Identifier
Created
Classification
Origin
07TOKYO2306
2007-05-23 07:53:00
CONFIDENTIAL
Embassy Tokyo
Cable title:  

METI MINISTER'S VISIT TO CENTRAL ASIA, MIDDLE EAST

Tags:  PREL ECON ETRD ENRG XF EG KUNC QA SA AEMR JA 
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C O N F I D E N T I A L SECTION 01 OF 04 TOKYO 002306 

SIPDIS

SIPDIS

DEPT FOR SCA DAS FEIGENBAUM. PARIS FOR OECD. DOE PLEASE
PASS TO DPUMPHREY, JNAKANO. PACOM FOR D. VAUGN.

E.O. 12958: DECL: 05/21/2017
TAGS: PREL ECON ETRD ENRG XF EG KUNC QA SA AEMR JA
SUBJECT: METI MINISTER'S VISIT TO CENTRAL ASIA, MIDDLE EAST
ENERGY-FOCUSED

REF: TOKYO 2269

Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b,d)

C O N F I D E N T I A L SECTION 01 OF 04 TOKYO 002306

SIPDIS

SIPDIS

DEPT FOR SCA DAS FEIGENBAUM. PARIS FOR OECD. DOE PLEASE
PASS TO DPUMPHREY, JNAKANO. PACOM FOR D. VAUGN.

E.O. 12958: DECL: 05/21/2017
TAGS: PREL ECON ETRD ENRG XF EG KUNC QA SA AEMR JA
SUBJECT: METI MINISTER'S VISIT TO CENTRAL ASIA, MIDDLE EAST
ENERGY-FOCUSED

REF: TOKYO 2269

Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b,d)


1. (SBU) Summary: Officials from the Ministry of Economy
Trade and Industry (METI),the Agency for Natural Resources
and Energy (ANRE) and the Ministry for Foreign Affairs (MOFA)
confirmed the success of METI Minister Akira Amari's April 27
- May 5 visit to Central Asia and the Middle East. In
separate discussions officials emphasized increased
cooperation and understanding between Japan and Uzbekistan,
Kazakhstan, Saudi Arabia, and Brunei. The METI official
noted economic disparities between Kazakhstan and Uzbekistan
and lamented the difficulty in helping Saudi Arabia diversify
its economic base while an ANRE bureaucrat was especially
pleased that Amari had the same access to top Saudi leaders
as Prime Minister Shinzo Abe enjoyed on his recent Middle
East trip. Meanwhile, the MOFA official commented on the
importance of Central Asia's uranium and highlighted Japan's
plans to exchange its technology for the mineral. End
summary.

Another Successful Golden Week Visit
--------------


2. (SBU) Ministry of Economy, Trade and Industry (METI) Trade
Policy Bureau Director General Masakazu Toyoda told EMIN that
METI Minister Akira Amari's trip to Central Asia and the
Middle East was "very successful." Amari visited Kazakhstan,
Uzbekistan, Saudi Arabia and Brunei from April 27 to May 5.
The goal for Amari's trip, according to Toyoda, was to
increase the two-way cooperation between Japan and these four
energy-supplying countries. Saudi Arabia and Brunei already
export oil and natural gas to Japan while Japan's
relationship with Kazakhstan and Uzbekistan is less

developed. Former Prime Minister Junichiro Koizumi's visit
to Central Asia in August 2006 gave the relationship a
positive boost forward, Toyoda observed. He added that

TOKYO 00002306 002 OF 004


Central Asia is of great interest to both the United States
and Japan and called for the two countries to cooperate in
the region.

Notable Economic Gap between Kazakhstan, Uzbekistan
-------------- --------------


3. (SBU) Toyoda commented on the economic differences between
Kazakhstan and Uzbekistan, saying that both countries have
had the continuous rule of one president for the past 16
years but that Kazakhstan has enjoyed far greater economic
growth. Toyoda noted the absence of development in
Uzbekistan in contrast to big, new flashy buildings in
Almaty, Kazakhstan. He asserted that Uzbekistan has now
realized the disparity and is seeking Japanese overseas
development assistance (ODA) to address it. Toyoda reported
that Amari told the Uzbekistan government it must look for
ways to improve economic growth and Toyoda believes Tashkent
got the message. Toyoda also commented that Uzbekistan's
regions are in even worse shape than its capital.

Doubts About Reducing Dependence on Hydrocarbons
-------------- ---


4. (SBU) Toyoda reported that Saudi Arabia and Brunei are
looking to diversify away from their heavy economic
dependence on the oil and gas industries and are hoping Japan
will help, which Toyoda asserted is unrealistic. He gave as
an example automobile factories that require large numbers of
smaller nearby companies to supply parts, something the
Middle East lacks. Nevertheless, Japan hopes to deepen
cooperation within the region, he said.

Number of Company Heads on Trip Grew Slowly
--------------


5. (C) Turning to PM Abe's nearly simultaneous visit to the
Gulf region, Toyoda noted that the PM was accompanied on his

TOKYO 00002306 003 OF 004


trip by a group of over 100 businessmen, a number that was
the result of a snowball effect. Originally, few companies
had been interested in going but as the number began to
increase other companies heard about it and wanted to be
included. Toyoda said half the corporate executives who went
were CEOs and sixty percent were making their first trip to
Central Asia and the Middle East. Separately, a Keidanren
source told us the Japanese businessmen only met with Gulf
government officials and struck no commercial deals.

Some Progress on ASEAN EPA
--------------


6. (SBU) Toyoda told EMIN that Amari attended the ASEAN
economic partnership agreement (EPA) meeting in Brunei during
which the members agreed on modalities, skirting the more
contentious issues of product coverage and tariff levels. He
noted that Japan has already agreed an EPA with six of
ASEAN's main members and hopes to complete the one with ASEAN
in August so that the ASEAN leaders can sign it in November.
Toyoda thought the process was moving along more quickly than
it had earlier.

Excellent Access to Saudis
--------------


7. (C) In a separate meeting, METI Agency for Natural
Resources (ANRE) Petroleum and Natural Gas Division Director
Shin Hosaka told Econoff that in addition to meeting with
Prime Minister Shinzo Abe, Saudi King Abdullah and Saudi
Crown Prince Sultan also had met with Amari when he visited a
few days later, which Hosaka said is very unusual. In
particular, Crown Prince Sultan spoke with Amari for over 40
minutes, an indication of Saudi willingness to repair its
relationship with Japan, according to Hosaka (reftel).

Uranium Key Focus in Kazakhstan
--------------

TOKYO 00002306 004 OF 004




8. (C) Ministry of Foreign Affairs Central Asia and Caucasus
Division Director Hideki Uyama also labeled Amari's visit "a
great success," adding that it was an important follow-up to
Koizumi's trip in August 2006, during which Japan and
Kazakhstan agreed to enhance bilateral cooperation in the
peaceful use of nuclear energy, including joint development
of uranium mines. Since then, a number of private Japanese
companies in the nuclear energy business have been actively
negotiating with Kazakh counterparts on possible cooperation
in the development of mines and transport of uranium ore,
according to Uyama. In addition, the Kazakhs are very
interested in acquiring Japanese technology to improve their
uranium processing industry and hope that in the future
Japanese companies will assist them in developing a nuclear
power plant. This latest visit involved a package of items
involving uranium-for-technology trade, Uyama said.

Comment
--------------


9. (C) Toyoda contended that Amari's trip met METI's goal of
increasing cooperation between Japan and the countries he
visited, but the proof of that assertion will lie in the
follow-up. The interest Japan has shown in Central Asia's
uranium and its willingness to trade its technology for the
mineral contrasts with an apparent lack of interest in
trading nuclear know-how for oil and natural gas in the
Middle East and indicates a far greater caution toward the
Middle East than toward Central Asia.
SCHIEFFER