Identifier
Created
Classification
Origin
07SEOUL217
2007-01-23 07:54:00
CONFIDENTIAL
Embassy Seoul
Cable title:  

POLICY PLANNING TRILATERAL, SESSION 2: ENERGY

Tags:  ENRG PREL AORC KUNR KPKO KS JA US 
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VZCZCXYZ0018
OO RUEHWEB

DE RUEHUL #0217/01 0230754
ZNY CCCCC ZZH
O 230754Z JAN 07
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2495
INFO RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 1912
RUEHKO/AMEMBASSY TOKYO IMMEDIATE 2014
RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0378
RHEHNSC/NSC WASHINGTON DC IMMEDIATE
C O N F I D E N T I A L SEOUL 000217 

SIPDIS

SIPDIS

FOR S/P, EAP/K AND EAP/J

E.O. 12958: DECL: 01/11/2017
TAGS: ENRG PREL AORC KUNR KPKO KS JA US
SUBJECT: POLICY PLANNING TRILATERAL, SESSION 2: ENERGY
SECURITY, PEACEBUILDING, AND UN REFORM

REF: SECSTATE 882

Classified By: ECON MINCOUNS ANDREW QUINN, REASONS 1.4 (B) AND (D).

SUMMARY
-------

C O N F I D E N T I A L SEOUL 000217

SIPDIS

SIPDIS

FOR S/P, EAP/K AND EAP/J

E.O. 12958: DECL: 01/11/2017
TAGS: ENRG PREL AORC KUNR KPKO KS JA US
SUBJECT: POLICY PLANNING TRILATERAL, SESSION 2: ENERGY
SECURITY, PEACEBUILDING, AND UN REFORM

REF: SECSTATE 882

Classified By: ECON MINCOUNS ANDREW QUINN, REASONS 1.4 (B) AND (D).

SUMMARY
--------------


1. (C) S/P Director Dr. Stephen Krasner and his delegation
met with Korean and Japanese counterparts January 10-11 for a
trilateral policy planning dialogue (ref a). Over lunch on
January 11, the three delegations discussed energy security,
peacebuilding, and UN reform. Both Korea and Japan,
dependent on oil from Iran, expressed concern about the
potential for supply disruptions, but Japan said it continues
to hope for a constructive Iranian response to recent
sanctions on its nuclear program. Japan noted that a Japanese
company has abandoned a major oil exploration project in
Iran, and hoped that other countries would not step in and
take its place -- a comment possibly aimed at Korea. Dr.
Krasner pointed out that efforts by China and other players
to sew up sources of oil will not provide an effective shield
in case of a supply disruption affecting the global oil
market.


2. (C) On peacebuilding, Japan pointed to the need for
qualified civilian personnel and said it planned to start a
training institute, to which it hoped one day to be able to
invite Korean participants. Korea pointed to the need to
educate the public to support increased global peacekeeping
commitments. Dr. Krasner suggested that there may be a need
to augment peacebuilding capacity, now centered in the United
Nations, through NATO or other organizations, and discussed
the difficulties the U.S. has encountered to obtain funding
for building up post-conflict reconstruction and
stabilization capacity.


3. (SBU) Japan asserted that UN Security Council reform is a
top priority for Prime Minister Abe, along with revising the
Japanese constitution. Dr. Krasner stated U.S. willingness
to add one or two new permanent members but concern about
making the Council unwieldy by adding too many new members.

Korea expressed gratitude for U.S. and Japanese support for
the election of former Korean Foreign Minister Ban Ki-moon as
UN Secretary General. The U.S. expressed strong
disappointment in the direction taken by the new Human Rights
Council. End summary.

ENERGY SECURITY
--------------


4. (U) Acting as chair for the session, Japanese Deputy Vice
Minister Masaharu Kono introduced the energy security topic
by pointing out that Japan is dependent on external sources
of energy for 84 percent of total consumption. In the case
of oil, that figure is 99.7 percent. In contrast, the U.S.
imports 32 percent of its total consumption, Kono asserted.
(Comment: Korea imports 96.4 percent of its total energy
consumption. End comment.)


5. (C) Kono listed the following as elements of Japanese
policy related to its dependence on energy supplies from the
Middle East and elsewhere:
-- Engagement in Iraq, Afghanistan, in the war against
terrorism, and in efforts for Middle East peace -- though
Japan feels it has little leverage on the latter;
-- Major preoccupation with Iran's nuclear program, tempered
by dependence on Iran for 15 percent of Japan's oil
consumption;
-- Concern to protect the sea lanes between the Middle East
and Japan, including working with ASEAN nations to combat
piracy;
-- New efforts to reach out to Africa, partially to secure
access to energy;
-- Efforts to build links to Central Asian energy suppliers;
-- Confronting China's claims to East China Sea resources;
-- Working with Russia on Siberian gas;
-- Improving Chinese and Russian energy efficiency using
Japanese technologies, to reduce the misuse of limited
resources. Kono asserted that Japanese energy use is 10
times as efficient as China and 20 times as efficient as
Russia;
-- Diversifying the sources of energy used in Japan, for
example by expanding the use of nuclear power;
-- Accommodating the expansion of nuclear power to the
requirements of the NPT and the effort to constrain Iran's
nuclear program.


6. (C) Korean Deputy Minister for Policy Planning and
International Organization Park In-kook commented that 75
percent of Korea's oil supplies pass through the straits of
Hormuz (with more than 15 percent originating from Iran),
making diversification of supply an urgent matter. Korea has
therefore undertaken initiatives to engage African, Middle
Eastern, and Central Asian countries. On expanding the use of
nuclear energy, Park argued that the IAEA should put out
"food for thought" on the fuel cycle issue, which needs to be
"revisited."


7. (C) Dr. Krasner pointed out that all energy importers are
dependent on the stability of the global market, and all are
affected equally by shortfalls in supply. Mercantilistic
efforts to sew up sources of supply are useless, and may lead
to results such as China undermining efforts to improve
governance in Sudan and Chad. Another growing concern for the
U.S. is Russia's evident willingness to forgo its reputation
as a reliable supplier for short-term gains. Iran's failure
to invest in its energy sector, coupled with increasing
domestic demand, could eliminate its ability to supply the
global market as early as 2015, according to one
recently-published academic analysis. Key elements of U.S.
policy are therefore diversification of supply, in terms both
of kinds of energy and of geographic sources, and
conservation. To promote diversification of kinds of energy,
the U.S. has multiple initiatives under way, including the
Global Nuclear Energy Partnership (GNEP),the International
Thermonuclear Experimental Reactor (ITER),and programs in
the areas of clean coal, biofuels, and wind and other
renewables. Dr. Krasner pointed out that government direction
may be needed where the market may be slow to move, citing as
an example the cooperation between Brazil and the U.S. to
increase production of biofuels in Central America and the
Caribbean.


8. (SBU) Responding to a Korean query, Deputy Vice Minister
Kono welcomed Korean and U.S. participation in talks with
ASEAN on protecting sea lanes, pointing out that piracy is on
the agenda of the ASEAN Regional Forum (ARF). He announced
that Japan will host a regional antiterrorism seminar this
spring and invited participation. Noting that Japan, China
and Korea have all reached out separately to Africa, Kono
expressed hope that the three countries could eliminate
duplication by cohosting a North Asia/Africa forum.


9. (C) Kono commented that the system of national reserves
helped to stabilize the market during Hurricane Katrina, and
may be needed again in case of additional sanctions or other
disruptions in Iranian supply. Asked by Korea to elaborate,
Kono said that Japan remains optimistic that Iran can be
persuaded to take positive steps and does not expect major
new Security Council sanctions. The unity of the
international community is key. A Japanese company has
already given up a major oil exploration project under way
with Iran, and, Kono added, Japna hoped that no other country
or company would step in to take its place (a comment that
may have been aimed at Korea).

PEACEBUILDING
--------------


10. (SBU) Turning to peacekeeping/peacebuilding, Kono noted
that Japan is a latecomer, its contribution to peacekeeping
in Cambodia having been its first. One problem is therefore
the lack of experienced Japanese nationals. Japan plans to
address this by starting up a training institute. Though
Kono expressed the hope that Japan could eventually invite
Korean participation as well, he said that persuading the
Japanese government of the need for such training remained an
ongoing process. Kono noted that the Japanese Self Defense
Force has recently been converted into a Defense Ministry,
and said its primary mission will be peacebuilding.


11. (SBU) Deputy Minister Park noted that Korea has only
30-40 staff involved in peacebuilding. It has now decided to
join UNIFIL with a 350-man contingent. It will need to
educate the public to win support for such enhanced
involvement.


12. (SBU) Dr. Krasner agreed on the need for training, but
pointed out that there are other needs, such as the airlift
assistance needed by Indonesia to be able to participate in
Lebanon. While foreseeing that the UN would continue to play
the major role, he suggested that there may be a need for
NATO or other organizations to have a stepped-up role. He
noted the difficulties the U.S. has had in finding funding

for building up a civilian capacity to manage post-conflict
stabilization and reconstruction.

UN REFORM
--------------


13. (SBU) Both Japan and the U.S. congratulated Korea on the
election of former Foreign Minister Ban Ki-moon as Secretary
General. DVM Kono stated that Security Council reform is a
top priority for Prime Minister Abe, along with revision of
the post-war constitution. He expressed the hope that the
close U.S.-Japanese coordination on the reform of the budget
and the secretariat evident early in 2006 would continue.


14. (C) Deputy Minister Park requested continued support for
Ban and his reform platform, saying that strong support will
be needed because of diverging views between developed and
developing countries. He argued that though the U.S. has
reservations about the Human Rights Council, the Council is
on the track toward reform, and that the U.S. should join the
body to help steer it.


15. (SBU) Dr. Krasner said the U.S. supports adding up to two
new permanent UNSC members, but is wary of a major expansion
that could make the body's decisionmaking unwieldy. He said
the U.S. is guardedly optimistic on UN management reform, but
has been very disappointed with the pattern established by
the new Human Rights Council of focusing heavily on Israel.
In that area, he said, reform has failed. The Council's
trajectory has been very negative, and that needs to be
addressed, he concluded.


16. (U) The delegation approved this cable.

STANTON