VZCZCXRO3564
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHFK #0014/01 0730821
ZNR UUUUU ZZH
P 130821Z MAR 08
FM AMCONSUL FUKUOKA
TO RUEHC/SECSTATE WASHDC PRIORITY 0339
INFO RUCPDOC/USDOC WASHDC PRIORITY 0013
RUEHKO/AMEMBASSY TOKYO PRIORITY 0335
RUEHNAG/AMCONSUL NAGOYA PRIORITY 0133
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0148
RUEHNH/AMCONSUL NAHA PRIORITY 0145
RUEHKSO/AMCONSUL SAPPORO PRIORITY 0139
RUEHFK/AMCONSUL FUKUOKA 0365

UNCLAS SECTION 01 OF 02 FUKUOKA 000014 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
STATE FOR EAP/J, EEP/OIA AND EEB/BTA 
STATE PASS USTR FOR BEEMANSENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD EINV PREL JA
SUBJECT: FUKUOKA GOVERNOR STRESSES THE IMPORTANCE OF FDI; NEED TO 
COOPERATE WITH U.S. ON STANDARDS 
 
 
SUMMARY 
 
¶1.  (U) Econ Minister-Counselor Robert Cekuta met with Fukuoka 
Governor Wataru Aso during a March 4-5 visit to Fukuoka and 
Kitakyushu.  The outspoken Fukuoka Governor, who also chairs the 
National Governors' Association of Japan, discussed how the 
Japanese perceptions of the U.S. as a superpower have declined 
in the wake of the wars in Iraq and Afghanistan and concerns 
here about the subprime loan situation.  He argued the EU is 
increasingly important as a global leader by dint of getting its 
product or technical standards accepted globally.  It is 
important, he continued, for the U.S. and Japan to work more 
closely on standards as a result.  He also stressed the 
importance of U.S.-Japan policy coordination toward China.  Aso, 
who has a reputation as an advocate for greater local autonomy 
and aggressive foreign outreach by local governments, strongly 
affirmed the value of greater foreign direct investment and 
castigated those in the Japanese government opposing efforts to 
boost FDI.   End Summary. 
 
CHANGING JAPANESE PERCEPTIONS OF THE U.S. 
 
¶2.  (SBU)   Governor Aso said through the 1990s, Japanese had 
looked up to the U. S. as the world's superpower.  However, 
Japanese opinions of the U.S. have declined over the past 
several years with Japanese believing, because of the wars in 
Afghanistan and Iraq, that the U.S. overly depends on military 
power.  Moreover, he asserted that the U.S. has become seen as a 
country which is extremely focused on making money - - implying 
this was the root of the subprime loan situation.  Aso also said 
American culture, long admired in Japan, has lately lost its 
luster. 
 
¶3.  (SBU)   Connected with this situation, Aso said the EU has 
done a better job of developing standards and getting them 
accepted as the rule internationally than has the U.S. the EU, 
which has taken the initiative in setting global standards (e.g. 
safety standards for foods, budgets, corporate governance and 
environmental protection), and that the EU is successfully 
persuading the rest of the world to adopt their standards.  He 
pointed out that he often visits China and has noticed that they 
are learning how to tackle environmental problems (e.g., 
implementing emission standards) from the EU.  He noted that the 
ASEAN countries are adopting EU rules as well.    He argued USG 
unwillingness to sign on to the Kyoto Protocol has created an 
impression that the U.S. is not ready to cooperate in such 
endeavors. 
 
¶4.  (SBU) Aso suggested that the U.S. and Japan should work 
together on standards with the idea that they could become 
adapted by other countries as well.  The subprime loan situation 
might provide some opportunities along this line.  The two 
countries should set global standards for securitization and 
rating to prevent similar crises from occurring again on a 
global scale. 
 
¶5.  (SBU)  Aso also said it would be important to coordinate 
policy toward China in order to incorporate it into the global 
community.   He expressed concern about China's growing military 
budget, the need to make China observe WTO rules, and the 
importance of protecting intellectual property rights. 
 
 
¶6. (SBU)   EMIN took issue with a number of Aso's points, noting 
for example the problems REACH and other EU decisions had caused 
for international trade problems.  There were also problems with 
transparency and the process with which the EU sometimes made 
decisions on regulatory issues.  Some of those same problems 
existed in how Japan formulated regulations.  EMIN also noted 
work with the EU and member states on resolving regulatory 
problems and the new initiative under President Bush to take a 
more active approach to regulatory matters to prevent them from 
becoming trade barriers.  Aso agreed with EMIN that the EU's 
rules are imperfect and can constrain economic growth, adding 
this situation makes U.S. and Japan cooperation in creating 
"reasonable" global standards all the more important. 
 
 
ASO: FDI BENEFITS ARE ENORMOUS 
 
¶5.  (SBU)   Aso said any person with "common sense" understands 
the benefits of FDI.  He was scathing in his remarks pertaining 
to Japanese politicians and officials recently quoted as 
 
FUKUOKA 00000014  002 OF 002 
 
 
opposing or looking to constrain incoming foreign investment. 
The Fukuoka Prefectural Government has opened offices to promote 
FDI in San Francisco, Frankfurt, Seoul, Shanghai, and Hong Kong. 
  These offices also actively promote local agricultural 
products.  The prefecture opened a Tokyo to induce Tokyo-based 
foreign companies to branch out to Fukuoka.  Governor Aso also 
invited members of the French Chamber of Commerce of Osaka and 
Tokyo to Fukuoka last fall in an attempt to convince them to 
move their Japan headquarters to Fukuoka.  To diversify Asian 
business links beyond China, Aso is aggressively pursuing 
relationships with India, Thailand, and Vietnam.   Fukuoka is 
the first Japanese local government which concluded a 
partnership agreement with the Government of the National 
Capital Territory (NCT) of Delhi, covering such matters as 
technology development, environmental policy, and personnel 
exchanges.  Fukuoka Prefecture has forged similar partnerships 
with Hawaii, Jiangsu Province in China, Bangkok, and most 
recently with Hanoi.  He also regularly networks with his 
counterparts in the region, including through an annual meeting 
of governors from Kyushu and Korea.  In the meeting, Aso added 
that Japanese companies are benefiting greatly from American 
FDI, particularly in the financial and information technology 
sectors., 
 
COMMENT 
 
¶6. (SBU) First elected in 1995 and now in his fourth term, 
Governor Aso, a former METI bureaucrat, has a reputation as an 
advocate for greater local autonomy and aggressive foreign 
outreach by local governments.  Given his entrepreneurial streak 
and fervent belief in FDI, Governor Aso may well be a possible 
partner in advocating for more openness to FDI here. 
CARRINGTON