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


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Classified By: A/DCM Michael Meserve per 1.4 (b/d).

Summary
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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
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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

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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
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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
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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