Identifier
Created
Classification
Origin
09HANOI181
2009-03-01 23:56:00
CONFIDENTIAL
Embassy Hanoi
Cable title:  

JAPANESE AMBASSADOR ON ROLE OF CHINA IN SOUTHEAST

Tags:  CH ECON JA PGOV PREL VM 
pdf how-to read a cable
O 012356Z MAR 09
FM AMEMBASSY HANOI
TO SECSTATE WASHDC IMMEDIATE 9224
INFO ASEAN MEMBER COLLECTIVE IMMEDIATE
AMEMBASSY BEIJING IMMEDIATE 
AMEMBASSY TOKYO IMMEDIATE
C O N F I D E N T I A L HANOI 000181 


STATE FOR EAP/MLS, EAP/J AND EAP/CM

E.O. 12958: DECL: 02/27/19
TAGS: CH ECON JA PGOV PREL VM
SUBJECT: JAPANESE AMBASSADOR ON ROLE OF CHINA IN SOUTHEAST
ASIA

REF: HANOI 165

Classified By: Ambassador Michael W. Michalak, reasons 1.4 (b) and (d)
C O N F I D E N T I A L HANOI 000181


STATE FOR EAP/MLS, EAP/J AND EAP/CM

E.O. 12958: DECL: 02/27/19
TAGS: CH ECON JA PGOV PREL VM
SUBJECT: JAPANESE AMBASSADOR ON ROLE OF CHINA IN SOUTHEAST
ASIA

REF: HANOI 165

Classified By: Ambassador Michael W. Michalak, reasons 1.4 (b) and (d)

1.(C) Summary: In a wide-ranging lunch discussion with
Ambassador Michalak on February 26, Japanese Ambassador to
Vietnam Mitsuo Sakaba discussed Japan's efforts to counter
Chinese influence in Southeast Asia through infrastructure
projects promoting Southeast Asian regional integration,
Japan's hopes to increase its influence in Vietnam with CPV
General Secretary Manh's upcoming visit to Tokyo, and Japan's
plans for implementing its renewed development assistance to
Vietnam. End summary.

Building Infrastructure to Balance China


2. (C) Sakaba said Japan believes Vietnam is a key in
counter-balancing "excessive" Chinese influence in Southeast
Asia. To do so, it is in Japan,s interests to build
Vietnam,s connections with Laos, Cambodia and Thailand.
While China is building "north-south" connections with
Southeast Asia through enhanced road links, Japan is
countering by supporting "east-west" links, including one
road from Danang leading north and west and one from HCMC
leading west into Cambodia.


3. (C) Sakaba said he believes a "certain rivalry" exists in
Southeast Asia, with China, Vietnam and Thailand jockeying
for influence. The Thais have a "natural connection" with
Cambodia, Sakaba said, while Vietnam does not have such a
natural connection and needs Japanese help to reengage with
Cambodia and Laos. If an infrastructure project linking
Vietnam and Cambodia has Japanese involvement the Cambodians
will accept it, Sakaba said. Without Japanese involvement,
he added, the Cambodians might not.


4. (C) Sakaba said that at the same time China is seeking
greater influence within Vietnam by training many of the
personnel at the Vietnam National Coal and Mines Industry
(Vinacomin),which has a number of major resource projects
including bauxite development in the Central Highlands. The
development of the bauxite reserves raises a number of
environmental concerns and also poses significant
transportation challenges including the need for a new port
facility. The GVN approached Japan about developing the
necessary transportation links, Sakaba said, and when Japan
declined the GVN indicated it might turn to China. On the
processing of bauxite, Sakaba said Japanese companies are not
interested and Japan will not provide development assistance
but might consider financing a public-private partnership
through JBIC.


5. (C) Asked about CPV General Secretary Nong Duc Manh,s
March visit to Japan, Sakaba said Japan is seeking a closer
relationship with Vietnam and does not believe the
widely-held view that Manh is the most "pro-China" of the
GVN,s leadership. Manh visited Japan in 2002 as General
Secretary, and Japan believes this is a good time to engage
him again when he is considering possible successors for his
retirement in 2011.


6. (C) Sakaba said Japan is also hoping that Prime Minister
Nguyen Tan Dung can visit Japan in May for a Nikkei News
symposium of senior East Asian leaders. Sakaba said last
year DPM Hoang Trung Hai attended, but Japan has pushed hard
this year to get the PM himself and so far all signs are
positive.

Turning on the Tap for ODA to Vietnam


7. (C) Turning to the resumption of Overseas Development
Assistance (ODA) to Vietnam, Sakaba said that Japan now has
four projects worth a total of $900 million ready for
signing, including one to start a Hanoi subway system.
Sakaba said these proposals had been ready when Japan
suspended ODA last August, and that it now hoped to sig them
in March. If so, Japan would be ready to announce the new
projects at the next CG meeting in June. If they are not
ready then, Sakaba said, they could be announced in the
December meeting. What will be more important, Sakaba said,
would be the secondary phase of introducing new project
proposals that had not been finished when ODA was suspended,
as these new projects will need to meet a variety of new
conditions (reftel).


MICHALAK