government's defense, Motohide said he points to Japan's IAEA Chairmanship, UNSC and G8 membership, and bilateral channels with Tehran, but this is a political problem at home. He suggested a prominent discussion of Iran at the G8 Summit and preparatory meetings would underscore Japan's role. ¶5. (C) Ambassador Bolton said most discussions of Iran in New York had been strictly among the P5, at China's insistence. Germany had only participated in the March 20 Political Directors' meeting in New York and the FMs' meeting in Berlin. He agreed on closer U.S-Japan contacts in New York and said he would keep the Japanese Mission better informed. He acknowledged the broad concerns of the Council's elected members about the closely held drafting process of the PRST, but said given the tough Russian line, more open negotiations would have made concluding the PRST even more difficult. He said Russia has real economic concerns about Iran - the Bushehr plant, additional nuclear plants, and arms sales - and it will be important to assure Russia that no European firms will sweep in and take away Russian business. ¶6. (C) Middle East Peace: Motohide asked why as the third largest contributor to the Palestinians after the U.S. and EU, Japan should follow the Quartet line without being a Quartet participant. He said recent Japanese statements had differed slightly from Quartet statements, and Japan wants some leeway in this regard. He also queried the roles of the Quartet and Jim Wolfensohn following the Hamas electoral victory. Ambassador Bolton said the U.S. government is forbidden to have any contacts with terrorist entities; therefore, the security coordinators will not have contacts with Hamas- led ministries, and the U.S will channel much of its assistance to UNWRA. He anticipated a Quartet meeting in early May and said we would keep Japanese interlocutors posted in the run up to the meeting. BOLTON