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Viewing cable 07TOKYO1766, UNSCR 1747/OECD DEMARCHE DELIVERED ON EXPORT

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Reference ID Created Released Classification Origin
07TOKYO1766 2007-04-20 09:35 2011-08-30 01:44 CONFIDENTIAL Embassy Tokyo
VZCZCXRO1735
OO RUEHFK RUEHKSO RUEHNH
DE RUEHKO #1766/01 1100935
ZNY CCCCC ZZH
O 200935Z APR 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2890
INFO RUEHBJ/AMEMBASSY BEIJING 6710
RUEHFR/AMEMBASSY PARIS 5435
RUEHUL/AMEMBASSY SEOUL 2784
RUEHFK/AMCONSUL FUKUOKA 0790
RUEHNH/AMCONSUL NAHA 3239
RUEHOK/AMCONSUL OSAKA KOBE 4324
RUEHKSO/AMCONSUL SAPPORO 1710
RUEHBS/USEU BRUSSELS
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGV/USMISSION GENEVA 3054
RUEATRS/TREASURY DEPT WASHDC
RUCNDT/USMISSION USUN NEW YORK 4018
C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 001766 
 
SIPDIS 
 
SIPDIS 
 
PARIS FOR USOECD 
 
E.O. 12958: DECL: 04/19/2017 
TAGS: PREL EFIN ETRD EXIM OECD UN JA
SUBJECT: UNSCR 1747/OECD DEMARCHE DELIVERED ON EXPORT 
CREDITS TO IRAN 
 
REF: A. STATE 50834 
     B. TOKYO 1346 
 
Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 b/d. 
 
Summary 
------- 
1.  (C) Embassy delivered reftel demarche to the Ministry of 
Foreign Affairs (MOFA), Ministry of Economy, Trade, and 
Industry (METI), and Ministry of Finance (MOF) on the U.S. 
desire for the OECD to adopt a "common line" on restricting 
medium- to long-term export credits to Iran.  While the 
Japanese government has not yet formulated a position on the 
demarche, interlocutors noted the complicated factors at play 
in Japan's relationship with Iran.  They also attributed 
recent declines in export credits to companies' risk 
assessments rather than government policy.  Japan's delegate 
to the OECD meetings will likely seek out U.S. delegates 
directly for clarification of the proposal's implementation 
and impact.  End summary. 
 
MOFA Response 
------------- 
2.  (C) On April 20, Deputy Chief of Mission raised with MOFA 
Director General for Middle Eastern and African Affairs 
Norihiro Okuda the issue of our desire to see the OECD adopt 
a "common line" on restricting medium- to long-term export 
credits to Iran.  Okuda replied that MOFA will look into the 
issue based upon our demarche, and noted that Japanese export 
credits to Iran had recently declined.  This decline was not, 
he added, the result of legal or administrative guidance, but 
rather of the fact that Japanese companies are taking a more 
cautious approach to doing business with Iran.  At the same 
time, the government of Japan does not think it wise to cut 
all trade ties with Iran.  Iran is very complicated, 
explained Okuda, and unlike the DPRK there are many ways and 
means to impact Iran's behavior without breaking relations. 
Accordingly, Japan hopes to maintain bilateral ties with 
Iran.  That said, Okuda continued that Japan is always 
interested in having an international consensus on how best 
to act with regard to Iran's nuclear program, which Tokyo 
considers to be a very important political, diplomatic, and 
even national issue, given Japan's stance on the 
proliferation of nuclear weapons.  Okuda concluded by noting 
that his bureau found itself squeezed between the need to 
maintain bilateral relations and the requirement to take 
action on the critical issue of nuclear proliferation. 
 
METI Response 
------------- 
3.  (SBU) Per reftel request, Economic Officer also delivered 
the demarche April 20 to Ministry of Economy, Trade, and 
Industry (METI) officials.  METI Trade Insurance Director 
Michihiro Kishimoto and METI Director for Trade Finance 
Mitsuhiro Maeda, who will attend the OECD plenary session 
during the week of April 23, received the demarche. 
 
4.  (C) Noting that Iran presented complicated issues, 
Kishimoto stated that it would be difficult for Japan to 
formulate a response in the short time remaining before the 
OECD conference.  This was especially so, he stated, because 
the issues at hand concerned the actions of private 
companies, rather than the government.  He maintained that 
line, despite being pressed that the issue was fundamentally 
one of government-supported export credits.  Kishimoto also 
attributed to private company decisions about risk, rather 
than government guidance or policy, the fact that Japan's 
export credit agency, NEXI, had issued no medium-to-long term 
credits since mid-2006. 
 
5.  (C) Kishimoto voiced concerns about how meaningful an 
OECD "common line" would be, given the actions of non-OECD 
countries, particularly China.  Calling them his personal 
views, he said he feared that a "common line" containing just 
OECD countries would be ineffective, a view he thought was 
shared by many EU countries.  He stated that the Japanese 
government had asked its embassies in EU countries to assess 
what policies and actions those countries are taking with 
 
TOKYO 00001766  002 OF 002 
 
 
respect to Iran.  (Note: He suggested that the request was 
broader than the question of export credits, and that it had 
been made without connection to this demarche.) 
 
6.  (C) As a side note, Kishimoto stated that Japan had taken 
action on Bank Sepah, but that many in the Japanese 
government felt they had received insufficient information 
about what kinds of risks are at stake with that bank and 
other sanctioned entities. 
 
7.  (C) Maeda, who will attend the OECD meetings, closely 
compared the text of the non-paper with UNSCR 1747 and stated 
that he would be interested to hear from the U.S. delegates 
about minor differences in language between the two.  In 
particular, he would seek clarification of the definitions of 
"medium- to long-term credits," the "agents" of Iran's 
government, and what would be specifically excluded from the 
common line under "humanitarian and developmental purposes." 
 
8.  (SBU) The Financial Attache passed a copy of the 
non-paper to the Ministry of Finance (MOF).  MOF had been in 
touch with METI officials Kishimoto and Maeda in advance of 
their receipt of the demarche. 
 
SCHIEFFER