VZCZCXRO1261
RR RUEHDU RUEHJO
DE RUEHSA #3183/01 2501531
ZNR UUUUU ZZH
R 071531Z SEP 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 1673
INFO RUEHBJ/AMEMBASSY BEIJING 0654
RUEHHE/AMEMBASSY HELSINKI 0097
RUEHLO/AMEMBASSY LONDON 1285
RUEHMO/AMEMBASSY MOSCOW 0662
RUEHFR/AMEMBASSY PARIS 1154
RUEHUL/AMEMBASSY SEOUL 0222
RUEHKO/AMEMBASSY TOKYO 0501
RUEHTN/AMCONSUL CAPE TOWN 4816
RUEHDU/AMCONSUL DURBAN 9149
RUEHJO/AMCONSUL JOHANNESBURG 7389
RHEHNSC/NSC WASHDC
RUCPDC/DEPT OF COMMERCE WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 0214
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 02 PRETORIA 003183 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/S, EEB/ESC AND CBA, ISN 
DOE FOR SPERL, PERSON, BIENAWSKI, PARKER, SCOTT, AND CLAPPER 
DOC FOR J.DIEMOND 
DEPT PLEASE PASS TO USTR FOR P.COLEMAN 
 
E.O. 12958: N/A 
TAGS: ENRG BEXP TRGY PREL IAEA EINV ECON SF JA
SUBJECT: JAPAN PASSIVE ON ADVOCATING WESTINGHOUSE'S SOUTH 
AFRICA BID 
 
REF: A. PRETORIA 3078 
 
     ¶B. PRETORIA 317 
 
 ¶1.  (SBU) SUMMARY: The Government of Japan is unable to 
manifest overt support for the Westinghouse bid for building 
new nuclear plants in South Africa.  Toshiba acquired 
Westinghouse in October of last year, but Mitsubishi also has 
a commercial relationship with competitor French Areva.  The 
GOJ appears unable to choose between the two big Japanese 
commercial groups, even though it is unclear whether 
Mitsubishi would actually participate in the French bid.  End 
Summary. 
 
¶2.  (SBU) Economic Counselor and Minerals and Energy Officer 
accompanied Westinghouse SA Manager Rita Bowser on September 
5 to call on the Embassy of Japan to coordinate advocacy 
efforts on behalf of Toshiba/Westinghouse's bid for building 
2-3 new nuclear power plants in South Africa (Reftels). 
Embassy of Japan Minister Takayuki Miyashita stated that the 
GOJ's position was "sensitive", because Mitsubishi has a 
"friendly relationship" with French Areva, the main 
competitor to Westinghouse for the South Africa bid. 
Miyashita said that their embassy had received no answer from 
Tokyo regarding whether they could support 
Toshiba/Westinghouse's bid (prompted by the previous call of 
Economic Counselor last February).  Moreover, Miyashita noted 
that they had received no contact from Toshiba regarding the 
bid. 
 
¶3.  (SBU) The Westinghouse rep and Economic Officers probed 
for some sort of support from the Embassy of Japan, 
especially with respect to the expected visit of Toshiba 
Senior Vice President Niwano to South Africa in October, but 
Miyashita offered only a call on the Japanese Ambassador 
(later expanded to a private dinner at the Japanese 
Ambassador's residence).  The Westinghouse rep outlined 
Westinghouse's strategy and advantages for gaining its bid 
for nuclear new build in South Africa, noting that the SAG 
had identified selection of Pressurized Water Reactor (PWR) 
technology (reftels) for which Westinghouse and Areva are the 
only two SAG-approved suppliers.  Economic Counselor noted 
that the USG was able to approve advocacy for Westinghouse 
because it was the sole U.S. supplier of this technology. 
The Westinghouse rep noted that the Areva bid would not 
likely include Mitsubishi-sourced technology or products. 
Miyashita took note of this, but was unable to promise GOJ 
support. 
 
¶4.  (SBU) Economic Counselor proposed an additional argument 
in Westinghouse's favor, noting that Japan and the U.S. were 
first and second as the two largest markets for South African 
exports (together representing over 21% share), so South 
Africa should consider this as a moral argument in favor of 
the U.S./Japanese bid for a contract of this size.  France is 
not as significant of a market, ranking only eleventh with a 
2% share.  The Westinghouse rep noted that South Korea had 
reportedly opened an office in South Africa to compete for 
the nuclear bid, so they could not be counted out, even 
though South Korea is not on the SAG list of approved 
suppliers.  (South Korea ranks 15th with a 1.7% share of SA 
exports.) 
 
¶5.  (SBU) COMMENT AND NEXT STEPS: Westinghouse will urge 
Toshiba to make a pitch to the GOJ to support the 
Toshiba/Westinghouse bid and to manifest this support as soon 
as possible.  Toshiba will be sending executives to South 
Africa in October (Corporate Senior Executive Vice President 
Masao Niwano) and February (President and CEO Atsutoshi 
Nishida) and Westinghouse CEO Steven Tricht will come in 
November.  The latter visit might be the best opportunity to 
sponsor an event to support the Toshiba/Westinghouse bid. 
 
PRETORIA 00003183  002 OF 002 
 
 
Post will continue to argue for greater Japanese advocacy, 
emphasizing that Mitsubishi will not likely be participating 
in the Areva bid. 
Teitelbaum