Identifier
Created
Classification
Origin
07TOKYO372
2007-01-26 07:53:00
CONFIDENTIAL
Embassy Tokyo
Cable title:  

S/P DIRECTOR KRASNER DISCUSSES PARTNERSHIP FOR

Tags:  PREL EAID KDEM OECD JA 
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ZNY CCCCC ZZH
P 260753Z JAN 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0133
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION PRIORITY
RUEHSS/OECD POSTS COLLECTIVE PRIORITY
RHMFISS/COMUSJAPAN YOKOTA AB JA PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 TOKYO 000372 

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NSC FOR DR. INBODEN

E.O. 12958: DECL: 01/25/2017
TAGS: PREL EAID KDEM OECD JA
SUBJECT: S/P DIRECTOR KRASNER DISCUSSES PARTNERSHIP FOR
DEMOCRATIC GOVERNANCE WITH JAPANESE MOFA


Classified By: Charge d'Affaires W.Michael Meserve for reasons 1.4(b) a
nd (d)

C O N F I D E N T I A L SECTION 01 OF 03 TOKYO 000372

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NSC FOR DR. INBODEN

E.O. 12958: DECL: 01/25/2017
TAGS: PREL EAID KDEM OECD JA
SUBJECT: S/P DIRECTOR KRASNER DISCUSSES PARTNERSHIP FOR
DEMOCRATIC GOVERNANCE WITH JAPANESE MOFA


Classified By: Charge d'Affaires W.Michael Meserve for reasons 1.4(b) a
nd (d)


1. (C) SUMMARY: Meeting with S/P Director Dr. Stephen
Krasner on January 12, Japanese Foreign Ministry Deputy
Director General for International Cooperation Hiroshi Fukada
welcomed the possible participation of the OECD in the
Partnership for Democratic Governance initiative. He noted
that housing the initiative as an OECD Part 2 organization,
along with possible endorsement of the initiative by the OECD
Ministers' Meeting or at the G-8 Summit, would improve the
prospects of securing Japanese funding for the initiative.
Fukada expressed caution, however, about the potential for a
negative reaction of possible developing country participants
in the initiative to the emphasis on the term "democracy."
END SUMMARY.


2. (SBU) MOFA Deputy Director General for International
Cooperation Hiroshi Fukada opened the January 12 meeting with
Dr. Krasner by noting that he had met recently with a number
of visitors from Washington, including EAP Deputy Assistant
Secretary Eric John, SCA Deputy Assistant Secretary Evan

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Feigenbaum, and EB Assistant Secretary Dan Sullivan. He and
DAS John had discussed possible U.S.-Japan trilateral
cooperation with ASEAN, particularly in the areas of human
trafficking and avian influenza. During Feigenbaum's
meetings, there had also been agreement regarding the concept
of assistance to strengthen border security in Central Asian
countries along with the possibility of inviting the European
Union into follow up discussions on economic cooperation.
Assistant Secretary Sullivan,s meeting, Fukada said,
centered on follow up to the Strategic Development Alliance
with respect to focusing on certain countries, notably
Pakistan.


3. (SBU) Dr. Krasner indicated he was exploring how to
operationalize the ideas set out by Japanese Foreign Minister
Taro Aso in a recent speech on the "arc of freedom and
prosperity" and suggested that perhaps the Partnership for

Democratic Governance (PDG) was one such approach. Offering
an update on the Partnership for Democratic Governance (PDG)
initiative, Dr. Krasner said that he was quite confident that
the State Department would provide USD 1 million in funding
at the present time and was seeking USD 5 million on an
ongoing basis. He also stressed his discussions with the
OECD had gone very well and that OECD Secretary-General Angel
Gurria intended to take a proposal to launch a needs
assessment regarding OECD participation in the PDG to the
OECD Council as early as February. Dr. Krasner added that a
number of countries had expressed interest in the initiative
including India, UK, France, Germany, Australia, Canada, and
Hungary. Having a developing country like India take part,
he emphasized, was particularly important. He noted that the
initiative had also been discussed with the OAS and the AU.

--------------
Japan Welcomes Possible OECD Involvement
--------------


4. (C) Fukada was very pleased at the possibility of OECD
involvement in the initiative, noting that such a development
would facilitate potential Japanese funding. Dr. Krasner
indicated that the initiative would be fall under the OECD
umbrella as a "Part 2" organization, which would allow the
participation of non-member countries. Dr. Krasner also
stressed that it was hoped that the OECD would also cooperate
with the UN Development Program (UNDP) on the initiative.
UNDP field staff, he explained, could assist in identifying
certain needs under the initiative.


5. (SBU) Fukada emphasized that the initiative would be
best channeled through the OECD's Center for Cooperation with
Non-Members (CCNM). Japan had already provided funding to
the Center, he added. Fukada also raised the UN Democracy
Fund, noting that the Japanese Foreign Ministry had secured
USD 10 million in funding from the recently passed 2006
Supplemental Budget for that U.S.-sponsored initiative as
well. It would be necessary, he stressed, for the United
States to clarify the difference between the UN Democracy
Fund and the PDG if it wants to gain more Japanese funding
for the latter.

--------------
Differences with UN Democracy Fund

TOKYO 00000372 002 OF 003


--------------


6. (SBU) The UN Democracy Fund, Dr. Krasner observed, would
focus most on civil society development. Democratic
governance involved three main elements: elections, civil
society, and institutions. The PDG would serve as a tool to
develop institutions, perhaps the biggest challenge at
present, Dr. Krasner said. It would only be successful in
this regard, however, if political leaders in the target
countries were willing to use it as such. That was one
reason, Dr. Krasner stressed, that the United States hoped
for co-financing with PDG participating countries as a way of
clearly demonstrating political support by the recipients.
In addition, although similar initiatives to date had put
great stress on training, more was need, Dr. Krasner noted.


7. (C) Fukada emphasized that OECD participation in the PDG
would probably need the endorsement of the organizations
ministerial meeting to be held in May. Dr. Krasner
reiterated that OECD Secretary-General would probably put a
proposal for a needs assessment before the OECD Council in
February, but added that the United States did not expect
that all OECD member states would necessarily sign up to the
initiative. Fukuda asked whether the PDG would also be added
as an issue for the G-8 Summit, to which Dr. Krasner replied
that there are currently no plans to do so. According to Dr.
Krasner, even though the Germans, who are hosting the 2007
summit, had been briefed on the PDG, they seem to have
largely dropped rule of law and related issues from the
summit agenda.

-------------- --------------
Japan Would Like OECD Ministers, G-8 Endorsement of PDG
-------------- --------------


8. (C) Fukada stressed that the Japanese would prefer to
use forums like the OECD Ministers Meeting and the G-8 to
gain top-level endorsement of proposals like the PDG as a way
to garner support internally within the Japanese Government.
Fukada also noted that many possible participating countries
in the initiative would have an "allergic response" to its
use of the term "democracy" in its title. Dr. Krasner
indicated that the nomenclature would have to be decided by
the participants. The main point, however, was that the OECD
should be part of a unified initiative; there should not be
two tracks. Other questions, Dr. Krasner acknowledged, also
had yet to be resolved, such as whether there ought to be
governance qualifications on countries that went to the OECD
Secretarial looking to participate.

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9. (C) Fukada replied that he would check further into the
possibility of OECD's participation, including contacting the
head of the CCNM who is Fukuda's personal friend. Fukuda
also indicated he would coordinate with the Japan
International Cooperation Agency. He strongly emphasized the
need for speed in obtaining senior-level endorsement for the
initiative at the OECD.

--------------
Caution on Asia-Pacific Partnership Idea
--------------


10. (C) NSC Senior Director Inboden briefly gave an
overview of the idea of an Asia-Pacific Democracy Partnership
(APDP) that would coordinate existing projects in the region
focusing on democracy and good governance. This proposal,
Inboden stressed, could fit well with the concept of the "arc
of freedom and prosperity" recently put forward by Japanese
Foreign Minister Aso. While indicating that the Japanese
would consider the proposal, Fukada expressed great caution
about having too much focus on a specific "area." This posed
a particular danger of enflaming debate over definitions of
"democracy" and provoking a negative reaction from many
countries in the region. For their part, the Japanese had
even had an acrimonious debate with the South Koreans about
how to define democracy, Fukada noted. Dr. Inboden replied
that the APDP would focus on responding to countries in the
region like East Timor that were looking to develop
democratic institutions and would largely just take advantage
of activities other donor countries already had in place.
Some developing countries that had already undergone a
democratic transition such as Mongolia might also be in a
position to contribute to the APDP, Dr. Inboden noted.


TOKYO 00000372 003 OF 003


-------------- --------------
Japanese Support for Governance, Democracy Already Significant
-------------- --------------


11. (SBU) MOFA Aid Policy Planning Division Director Naoki
Ito passed out a paper showing various Japanese government
projects on governance already underway. According to Ito,
the Foreign Ministry had spent USD 120 million during JFY
2005 (April 2005-March 2006) on democracy projects. It noted
that the categories of these projects fit well with the
topics covered in Dr. Inboden's APDP proposal. In
particular, the Japanese had funded a substantial amount of
training aimed at improving governance. Dr. Inboden
acknowledged that the Japanese activities corresponded well
to the APDP priorities. Director Ito also mentioned that
MOFA,s grassroots grants, which are administered by Japan's
embassies but approved by MOFA headquarters, also strengthen
democratic institutions, e.g., local NGOs, local authorities
and civic organizations. MOFA funds approximately USD 160
million grassroots grants each year, Ito noted.


12. (SBU) NOTE: In a separate meeting earlier in the day,
Deputy Director General for Foreign Policy Yasumasa Nagamine
cautioned Dr. Krasner that while the PDG concept sounds
interesting, in general the Japanese prefer to invest their
ODA funds in "national flag up" projects in which recipient
nations clearly recognize who (Japan) is coming to their
assistance. This is because Japan's first priority in
granting ODA is to advance its own foreign policy and
national interests. In addition, Japan continues to view the
issue of sovereignty as important. It is therefore less
likely to want to become involved in assistance projects that
involve non-governmental, private, or international
organizations, rather than national governments. For these
reasons, Nagamine cautioned that the PDG concept might be a
hard sell with parts of the Japanese bureaucracy. END NOTE.



13. (SBU) Participants:

Japanese Participants
--------------

Hiroshi Fukada
Deputy Director General
International Cooperatiion Bureau, MOFA

Naoki Ito
Director, Aid Policy Planning Division, MOFA

U.S. Participants
--------------

Stephen Krasner
Director, Policy Planning Staff, State Department

William Inboden
Senior Director for Policy Planning, NSC

James Green
Policy Planning Staff, State Department

Charles Aanenson
AID Counselor, Embassy Tokyo

Evan Reade
First Secretary, Embassy Tokyo

Chris Wurzel
First Secretary, Embassy Tokyo (notetaker)


14. (U) This cable was cleared by S/P Director Krasner.
MESERVE