JAPAN'S PACIFIC ISLANDS SUMMIT: ENVIRONMENT,

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 001244

SIPDIS

PACOM FOR J5
USFJ FOR J00/J01/J5
STATE FOR S/SECC AND OES/EGC

E.O. 12958: DECL: 06/01/2019
TAGS: PREL PGOV JA
SUBJECT: JAPAN'S PACIFIC ISLANDS SUMMIT: ENVIRONMENT,
FINANCE AND FIJI DOMINATE TALKS

REF: TOKYO 895

Classified By: Charge James P Zumwalt for reasons 1.4(b) and (d)

--------------
Summary and Introduction
--------------


1. (C) Japan hosted the fifth Pacific Islands Leaders
Meeting (PALM 5) in Hokkaido May 22-23. The tri-annual
summit meeting between Japan and the members of the Pacific
Islands Forum was divided into three sessions focused on
climate change, human security and expanding people-to-people
exchanges. The Government of Japan released a statement on
April 16 expressing concern about recent events in Fiji.
Japan decided to invite only working-level officials to PALM5
in a bid to avoid isolating further the regime in Fiji.
Japan wants to limit China's influence on the Fijian
government's future direction, MOFA contacts report.

--------------
ENVIRONMENTAL ISSUES HEADLINE FIRST SESSION
--------------


2. (C) MOFA Oceania Division Deputy Director Hideaki Ishii
told Embassy Tokyo that Japan pledged 6.8 billion yen
(approximately $68 million) to the Pacific Island Forum at
the start of Session One of PALM 5, which focused on climate
change, biodiversity and waste management. These monies are
intended to assist in adaptive measures in response to
climate change. MOFA sees Tuvalu, Kiribati and the Marshall
Islands as potentially the most severely affected by climate
change problems, such as a rise in sea levels, and they could
stand to receive larger portions of this Japanese outlay.


3. (C) At the same session, many countries in the region
voiced a desire to cut dependence on diesel fuel. Japan
plans to assist in efforts to better harness solar power and
other renewable energy resources. Ishii noted the importance
placed on water desalinization projects, and said that
companies such as Nitto Denki and Toray have technologies in
this area that may be utilized.

--------------
STRONGER ECONOMIES SEEN AS KEY
--------------


4. (C) Regarding human security matters, including education,
water supplies and health issues, Ishii reported that most
countries stressed the importance of Japan's continued
assistance to the region despite the global economic
downturn. Several representatives stressed the need for
self-reliance. Papua New Guinea was particularly forceful in
asserting the need for economies in the region to build a
solid economic base so as to reduce dependence on aid and
assistance in the future. Sufficiently strengthened local
economies would then lead to an enhanced ability to deal
locally with human security issues.


5. (C) Palau's representatives discussed the Compact of Free
Association with the United States and expressed concern that
the loss of funds associated with the Compact will have a
very negative effect on the economy. Palau's president
emphasized the need to increase international trade and
investment and reaffirmed a commitment to opening Palau's
markets to the world in order to create new jobs and
investment.

--------------
PEOPLE-TO-PEOPLE EXCHANGES
--------------


6. (C) At the third session, Japan presented its "Kizuna"
(ties) plan to promote people-to-people exchanges, such as
scholarship programs and academic exchanges. Ishii observed
this initiative was well received. Japan's Prime Minister Aso
unveiled a three-year, 50 billion yen ($500 million) aid
package (of which the 6.8 billion will be a portion). Ishii

TOKYO 00001244 002 OF 002


noted that at the PALM4 meetings, a 45 billion yen program
was presented, which over time grew to close to 50 billion
yen total expended. He predicted it is possible that the
total value of Japan's newest package could well exceed 50
billion.

--------------
CONCERN OVER CHINESE INFLUENCE IN FIJI
--------------


7. (C) Concerns about China's intentions in the region
continue to weigh heavily on MOFA's thinking regarding Fiji,
Ishii continued. While noting that Japan's solution for the
PALM5 of inviting only working level officials was greeted
positively by other regional powers, Ishii feels that
Commodore Bainarama is seemingly "impervious" to outside
pressure, and emphasized his personal concerns that Australia
and New Zealand may overplay the importance of early
elections and attempt to further isolate Fiji's current
regime. According to Ishii, a number of senior MOFA
officials share these concerns and fear such actions would
lead Fiji to turn away entirely from diplomatic overtures by
Japan, Australia and others and instead seek aid and
resources from China. This could lead to Fiji in effect
"becoming another Burma," and is highly undesirable, he said.
ZUMWALT