JAPANESE AMBASSADOR COMMENTS ON WHALING, CHINA AND

C O N F I D E N T I A L CANBERRA 001004

NOFORN
SIPDIS

E.O. 12958: DECL: 10/01/2018
TAGS: ETRD ASJA PREL
SUBJECT: JAPANESE AMBASSADOR COMMENTS ON WHALING, CHINA AND
RUDD'S POLICY STYLE

REF: (A) CANBERRA 998 (B) CANBERRA 996 (C) CANBERRA 792

Classified By: AMBASSADOR ROBERT MCCALLUM. REASON: 1.4 (D)


1. (C/NF) Summary: Japanese Ambassador Takaaki Kojima told
Ambassador McCallum that Japan was not going to reduce or
cancel the upcoming whaling season, as Australia hoped (ref
B),because it had already made a concession last year to
drop the planned killing of 50 humpback whales in an effort
to show good will and move the discussion forward in the
International Whaling Commission (IWC). Regarding recent
Australian concerns over rising Chinese investment in
Australia's minerals sector (ref C),Kojima noted that in
contrast to recent Chinese investment bids, Japanese
companies had preferred to take minority stakes in companies,
and had not sought a controlling stake in Australian joint
venture partnerships. He also noted that Australian concerns
over state controlled investors did not apply to Japanese
firms like Mitsubishi or Nippon Steel as they were privately
owned. Kojima opined that, with the exception of Treasury,
GOA ministries and agencies have been cut out of the foreign
policy decision-making process by Prime Minister Rudd's "top
down" style. End summary.


2. (C/NF) In a lunch hosted by Japanese Ambassador Takaaki
Kojima on October 1, the Ambassador and DCM raised the issue
of the upcoming whaling season and solicited Kojima's views
on the possibility of a compromise that would defuse public
opinion on both sides. Kojima said that the Japanese had
already made a concession last year to drop the planned
killing of 50 humpback whales in an effort to show good will
and move the discussion forward in the International Whaling
Commission (IWC). That had been accomplished, Kojima said,
and Japan was not going to reduce or cancel the upcoming
whaling season while the IWC working group process was
ongoing. Kojima confirmed that Australian Special Envoy
Sandy Holloway would be in Japan next week (ref B) but
acknowledged that the current caretaker government under new
PM Taro Aso would not agree to any policy changes until after
elections are held. This would not be, in Kojima's opinion,
before the whaling season began. Kojima said that he was
aware that the Rudd government was looking into legal action
against Japan, but did not indicate whether Japan was working
to get Australia to act on any Interpol findings against Sea
Shepherd or other anti-whaling groups.

Japanese Investment Differs from Chinese


3. (C/NF) Although Japan was still the number one destination
for Australian exports, Kojima said China would soon surpass
Japan as a consumer of Australian resource exports, and that
this was one of the drivers behind Chinese investment moves
in Australia. When asked whether Australia should be
familiar with waves of Asian investment in Australia's
minerals sector because of Japanese investments in the late
1980s and early 1990s, (ref C) Kojima countered that Japanese
companies, unlike their Chinese counterparts, had preferred
to take minority stakes in companies, and had not sought a
controlling stake in Australian joint venture partnerships.
This had made Japanese investment easier to swallow in
Australia, Kojima argued, even in a period when Australia's
economy was not as strong. Kojima was quick to point out
that Australian concerns over state controlled investors did
not apply to Mitsubishi or Nippon Steel as they were
privately owned and would meet Treasurer Wayne Swan's stated
test for investors that are affected by market forces.

Rudd's "Top Down" Foreign Policy Making Approach
Rudd's "Top Down" Foreign Policy Making Approach


4. (C/NF) Kojima characterized Rudd's "top down" approach
to foreign policy as "very unusual." He noted that, when
Rudd told him about his Asia Pacific Community (APC)
initiative two days before the public announcement, the Prime
Minister noted that he had not informed any of his foreign
policy advisors, including the senior foreign policy advisor
in his own office. Kojima opined that, with the exception of
Treasury, all other GOA ministries and agencies have in
effect been cut out of the foreign policy decision-making
process. According to Kojima, the lack of details attendant
to the APC initiative suggests the hurriedly thought out
nature of the proposal and lack of consultation by Rudd with
his staff and ministries.

MCCALLUM