JAPAN DENIES PRESS REPORTS OF AID TO PALESTINIAN

C O N F I D E N T I A L TOKYO 002161 SIPDIS SIPDIS E.O. 12958: DECL: 05/13/2017 TAGS: PREL EAID KPAL JA SUBJECT: JAPAN DENIES PRESS REPORTS OF AID TO PALESTINIAN AUTHORITY Classified By: Charge d'Affaires Joe Donovan for reason 1.4(b) and (d) ¶1. (SBU) MOFA categorically denies a May 10 Yomiuri Shimbun report that Japan is planning to resume Overseas Development Assistance (ODA) to the Palestinian Authority (PA),according to MOFA First Middle East Division Director Hideo Sato. Sato called in Embassy Tokyo political officer on May 14 and informed him there is "no truth" to the story and that MOFA is "embarrassed, confused, and doesn't know where this information came from." He firmly reiterated Japan has made no decision to resume direct assistance to the PA. Sato's denial of a plan to resume aid to the PA tracks with what Embassy Tokyo's AID Counselor was told by the International Cooperation Bureau earlier. ¶2. (SBU) With regard to the story's assertion that a MOFA official will be dispatched to the region in June, Sato confirmed that this is the case, but that the official's mission is related to Japan's Corridor for Peace and Prosperity (CPP) initiative, has been planned since March, and has nothing to do with the resumption of assistance to the PA. The official will meet with Palestinians to talk about the CPP, but aid to the PA will not be discussed. ¶3. (C) Sato stressed that since Hamas came to power Japan has not given one penny in direct assistance to the PA. All assistance to the Palestinians since then has been channeled through international organizations and has been intended to bolster Abu Mazen and other moderate elements. For example, Japan is funding, through the UNDP, a project to build a new office for Abu Mazen. Japan is, Sato said, considering ways in which it can channel assistance directly to the President's office, without having to go through international organizations. This would entail exchanging notes with President Abbas or his advisors, and would not go through the PA. However, Sato again stressed no decision has been made to do this yet. ¶4. (C) Japan want to make it clear, Sato said, that it is - like others - waiting to see what course Hamas will take. If Hamas seeks peace and meets the four conditions for the resumption of assistance, Japan will reconsider. But until then, Tokyo will not provide assistance to the PA. MOFA is particularly concerned that its policy be known as it has begun to receive calls from Congressional staffers indicating some members of Congress are preparing a letter of protest. ¶5. (C) Palestinian Foreign Minister Ziad Abu Amr has been invited to visit Tokyo in June, Sato confirmed. Sato stressed that he is an independent not affiliated with Hamas, and that Japan agrees with Israeli Foreign Minister Livni, who said during her visit to Tokyo in January that it is important to support moderate Palestinians in their struggle against more extremist elements. Japan also believes it is very important to maintain direct channels to the PA while keeping away from Hamas. DONOVAN