VZCZCXRO4618
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0924/01 0530843
ZNR UUUUU ZZH
R 220843Z FEB 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 8918
INFO RUEHFK/AMCONSUL FUKUOKA 4760
RUEHNAG/AMCONSUL NAGOYA 4823
RUEHNH/AMCONSUL NAHA 7404
RUEHOK/AMCONSUL OSAKA KOBE 7854
RUEHKSO/AMCONSUL SAPPORO 5954
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 04 TOKYO 000924 
 
SIPDIS 
 
SIPDIS 
 
PLEASE PASS TO EAP/J WENDELL ALBRIGHT AND LORI SHOEMAKER. 
PLEASE PASS TO USTR MICHAEL BEEMAN. 
 
E.O. 12958: N/A 
TAGS: ECON ENRG JA
SUBJECT: JAPAN'S ENERGY SECURITY PLAN GETS OFF TO 
LACKLUSTER START 
 
 
¶1. (SBU)  SUMMARY.  The committee to design Japan's new 
national energy strategy and revise Japan's 2003 Energy Basic 
Plan held its first meeting February 8.  The government plans 
to complete the new national energy strategy in late May, and 
revise its Energy Basic Plan in mid-October with public 
comment planned for the summer.  Private sector committee 
members criticized the government's initial discussion 
points, noting they lacked dynamism and a sense of 
priorities.  END SUMMARY. 
 
¶2. (SBU) The new energy subcommittee (sogo bukai or 
coordination subcommittee), set up under the METI Minister's 
Advisory Committee for Natural Resources and Energy, held its 
inaugural meeting on February 8.  Masahiro Kuroda, president 
of the Economic and Social Research Institute (ESRI) in the 
Cabinet Office, chairs the working group, whose members 
include 13 other energy experts and scholars.  The 
committee's goal is to draft a new national energy strategy 
with an interim report expected in late March followed by a 
final report by the end of May.  The committee then plans to 
combine this framework with those of other energy committees 
to create a revision of the Energy Basic Plan, which was 
adopted by the government in 2003.  That draft will then be 
shepherded into public comment this summer with a final 
revision ready for adoption by the Cabinet in mid-October. 
 
¶3. (SBU) Tsuneyoshi Tatsuoka, director of the General Policy 
Division of METI's Agency for Natural Resources (ANRE) and 
representative from the committee's secretariat, explained 
the list of issues for discussion by the subcommittee.  Also 
present among the ten government participants was Nobuyori 
Kodaira, director general of ANRE. 
 
¶4. (SBU) Most of the private sector members highlighted the 
fact that the discussion list was too general.  The main 
criticism was that the draft tried too hard to please too 
many people resulting in a uninspiring outline that lacked 
"forcefulness," a sense of risk management, and a sense of 
crisis.  Many members also questioned which items were to be 
included in the new national energy strategy and which were 
to be addressed in the Energy Basic Plan, and stressed the 
need to prioritize. 
 
¶5. (SBU) Mitsuo Kohno, chairman of the Naigai Information 
Study Group (Naigai Joho Kenkyukai), commented on how Japan 
had failed for decades to hold a comprehensive discussion on 
energy and underscored the urgent need for an energy strategy 
based on security (anzen hosho).  He joked that without one, 
ANRE would lose its raison d'etre.  Kohno also noted the 
importance of making recommendations as soon as possible. 
Prime Minister Koizumi has demonstrated an apparent lack of 
interest in energy issues, but the next administration might 
be more engaged. 
 
¶6. (SBU) The next subcommittee meeting is scheduled for March 
22 at which time the draft of the new national energy 
strategy will be presented for discussion. 
 
¶7. (SBU) Comment: The list of issues for discussion outlined 
at the committee meeting (see para. 10 below) is 
comprehensive despite committee member complaints that it 
lacked forcefulness.  The challenge will be to explore 
thoroughly the viability of the outlined issues and then to 
implement the new policies; the true test of the plan will be 
its execution.  It is still too early in the process to 
determine the effort's success or failure but the outspoken 
criticisms suggest the possibility of a thoroughly vetted end 
product.  In addition, the call for increasing the use of 
nuclear energy and reducing reliance on oil through new 
technologies mirrors efforts in the US and offers 
opportunities for the two countries to combine efforts.  End 
comment. 
 
¶8. (SBU) The following list contains the private sector 
subcommittee members and their affiliations: 
 
      Tadashi OKAMURA, Director and Chairman of the Board, 
Toshiba Corporation; Chairman of the Petroleum Committee 
(Sekiyu Bunkakai), Advisory Committee for Natural Resources 
and Energy. 
 
      Takeo KIKKAWA, Professor, Institute of Social Science, 
University of Tokyo. 
 
TOKYO 00000924  002 OF 004 
 
 
 
      Noriko KIMOTO, Journalist and critic. 
 
      Mitsuo KOHNO, Chairman, Naigai Information Society 
(Naigai Joho Kenkyukai). 
 
      Hajime SASAKI, Chairman, Global Environment & Energy 
Committee of the Japan Association of Corporate Executives 
(Keizai Doyukai); chairman of the Board, NEC Corporation 
 
      Masahiro SHIBATA, Vice Chairman, Nippon Keidanren; 
chairman, NGK Insulators, Ltd. 
 
      Akihiko TANAKA, Director (Shocho), Institute of 
Oriental Culture, University of Tokyo. 
 
      Jitsuro TERASHIMA, Chairman, Japan Research Institute. 
 
      Yasuhiko TORII, Advisor (Gakuji Komon), Keio 
University; Chairman, Electricity Industry Committee (Denki 
Jigyo       Bunkakai), Advisory Committee for Natural 
Resources and Energy 
 
      Masahisa NAITOH, Chairman and CEO, Institute of Energy 
Economics, Japan. 
 
      Masaru HASHIMOTO, Governor, Ibaraki Prefecture. 
 
      Kenji YAMAJI, Professor, Graduate School of 
Engineering, University of Tokyo. 
 
      Yoko WAKE, Professor, Faculty of Business and Commerce, 
Keio University. 
 
¶9. (SBU) The following list contains the government 
subcommittee members and their positions: 
 
      Nobuyori KODAIRA, Director General, ANRE. 
 
      Tetsuhiro HOSONO, Director General, Natural Resources 
and Energy Policy, ANRE. 
 
      Ichiro TAKAHARA, Director General, Energy Conservation 
and Renewable Energy Department, ANRE. 
 
      Kenji KONDO, Director General, Natural Resources and 
Fuel Department, ANRE. 
 
      Kenyu ADACHI, Director General, Electricity and Gas 
Industry Department, ANRE. 
 
      Satoshi IWATA, Deputy Director General  (Shingikan) in 
charge of Energy Supply and Demand, ANRE. 
 
      Tsuneyoshi TATSUOKA, Director, General Policy Division, 
Director-General's Secretariat, ANRE. 
 
      Naoto TAKAHASHI, Planning and Research Officer (Kikaku 
Chosa kan), General Policy Division, Director General's 
Secretariat, ANRE. 
 
SIPDIS 
 
      Hidehiko NISHIYAMA, Director, Policy Coordination and 
Planning Division, Nuclear and Industrial Safety Agency 
(NISA). 
 
¶10. (SBU) The following is a provisional translation of the 
discussion points presented at the February 8 meeting: 
 
¶A.    Basic understanding of the current state of affairs 
 
      (1)   Changes in the international supply/demand 
structure 
      (2)   Diversification of the risk factors surrounding 
the energy market 
      (3)   Reconstruction of energy strategy taking place in 
other countries 
 
¶B.    How discussions ought to be concerning the overall 
future energy policy 
 
      (1)   Necessity to reconstruct energy policy as 
national strategy 
 
 
TOKYO 00000924  003 OF 004 
 
 
            a)   Increase in risk factors to be considered 
            b)    Reconstruction of policy by setting energy 
security as base point 
            c)    Private sector and government acting 
together 
 
      (2)   Basic ways of thinking for the future energy 
policy 
 
            a) 5 Principles 
            b) Basic strategy 
                  -Promotion of energy conservation 
                  -Promotion of conversion to energy other 
than oil 
                  -Promotion of nuclear power and nuclear 
fuel cycle 
                  -Securing stable supply of oil and natural 
gas resources 
                  -Promotion of actively offering energy 
cooperation to Asian countries 
                  -Development of advanced energy technology 
and the strategic use of the outcome (result/ product) 
                  -New means to secure necessary investment 
 
¶C.    How the discussions concerning each individual measure 
ought to be 
 
      (1)   Promotion of energy conservation 
 
            a) Basic policy 
            b) Concrete actions 
 
                  1)    Current state and problems in the 
industrial sector 
                  2)    Current state and problems in the 
public welfare (minsei) and transportation sector 
                  3)    Establishment of a framework for the 
strategic development and spreading of energy 
      conservation technology 
 
      (2)   Reducing dependence on oil 
 
            a) Basic policy 
            b) Concrete actions 
 
                  1)    Diversification of fuel in the 
transportation sector 
                  2)    Promotion of the introduction of new 
energy 
                  3)    Promotion of the use of clean fossil 
fuel 
 
      (3)   Securing stable supply of oil and natural gas 
 
            a) Basic policy 
            b) Concrete actions 
 
                  1)    Strategic resource diplomacy 
                  2)    Joint efforts by the government and 
the private sector for securing and strengthening Japanese 
      rights and interests (keneki) 
                  3)    Actions taken by companies for 
strengthening the procurement power of oil and gas 
                  4)    Enrichment and strengthening of the 
oil stockpiling system, etc. 
 
      (4)   Promotion of nuclear energy 
 
            a) Basic policy 
            b) Concrete actions 
 
                  1)    Promotion of nuclear power generation 
                  2)    Action for the early establishment 
and increasing the independence (jishusei) of nuclear fuel 
      cycle 
                  3)    Promotion of research and development 
for putting fast breeder reactor (kosoku zoshokuro) 
cycle technology into practical use 
                  4)    Promotion of nuclear safety from 
scientific and rational standpoints 
 
      (5)   Asia Energy Cooperation 
 
 
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            a) Basic policy 
            b) Concrete actions 
 
                  1)    Promotion of energy conservation 
cooperation 
                  2)    Promotion of the clean usage of 
fossil fuel 
                  3)    Promotion of the introduction and 
spread of oil stockpiling system, etc. 
 
      (6)   Formation of "strong" energy companies and energy 
technology strategy 
 
            a) Basic policy 
            b) Concrete actions 
 
                  1)    Promotion of the formation of 
"strong" companies 
                  2)    Drawing up and spreading energy 
technology strategy 
 
      (7)   Policy means/steps 
 
            a) Set numerical policy targets and evaluate the 
degree of accomplishment (achievement) 
            b) Deal comprehensively by way of effectively 
combining budgetary, tax and other relevant systems 
            c) Efficiently and effectively implement public 
hearings, public relations and educational activities 
SCHIEFFER