CHARGE RAISES JAPAN POST NEW INSURANCE PRODUCT

UNCLAS TOKYO 000629 SENSITIVE SIPDIS USTR FOR AUSTR CUTLER, BEEMAN, HALLOWAY NSC FOR LOI, RUSSELL PARIS FOR USOECD E.O. 12958: N/A TAGS: EFIN ECON PGOV JA SUBJECT: CHARGE RAISES JAPAN POST NEW INSURANCE PRODUCT WITH PM'S OFFICE Ref: Tokyo 616 Tokyo 617 ¶1. (U) Sensitive but Unclassified. Not for Internet distribution. ¶2. (SBU) The Charge telephoned Assistant Chief Cabinet Secretary Keiichi Hayashi March 19 to express U.S. concerns about a statement reported in the press by Minister for Internal Affairs and Communications Hatoyama in support of additional steps taken by Japan Post Insurance toward the issuance of a new cancer product and that also directly challenged U.S. industry (reftels). Charge said the United States and Japan had been discussing the Japan Post privatization process for many years and that this statement, if true, appeared to violate GOJ commitments in these talks. ¶3. (SBU) Hayashi told the Charge he was unaware of the press reports, but acknowledged the sensitivity of the issue in Washington and the USG's concerns. The GOJ will adhere to the product application procedures and principles laid out in Japan's privatization laws, he said. The Charge noted that if the press report was in error, it would be helpful for MIC to correct the record. Hayashi said he would convey the Charge's expression of concern to MIC. ZUMWALT