VZCZCXYZ0000
PP RUEHWEB

DE RUEHBY #1004 2750749
ZNY CCCCC ZZH
P 010749Z OCT 08
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC PRIORITY 0277
INFO RUEHKO/AMEMBASSY TOKYO 3214

C O N F I D E N T I A L CANBERRA 001004 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 10/01/2018 
TAGS: ETRD ASJA PREL
SUBJECT: JAPANESE AMBASSADOR COMMENTS ON WHALING, CHINA AND 
RUDD'S POLICY STYLE 
 
REF: (A) CANBERRA 998 (B) CANBERRA 996 (C) CANBERRA 792 
 
Classified By: AMBASSADOR ROBERT MCCALLUM.  REASON: 1.4 (D) 
 
¶1.  (C/NF)  Summary:  Japanese Ambassador Takaaki Kojima told 
Ambassador McCallum that Japan was not going to reduce or 
cancel the upcoming whaling season, as Australia hoped (ref 
B), because it  had already made a concession last year to 
drop the planned killing of 50 humpback whales in an effort 
to show good will and move the discussion forward in the 
International Whaling Commission (IWC).  Regarding recent 
Australian concerns over rising Chinese investment in 
Australia's minerals sector (ref C), Kojima noted that in 
contrast to recent Chinese investment bids, Japanese 
companies had preferred to take minority stakes in companies, 
and had not sought a controlling stake in Australian joint 
venture partnerships.  He also noted that Australian concerns 
over state controlled investors did not apply to Japanese 
firms like Mitsubishi or Nippon Steel as they were privately 
owned.  Kojima opined that, with the exception of Treasury, 
GOA ministries and agencies have been cut out of the foreign 
policy decision-making process by Prime Minister Rudd's "top 
down" style.  End summary. 
 
¶2. (C/NF) In a lunch hosted by Japanese Ambassador Takaaki 
Kojima on October 1, the Ambassador and DCM raised the issue 
of the upcoming whaling season and solicited Kojima's views 
on the possibility of a compromise that would defuse public 
opinion on both sides.  Kojima said that the Japanese had 
already made a concession last year to drop the planned 
killing of 50 humpback whales in an effort to show good will 
and move the discussion forward in the International Whaling 
Commission (IWC).  That had been accomplished, Kojima said, 
and Japan was not going to reduce or cancel the upcoming 
whaling season while the IWC working group process was 
ongoing.  Kojima confirmed that Australian Special Envoy 
Sandy Holloway would be in Japan next week (ref B) but 
acknowledged that the current caretaker government under new 
PM Taro Aso would not agree to any policy changes until after 
elections are held.  This would not be, in Kojima's opinion, 
before the whaling season began.  Kojima said that he was 
aware that the Rudd government was looking into legal action 
against Japan, but did not indicate whether Japan was working 
to get Australia to act on any Interpol findings against Sea 
Shepherd or other anti-whaling groups. 
 
Japanese Investment Differs from Chinese 
 
¶3. (C/NF) Although Japan was still the number one destination 
for Australian exports, Kojima said China would soon surpass 
Japan as a consumer of Australian resource exports, and that 
this was one of the drivers behind Chinese investment moves 
in Australia.  When asked whether Australia should be 
familiar with waves of Asian investment in Australia's 
minerals sector because of Japanese investments in the late 
1980s and early 1990s, (ref C) Kojima countered that Japanese 
companies, unlike their Chinese counterparts, had preferred 
to take minority stakes in companies, and had not sought a 
controlling stake in Australian joint venture partnerships. 
This had made Japanese investment easier to swallow in 
Australia, Kojima argued, even in a period when Australia's 
economy was not as strong.  Kojima was quick to point out 
that Australian concerns over state controlled investors did 
not apply to Mitsubishi or Nippon Steel as they were 
privately owned and would meet Treasurer Wayne Swan's stated 
test for investors that are affected by market forces. 
 
Rudd's "Top Down" Foreign Policy Making Approach 
Rudd's "Top Down" Foreign Policy Making Approach 
 
¶4.  (C/NF)  Kojima characterized Rudd's "top down" approach 
to foreign policy as "very unusual."  He noted that, when 
Rudd told him about his Asia Pacific Community (APC) 
initiative two days before the public announcement, the Prime 
Minister noted that he had not informed any of his foreign 
policy advisors, including the senior foreign policy advisor 
in his own office. Kojima opined that, with the exception of 
Treasury, all other GOA ministries and agencies have in 
effect been cut out of the foreign policy decision-making 
process.  According to Kojima, the lack of details attendant 
to the APC initiative suggests the hurriedly thought out 
nature of the proposal and lack of consultation by Rudd with 
his staff and ministries. 
 
MCCALLUM