LATVIAN PM VISIT TO JAPAN FOCUSED ON TRADE

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 000341 SIPDIS E.O. 12958: DECL: 02/13/2017 TAGS: PREL ETRD JA LG SUBJECT: LATVIAN PM VISIT TO JAPAN FOCUSED ON TRADE TOKYO 00000341 001.2 OF 002 Classified By: Charge d' Affaires, a.i. James P. Zumwalt. Reasons 1.4 (B) (D) ¶1. (C) Summary. Latvian Prime Minister Ivars Godmanis' Tokyo visit focused on economic, financial, and trade issues, while renewing political ties largely devoid of contentious issues, according to Foreign Ministry officials and Tokyo-based Latvian Embassy diplomats. Tokyo and Riga did not sign any government-to-government accords, but did reach agreement to begin charter airline service between the two countries beginning in summer 2009. Contradicting Japanese Foreign Ministry officials and some media reports, the Latvian Embassy asserted that Riga officials believe Tokyo's experience during the 1990s-era East Asian financial crisis held little relevance for Latvia in the current world-wide turmoil. The two countries launched several initiatives focused on strengthening the bilateral relationship, including a Japan-Baltic Seminar for young parliamentarians, and agreed on an early March Tokyo visit by the chairman of Latvia's parliament. End Summary. -------------- Long-standing Ties -------------- ¶2. (C) According to Latvian Embassy DCM Egils Dzelme, Latvian PM Godmanis, January 21-24 itinerary, which followed meetings in South Korea, included an audience with the Emperor, a 40-minute meeting with Prime Minister Taro Aso, a dinner hosted by Foreign Minister Hirofumi Nakasone, meetings with METI Minister Toshihiro Nikai, Finance Minister Shoichi Nakagawa, a session with Japanese business association Keidanren, as well as a January 24 sightseeing tour of Kyoto. Dzelme, noting that "the Japanese know all the Latvian faces," said PM Aso and FM Nakasone have long-standing ties with Latvian leaders. Aso visited Riga while serving as Foreign Minister in former PM SHINZO Abe's Cabinet, during which time Aso "connected" with the current Latvian Foreign Minister. Nakasone traveled to Latvia during Soviet times and presently heads the Japan-Latvia Association. Godmanis maintains friendly relations with Nikai, Dzelme reported. -------------- Charter Air Agreement -------------- ¶3. (C) MOFA Western Europe Division Principal Deputy Director Yukiko Okano said bilateral talks focused on trade and tourism, but did not produce any bilateral agreements. Godmanis' discussions with leading Japanese travel and tourism company JTB resulted in an agreement to begin charter airline service between Tokyo and Riga in Summer 2009. JTB plans to sign a contract this summer to finalize the deal, which Okano claimed did not require a treaty or civil aviation agreement. Okano acknowledged, however, "it would not be easy to improve trade between the two nations" because Japanese companies do not have much interest in Latvia's market." Japan has only a few car sales offices in Latvia. Dzelme concurred, citing a Latvian plywood company with offices in Japan, and a Tokyo company which has formed a cooperative partnership with a Latvian pharmaceutical company as leading examples of the bilateral trade relationship. -------------- No Lessons for Latvia -------------- ¶4. (C) The only minor discrepancy between MOFA and Latvian Embassy's perspective on the visit, Okano said Prime Minister Godmanis had been "keen to listen to Japan's experience with the financial crisis of the 1990s" as Riga attempts to deal with its present-day financial problems. However, Dzelme said Latvian officials felt they had little to learn from Japan's experience. Western countries, which were largely unaffected by an economic crisis felt primarily in East Asia, had been able to assist Tokyo during its difficulties, Dzelme asserted. However, the current world-wide turmoil meant few countries were able to offer financial assistance to any nation ) Eastern or Western - in dire economic straits. -------------- Parliamentary Exchanges -------------- ¶5. (C) Okano said Tokyo and Riga have launched several TOKYO 00000341 002.2 OF 002 initiatives focused on strengthening the bilateral relationship. The Foreign Ministry hosted a Japan-Baltics Seminar January 26-31 which included two young parliamentarians from Estonia, Latvia, and Lithuania. From March 2 to 6, the chairman of Latvia's parliament, along with several legislators, will meet the Emperor, FM Aso, and members of the Diet's upper and lower houses. Tokyo recently upgraded its diplomatic posts to Embassies in Latvia and Lithuania, and plans to do the same in Estonia in 2010. ZUMWALT