JAPAN APPROVES PDG DECLARATION OF PRINCIPALS

C O N F I D E N T I A L TOKYO 004558 SIPDIS SIPDIS FOR S/P JEAN GERAN, JAMES GREENE, AND RICHARD SOKOLSKY E.O. 12958: DECL: 09/27/2017 TAGS: EAID KDEM OAS JA SUBJECT: JAPAN APPROVES PDG DECLARATION OF PRINCIPALS REF: A. TOKYO 3719 ¶B. TOKYO 3831 ¶C. STATE 131040 Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b) and ( d). (C) Embassy Tokyo Political officer delivered reftel demarche September 19 and followed up September 28 with MOFA Aid Policy Planning Division Principal Deputy Director Yukiko Okano. Okano said that Japan agrees with the Declaration of Principals, and will most likely send their Ambassador to the United Nations, Yukio Takasu, to the October 1 rollout. Japan's position on a financial contribution remains unchanged, she said, noting that in 2006 the Cabinet Council on Economic and Fiscal Policy decided on an annual 2-4 percent reduction in overseas development assistance (ODA) for the following five fiscal years, a policy that was reaffirmed August 9. MOFA officials have requested a 13.9 percent increase in the ODA budget, but the Ministry of Finance will review and adjust the budget prior to submitting it for consideration by the Diet in January 2008. Okano was "very sure" that the Ministry of Finance would reduce the ODA budget from a 13.9 percent increase to a 3 percent reduction, but said that if the MOFA-proposed budget remains intact, Japan will make a contribution to the PDG. Schieffer