Identifier
Created
Classification
Origin
09BEIJING1747
2009-06-25 06:13:00
CONFIDENTIAL
Embassy Beijing
Cable title:
JAPANESE EMBOFFS ON ECONOMIC DIALOGUE, INVESTMENT
how-toVZCZCXRO8408 PP RUEHCN RUEHGH RUEHVC DE RUEHBJ #1747/01 1760613 ZNY CCCCC ZZH P 250613Z JUN 09 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC PRIORITY 4800 INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY RUEHUL/AMEMBASSY SEOUL PRIORITY 1283 RUEHKO/AMEMBASSY TOKYO PRIORITY 2652 RHEFDIA/DIA WASHINGTON DC PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUEKJCS/SECDEF WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 001747
SIPDIS
STATE FOR EAP/CM -- THOMAS, FLATT, THORNTON, SHEAR
STATE FOR EAP/J
STATE FOR S/P -- CHOLLET, GREEN
STATE FOR E -- YON
STATE FOR D -- PARK
STATE FOR EEB/OIA -- SCHOLZ, HICKS, TRACTON
STATE PASS USTR FOR STRATFORD, WINTER, KALLMER, BAHAR
NSC FOR LOI
TREASURY FOR EUGENE HUANG, CHRIS WINSHIP, JASON PAU
E.O. 12958: DECL: 06/23/2019
TAGS: PREL ECON EFIN EAID EINV ETRD CH JA KS PK
SUBJECT: JAPANESE EMBOFFS ON ECONOMIC DIALOGUE, INVESTMENT
TALKS, PAKISTAN ASSISTANCE
REF: (A) TOKYO 01279 (B) 08 TOKYO 3416
Classified By: Acting Economic Minister-Counselor Laura Stone. Reasons
1.4 (b) and (d).
C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 001747
SIPDIS
STATE FOR EAP/CM -- THOMAS, FLATT, THORNTON, SHEAR
STATE FOR EAP/J
STATE FOR S/P -- CHOLLET, GREEN
STATE FOR E -- YON
STATE FOR D -- PARK
STATE FOR EEB/OIA -- SCHOLZ, HICKS, TRACTON
STATE PASS USTR FOR STRATFORD, WINTER, KALLMER, BAHAR
NSC FOR LOI
TREASURY FOR EUGENE HUANG, CHRIS WINSHIP, JASON PAU
E.O. 12958: DECL: 06/23/2019
TAGS: PREL ECON EFIN EAID EINV ETRD CH JA KS PK
SUBJECT: JAPANESE EMBOFFS ON ECONOMIC DIALOGUE, INVESTMENT
TALKS, PAKISTAN ASSISTANCE
REF: (A) TOKYO 01279 (B) 08 TOKYO 3416
Classified By: Acting Economic Minister-Counselor Laura Stone. Reasons
1.4 (b) and (d).
1. (C) SUMMARY: Japanese Emboffs, described the June 7
China-Japan High-level Economic Dialogue (HLED) as making
little progress on substantive matters but enjoying good
atmospherics. The most recent meeting of Japanese, Korean,
and Chinese negotiators to discuss a trilateral investment
treaty went better than previous rounds, but is inching
forward slowly at best due to Chinese reluctance to engage on
key issues. Since hosting the Pakistan Donors Conference in
April at which China pledged no new funds, Japan has not
engaged with China on foreign assistance to the South Asian
country. Japan believes Premier Wen Jiabao will host the next
trilateral Japan-China-South Korea summit in his hometown of
Tianjin, following the precedent set by Prime Minister Aso
last year. END SUMMARY.
JAPAN'S HLED GOAL: MAKE WANG QISHAN HAPPY
--------------
2. (SBU) According to Japanese Embassy econoffs Yujiro
Hayashi and Isao Tezuka, Chinese Vice Premier Wang Qishan
"was pleased" with the High-level Economic Dialogue (HLED)
held June 7 in Tokyo. As reported by Embassy Tokyo (ref A),
Wang and Japanese FM Nakasone discussed a wide range of
topics, including the global economic crisis, energy and
environment, intellectual property rights, the Doha trade
talks, and food safety issues. Wang said he wished there had
been more time to discuss these and other issues. Our
contacts said Japan had "wanted to ensure that Wang Qishan
left with a positive assessment of the HLED" in order to
secure his buy-in to continuing the dialogue, and viewed the
agreement to hold another round in China next year as proof
of success on this front. On the other hand, the HLED did
not achieve many tangible results. Hayashi said Japan had had
high expectations for a joint statement coming out of the
HLED, but it did not materialize, forcing Japan to issue its
own statement.
3. (SBU) After the one-day meeting, VP Wang traveled with the
Japanese Ambassador to China to Nagoya. Nagoya had hosted an
environmentally friendly, World Expo in 2005, and Wang
thought it might have some lessons for Shanghai, which will
host the event in 2010. Hayashi reported that Japan, not
unlike the United States, was encountering difficulties in
encouraging its private sector to participate in the World
Expo due to the ongoing economic downturn.
INVESTMENT TALKS
--------------
4 (C) Tezuka described the last round of trilateral
investment negotiations, held in April in Kunming, as
"comparatively better" than former rounds; however, he
admitted that progress with the very conservative Chinese
team was slow. Tezuka said the Chinese have insisted on a
new "Investor Corporate Social Responsibility" provision that
would require investors to contribute to economic and social
development in the destination country; Japan and ROK are
still trying to figure out the implications of this
provision.
5. (C) China rebuffed Japanese and ROK negotiators, request
to discuss chapters on pre-establishment and most-favored
nation treatment, asking to postpone discussion on those
chapters until next year. Japan tried to indirectly address
these issues in the context of discussions on other topics,
such as transparency and procurement, but with disappointing
results.
POST-MORTEM ON PAKISTAN DONORS CONFERENCE
BEIJING 00001747 002 OF 002
--------------
6. (C) After vigorous diplomatic efforts to get China to
contribute new funds at the April 17 Pakistan Donors
Conference held in Tokyo, Japan was disappointed that China
failed to do so. Tezuka said cooperating on overseas
development assistance was touched on in general terms at the
HLED, but there was no mention of Pakistan or any other
specific country where Japan and China might join efforts.
NEXT NE ASIAN SUMMIT IN TIANJIN?
--------------
7. (C) Hayashi said it is likely that the second
China-Japan-Korea Trilateral Summit will take place in China
in the second half of this year, in Tianjin, Premier Wen
Jiabao's hometown. This would follow the precedent set by
Japanese Prime Minister Taro Aso, who hosted the first
stand-alone trilateral summit between the three Northeast
Asian countries last December in his hometown of Daizufu,
Fukuoka (ref B).
PICCUTA
SIPDIS
STATE FOR EAP/CM -- THOMAS, FLATT, THORNTON, SHEAR
STATE FOR EAP/J
STATE FOR S/P -- CHOLLET, GREEN
STATE FOR E -- YON
STATE FOR D -- PARK
STATE FOR EEB/OIA -- SCHOLZ, HICKS, TRACTON
STATE PASS USTR FOR STRATFORD, WINTER, KALLMER, BAHAR
NSC FOR LOI
TREASURY FOR EUGENE HUANG, CHRIS WINSHIP, JASON PAU
E.O. 12958: DECL: 06/23/2019
TAGS: PREL ECON EFIN EAID EINV ETRD CH JA KS PK
SUBJECT: JAPANESE EMBOFFS ON ECONOMIC DIALOGUE, INVESTMENT
TALKS, PAKISTAN ASSISTANCE
REF: (A) TOKYO 01279 (B) 08 TOKYO 3416
Classified By: Acting Economic Minister-Counselor Laura Stone. Reasons
1.4 (b) and (d).
1. (C) SUMMARY: Japanese Emboffs, described the June 7
China-Japan High-level Economic Dialogue (HLED) as making
little progress on substantive matters but enjoying good
atmospherics. The most recent meeting of Japanese, Korean,
and Chinese negotiators to discuss a trilateral investment
treaty went better than previous rounds, but is inching
forward slowly at best due to Chinese reluctance to engage on
key issues. Since hosting the Pakistan Donors Conference in
April at which China pledged no new funds, Japan has not
engaged with China on foreign assistance to the South Asian
country. Japan believes Premier Wen Jiabao will host the next
trilateral Japan-China-South Korea summit in his hometown of
Tianjin, following the precedent set by Prime Minister Aso
last year. END SUMMARY.
JAPAN'S HLED GOAL: MAKE WANG QISHAN HAPPY
--------------
2. (SBU) According to Japanese Embassy econoffs Yujiro
Hayashi and Isao Tezuka, Chinese Vice Premier Wang Qishan
"was pleased" with the High-level Economic Dialogue (HLED)
held June 7 in Tokyo. As reported by Embassy Tokyo (ref A),
Wang and Japanese FM Nakasone discussed a wide range of
topics, including the global economic crisis, energy and
environment, intellectual property rights, the Doha trade
talks, and food safety issues. Wang said he wished there had
been more time to discuss these and other issues. Our
contacts said Japan had "wanted to ensure that Wang Qishan
left with a positive assessment of the HLED" in order to
secure his buy-in to continuing the dialogue, and viewed the
agreement to hold another round in China next year as proof
of success on this front. On the other hand, the HLED did
not achieve many tangible results. Hayashi said Japan had had
high expectations for a joint statement coming out of the
HLED, but it did not materialize, forcing Japan to issue its
own statement.
3. (SBU) After the one-day meeting, VP Wang traveled with the
Japanese Ambassador to China to Nagoya. Nagoya had hosted an
environmentally friendly, World Expo in 2005, and Wang
thought it might have some lessons for Shanghai, which will
host the event in 2010. Hayashi reported that Japan, not
unlike the United States, was encountering difficulties in
encouraging its private sector to participate in the World
Expo due to the ongoing economic downturn.
INVESTMENT TALKS
--------------
4 (C) Tezuka described the last round of trilateral
investment negotiations, held in April in Kunming, as
"comparatively better" than former rounds; however, he
admitted that progress with the very conservative Chinese
team was slow. Tezuka said the Chinese have insisted on a
new "Investor Corporate Social Responsibility" provision that
would require investors to contribute to economic and social
development in the destination country; Japan and ROK are
still trying to figure out the implications of this
provision.
5. (C) China rebuffed Japanese and ROK negotiators, request
to discuss chapters on pre-establishment and most-favored
nation treatment, asking to postpone discussion on those
chapters until next year. Japan tried to indirectly address
these issues in the context of discussions on other topics,
such as transparency and procurement, but with disappointing
results.
POST-MORTEM ON PAKISTAN DONORS CONFERENCE
BEIJING 00001747 002 OF 002
--------------
6. (C) After vigorous diplomatic efforts to get China to
contribute new funds at the April 17 Pakistan Donors
Conference held in Tokyo, Japan was disappointed that China
failed to do so. Tezuka said cooperating on overseas
development assistance was touched on in general terms at the
HLED, but there was no mention of Pakistan or any other
specific country where Japan and China might join efforts.
NEXT NE ASIAN SUMMIT IN TIANJIN?
--------------
7. (C) Hayashi said it is likely that the second
China-Japan-Korea Trilateral Summit will take place in China
in the second half of this year, in Tianjin, Premier Wen
Jiabao's hometown. This would follow the precedent set by
Japanese Prime Minister Taro Aso, who hosted the first
stand-alone trilateral summit between the three Northeast
Asian countries last December in his hometown of Daizufu,
Fukuoka (ref B).
PICCUTA