DFM OTABE MULLS USG ASSISTANCE TO AUTOMAKERS

C O N F I D E N T I A L TOKYO 000189 SIPDIS EEB/TPP/MTAA FOR NAFZIGER USTR FOR MALMROSE AND AUSTR CUTLER E.O. 12958: DECL: 01/26/2019 TAGS: ETRD ECON EFIN WTRO JA SUBJECT: DFM OTABE MULLS USG ASSISTANCE TO AUTOMAKERS REF: A. STATE 4753 ¶B. TOKYO 187 Classified By: Charge d'Affaires, a.i. J. Zumwalt for reasons 1.4 b/d. 1.(C) Japan has no objection to the USG helping automakers, but government assistance could raise WTO-related concerns, Deputy Foreign Minister Yoichi Otabe told the Charge January 27 in a sidebar to another meeting. Noting German Chancellor Merkel had raised the topic at the OECD, that France appeared to be considering its own measures, and that Nissan was asking for Japanese government support, Otabe said Japan is "closely watching" what other countries might do with what he called "gray area measures." He seemed particularly concerned about the potential for "Buy America" provisions in USG actions. ¶2. (C) Otabe was quick to note Japanese industry is not putting pressure on the GOJ for action. Industry, he said, is heavily invested in the U.S. market, and Japanese parts suppliers rely on both their U.S. and Japanese partner firms. ¶3. (C) Ministry of Economy, Trade and Industry (METI) comments on autos are reported in ref B. ZUMWALT