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OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGO #0905 1840248
ZNY CCCCC ZZH
O 030248Z JUL 06
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4749
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0977
RUEHBY/AMEMBASSY CANBERRA 9749
RUEHKA/AMEMBASSY DHAKA 4215
RUEHLO/AMEMBASSY LONDON 1671
RUEHNE/AMEMBASSY NEW DELHI 3398
RUEHUL/AMEMBASSY SEOUL 6846
RUEHTC/AMEMBASSY THE HAGUE 0533
RUEHKO/AMEMBASSY TOKYO 4460
RUEHCI/AMCONSUL CALCUTTA 0803
RUEHCN/AMCONSUL CHENGDU 0805
RUDKIA/AMCONSUL CHIANG MAI 0499
RUEATRS/DEPT OF TREASURY WASHDC
RUEHGV/USMISSION GENEVA 2737
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUCNDT/USMISSION USUN NEW YORK 0380
RUEHBS/USEU BRUSSELS

C O N F I D E N T I A L RANGOON 000905 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS; PACOM FOR FPA; TREASURY FOR OASIA:AJEWELL 
 
E.O. 12958: DECL: 12/08/2015 
TAGS: ECON PGOV EAID BM
SUBJECT: JAPAN SHIFTS FOCUS FOR ASSISTANCE TO BURMA 
 
 
Classified By: Acting P/E Chief:TLManlowe for Reason 1.4 (b,d). 
 
¶1. (SBU) Summary: After giving assurances that it will 
channel official foreign aid in Burma through NGOs, the 
Japanese government continues to provide some targeted 
financial and technical assistance directly to the GOB. 
However, the bulk of its support goes through the UN.  Japan 
thus remains Burma's largest bilateral donor, while reducing 
its support to GOB budget and infrastructure. End Summary. 
 
¶2. (C) Japan, Burma's largest bilateral donor, provided 
approximately $70 million in grant aid in 2001-2005 in 
projects including debt relief, upgrading power supplies, 
medical equipment, road construction, and crop substitution. 
The GOJ has reduced assistance to less than $10 million 
annually in recent years and, following the May 2003 attack 
against Aung San Suu Kyi, claimed that it would seek to 
channel most of its aid to "grassroots" projects outside of 
GOB control.  Since 2005, the GOJ has funneled most of its 
aid through UN agencies, including the recent commitment of 
$1.6 million to UNICEF for communication programs on avian 
influenza.  The GOJ also supports smaller projects through 
local organizations that have minimal government ties.  Some 
bilateral assistance to the GOB, however, continues.  We 
obtained documents signed in May and June 2006 that outline 
GOJ support of official Burmese environmental, education, and 
health projects. 
 
¶3. (C) In June 2005, Ambassador Nobutake and Planning 
Minister Soe Tha signed Memoranda of Understanding (MOUs), 
including two on Human Resource Development and one 
supporting a forestry project in central Burma.  The GOB and 
GOJ exchanged notes in May 2006 outlining Japan's 330 million 
yen (approximately $2.9 million) grant aid for reforesting 
efforts in Burma's dry zone. 
 
¶4. (C) The University of Tsukuba in Japan and the University 
of Pathein in Burma drafted an Agreement on Academic 
Exchanges and Cooperation.  The two universities would 
cooperate through exchange of professors, collaborative 
research, joint academic meetings, and information exchange. 
Also, the Ministry of Health sent a draft MOU between the 
Department of Traditional Medicine of Burma and the 
Department of Medical Science in Japan for approval. 
According to the MOU, both parties will implement programs to 
promote traditional medicine from 2006 to 2009.  Japanese 
specialists will teach courses at Burmese universities, and 
will lead research and development of healing methods. 
 
¶6. (C) Japanese diplomats in Rangoon told us that the GOJ 
wants to continue to help the Burmese people while reducing 
direct support for the government.  They described 
difficulties they experienced in working outside government 
channels.  For example, former Japanese Political Counselor 
Ichiro Maruyama told us the GOJ abandoned some educational 
projects in villages because their intended partners could 
not obtain the necessary GOB permits.  Nevertheless, he said, 
they will continue to seek community-based organizations to 
support. 
 
¶7. (C) Comment:  Japan has acted on its commitment to move 
most funding from the direct support for GOB projects and 
budget that it financed in the past.  The GOJ now provides 
most funding to the UN and to "softer" projects that focus 
more on capacity building.  End comment. 
VILLAROSA