VZCZCXRO8791
RR RUEHKN RUEHMJ
DE RUEHKN #0098/01 1850448
ZNY CCCCC ZZH
R 030448Z JUL 08
FM AMEMBASSY KOLONIA
TO RUEHC/SECSTATE WASHDC 2064
INFO RUEHKN/AMEMBASSY KOLONIA 2410
RUEHBJ/AMEMBASSY BEIJING 0060
RUEHKO/AMEMBASSY TOKYO 0063
RUEHMJ/AMEMBASSY MAJURO 0357
RHMFISS/USPACOM REP GUAM ISLAND GU
RHMFISS/CDR USPACOM HONOLULU HI
RUEHC/DEPT OF INTERIOR WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 KOLONIA 000098 
 
SIPDIS 
SIPDIS;  STATE FOR EAP/ANP;  INTERIOR FOR OIA 
 
E.O. 12958: DECL:  7/3/2018 
TAGS: PREL FM JA CH
SUBJECT: JAPAN'S FIRST AMBASSADOR TO THE FSM DOWNPLAYS EXPECTATIONS - 
CHINA MOVES INTO THE SAME EMBASSY BUILDING 
 
CLASSIFIED BY: Miriam K. Hughes, Ambassador, Amembassy Kolonia, 
State. 
REASON: 1.4 (b) 
 
¶1.  (C)  Summary.  Japan's first resident ambassador to the 
Federated States of Micronesia (FSM) presented his credentials 
on June 24.  He conveyed an exceptionally brief message of good 
will on the part of the Emperor, omitting reference to specific 
goals.  Japanese Ambassador Shoji Sato said privately he had low 
expectations for progress in the FSM.  He highlighted President 
Hu Jintao's visit to Japan last May as a sign of Japan's 
improving ties with China.  In the meantime, China has expanded 
its Embassy staff in Kolonia to eight officers.  Two of them 
have moved into office space directly beneath a floor occupied 
by the Embassy of Japan.  This site affords a direct line of 
vision into the Australian Embassy, which is located across the 
street.  End Summary. 
 
JAPANESE AMBASSADOR MUTES A HISTORIC OCCASION 
 
¶2.  (SBU)  At a ceremony to present his credentials to the 
Government of the Federated States of Micronesia (GFSM) on June 
24, Japan's first resident ambassador spoke briefly and made no 
promises.  Japanese Ambassador Shoji Sato, who is a career 
diplomat, conveyed a message of "good will and friendly 
relations" on behalf of the Emperor.  Based in the FSM, Sato 
will also be accredited to Palau and the Republic of the 
Marshall Islands (RMI). 
 
¶3.  (SBU)  By contrast, FSM President Emanuel Mori waxed 
euphoric about Japan's role as "a dedicated development 
partner," which has provided generous assistance projects, 
particularly in the areas of climate change adaptation and the 
environment.  After 20 years of diplomatic relations between the 
two countries, Mori described the installation of an ambassador 
in the FSM as "the fulfillment of a dream."  He praised Japan's 
commitment to regional affairs and reassured Sato of GFSM 
support for a seat for Japan on the UN Security Council. 
 
¶4.  (C)  Sato confided privately that he feared the Micronesians 
would be disappointed with his level of engagement.  Japan's 
principal development initiative would be a long discussed 
project to extend Pohnpei's airport runway by approximately 900 
feet.  Japan's Diet recently approved this USD 25 million 
project, supposedly at the urging of former Japanese Prime 
Minister Mori (no relation to FSM President Mori.)  Construction 
bids would be sought soon, Sato said.  When the runway extension 
is completed by an estimated timeframe of February 2010, 
767-sized jets would supposedly be able to land in the FSM for 
the first time, competing with Continental's sole source 
Micronesia Air service, which is now limited to 737-model 
airplanes. 
 
¶5.  (SBU)  Even with the runway expansion, however, Sato doubted 
whether Japan Airlines would ever establish service to the FSM. 
He cited the FSM's weak infrastructure, adverse weather 
conditions and lack of entrepreneurial initiative as barriers to 
tourism, commerce and airline passengers.  A runway expansion 
would more likely attract Chinese charter flights, he speculated. 
 
CHINESE EMBASSY KEEPS PACE WITH JAPAN'S DIPLOMATIC EXPANSION 
 
¶6.  (C) In the meantime, China's Embassy in the FSM has 
increased its professional staff to eight officers, including 
Ambassador Liu Fei.  DCM You Weijun said on July 2 that two 
"economic and trade officers" had recently relocated from a 
large Chinese compound in Palikir, which is the seat of the FSM 
National Government, to a commercial office building in 
Pohnpei's capital town of Kolonia.  He confirmed information 
previously shared by Australian Ambassador Susan Cox that these 
two Chinese officers would occupy space directly beneath the 
offices of the Embassy of Japan.  The Australian Ambassador 
expressed quiet but strong concern that this move would position 
Chinese officers directly across the street from her own 
Mission, with "direct line of sight" vision, which  apparently 
has happened. 
 
¶7.  (C) Projecting non-concern, Ambassador Sato denied 
information, which his DCM had previously conveyed, that the 
Japanese would seek to identify and lease both a new embassy 
building and a new ambassador's residence in Pohnpei.  "We 
considered those options but rejected them," Shoji said, 
implying that the expense was not worth it to his government. 
Although the Government of Japan has clearly upgraded its 
Mission in the FSM with the assignment of the ambassador, along 
with a recent personnel expansion from three to seven Japanese 
 
KOLONIA 00000098  002 OF 002 
 
 
officers, Shoji seemed determined to strike a low profile. 
 
¶8.  (SBU)  He attributed any upgrade of the Japanese Mission to 
the personal interest of former Japanese PM Mori, whose father 
served as Japan's Naval Commander in Chuuk during World War Two. 
 (Note: Japan ruled Micronesia from 1919 to 1945, using many of 
its islands as bases for brutal occupations and military 
fortifications.)  Mori's father reportedly received protection 
and friendship from a village clan in Chuuk, which the former 
Prime Minister has visited several times, according to Sato.  A 
succession of FSM ambassadors in Tokyo, who had persistently 
lobbied PM Mori to install an ambassador in Micronesia, had 
finally achieved their objective principally owing to PM Mori's 
debt of gratitude to a village in Chuuk that had saved his 
father's life, Sato implied. 
 
¶9.  (C)  Ambassador Sato studiously avoided conversation about 
China's engagement in the FSM, perhaps because he had only just 
arrived.  However, he pointed out that Japanese Prime Minister 
Yasuo Fukuda was committed to fostering improved relations with 
China.  The visit last May of Chinese President Hu Jintao to 
Japan had begun to pave the way to rapprochement, he suggested. 
 
 
BIO DATA - SHOJI SATO 
 
¶10.  (SBU)  Ambassador Shoji Sato is a career diplomat born in 
1948, who last served as Consul General in Surabaya, Indonesia. 
His other overseas posts have included Zambia, Sydney, Pakistan, 
and Seattle.  Press reports indicate he served in the Ministry 
of Foreign Affairs in the following positions:  North American 
Affairs Bureau, U.S. Security Treaty Division Officer (1986); 
Minister's Secretariat, Deputy Director in the Management and 
Coordination Division (1988); Economic Affairs Bureau, Senior 
Assistant, Developing Economic Division (2000); Minister's 
Secretariat, Director of Information Systems Division (2002); 
and Intelligence Analysis Service, Senior Coordinator (2005). 
Sato said he had one daughter, who graduated from Smith College 
and had worked in the Costco marketing division in Seattle.  The 
daughter now works for Costco in Tokyo, he said. 
HUGHES