JAPAN PLANS NO ADDITIONAL BURMA AID

C O N F I D E N T I A L TOKYO 000124 SIPDIS SIPDIS PARIS FOR USOECD E.O. 12958: DECL: 01/11/2018 TAGS: EAID JA PGOV PREL XC SUBJECT: JAPAN PLANS NO ADDITIONAL BURMA AID Classified By: CDA Joseph R. Donovan. Reasons 1.4 (b/d) ¶1. (C) Summary: Japan has no current plans for development projects in Burma, according to a Foreign Ministry official. Press reports saying Japan will provide new grants of US$20 million for projects in the "east-west corridor" are misleading, the official stressed. Former Prime Minister ABE had ear-marked US$40 million in 2007 for the region; $20 million designated for the Cambodia-Laos-Vietnam "development triangle" and $20 million still uncommitted. The MOFA official, however, did not specifically rule out the resumption of development assistance to Burma at some point in the future. Given the GOJ's desire to continue to engage Rangoon and no firm commitments for the leftover funds, this course appears to remain a possibility. End summary. ¶2. (C) Japan has no current plans for development projects in Burma, according to Foreign Ministry First Southeast Asia Division Principal Deputy Director Atsushi Kuwabara. Press reports saying Japan will provide new grants of US$20 million to construct a transportation network in the "east-west corridor" that crosses the five Mekong area countries are misleading, he said. Former PM SHINZO ABE had ear-marked a total of $40 million in 2007 for the region: $20 million for projects within the "development triangle" between Cambodia, Laos, and Vietnam, and another $20 million which has not yet been committed. The GOJ is currently conducting a study to determine how to allocate the remaining $20 million, Kuwabara stated. He emphasized nothing has been determined at this time and nothing has been specifically designated for Burma. ¶3. (C) There are two east-west corridors in the Mekong area, Kuwabara continued. "East-West 1," to the north, is largely complete except for a portion of unpaved road in Burma. "East-West 2" still requires construction of a bridge over the Mekong river in Cambodia. The GOJ is considering investments that would increase the efficiency of both corridors, Kuwabara said, but obviously could not fund the construction of an entire bridge for East-West 2 with only $20 million. Non-infrastructure projects such as traffic lights or training for traffic police are also under study. ¶4. (C) Kuwabara maintained press claims that Japan is funding east-west corridor construction to counter China's development of the North-South corridor are overblown. The projects are complementary, and Japan "welcomes any effort to assist these poor nations." ¶5. (C) Kuwabara stated the Japan-Mekong ministerial conference scheduled for January 16 in Tokyo will focus on what specific projects in the development triangle Japan will fund. Foreign ministers from each of the participating countries, including Burma's Nyan Win, will meet separately with Foreign Minister Koumura. Japan is not satisfied with the pace of reform and democratization in Burma but believes patience is needed in dealing with the Burmese military junta, Kuwabara insisted. UN Under Secretary General Gambari faces delicate negotiations, as pushing too hard on the junta may cause the Burmese government to walk away, while not pushing hard enough allows them to stall. Japan supports Gambari's efforts, he said. ¶6. (C) Comment. While Kuwabara stated there are no plans for additional Burma development aid at this time, he did not rule out the possibility of restarting assistance in nor the future or list specific criteria Rangoon would need to meet for aid to resume. It appears the GOJ is going along with the international community's stance on assistance (for the time being),particularly given the Japanese public's negative perception of the Burmese regime after a Japanese cameraman was killed during the fall 2007 demonstrations. Nevertheless, given the GOJ's desire to continue to engage Rangoon and no firm commitments for the remaining $20 million, the possibility that Japan might recommence its development assistance to Burma at some point remains. End comment. DONOVAN