AUSTRALIA SEEKS TO PUT RELATIONS WITH JAPAN BACK

C O N F I D E N T I A L SECTION 01 OF 03 CANBERRA 000540

SIPDIS

STATE FOR OES DAS DAVID BALTON, OES/OA JOHN FIELD AND EAP

E.O. 12958: DECL: 05/20/2018
TAGS: PREL SENV EFIS MARR JA AS
SUBJECT: AUSTRALIA SEEKS TO PUT RELATIONS WITH JAPAN BACK
ON TRACK

REF: A. CANBERRA 459

B. CANBERRA 430

C. CANBERRA 380

D. CANBERRA 96

Classified By: Political Counselor James F. Cole. Reasons: 1.4 (b),(d)

SUMMARY
--------------

1. (C/NF) Foreign Minister Smith's May 8-9 visit to Tokyo
was only partly successful in repairing the damage to the
relationship caused by the whaling controversy. He sought to
nuance Australia's anti-whaling stance, backing away from
earlier threats to initiate international legal action
against Japan with a more conciliatory preference for
reaching a diplomatic solution to the issue, redefining
Australia's opposition to whaling to confine it to the
Antarctic region, and suspending for now the appointment of a
whaling envoy to press Australia's case with Japan. The
Japanese reacted cooly, according to a readout from the
Department of Foreign Affairs and Trade, and the two sides
remain far apart on the issue, which may require ultimate
resolution through the International Whaling Commission. By
contrast, the Japanese reacted enthusiastically to FM Smith's
proposal to step up security cooperation, with a second Two
Plus Two meeting planned before the end of the year, and
renewed commitment to the Trilateral Strategic Dialogue.
Prime Minister Rudd plans to use two visits to Japan in June
and July to advance Australian interests in trade, climate
change, defense cooperation, regional security and
cooperation in the South Pacific. End summary.

Background to FM Smith's Japan Visit
--------------

2. (C/NF) According to a readout from Warren King (please
protect),Director for Japan, Department of Foreign Affairs
and Trade (DFAT),Foreign Minister Smith's May 8-9 visit to
Japan was a belated add-on to a previously scheduled visit to
South Korea and Hong Kong. FM Smith added Japan to his
itinerary to try to address the contentious issue of whaling,
specifically, to counter the negative impact of the
controversy and to explore what could be done to bring about
a diplomatic solution, as well as to obviate further
criticism over Australia's perceived snub of Japan, following
PM Rudd's omission of Japan on his recent international trip
(ref A). Smith's decision to include Japan on his recent
trip reflected the Foreign Minister's "evolving" position on
whaling, that is, that it should not be allowed to harm or be
linked to other aspects of the heretofore strong bilateral
relationship, King explained. The confrontational tactics of
the anti-whaling NGO Sea Shepherd Conservation Society vessel
Steve Irwin towards Japanese whaling vessels in January and
February and photos of slaughtered whales and calves released
by the Australian Customs vessel Oceanic Viking (reftels) had
negatively impacted public opinion in Japan towards
Australia, particularly among members of the Diet. FM Smith
was concerned that the backlash would impact other bilateral
Qwas concerned that the backlash would impact other bilateral
initiatives, including the bilateral Free Trade Agreement
negotiations.

Australian Recalibrates Anti-Whaling Policy
--------------

3. (C/NF) A major objective of FM Smith's visit was to
register Australia's preference for a negotiated, diplomatic
settlement over legal action. FM Smith had made clear
Australia was not taking the possibility of international
legal action off the table, King said, but promised he would
provide the GOJ with advance notice, should the GOA elect to
take that course. Another deliberate policy message was to
recast Australia's broad anti-whaling stance to that of
opposition to whaling "in the Antarctic." The GOA had also
decided to put on hold the plan announced by FM Smith in
December 2007 to appoint a Special Envoy on Whale
Conservation to negotiate with Japan.


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Multilateral Pressure: IWC
--------------

4. (C/NF) Beyond its bilateral efforts, Australia planned to
intensify efforts to address Japan's whaling multilaterally
through the International Whaling Commission (IWC),King
said. Australia was following the U.S. lead in discussions
with IWC Chair Dr. William Hogarth. Nevertheless, the GOA
did not expect any major development's from the forthcoming
IWC meeting.

Japanese Reaction
--------------

5. (C/NF) Japanese Foreign Minister Koumura and Chief Cabinet
Secretary Machimura welcomed the Australian approach, King
said, but did not commit to a diplomatic solution. Koumura
and Machimura's views had "hardened," King noted, and they
looked to Australia to find a way out of the controversy. He
conceded the two sides remained far apart on the whaling
issue with no solution in sight, but characterized Smith's
trip as "partly successful" in getting things back on a
diplomatic track.

Security Cooperation - Bilateral, Trilateral but no
Quadrilateral
--------------

6. (C) In contrast, FM Smith held good discussions with his
Japanese counterparts, including Japanese Defense Minister
Ishiba, on alliance and security issues. The Japanese were
eager to pursue closer security cooperation, King said.
While a specific date was not set, the two sides agreed to
hold the second 2 Plus 2 meeting of their foreign affairs and
defense ministers, as provided for in the March 2007
Australia-Japan Joint Declaraton on Security Cooperation,
before the end of the year, perhaps in November. In his
meeting with Smith, Ishiba had shown strong interest in the
workings of the U.S.-Australia alliance, and had expressed
his desire to strengthen the U.S.-Japan alliance comparably.
The two sides asserted their commitment to the Trilateral
Strategic Dialogue (TSD). (Note: Importantly, King said
Prime Minister Rudd and senior Cabinet ministers had recently
conducted a policy review and evaluation of Australia-Japan
security cooperation, including through the TSD, and had
decided to continue and expand the cooperation. End note.)
King reiterated that the Quadrilateral was "dead" but did not
furnish details of any discussion in Tokyo on this issue.
Australia remained interested in reinvigorating its bilateral
relationship with India, King commented, despite the damper
resulting from Smith's announcement with Chinese FM Yang
February 5 that Australia would not support further meetings
of the Quad, and the earlier, separate decision by the Rudd
government not to export uranium to India because it was not
an NPT signatory.

Other Issues - China, Burma, Fiji
--------------

7. (C/NF) In brief reference to other issues discussed, King
said the Japanese told FM Smith the visit by Chinese
President Hu Jintao went well. The Japanese wanted to "hose
down" media euphoria over the visit, acknowledging that
Qdown" media euphoria over the visit, acknowledging that
serious issues persisted over the East China sea. The two
discussed disaster relief for Burma, and agreed that it was
important for Fiji to return to democratic rule.

Preview of Prime Minister Rudd's Planned Trips to Japan
-------------- --------------

9. (C) Turning to PM Rudd's planned visits to Japan, King
commented that PM Rudd had telephoned Japanese Prime Minister
Fukuda on May 15 to discuss Burma, the first conversation
ever between the two leaders. In the call, Rudd had urged
Fukuda to use Japan's leverge with Burma to facilitate entry
of foreign relief agencies to assist victims of Cyclone
Nargis. Fukuda responded he had written to Senior General
Than Shwe on this matter, but cautioned Rudd that Japan's
influence over Burma was overrated. PM Rudd's planned visit
to Japan in June had been hastily arranged following

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criticism of Rudd for bypassing Japan during his first major
international trip, and after it became apparent that Rudd's
scheduled trip in July to attend the G8 would not leave
adequate time for bilateral meetings with Japanese leaders.

Objectives of PM Rudd's Japan Trip
--------------

10. (C) According to King, Rudd planned to focus on five
areas for his first visit to Japan including:
-- Trade: Rudd wanted to advance progress on the bilateral
FTA, particularly on securing greater market access for
Australia's fiancial services sector, a more important area
than agriculture for the GOA;
-- Climate Change: Greater bilateral and multilateral
cooperation.
-- Regional Security Architecture: Rudd plans to register
Australian interest in inclusion in the Northeast Asian Peace
and Security Mechanism or similar security grouping that
might emerge from the Six-Party Talks. While Japan remains
the most skeptical of the parties over NEAPSM, Rudd will
press the Japanese not to oppose Australia's eventual
inclusion, while looking to the U.S. to be supportive when
the time is right.
-- Defence-related (Comment: King was reluctant to disclose
details in advance of Rudd's visit, but we assume Rudd would
explore strengthened security cooperation under the umbrella
of the Joint Declaration - see para 6 above.)
-- South Pacific: Rudd wants to cooperate with Japan more
closely in the South Pacific region, and will encourage Japan
to consider how it might play a larger role, not only in
development aid but also in peace operations. Japan has
expressed interest in participating in the Australian-led
multilateral Regional Assistance Mission to the Solomon
Islands (RAMSI),for example, King noted, and may be able to
contribute in this regard, to the extent allowed by Japanese
law.)


11. (C/NF) King said Australia was watching the political
situation in Japan very closely. A realignment of political
parties could have a major impact. He predicted that PM
Fukuda would not last long, even if he is returned to power
with a reduced majority. He observed the GOA was disturbed
by worrying signs that Japan was drifting backward in the
area of financial reforms, perhaps as vested interests took
advantage of the government's relative weakness.


12. (C/NF) COMMENT: From the whaling imbroglio to the manner
in which the Quad was quashed -- by Foreign Minister Smith
citing Chinese unhappiness, during his February 5 joint press
conference with Chinese Foreign Minister Yang -- and the
preceived snub of Japan by Prime Minister Rudd on his first
international trip, the Rudd government has not handled
smoothly the relationship with its second largest trading
partner and second closest security partner in the region.
The GOA understands that the overall relationship cannot be
held hostage to the single issue of whaling, however, and is
Qheld hostage to the single issue of whaling, however, and is
now taking the right remedial steps. End comment.