JAPAN'S FIRST AMBASSADOR TO THE FSM DOWNPLAYS EXPECTATIONS -

C O N F I D E N T I A L SECTION 01 OF 02 KOLONIA 000098

SIPDIS
SIPDIS; STATE FOR EAP/ANP; INTERIOR FOR OIA

E.O. 12958: DECL: 7/3/2018
TAGS: PREL FM JA CH
SUBJECT: JAPAN'S FIRST AMBASSADOR TO THE FSM DOWNPLAYS EXPECTATIONS -
CHINA MOVES INTO THE SAME EMBASSY BUILDING

CLASSIFIED BY: Miriam K. Hughes, Ambassador, Amembassy Kolonia,
State.
REASON: 1.4 (b)


1. (C) Summary. Japan's first resident ambassador to the
Federated States of Micronesia (FSM) presented his credentials
on June 24. He conveyed an exceptionally brief message of good
will on the part of the Emperor, omitting reference to specific
goals. Japanese Ambassador Shoji Sato said privately he had low
expectations for progress in the FSM. He highlighted President
Hu Jintao's visit to Japan last May as a sign of Japan's
improving ties with China. In the meantime, China has expanded
its Embassy staff in Kolonia to eight officers. Two of them
have moved into office space directly beneath a floor occupied
by the Embassy of Japan. This site affords a direct line of
vision into the Australian Embassy, which is located across the
street. End Summary.

JAPANESE AMBASSADOR MUTES A HISTORIC OCCASION


2. (SBU) At a ceremony to present his credentials to the
Government of the Federated States of Micronesia (GFSM) on June
24, Japan's first resident ambassador spoke briefly and made no
promises. Japanese Ambassador Shoji Sato, who is a career
diplomat, conveyed a message of "good will and friendly
relations" on behalf of the Emperor. Based in the FSM, Sato
will also be accredited to Palau and the Republic of the
Marshall Islands (RMI).


3. (SBU) By contrast, FSM President Emanuel Mori waxed
euphoric about Japan's role as "a dedicated development
partner," which has provided generous assistance projects,
particularly in the areas of climate change adaptation and the
environment. After 20 years of diplomatic relations between the
two countries, Mori described the installation of an ambassador
in the FSM as "the fulfillment of a dream." He praised Japan's
commitment to regional affairs and reassured Sato of GFSM
support for a seat for Japan on the UN Security Council.


4. (C) Sato confided privately that he feared the Micronesians
would be disappointed with his level of engagement. Japan's
principal development initiative would be a long discussed
project to extend Pohnpei's airport runway by approximately 900
feet. Japan's Diet recently approved this USD 25 million
project, supposedly at the urging of former Japanese Prime
Minister Mori (no relation to FSM President Mori.) Construction
bids would be sought soon, Sato said. When the runway extension
is completed by an estimated timeframe of February 2010,
767-sized jets would supposedly be able to land in the FSM for
the first time, competing with Continental's sole source
Micronesia Air service, which is now limited to 737-model
airplanes.


5. (SBU) Even with the runway expansion, however, Sato doubted
whether Japan Airlines would ever establish service to the FSM.
He cited the FSM's weak infrastructure, adverse weather
conditions and lack of entrepreneurial initiative as barriers to
tourism, commerce and airline passengers. A runway expansion
would more likely attract Chinese charter flights, he speculated.

CHINESE EMBASSY KEEPS PACE WITH JAPAN'S DIPLOMATIC EXPANSION


6. (C) In the meantime, China's Embassy in the FSM has
increased its professional staff to eight officers, including
Ambassador Liu Fei. DCM You Weijun said on July 2 that two
"economic and trade officers" had recently relocated from a
large Chinese compound in Palikir, which is the seat of the FSM
National Government, to a commercial office building in
Pohnpei's capital town of Kolonia. He confirmed information
previously shared by Australian Ambassador Susan Cox that these
two Chinese officers would occupy space directly beneath the
offices of the Embassy of Japan. The Australian Ambassador
expressed quiet but strong concern that this move would position
Chinese officers directly across the street from her own
Mission, with "direct line of sight" vision, which apparently
has happened.


7. (C) Projecting non-concern, Ambassador Sato denied
information, which his DCM had previously conveyed, that the
Japanese would seek to identify and lease both a new embassy
building and a new ambassador's residence in Pohnpei. "We
considered those options but rejected them," Shoji said,
implying that the expense was not worth it to his government.
Although the Government of Japan has clearly upgraded its
Mission in the FSM with the assignment of the ambassador, along
with a recent personnel expansion from three to seven Japanese

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officers, Shoji seemed determined to strike a low profile.


8. (SBU) He attributed any upgrade of the Japanese Mission to
the personal interest of former Japanese PM Mori, whose father
served as Japan's Naval Commander in Chuuk during World War Two.
(Note: Japan ruled Micronesia from 1919 to 1945, using many of
its islands as bases for brutal occupations and military
fortifications.) Mori's father reportedly received protection
and friendship from a village clan in Chuuk, which the former
Prime Minister has visited several times, according to Sato. A
succession of FSM ambassadors in Tokyo, who had persistently
lobbied PM Mori to install an ambassador in Micronesia, had
finally achieved their objective principally owing to PM Mori's
debt of gratitude to a village in Chuuk that had saved his
father's life, Sato implied.


9. (C) Ambassador Sato studiously avoided conversation about
China's engagement in the FSM, perhaps because he had only just
arrived. However, he pointed out that Japanese Prime Minister
Yasuo Fukuda was committed to fostering improved relations with
China. The visit last May of Chinese President Hu Jintao to
Japan had begun to pave the way to rapprochement, he suggested.


BIO DATA - SHOJI SATO


10. (SBU) Ambassador Shoji Sato is a career diplomat born in
1948, who last served as Consul General in Surabaya, Indonesia.
His other overseas posts have included Zambia, Sydney, Pakistan,
and Seattle. Press reports indicate he served in the Ministry
of Foreign Affairs in the following positions: North American
Affairs Bureau, U.S. Security Treaty Division Officer (1986);
Minister's Secretariat, Deputy Director in the Management and
Coordination Division (1988); Economic Affairs Bureau, Senior
Assistant, Developing Economic Division (2000); Minister's
Secretariat, Director of Information Systems Division (2002);
and Intelligence Analysis Service, Senior Coordinator (2005).
Sato said he had one daughter, who graduated from Smith College
and had worked in the Costco marketing division in Seattle. The
daughter now works for Costco in Tokyo, he said.
HUGHES