VZCZCXRO6643
PP RUEHCN
DE RUEHKO #1691/01 0890752
ZNR UUUUU ZZH
P 300752Z MAR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0348
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHSS/OECD POSTS COLLECTIVE
RUEHKL/AMEMBASSY KUALA LUMPUR 1641
RUEHFK/AMCONSUL FUKUOKA 5413
RUEHNAG/AMCONSUL NAGOYA 5420
RUEHNH/AMCONSUL NAHA 8046
RUEHOK/AMCONSUL OSAKA KOBE 8570
RUEHKSO/AMCONSUL SAPPORO 6597
RUEHBS/USEU BRUSSELS
RUCPDOC/USDOC WASHDC
RUEHGV/USMISSION GENEVA 2802

UNCLAS SECTION 01 OF 02 TOKYO 001691 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLEASE PASS AUSTR CUTLER 
PLEASE PASS USDA FOR U/S PENN 
PLEASE PASS FAS FOR TERPSTRA 
PARIS FOR USOECD 
GENEVA FOR USTR 
 
E.O. 12958: N/A 
TAGS: ETRD PREL ECON JA
SUBJECT: DUSTR BHATIA CUTS STRAIGHT TO THE BEEF 
 
 
TOKYO 00001691  001.2 OF 002 
 
 
SESITIVE BUT UNCLASSIFIED -- PLEASE PROTECT ACCORDINGLY 
 
Summary 
------- 
 
¶1.  (SBU) The United States is looking for an early 
resumption of beef imports to Japan.  That was the message 
Deputy U.S. Trade Representative Karan Bhatia conveyed during 
March 20 meetings in Tokyo.  While underscoring that U.S. 
beef is safe, in separate meetings he told Vice Ministers at 
the Foreign, Trade, and Agriculture ministries, and the 
Assistant Cabinet Chief Secretary in the Prime Minister's 
office that the political climate in Washington was growing 
more difficult.  If the beef ban were still in place in 
mid-April when Congress returns from recess, the issue could 
severely affect the bilateral relationship.  DUSTR Bhatia 
also delivered the same message to Parliamentary Vice 
Minister Shiozaki.  The Japanese reply was mixed, with Deputy 
Foreign Minister Mitoji Yabunaka stressing that the Japanese 
understand the politics and want the problem solved and out 
of the way, while Vice Agriculture Minister Hiroyuki 
Kinoshita pointed to the need for caution.  End Summary. 
 
Deputy Foreign Minister Wants Quick Resolution 
--------------------------------------------- - 
 
¶2.  (SBU) In Tokyo to cover a range of topics with his 
Japanese counterparts (septel), DUSTR Karan Bhatia urged the 
GOJ to move as quickly as possible to end the ban on U.S. 
beef that was re-imposed in January.  He told senior GOJ 
officials that the problem was extremely sensitive in 
Washington.  The Congressional drums were beating "louder and 
louder," and if beef were not resolved soon the issue would 
become a big impediment to better economic cooperation. 
Deputy Foreign Minister Yabunaka told Bhatia that the Koizumi 
Government well understood the dangers of letting this 
problem drag on.  The government was very much engaged in 
trying to find a solution.  A senior-level discussion on the 
topic had taken place at the Prime Minister's office earlier 
on March 20 and participants understood the urgency of the 
matter. 
 
¶3.  (SBU) Yabunaka pointed to a meeting of experts that the 
two sides have scheduled for March 28 and said the climate to 
make more progress should only get better in coming weeks.  A 
big hindrance has been the Diet's consideration of the annual 
budget, but this issue should melt away after it is passed by 
the upper house, presumably on March 27.  The Prime Minister, 
Yabunaka said, was well aware that the beef ban could erode 
the good relations that Japan enjoys with the United States. 
Koizumi, however, must be very careful to navigate the 
domestic political landmines in Japan over the issue. 
Koizumi "doesn't want to antagonize housewives," the Vice 
Foreign Minister quipped.  Yabunaka claimed to have good 
relations with Agriculture Minister Nakagawa, and has 
stressed with him the importance of moving in a timely way to 
solve the issue.  Nakagawa gets it, he suggested. 
 
Agriculture Ministry Urges Cautious Approach 
-------------------------------------------- 
 
¶4.  (SBU) At the Agriculture Ministry, Vice Minister 
Kinoshita was very cordial but, in contrast to Yabunaka, did 
not try to look forward leaning in identifying a road map for 
lifting the ban more quickly.  The procedures the U.S. put in 
place last fall to resume trade with Japan did not work, he 
noted.  The two sides first need to sort out what went wrong. 
 Japan has posed for the U.S. Agriculture Department 
questions concerning how in January banned beef products 
entered Japan in violation of the bilateral agreement.  The 
U.S. replies were only just delivered to the GOJ on March 18 
and Kinoshita said he had not had a chance to review them. 
When Bhatia pressed the Vice Minister on the need for a clear 
time line for reopening the market, Kinoshita pushed back. 
He hoped next week's experts level meeting, set for Tokyo, 
 
TOKYO 00001691  002.2 OF 002 
 
 
would be a success, but reminded Bhatia what Agriculture 
Minister Nakagawa had said to the Diet recently: haste makes 
waste. 
 
Koizumi's Advisor 
----------------- 
 
¶5.  (SBU) At the Prime Minister's Office, Assistant Chief 
Cabinet Secretary Hiroyasu Ando reviewed with Ambassador 
Bhatia the major bilateral issues between the United States 
and Japan, including beef.  The Prime Minister understood 
that the beef ban was hurting the relationship.  Ando added 
that it was important now to keep "consumer confidence" in 
mind as the two sides work out this issue.  Bhatia stressed 
the importance of not letting beef linger as a problem 
because it would get in the way of the broader relationship. 
The two sides need to work hard in coming weeks to resolve 
the issue quickly. 
DONOVAN