Identifier
Created
Classification
Origin
08TOKYO544
2008-02-29 09:15:00
CONFIDENTIAL
Embassy Tokyo
Cable title:
JAPAN PLANS NO ACTION IN SOUTH CHINA SEA DISPUTE
how-toVZCZCXRO0842 PP RUEHCHI RUEHHM RUEHNH DE RUEHKO #0544 0600915 ZNY CCCCC ZZH P 290915Z FEB 08 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 2150 INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY RUEHBJ/AMEMBASSY BEIJING PRIORITY 1959 RUEHMO/AMEMBASSY MOSCOW PRIORITY 2147 RUEHFK/AMCONSUL FUKUOKA PRIORITY 6395 RUEHNH/AMCONSUL NAHA PRIORITY 8790 RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0063 RUEHKSO/AMCONSUL SAPPORO PRIORITY 7000 RUEHGH/AMCONSUL SHANGHAI PRIORITY 0349 RUEHIN/AIT TAIPEI PRIORITY 6909 RUEHGV/USMISSION GENEVA PRIORITY 3259 RUCNDT/USMISSION USUN NEW YORK PRIORITY 8608 RUEHBS/USEU BRUSSELS PRIORITY
C O N F I D E N T I A L TOKYO 000544
SIPDIS
SIPDIS
STATE FOR EAP/MLS BRETT BLACKSHAW AND EAP/CM PAMELA PENG
E.O. 12958: DECL: 02/28/2018
TAGS: ENRG PBTS ECON PREL JA CH VN
SUBJECT: JAPAN PLANS NO ACTION IN SOUTH CHINA SEA DISPUTE
REF: STATE 17315
Classified By: Ambassador J. Thomas Schieffer. Reasons 1.4 (b/d).
C O N F I D E N T I A L TOKYO 000544
SIPDIS
SIPDIS
STATE FOR EAP/MLS BRETT BLACKSHAW AND EAP/CM PAMELA PENG
E.O. 12958: DECL: 02/28/2018
TAGS: ENRG PBTS ECON PREL JA CH VN
SUBJECT: JAPAN PLANS NO ACTION IN SOUTH CHINA SEA DISPUTE
REF: STATE 17315
Classified By: Ambassador J. Thomas Schieffer. Reasons 1.4 (b/d).
1. (C) The consortium led by Japan's Idemitsu Corporation to
develop oil fields with PetroVietnam in the South China Sea
has decided for business reasons to suspend work there,
according to Ministry of Economy, Trade and Industry (METI)
Petroleum and Natural Gas Division Director Shin Hosaka.
Representatives from the Chinese Foreign Ministry had
expressed displeasure over Idemitsu's dealings with
PetroVietnam to METI officials in June 2007. METI conveyed
this information to Idemitsu, but did not advise the company
in any way as to how to respond, Hosaka stressed. He stated
the GOJ has no plans to raise the issue with China.
2. (C) Ministry of Foreign Affairs (MOFA) Regional Policy
Director Yasuhiro Ogawa explained Idemitsu and PetroVietnam
established their partnership to explore for oil in the South
China Sea in 2004. China protested the venture at that time.
The companies did a seismic survey in 2005 and began
exploratory drilling in February 2007. According to Ogawa,
China did not raise the issue again until June 2007. After
China's protest, Idemitsu and PetroVietnam restricted their
activity to the western portion of block 5, outside the
disputed area. The venture, however, used Russian seismic
vessels for exploration, which, Ogawa claimed, were suddenly
withdrawn and effectively shut down the operation. Ogawa
suspects withdrawal of the Russian ships was in response to
Chinese Government pressure. The GOJ does not know whether
China pressed Idemitsu directly about the joint venture, he
said. Ogawa stated Vietnam's government asked the GOJ in
June 2007 to encourage Idemitsu to resume oil exploration in
the South China Sea. METI conveyed the information to
Idemitsu, but the company thus far has demurred. Ogawa does
not know the company's plans for the future.
3. (C) Ogawa believes the South China Sea dispute will be
particularly hard to resolve as none of the claimants has a
very strong case under international law. The GOJ is neutral
on this sovereignty dispute, he added.
4. (C) Comment. Our interlocutors at MOFA and METI offered
no recommendations for resolving the dispute. The GOJ
official position is that Idemitsu's involvement (or not, as
the case may be) is a private business matter which, at this
stage, does not require Japanese government intervention.
End Comment.
SCHIEFFER
SIPDIS
SIPDIS
STATE FOR EAP/MLS BRETT BLACKSHAW AND EAP/CM PAMELA PENG
E.O. 12958: DECL: 02/28/2018
TAGS: ENRG PBTS ECON PREL JA CH VN
SUBJECT: JAPAN PLANS NO ACTION IN SOUTH CHINA SEA DISPUTE
REF: STATE 17315
Classified By: Ambassador J. Thomas Schieffer. Reasons 1.4 (b/d).
1. (C) The consortium led by Japan's Idemitsu Corporation to
develop oil fields with PetroVietnam in the South China Sea
has decided for business reasons to suspend work there,
according to Ministry of Economy, Trade and Industry (METI)
Petroleum and Natural Gas Division Director Shin Hosaka.
Representatives from the Chinese Foreign Ministry had
expressed displeasure over Idemitsu's dealings with
PetroVietnam to METI officials in June 2007. METI conveyed
this information to Idemitsu, but did not advise the company
in any way as to how to respond, Hosaka stressed. He stated
the GOJ has no plans to raise the issue with China.
2. (C) Ministry of Foreign Affairs (MOFA) Regional Policy
Director Yasuhiro Ogawa explained Idemitsu and PetroVietnam
established their partnership to explore for oil in the South
China Sea in 2004. China protested the venture at that time.
The companies did a seismic survey in 2005 and began
exploratory drilling in February 2007. According to Ogawa,
China did not raise the issue again until June 2007. After
China's protest, Idemitsu and PetroVietnam restricted their
activity to the western portion of block 5, outside the
disputed area. The venture, however, used Russian seismic
vessels for exploration, which, Ogawa claimed, were suddenly
withdrawn and effectively shut down the operation. Ogawa
suspects withdrawal of the Russian ships was in response to
Chinese Government pressure. The GOJ does not know whether
China pressed Idemitsu directly about the joint venture, he
said. Ogawa stated Vietnam's government asked the GOJ in
June 2007 to encourage Idemitsu to resume oil exploration in
the South China Sea. METI conveyed the information to
Idemitsu, but the company thus far has demurred. Ogawa does
not know the company's plans for the future.
3. (C) Ogawa believes the South China Sea dispute will be
particularly hard to resolve as none of the claimants has a
very strong case under international law. The GOJ is neutral
on this sovereignty dispute, he added.
4. (C) Comment. Our interlocutors at MOFA and METI offered
no recommendations for resolving the dispute. The GOJ
official position is that Idemitsu's involvement (or not, as
the case may be) is a private business matter which, at this
stage, does not require Japanese government intervention.
End Comment.
SCHIEFFER