VZCZCXRO0110
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2631 2680503
ZNR UUUUU ZZH
R 240503Z SEP 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 7445
INFO RUEHRC/USDA FAS WASHDC 8598
RUCPDOC/USDOC WASHDC
RUEHGV/USMISSION GENEVA 3406
RUEHBJ/AMEMBASSY BEIJING 5470
RUEHBY/AMEMBASSY CANBERRA 2778
RUEHHI/AMEMBASSY HANOI 1083
RUEHFK/AMCONSUL FUKUOKA 9999
RUEHNAG/AMCONSUL NAGOYA 8100
RUEHNH/AMCONSUL NAHA 2359
RUEHOK/AMCONSUL OSAKA KOBE 3742
RUEHKSO/AMCONSUL SAPPORO 0575

UNCLAS TOKYO 002631 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J 
USDA FOR FAS OA, ONA, OCRA, OFSO/DBREHM AND DUS TERPSTRA 
STATE PASS USTR FOR AUSTR CUTLER, BEEMAN, AND HOLLOWAY 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD SENV JA
SUBJECT: DEMARCHE DELIVERED: U.S. GRAIN EXPORTS TO JAPAN 
 
REFS:  A) STATE 101209 
B) TOKYO 2596 
 
SENSITIVE BUT UNCLASSIFIED, PLEASE PROTECT ACCORDINGLY 
 
¶1.  (SBU) The GOJ has no intention of portraying U.S. grains as 
unsafe and in fact cancelled recent rice and wheat tenders to shore 
up public confidence, Ministry of Agriculture, Forestry and 
Fisheries (MAFF) Director General of Staple Foods Masaaki Okuhara 
told FAS Senior Attache in response to Ref A points delivered 
September 22.  Ministry of Foreign Affairs Director General for 
Economic Affairs Otabe also told EMIN earlier that day that Japan's 
consumers see the problem as linked to rice from China and Vietnam, 
not rice from the United States. 
 
¶2.  (SBU) Okuhara said MAFF has been under intense media and public 
pressure due to Japan's "tainted" rice scandal and stands accused of 
downplaying lapses in MAFF oversight -- lapses that allowed moldy 
and pesticide-tainted rice to be sold illegally to food processors 
and enter the food supply (Ref B).  Okuhara claimed an all-out media 
circus would have erupted had MAFF gone forward with the tender for 
U.S. rice (already four months behind schedule).  Okuhara asserted 
MAFF has regularly communicated details surrounding the "tainted" 
rice scandal to the media and public, but that the media have 
focused reporting on pesticide-related issues.  (The primary 
pesticide in question -- methamidophos -- is the same pesticide at 
the center of the Chinese dumpling scandal that continues to capture 
headlines in Japan.) 
 
¶3.  (SBU) Citing his July meeting in Geneva with Deputy Under 
Secretary Ellen Terpstra, Okuhara reiterated Japan remains committed 
to honoring its pledge to fulfill its Minimum Access requirements in 
2008 for rice under the WTO.  However, when pressed, Okuhara was 
unwilling to say when the tenders would resume.  He acknowledged 
that wheat tenders would most likely recommence before rice 
(presumably an indication of Japan's greater need for wheat 
imports). 
 
¶4.  (SBU) Ministry of Foreign Affairs DG for Economic Affairs Yoichi 
Otabe told EMIN separately September 22 that Japan's consumers see 
the country's most recent food scandal as involving Vietnamese and 
Chinese rice, not rice from the United States.  (Note:  The Japanese 
media have not to our knowledge mentioned U.S. rice as a possible 
culprit in the scandal.  End note.)   Otabe added that MOFA is 
working with MAFF to ensure an acceptable resolution of the grain 
tenders issue.  The agriculture ministry, Otabe stated, confronts 
multiple problems and does not need further difficulties with the 
United States over rice.  Otabe said he hoped MOFA DDG Hiramatsu 
would be able to provide Washington agencies positive news on the 
tender questions in his meetings there at the end of the week. 
 
SCHIEFFER