JAPAN BANK FOR INTERNATIONAL COOPERATION OFFICIAL

C O N F I D E N T I A L TOKYO 002845

SIPDIS

E.O. 12958: DECL: 12/11/2019
TAGS: EFIN EINV PREL ELTN SENV JA
SUBJECT: JAPAN BANK FOR INTERNATIONAL COOPERATION OFFICIAL
DISCUSSES FUTENMA, STRATEGIC PRIORITIES

Classified By: Deputy Chief of Mission James P. Zumwalt for Reasons 1.4
(B),(D)


1. (C) SUMMARY: Japan Bank for International Cooperation
(JBIC) strategic planning head Tadashi Maeda told Embassy
Tokyo Economic Minister Counselor the Democratic Party of
Japan (DPJ) leadership's failure to move forward on Futenma
relocation will likely remain a problem well into the next
year and assessed Prime Minister Hatoyama's foreign policy
advisor Jitsuro Terashima has little sense of the importance
of the issue in Washington. Maeda said support for
high-speed rail investment and nuclear energy are key
elements of the bank's focus in the United States. Maeda
added JBIC is heavily focused on low-carbon technology
investments overseas, specifically citing Japan's interest in
the Masdar City project in the United Arab Emirates. END
SUMMARY.

DPJ STANCE ON FUTENMA "DANGEROUS"
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2. (C) Maeda, whose portfolio includes leading JBIC's role in
financing the relocation of U.S. forces in Japan to Guam,
told EMIN during a December 10 courtesy call that Terashima
is strongly influencing Prime Minister Hatoyama's thinking on
Futenma relocation. However, Maeda said, Terashima is
focused solely on domestic considerations and has little
perspective on the broader implications for the security
alliance nor a network of meaningful contacts in Washington,
which makes him "dangerous for Hatoyama to listen to." Maeda
added that he met with Foreign Minister Katsuya Okada the
week of November 30 to discuss JBIC's role in the relocation
of U.S. forces, and Maeda concluded Okada "seems to
understand how dangerous" the situation is. Nevertheless,
Maeda predicted the issue will remain unresolved until well
into the next year, and said Hatoyama is using opposition to
Futenma relocation from junior coalition partners such as
Social Democratic Party leader Mizuho Fukushima as "an
excuse."

JBIC SUPPORTS HIGH-SPEED RAIL
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3. (C) Maeda said he has met with Japan Railways (JR) Central
Chairman Yoshiyuki Kasai, whom he described as strongly
"pro-U.S." and pledged JBIC will give maximum support to the
firm's efforts to export high-speed rail technology to the
U.S. in the context of promoting low carbon technologies.
Maeda described high-speed rail as a "good showcase" to
broaden the scope of U.S.-Japan cooperation, and said bids on
projects in Florida, Washington DC, Los Angeles-Las Vegas,
and Texas would be priorities for Japan. Maeda also said he
has had discussions with Ministry of Finance Budget Bureau
Director General Eijiro Katsu, whom he claimed also supports
such efforts.

NUCLEAR POWER AND CLEAN ENERGY FOCUS
--------------


4. (C) Maeda said JBIC is working to "recrystallize" its
environmental technology financing operations, and said
support for Japanese firms' exports of nuclear technology and
battery technology as leading priorities. He noted the bank
is working closely with Toshiba to finance exports of
advanced boiler-water reactor (ABWR) and AP1000 nuclear power
plants, specifically citing Toshiba's involvement in the
South Texas Project. Maeda said the construction of a
zero-emissions model city in Masdar, United Arab Emirates is
also a signature project for the bank's efforts to support
exports of clean energy technology. Maeda also claimed to be
a personal advisor to Deputy Primer Minister Naoto Kan on
clean energy technology policy.
ROOS