DEMARCHE DELIVERED -- PAKISTAN TOKYO AID PLEDGE

UNCLAS TOKYO 002537 SIPDIS EAP, SRAP, PASS TO USAID/ASIA/SCAA E.O. 12958: N/A TAGS: EAID ECON EFIN PAK AF SUBJECT: DEMARCHE DELIVERED -- PAKISTAN TOKYO AID PLEDGE REF: STATE 108183 ¶1. (SBU) Summary: Embassy AID Counselor delivered points and discussed contents of reftel with Ministry of Foreign Affairs Director of Assistance Planning for Afghanistan-Pakistan Hikariko Ono and Division Deputy Director Katsunori Ashida. As host of the April Tokyo Conference, Ono made clear that Japan shares our priority interest in expediting international donor community commitments made at the conference. Ono was pleased to learn of USG progress in terms of obligating $400 million of the U.S. $1 billion pledge, and is very interested in the recent authorization of significantly increased U.S. aid for Pakistan. Despite the fact that Japan's April $1 billion pledge has been slow to disburse, the GOJ is in the midst of formulating a substantial package of additional assistance for Afghanistan-Pakistan. End Summary. ¶2. (SBU) Ono reported that as of October 26, Japan has obligated approximately $123 million of its $1 billion April Pakistan pledge, including both project loans and grant aid for a range of UNDP and UNICEF activities including polio eradication and peace-building efforts, as well as funding for improvements of roads and water supply systems in selected sites. Post has forwarded via email the Foreign Ministry's summary chart of Japan's grant/loan aid allocations as directed in reftel. Nearly one-third of Japan's pledge has been set aside for a $300 million World Bank program, which remains delayed given that the IBRD has not yet conducted a planning mission to Pakistan. The GOJ is also planning to allocate portions of its remaining $1 billion pledge for specific development projects including soft loans for power distribution/electricity sector projects, but admitted that it continues to be difficult to get concrete proposal from the Government of Pakistan (GOP). Ono projected that the major portions of its Pakistan aid pledge would not be fully on-line until Spring 2010. ¶3. (SBU) Citing Japan's experience and general disappointment thus far in terms of getting concrete proposals/direction and timely approval from the GOP for projects, Ono openly wondered about the ability of the country to absorb the planned huge amount of additional assistance. Ono and AID Counselor agreed that the collaboration between GOP and key donor countries and agencies in putting together a Malakand region development strategy could be a promising framework for closer future integrated aid and faster moving efforts. Notwithstanding its experience to date, the GOJ is clearly committed to putting together an even more substantial package of civilian assistance for both Afghanistan and Pakistan, in advance of President Obama's upcoming visit to Tokyo. Comment: The GOJ's Pakistan assistance programs are relatively nascent in comparison to its Afghanistan efforts which have been ongoing since 2002. With this in mind both MOFA and JICA officials continue to express interest in the possibility of building on, and/or complementing USAID and other USG programs in Pakistan. As the additional USG assistance authorized by Congress comes on line and the new GOJ package takes shape, comprehensive assistance consultations between the U.S. and Japan on our respective Pakistan efforts may be particularly useful. End Comment. ROOS