Identifier
Created
Classification
Origin
08TOKYO572
2008-03-04 08:36:00
CONFIDENTIAL
Embassy Tokyo
Cable title:
PM FUKUDA STOPS MOVE TO LIMIT FDI FOR AIRPORTS
how-toVZCZCXRO4321 PP RUEHFK RUEHGH RUEHHM RUEHKSO RUEHNH DE RUEHKO #0572 0640836 ZNY CCCCC ZZH P 040836Z MAR 08 FM AMEMBASSY TOKYO TO RUEHBK/AMEMBASSY BANGKOK PRIORITY 4401 RUEHBJ/AMEMBASSY BEIJING PRIORITY 2027 RUEHBY/AMEMBASSY CANBERRA PRIORITY 2541 RUEHML/AMEMBASSY MANILA PRIORITY 1177 RUEHUL/AMEMBASSY SEOUL PRIORITY 8086 RUEHGP/AMEMBASSY SINGAPORE PRIORITY 7126 RUEHCG/AMCONSUL CHENNAI PRIORITY 0194 RUEHFK/AMCONSUL FUKUOKA PRIORITY 6465 RUEHHM/AMCONSUL HO CHI MINH PRIORITY 0101 RUEHHK/AMCONSUL HONG KONG PRIORITY 6462 RUEHBN/AMCONSUL MELBOURNE PRIORITY 0061 RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0133 RUEHNH/AMCONSUL NAHA PRIORITY 8859 RUEHKSO/AMCONSUL SAPPORO PRIORITY 7070 RUEHGH/AMCONSUL SHANGHAI PRIORITY 0350 RUEHSH/AMCONSUL SHENYANG PRIORITY 0608 RUEHDN/AMCONSUL SYDNEY PRIORITY 0552 RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY RUHPSAA/COMMARFORPAC PRIORITY RUEHIN/AIT TAIPEI PRIORITY 6921 RUEAIIA/CIA WASHDC PRIORITY RHMFISS/18WG CP KADENA AB JA PRIORITY RHMFISS/5AF YOKOTA AB JA PRIORITY RUEHC/SECSTATE WASHDC PRIORITY 2236
C O N F I D E N T I A L TOKYO 000572
SIPDIS
SIPDIS
STATE FOR EAP/J, EEB/TRA FOR BYERLY
PASS TO USTR FOR BEEMAN
PASS TO DOT FOR GRETCH
E.O. 12958: DECL: 03/01/2018
TAGS: EAIR PGOV EINV PREL JA
SUBJECT: PM FUKUDA STOPS MOVE TO LIMIT FDI FOR AIRPORTS
REF: A. TOKYO 00467
B. TOKYO 0408
Classified By: Ambassador J. Thomas Schieffer. Reason 1.4 (b)(d)
C O N F I D E N T I A L TOKYO 000572
SIPDIS
SIPDIS
STATE FOR EAP/J, EEB/TRA FOR BYERLY
PASS TO USTR FOR BEEMAN
PASS TO DOT FOR GRETCH
E.O. 12958: DECL: 03/01/2018
TAGS: EAIR PGOV EINV PREL JA
SUBJECT: PM FUKUDA STOPS MOVE TO LIMIT FDI FOR AIRPORTS
REF: A. TOKYO 00467
B. TOKYO 0408
Classified By: Ambassador J. Thomas Schieffer. Reason 1.4 (b)(d)
1. (C) Prime Minister Fukuda has decided to strip out the
proposed restrictions on foreign investment from the
Transportation Ministry's (MLIT) draft Airport Development
Bill, MOFA Economic Affairs Bureau DG Yoichi Otabe told EMIN
February 28. Otabe took credit for bringing USG concern
about the matter to Chief Cabinet Secretary Machimura,s
attention and said Machimura, along with Foreign Minister
Koumura, Finance Minister Nukaga, and a number of senior LDP
politicians had all taken strong positions against the law,
isolating MLITT Minister Fuyushiba in the Cabinet. Rumors to
this effect circulated in the press beginning February 27,
and Minister Fuyushiba confirmed the decision at a February
29 news conference. Even more surprising, he told reporters,
"Acceptance of foreign investment is a dominant trend for
Japan as a country open to the world," according to a Kyodo
press report. Otabe also confirmed what we had heard from
others, that the Prime Minister himself made the final
decision.
2. (C) In related news, Diet Member Hiroshige Seko (LDP,
Upper House, Wakayama) bragged on his website blog that he
had been instrumental in encouraging Deputy Chief Cabinet
Secretary Mitsuhide Iwaki to correct MLITT's Civil Aviation
SIPDIS
DG Hisayasu Suzuki inappropriate lobbying conduct.
Meanwhile, METI Americas division officials expressed guarded
relief to Econoff February 28 that the airport bill would no
longer be on the agenda of the upcoming Investment Working
Group session.
3. (U) The Airports Development Bill originally included the
following main points: airports will have a cap on landing
fees and other service fees such as passenger service
facility costs; a written long-term business plan would have
to be coordinated with the government; and changes to airport
development and maintenance must be written into a
comprehensive plan, presumably for government, i.e., MLIT
approval.
Comment
--------------
4. (C) MLIT seems to have lost this round and is currently
being highlighted in the press for shockingly high numbers of
"amakudari" positions in construction firms, the Japanese
practice of moving retired senior officials into private
sector jobs in industries they used to oversee. Despite the
recent setback, MLIT officials continue to look for ways they
can maintain control over the market, and they remain
suspicious of permitting private sector involvement in civil
aviation decision making.
SCHIEFFER
SIPDIS
SIPDIS
STATE FOR EAP/J, EEB/TRA FOR BYERLY
PASS TO USTR FOR BEEMAN
PASS TO DOT FOR GRETCH
E.O. 12958: DECL: 03/01/2018
TAGS: EAIR PGOV EINV PREL JA
SUBJECT: PM FUKUDA STOPS MOVE TO LIMIT FDI FOR AIRPORTS
REF: A. TOKYO 00467
B. TOKYO 0408
Classified By: Ambassador J. Thomas Schieffer. Reason 1.4 (b)(d)
1. (C) Prime Minister Fukuda has decided to strip out the
proposed restrictions on foreign investment from the
Transportation Ministry's (MLIT) draft Airport Development
Bill, MOFA Economic Affairs Bureau DG Yoichi Otabe told EMIN
February 28. Otabe took credit for bringing USG concern
about the matter to Chief Cabinet Secretary Machimura,s
attention and said Machimura, along with Foreign Minister
Koumura, Finance Minister Nukaga, and a number of senior LDP
politicians had all taken strong positions against the law,
isolating MLITT Minister Fuyushiba in the Cabinet. Rumors to
this effect circulated in the press beginning February 27,
and Minister Fuyushiba confirmed the decision at a February
29 news conference. Even more surprising, he told reporters,
"Acceptance of foreign investment is a dominant trend for
Japan as a country open to the world," according to a Kyodo
press report. Otabe also confirmed what we had heard from
others, that the Prime Minister himself made the final
decision.
2. (C) In related news, Diet Member Hiroshige Seko (LDP,
Upper House, Wakayama) bragged on his website blog that he
had been instrumental in encouraging Deputy Chief Cabinet
Secretary Mitsuhide Iwaki to correct MLITT's Civil Aviation
SIPDIS
DG Hisayasu Suzuki inappropriate lobbying conduct.
Meanwhile, METI Americas division officials expressed guarded
relief to Econoff February 28 that the airport bill would no
longer be on the agenda of the upcoming Investment Working
Group session.
3. (U) The Airports Development Bill originally included the
following main points: airports will have a cap on landing
fees and other service fees such as passenger service
facility costs; a written long-term business plan would have
to be coordinated with the government; and changes to airport
development and maintenance must be written into a
comprehensive plan, presumably for government, i.e., MLIT
approval.
Comment
--------------
4. (C) MLIT seems to have lost this round and is currently
being highlighted in the press for shockingly high numbers of
"amakudari" positions in construction firms, the Japanese
practice of moving retired senior officials into private
sector jobs in industries they used to oversee. Despite the
recent setback, MLIT officials continue to look for ways they
can maintain control over the market, and they remain
suspicious of permitting private sector involvement in civil
aviation decision making.
SCHIEFFER