JAPANESE NON-PAPER ON EXPORT CREDITS AND TRADE

C O N F I D E N T I A L TOKYO 000968 SIPDIS SIPDIS E.O. 12958: DECL: 03/06/2017 TAGS: PREL EFIN MNUC EXIM UNSC IR JA SUBJECT: JAPANESE NON-PAPER ON EXPORT CREDITS AND TRADE INSURANCE TO IRAN REF: A. STATE 4760 ¶B. TOKYO 603 ¶C. STATE 24344 Classified By: Minister-Counselor for Political Affairs W. Michael Mese rve for reasons 1.4(b) and (d) ¶1. (C) As a follow up to reftels A and B concerning halting export credits to Iran, MOFA Second Middle East Division officer Junichi Sumi March 6 presented the following non-paper to Embassy Tokyo Political Officer. Sumi noted that a copy of the non-paper had been forwarded to Under Secretary Burns' office sometime last week, but wished to SIPDIS point out a correction. In the copy sent to U/S Burns, point two indicated no new contracts had been made since June 2006. Sumi stated that this should read, as below, that no new contracts have been made since April 2006. BEGIN TEXT ¶1. With regard to the Export Credit relating to Iran, Japan has been taking a very restrictive policy as the Iranian nuclear issue has become tense. ¶2. As a result, since April 2006, no new contract has been made for extending Export Loans to Iran by JBIC. ¶3. With regard to Trade Insurance to Iran, (1) no new middle and long term insurance (i.e. 2 years or more) has been provided since June 2006. (2) As for short-term insurance (i.e. less than 2 years),the ceiling of each transaction without setting conditions has been lowered to one fiftieth of the previous level (approximately from $400 million to $8 million since May 2006. ¶4. As a result, the amount of Trade Insurance relating to Iran in 2006 decreased by approximately 15 percent. Japan will continue to take a very restrictive policy in dealing with this issue. END TEXT ¶2. (U) At the same meeting, Political Officer provided Sumi with reftel C points and text of U.S. 60 Day Report to UN Security Council on UNSCR 1737. SCHIEFFER