VZCZCXRO5375
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3101/01 3120825
ZNR UUUUU ZZH
R 070825Z NOV 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 8635
INFO RUCPDOC/USDOC WASHDC
RUEHFK/AMCONSUL FUKUOKA 0842
RUEHNAG/AMCONSUL NAGOYA 8892
RUEHNH/AMCONSUL NAHA 3203
RUEHOK/AMCONSUL OSAKA KOBE 4627
RUEHKSO/AMCONSUL SAPPORO 1414

UNCLAS SECTION 01 OF 02 TOKYO 003101 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EFIN EAGR PREL SENV JA
SUBJECT: Japan Economic Scope for November 5, 2008 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. 
 
¶1. (U) This cable contains the Japan Economic Scope for 
November 5, 2008. 
 
Business 
-------- 
 
¶2. (U) U.S.-Japan Seminar Promotes Cross Border Investment 
 
The 2008 Japan-U.S. Investment Initiative's "Invest Japan" seminar 
took place October 30 in Shizuoka City.  Approximately 250 business 
leaders and government officials attended the annual event, 
including executives from more than ten U.S. companies, the American 
Chamber of Commerce in Japan (ACCJ), and representatives of eleven 
U.S. states with trade and investment offices in Japan. 
 
 
 
Shizuoka Governor Yoshinobu Ishikawa opened the event with a speech 
highlighting the technological and management strengths of 
Shizuoka-based firms, which make the prefecture an excellent place 
to invest.  Yasuo Hayashi, Chairman of the Japan External Trade 
Organization (JETRO), explained Japanese government investment 
policies.  ACCJ President Allan Smith spoke on a "Vision for a New 
Economic Partnership for Trade and Investment."  U.S. Ambassador to 
APEC, Ambassador Patricia Haslach, and Sadahiro Sugita, METI Deputy 
Director General for Trade and Economic Cooperation, delivered 
welcoming remarks. 
 
A highlight was the panel discussion, led by Prof. Haruo Shimada, 
Dean of the Chiba University of Commerce and chairman of the Cabinet 
Office Investment Experts Group, and featuring executives of U.S. 
and Japanese companies that have significant cross-border 
investment.  The panel members talked about the benefits and 
challenges when firms operate in a foreign business environment such 
as the importance of locating operations close to the final 
customer, and the need to be sensitive to cultural differences in 
business practices.  The U.S. firms represented were New York-based 
Corning Corporation, a leading manufacturer of LCD glass substrates 
and optical fibers, and Michigan-based Shape Corporation, a 
manufacturer of automobile bumpers and other vehicle structural 
supports.  The Japanese firms were Shizuoka-based Koito 
Manufacturing Co., a maker of automotive lighting equipment, and 
Yamaha Motor Corporation, the world-famous motorcycle and 
recreational vehicle manufacturer. 
 
"Invest Japan" seminars under the auspices of the bilateral 
Investment Initiative have been held annually since 2002 to promote 
greater cross-border foreign direct investment between Japan and the 
U.S..  This year's event was hosted by the Shizuoka Prefectural 
Government, with support from JETRO, the Ministry of Economy, Trade 
and Industry, and the U.S. Embassy. 
 
¶3. (SBU) METI & MOE Study Carbon Footprint and Offset Programs 
 
At an October 27 conference on climate change, Dr. Atsushi Inaba, 
Chair of the Ministry of Economy, Trade and Industry (METI)'s expert 
panel on carbon footprints, discussed the increasing popularity of 
environmentally-labeled products worldwide and demonstrated several 
carbon footprints and offset labels that could potentially be used 
in Japan.  Inaba, who also serves on the Ministry of Environment's 
(MOE) committee on visualization of greenhouse gas emissions, 
reiterated that carbon footprint and offset systems should work 
together.  He did not, however, address how METI and MOE plan to 
merge their independent efforts toward the two respective labeling 
systems. 
 
Inaba confirmed METI plans to adopt an eventual International 
Organization for Standardization (ISO) standard for its domestic 
carbon footprint labeling program, suggesting that ISO would 
probably finalize its carbon footprint standards by 2011. 
 
Environment and Energy 
---------------------- 
 
¶4. (SBU) Energy Forum Off, But IPEEC Proceeding 
 
GOJ officials confirmed the cancellation of the November G8 Energy 
Forum, but said the November 14 International Partnership for Energy 
Efficiency Cooperation (IPECC) 2nd Preparatory Meeting will proceed 
as scheduled. India reportedly has been particularly enthusiastic 
about IPEEC, and the Director General of the Bureau of Energy 
Efficiency is expected to lead the Indian delegation.  However, the 
 
TOKYO 00003101  002 OF 002 
 
 
Chinese have been reluctant to commit to sending representation 
either from Beijing or the embassy in Tokyo, according to METI. 
 
Food and Agriculture 
-------------------- 
 
¶5. (U) Hokkaido Re-Examining Public Support for Blanket BSE Testing 
 
 
The Hokkaido Prefectural Government (HPG) began surveying residents 
in mid October to measure public support for continuing mandatory 
BSE testing of all local cattle aged twenty months and younger. 
Government pollsters have been collecting information in two ways: 
directly from attendees at a series of public meetings on food 
safety and security, and through an online survey advertised through 
the media.  Interested parties can view the survey in Japanese at 
http://www.pref.hokkaido.lg.jp/hf/she/BSE_enq uete. 
 
In August, Hokkaido joined other Japanese prefectures in assuming 
the costs of continuing such testing on local cattle, after Japan's 
Ministry of Health, Labor and Welfare stopped paying for blanket BSE 
testing of cattle twenty months and younger.  As predicted, paying 
for continued testing has been costly for the prefecture ever since. 
With Japan's largest cattle herds, blanket BSE testing will cost 
Hokkaido an estimated 50 million yen ($510,000) through March 2009. 
 
 
The HPG will use the results of the survey to determine whether the 
public would accept elimination of blanket testing as a cost cutting 
measure.  Prefectural officials conducted a similar survey in 2007. 
At that time, seventy percent of respondents expressed support for 
continuing blanket BSE testing.  It is not clear that public 
sentiment has changed. Consumer groups again called for continuing 
the tests at the recent public meetings on food safety. 
 
Technology, Telecom, and IPR 
---------------------------- 
 
¶6. (U) Science And Technology Budget Request Flat For JFY 2009 
 
Government wide science and technology-related budget requests for 
JFY 2009 (April 2009 - March 2010) were essentially flat compared to 
the previous year's request, according to figures released by 
Japan's Council for Science and Technology Policy (CSTP).  In fact, 
the 1.2 percent increase over last year's budget request did not 
keep up with the latest numbers showing a 2.3 percent increase in 
core CPI.  Following a rank-ordering of the projects in the JPY 
4085.8 billion ($40.8 billion) budget request by the CSTP in early 
November, the Ministry of Finance will negotiate with the various 
S&T - related ministries and agencies to reach agreement of a final 
amount.  Last year's final S&T budget was 11.5 percent below the 
amount requested.  New items in this year's S&T budget request 
included fund categories for "Technological Innovation" and "Science 
Diplomacy." Please see: www.nsftokyo.org/rm08-07.pdf. 
 
SCHIEFFER