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