JAPANESE PM FUKUDA MEETS WITH MEKONG REGION LEADERS

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 005343 SIPDIS SIPDIS E.O. 12958: DECL: 11/27/2017 TAGS: PGOV PREL VM CB LA JA SUBJECT: JAPANESE PM FUKUDA MEETS WITH MEKONG REGION LEADERS TOKYO 00005343 001.2 OF 002 Classified By: A/DCM Michael Meserve per 1.4 (b/d). Summary -------------- ¶1. (C) Economic and infrastructure development cooperation figured prominently in PM Yasuo Fukuda's November 20 meeting with the leaders of Vietnam, Laos and Cambodia. PM Nguyen Tan Dzung, PM Bouasone Bouphavanh and PM Hun Sen welcomed Japan's efforts to develop two regional East-West Corridors and the tri-border area "Development Triangle," and urged further Japanese assistance and investment. On the DPRK, PM Fukuda sought the cooperation of the three countries, which enjoy friendly relations with both Japan and North Korea, in resolving the abductions, missile and nuclear issues. PM Fukuda also received support from the three leaders for Japan's UNSC permanent membership. End Summary. Economic Development -------------- ¶2. (C) Prime Minister Yasuo Fukuda met for nearly an hour November 20 with Cambodian PM Hun Sen, Laotian PM Bouasone Bouphavanh and Vietnamese PM Nguyen Tan Dzung on the margins of the East Asia Summit in Singapore. Opening the meeting, PM Fukuda said that since the early 1990's Japan has consistently attached a high value to the Mekong region's economic growth and infrastructure development, MOFA Southeast Asia Division I Principal Deputy Director Atsushi Kuwabara told Embassy Tokyo. In order to further open up the region's rich potential, Japan would like to cooperate with Vietnam, Laos and Cambodia to create futures "full of hope and development," PM Fukuda told the three leaders. To this end, Japanese ODA earmarked for each country and the entire Mekong region will be expanded for the next three years, PM Fukuda reported. ¶3. (C) In order for the Mekong region to develop as a unified economic area, Japan is placing importance on the development of two East-West Corridors, PM Fukuda continued. Japan will also make efforts to streamline the distribution of goods flowing through and from these corridors with USD 20 million from the Japan-ASEAN Consolidation Fund. Furthermore, in the Vietnam-Laos-Cambodia tri-border "Development Triangle," this year Japan is funding 25 cooperative activities for a total of over 2.5 billion yen (approximately USD 22 million). Japan is preparing an additional USD 20 million for development activities through the Japan-ASEAN Consolidation Fund. ¶4. (C) To expand trade and investment between Japan and the Mekong region, PM Fukuda highlighted the signing of the Japan-Cambodian investment agreement in June and the progress to date in negotiations for the Japan-Laos investment agreement. Also, Japan welcomes the continuation of the Japan-Vietnam Initiative and the implementation of the Japan-Laos joint government/private sector dialogue, which aims to improve the trade and investment environment and develop rule of law within Laos. To build further mutual understanding, Japan will invite over 12,000 youth from Vietnam, Laos and Cambodia over the next five years. ¶5. (C) Cambodian PM Hun Sen expressed appreciation for Japan's ODA, in particular the cooperation for creating the East-West Corridors and Development Triangle, and urged PM Fukuda to continue this support. In particular, road construction is important in the Development Triangle, Hun Sen said, and he urged further efforts to use the Japan-Cambodia investment agreement o promote Japanese investment in Cambodia. Hun Sen also urged Japan to initiate flight service between Japan and Siem Reap. ¶6. (C) Laotian PM Bouasone expressed support for Japan's role in East Asia and Southeast Asia. In particular, Laos appreciates Japan's cooperation in the Development Triangle. For an inland state like Laos, it is important to be connected to neighboring countries by roads and railroads, and Laos is seeking Japan's assistance in this area. Bouasone stated that Laos' aim is to sign the Japan-Laos investment agreement at the Mekong Foreign Ministers' meeting next January. ¶7. (C) Vietnamese PM Dzung stated his country's appreciation for Japan's cooperation in developing the East-West Corridors and the Development Triangle. He also sought Japan's TOKYO 00005343 002.2 OF 002 continuing cooperation for the construction of Vietnam's North-South High-speed Railway, North-South Expressway and the Hoa Lac High-tech Park. To further undergird Japan's cooperation with Vietnam, Laos and Cambodia, cooperation in the areas of securing sustainable development, ecosystem conservation, cultural exchanges, tourism, and youth exchanges is important, PM Dzung said. DPRK -------------- ¶8. (C) On the DPRK, PM Fukuda said that Japan will continue to make efforts, together with other relevant countries, to resolve the abductions, nuclear and missile issues. Fukuda welcomed cooperation from Vietnam, Cambodia and Laos, which have close relationships with both Japan and North Korea. Hun Sen responded that he had recently encouraged the DPRK's Prime Minister, during a visit to Cambodia, to release the remaining abductees and normalize North Korea's relationship with Japan. The abduction issue is a "humanitarian issue," and Cambodia will support the next North Korean human rights resolution. ¶9. (C) Vietnamese PM Dzung noted that, when he visited Japan last year, he issued a Joint Statement containing language urging North Korea to respond positively on the abduction issue. Vietnam is also prepared to contribute as much as possible to encouraging Japan-North Korea diplomatic normalization. Laotian PM Bouasone added that the abductions violated international law and are not acceptable. UNSC Reform -------------- ¶10. (C) On the UN, PM Fukuda expressed appreciation for the support of Vietnam, Laos and Cambodia for Japan's UNSC permanent membership and requested continuing support to realize UNSC reform. The three leaders reconfirmed their support for Japan's UNSC permanent membership. DONOVAN