GOSS/TKS DEMARCHE DELIVERED

C O N F I D E N T I A L TOKYO 002994

SIPDIS

FOR EEB AND EAP/J

E.O. 12958: DECL: 10/28/2018
TAGS: ECON ETRD JA
SUBJECT: GOSS/TKS DEMARCHE DELIVERED

REF: A. STATE 111288

B. EAP/J E-MAILS OF 10/18

Classified By: Ambassador J. Thomas Schieffer. Reasons 1.4 b, d


1. (C) Summary: Embassy conveyed ref A demarche regarding
U.S. company Goss International at the DCM level to METI Vice
Minister and Econoffs followed up with METI senior working
level contacts. EMIN also discussed the case with the MOFA
Director General for Economic Affairs. METI,s Director of
International Legal Affairs emphasized the ministry viewed
the case as a private dispute between the two companies, but
agreed to consider reaching out to the Japanese party to the
dispute to inform it of USG views. However, based upon the
highly formal manner in which METI officials received the
demarche, the ministry does not appear inclined to be
proactive in resolving this case. End Summary.


2. (C) DCM conveyed Washington concerns about the dispute
between U.S. company Goss International and Japanese firm
Tokyo Kikai Seisakusho (TKS) to METI Vice Minister Harufumi
Mochizuki and expressed hope the parties might reach a
negotiated settlement. Unaware of the issue, Mochizuki
referred to his staff for a quick briefing but offered no
substantive response.


3. (C) In a subsequent conversation, Economic Policy Unit
Chief and Econoff reviewed the details of the case with
Kazumochi Kometani, METI Director of International Legal
Affairs, Trade Policy Bureau. Kometani opened the meeting by
expressing concern and puzzlement about the level at which
the initial message was delivered in both Washington and
Tokyo. Econoff explained the level shows the seriousness
with which the U.S. views the case.


4. (C) Econoff delivered the ref A points in their entirety
and handed over copies of the non-paper and two attached
legal documents. Kometani agreed to give the documents
careful examination, but added the GOJ considered this a
dispute between private parties and, as such, was inclined to
leave resolution to the parties themselves. It was not
appropriate, he added, for the GOJ to intervene in an ongoing
court case. When pushed, Kometani thought it would be
possible for the ministry to contact TKS and inform them of
the USG,s position. However, he explicitly declined
Econoff,s request to inform the Embassy of the outcome of
any such discussions.


5. (C) Regarding the serious concerns the 2004 Special
Measures Law raises under the 1953 Treaty of Friendship,
Commerce and Navigation (TCN),Kometani insisted the GOJ
&does not think there is any violation of national treatment
provision of the treaty in regard to the 2004 Law.8


6. (C) Comment: Kometani's manner throughout the meeting was
polite but formal. Although he promised to carefully examine
the documents Embassy provided, there was nothing in his
words or his manner to suggest METI is inclined to be
proactive in resolving this case. Nevertheless, Embassy will
continue to engage and press MOFA and METI on the dispute.
It would be helpful as well, if appropriate USG figures also
raise the case and USG concerns with visiting Japanese
officials in Washington.
SCHIEFFER