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RR RUEHCHI RUEHDT RUEHHM RUEHNH
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FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 7304
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
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RUEHOK/AMCONSUL OSAKA KOBE 1100
RUEHFK/AMCONSUL FUKUOKA 7281
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RUEKJCS/CJCS WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEKJCS/SECDEF WASHDC
RHMFISS/USFJ
RHHMUNA/HQ USPACOM HONOLULU HI
RHEHAAA/NSC WASHDC

C O N F I D E N T I A L SECTION 01 OF 04 TOKYO 002567 
 
SIPDIS 
 
DEPT FOR EAP/J, EAP/MLS/, EAP/MTS 
 
E.O. 12958: DECL: 06/16/2019 
TAGS: PREL PGOV BM CB CH LA TH VM JA
SUBJECT: JAPAN ADVANCING TIES TO THE MEKONG REGION 
 
REF: A. BEIJING 2911 
     ¶B. TOKYO 1068 
     ¶C. FUKUOKA 0047 
 
TOKYO 00002567  001.2 OF 004 
 
 
Classified By: Deputy Chief of Mission James P. Zumwalt for reasons 1.4 
 (b) and (d). 
 
¶1. (C) SUMMARY:  The first Japan-Mekong Summit on November 
6-7 is the culmination of a year-long effort by Japanese 
leaders to strengthen ties to mainland Southeast Asia and 
will cap the Japan-Mekong Exchange Year, a program aimed at 
deepening cooperation and mutual understanding.  Japan has 
assured its neighbors to the west that the Mekong region is a 
"priority area."  Japanese leaders see the region as an 
integral part of the country's  diplomatic, security, and 
economic strategy in Southeast Asia, and in the Asia-Pacific 
more broadly.  Japan's outreach is aimed in part to counter 
China's growing presence.  Embassy contacts express concern 
about the prospect for Mekong countries to fall under Chinese 
political and economic influence.  In this vein, Japan has 
sought to strengthen ties by relying on traditional diplomacy 
tools, such as official development assistance (ODA) and 
trade and investment strategies.  Japanese officials also 
stress the importance of people-to-people exchanges.  Japan 
sees engagement with Mekong countries also as a way to 
address other regional concerns, such as Burma and North 
Korea.  There is room for broader U.S.-Japan cooperation, 
particularly in the realms of education,  counterterrorism, 
social development, democratization, and anticorruption, our 
interlocutors note.  END SUMMARY. 
 
¶2. (C) The first Japan-Mekong Summit on November 6-7 is the 
culmination of a year-long effort by Japanese leaders to 
strengthen ties to mainland Southeast Asia.  Prime Minister 
Yukio Hatoyama will host counterparts from Burma, Cambodia, 
Laos, Thailand, and Vietnam to cement partnerships, explore 
potential new areas of cooperation, and build on progress 
during the past year, according to officials from Japan's 
Ministry of Foreign Affairs (MOFA).  Throughout the year, 
Japan has welcomed several high-level visitors, including the 
prime ministers of Thailand, Vietnam, and Laos, respectively, 
and has dispatched its Foreign Minister to Cambodia, Laos, 
and Vietnam, and to Thailand on multiple occasions, including 
the Second Japan-Mekong Foreign Minister's Meeting in 
October.  Ministers stressed the importance of economic 
development and human security, and shared the view that 
peace and stability in the region are keys to achieving the 
integration goals of the Association of Southeast Asia 
Nations (ASEAN) and PM Hatoyama's long-term vision of an East 
Asian Community.  The Summit also will cap the Japan-Mekong 
Exchange Year, a promotional campaign program aimed at 
deepening cooperation and mutual understanding through 
people-to-people exchanges, seminars, and dialogues in areas 
such as culture, economics, politics, and tourism.  Japan has 
assured its neighbors to the west that the Mekong region is a 
"priority area," according to MOFA contacts. 
 
¶3. (C) Recent discussions between Embassy Tokyo and Southeast 
Asia watchers suggest that Tokyo is placing emphasis on the 
Mekong region because Japanese leaders see it as an integral 
part of the country's diplomatic, security, and economic 
strategy in Southeast Asia, and the Asia-Pacific region more 
broadly.  The region's large business market, energy 
resources, and its role as potential political counterweight 
to China are compelling Japanese decisionmakers to expand 
Tokyo's outreach.  Japanese officials underscore the 
importance of supporting the region's growth and capacity to 
develop systems devoted to the rule of law, human rights, and 
sound governance.  Japan's business community also sees ASEAN 
as a coveted partner and is following concerted efforts in 
the region by China, India, and South Korea. 
 
------------------------- 
Curbing Chinese Influence 
------------------------- 
 
¶4. (C) Japan's outreach to Mekong countries, and to Southeast 
Asia in general, is aimed in part to counter what the 
Japanese perceive as China's growing presence in the region. 
Embassy contacts expressed concern about the prospect for 
 
TOKYO 00002567  002.2 OF 004 
 
 
these countries to fall within China's "orb of influence." 
Unlike more established partners, such as the Philippines and 
Indonesia, which the Japanese see as being leery of China, 
Mekong capitals, perhaps due to proximity in addition to 
other factors, are less inclined to fend off Chinese appeals, 
contacts observed.  China has a long record of collaboration 
with the Mekong Region and, through mechanisms such as the 
Greater Mekong Sub-region (GMS) Initiative and the Mekong 
River Commission, is exploring areas of cooperation in new 
areas, including transportation, energy, telecommunications, 
environmental protection, agriculture, and human resource and 
natural resource development, among others (Ref A).  Mekong 
represents the complex and varied views that ASEAN capitals 
hold in general toward the Chinese, MOFA officials regularly 
concluded. 
 
¶5. (C) Japan is engaging directly with China on 
Mekong-related issues, in part, to keep an eye on the 
regional rival.  For example, Tokyo hosted the second annual 
Japan-China Policy Dialogue on the Mekong Region in June 
¶2009.  The purpose of the dialogue is to foster transparency 
and to "figure out" what the Chinese are "not telling us," 
Southeast Asia Division policy managers have mentioned.  This 
year's meeting was more fruitful than the 2008 dialogue held 
in Beijing, they said.  The Chinese side elaborated on its 
vision for the GMS, and both parties exchanged opinions on 
the state of affairs in the region.  They also shared 
information on their respective policies and explored future 
cooperation in areas such as health, infrastructure, 
environment conservation, and human resources.  The objective 
of the conference is to build "reciprocal relations among 
Japan, China, and the Mekong Region," Japanese interlocutors 
said.  The third meeting will take place next year, although 
a date has not been set. 
 
----------------------------- 
Forming Links with the Region 
----------------------------- 
 
¶6. (C) Japan has sought to strengthen ties to the region by 
relying on traditional diplomacy tools such as official 
development assistance (ODA).  Although bilateral ties have 
expanded beyond the ODA-centric policies of the past, aid 
still plays a critical role in Japan's policy, MOFA Southeast 
Asia Division officials stressed.  Japanese ODA to the region 
reached nearly $2 billion in 2007, the most over the previous 
five-year span.  The Mekong region holds great potential for 
development, considering its vast population, according to 
MOFA contacts.  Japan's grant, loan, and technical assistance 
programs have focused on remediating poverty and economic 
disparities, and promoting sustainable development and human 
security.  More specifically, Japanese officials highlight 
the importance of leveraging aid to garner third-country 
support in international institutions, secure overseas 
markets, and expand trade and investment. 
 
¶7. (C) Japanese officials highlight their "corridor" 
development projects, in particular.  These projects, born in 
part from the Japan-Mekong Partnership Program announced 
during the first Japan-Mekong Foreign Minister's Meeting in 
January 2008 and funded through the Japan-ASEAN Integration 
Fund, aim to improve logistical and distribution efficiencies 
along the east-west and north-south regional axes.  The 
East-West Economic Corridor connects areas between southern 
Burma and Da Nang, Vietnam and showcases the Second Mekong 
International Bridge, located in Thailand and completed by 
the Japanese in December 2006.  MOFA officials note that 
Japan has experienced some "trouble" on the Burma portion of 
the development project because of constraints stemming from 
longstanding political concerns there.  The Southern Economic 
Corridor, part of the Asia Highway, links Bangkok, Phnom 
Penh, and Ho Chi Minh City.  The project "lags behind" its 
east-west counterpart--a key bridge along the route remains 
unbuilt, for example--but MOFA officials still expect to 
realize a substantial economic and industrial artery upon 
completion.  Both corridors also include sub-projects aimed 
at enhancing customs clearance and improving trucking and 
roadside station facilities. 
 
¶8. (C) Japan also has focused ODA on a country-by-country 
 
TOKYO 00002567  003.2 OF 004 
 
 
basis, although aid has fluctuated greatly in some cases.  On 
Burma, Japanese aid has remained consistently minimal, 
reflecting Japan's measured engagement with the Burmese 
government, and is centered on the health, education, 
agriculture, forestry, fisheries, and social infrastructure 
sectors.  Since 1999, Japan has provided Cambodia legal 
infrastructure assistance with the aim of advancing the peace 
process and reconstruction of the country.  Japan also uses 
aid for hospital improvement, demining activities, and 
infectious disease control projects.  Aid to Laos, as of 
2007, had dropped from previous levels but is focused on 
transportation, and health.  Most saliently, Japan provided 
assistance to improve the Vientiane Number One Road, a 
transportation channel connecting the country to the rest of 
region.  In Thailand, Japan has helped develop the Mass Rapid 
Transit System with the aim of relieving local traffic 
congestion and mitigating greenhouse gas emissions.  Overall, 
however, Thailand's allotment has shrunk dramatically from 
levels in 2000 and 2004, perhaps because of recent political 
instability.  Japanese aid to Vietnam stands out in 
particular.  As of 2007, Japanese ODA to Vietnam was nearly 
eight times greater than the second largest regional aid 
recipient, Cambodia, and comprised nearly 75 percent of 
Japanese aid in the region.  Political stability and recovery 
from the financial and economic crisis are key drivers in 
Japan's efforts in the country, according to MOFA officials. 
 
 
¶9. (C) Japan has sought to couple its ODA strategies with an 
increased focus on trade and investment.  Japan has signed 
economic partnership agreements (EPA) with Thailand and 
Vietnam, in addition to having inked EPAs with all original 
ASEAN members and with the Association as a whole, and has 
concluded bilateral investment agreements with Cambodia and 
Laos.  Japan's overall trade with the region has increased 
steadily since 2003, reaching close to $60 billion in 2007, 
according to ASEAN-Japan Center statistics, and Japanese 
foreign direct investment (FDI) exceeded $6 billion during 
the same year. 
 
¶10. (C) The ongoing expansion of Japan's ties to Southeast 
Asian trading partners will depend in part on the growth of 
Japan,s domestic economy.  In recent dialogues between Tokyo 
and regional capitals, leaders have underscored the need for 
ASEAN economies to rethink models of export-led growth 
focused on the American consumer, considering the economic 
downturn.  Regional decisionmakers often highlight the 
revival of domestic Japanese demand as the single-most 
important way Japan can contribute to ASEAN's economic 
development. 
 
--------------------- 
Emphasizing Exchanges 
--------------------- 
 
¶11. (C) Japanese officials also stress the importance of 
people-to-people exchanges in solidifying ties to the region. 
 Specifically, they highlight the Japan Foundation's 
Japan-East Asia Network of Exchange for Students and Youths 
(JENESYS) program, an initiative by which Japan invites 
emerging artists, leaders, and students from the Asia-Pacific 
region to take part in various cross-cultural activities and 
residency programs across the country.  Roughly 450 Mekong 
region-based young adults, including traditional arts 
performers, parliamentarians and political leaders, and 
sports enthusiasts, visited Japan during the first half of 
2009 under the JENESYS program.  Japan plans to invite 
800-850 Mekong subjects annually over the next five years. 
Such initiatives are part of the more than 170 events Japan 
and Mekong partners planned for the Japan-Mekong Exchange 
Year.  Tokyo hopes that visitors "come to like Japan," 
Embassy contacts said. 
 
----------------------- 
Vietnam: A Special Case 
----------------------- 
 
¶12. (C) Some Japanese Southeast Asia watchers see Vietnam as 
the pillar of Japan's policies in mainland Southeast Asia, 
much like Indonesia is the linchpin in the maritime region 
 
TOKYO 00002567  004.2 OF 004 
 
 
(Ref B).  Economically, Vietnam is a manufacturing base for 
Japanese firms and a potential export market, MOFA officials 
told us.  The majority of Japanese aid funds construction, 
transportation, and energy projects, they explained.  The 
Japan International Cooperation Agency is also engaged 
heavily in the health sector and is working under a 
public-private partnership with business community leaders 
and associations to promote business climate improvements. 
Vietnam, for its part, opened a new consulate general in 
Fukuoka Prefecture in April and expanded air routes from 
Fukuoka to Hanoi in October (Ref C).  Trade has been growing 
rapidly for the past several years and, in 2008, exports and 
imports combined exceeded $16 billion, nearly four times 
greater than 2001 volume.  Japan is one of Vietnam's largest 
sources of FDI, reaching $3.3 billion in 2008, and the top 
ODA benefactor.  (Comment.  Consultations between the 
U.S.-Japan and South Korea on Vietnam assistance plans may be 
useful, considering Japan,s efforts, the USG,s own 
significantly expanding levels of foreign assistance to 
Vietnam, and Seoul's growing involvement in the country.  End 
Comment.) 
 
--------------------------------------------- -- 
Using Mekong Venues to Discuss Other Challenges 
--------------------------------------------- -- 
 
¶13. (C) Japan sees engagement with Mekong countries also as a 
way to address other regional concerns, such as Burma and 
North Korea.  During the Second Japan-Mekong Foreign 
Minister's Meeting in October, for example, leaders produced 
a statement calling on the Burmese government to hold 
transparent, democratic, and inclusive elections in 2010. 
The Summit also is an opportunity for Japan to appeal to 
Burmese leaders directly on humanitarian issues, such as the 
release of political prisoners, including Aung San Suu Kyi. 
Burmese Prime Minister Thein Sein is scheduled to attend the 
November 6-7 meeting.  On North Korea, Tokyo uses 
Japan-Mekong venues to urge Pyongyang to comply with all 
relevant UN Security Council resolutions and to follow 
through on its commitments in the Six-Party Talks.  In 
October, all sides stressed the importance of the 
multilateral framework and the need for the North to resolve 
the longstanding stalemate over the abductions of Japanese 
citizens. 
 
--------------------------------------------- ------- 
Opportunities for Cooperation with the United States 
--------------------------------------------- ------- 
 
¶14. (C) Japanese interlocutors welcome U.S. engagement with 
the Mekong region and highlight shared interests.  They 
stress the importance of coordination more than ever, 
considering that Japan, China, and now the United States, 
through the U.S.-Mekong Ministerial Dialogue, each have their 
own Mekong-based forums.  There is room for broader 
U.S.-Japan cooperation, particularly in the realms of 
education,  counterterrorism, social development, 
democratization, and anticorruption, our interlocutors 
regularly noted.  Washington has clearly demonstrated its 
policy of attaching importance to Southeast Asia, they added. 
ROOS