VZCZCXRO2533
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3163/01 3210815
ZNR UUUUU ZZH
R 160815Z NOV 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 8845
INFO RUCPDOC/USDOC WASHDC
RUEHFK/AMCONSUL FUKUOKA 1001
RUEHNAG/AMCONSUL NAGOYA 9021
RUEHNH/AMCONSUL NAHA 3360
RUEHOK/AMCONSUL OSAKA KOBE 4789
RUEHKSO/AMCONSUL SAPPORO 1570

UNCLAS SECTION 01 OF 02 TOKYO 003163 
 
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 12, 2008 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. 
 
¶1. (U) This cable contains the Japan Economic Scope for 
November 12, 2008. 
 
Food and Agriculture 
-------------------- 
 
¶2. (SBU) USDA Urges Changes To New Wheat And Rice Tender Regs 
 
USDA's General Sale Manager W. Kirk Miller met with Ministry of 
Agriculture (MAFF) Director General for the Staple Food Department 
Masaaki Okuhara November 7 to express U.S. concerns about the new 
contract specifications for wheat and rice tenders.  Okuhara's 
department was instrumental in developing MAFF's new specs that 
require wheat or rice found unfit for human consumption to be either 
destroyed or re-exported.  These new specs, issued in response to 
the "tainted rice" scandal in which MAFF was implicated, lack 
clarity in terms of liability disposal accommodation and other 
issues that continue to disrupt trade in wheat and rice.  Okuhara 
confirmed MAFF has been in regular discussions with grain traders 
about the contract changes.  While there has been agreement on many 
things, there are still unresolved contractual points he said.  With 
the most recent rice tender scheduled going unfulfilled, Okura noted 
his office would engage the traders and work to iron out the 
remaining problems in the contract.  He asserted Japan would fill 
its rice quota and live up to its commitments.  USDA also passed a 
letter to MAFF DG Machida expressing the same concerns, which also 
noted failure to fulfill Japan's tenders might be attributable to 
MAFF's inadequate specifications, but not to market factors such as 
price. 
 
Japan's Foreign Relations 
------------------------- 
 
¶3. (U) Surveys for the Improvement of Harbor and Transportation 
Infrastructure in Ghana and Tanzania 
 
The GOJ agreed to implement preliminary surveys for the improvement 
of harbor and transportation infrastructure in Ghana and Tanzania, 
which may lead to the promotion of direct investment by Japanese 
companies.  In Ghana, Japan International Cooperation Agency (JICA) 
will conduct a preparatory survey for cooperation concerning harbor 
and transportation infrastructure.  In Tanzania, the Ministry of 
Economy, Trade and Industry and JETRO will implement an emergency 
survey for needs connected with an Mtwara Harbor expansion project. 
These projects are the outcome of the public-private Joint Missions 
for promoting trade and investment dispatched to Africa in 
September. 
 
¶4. (U) Emergency Assistance For Flood Disaster In Yemen 
 
On October 28, the GOJ agreed to provide emergency relief goods 
(tents, blankets, plastic sheets, sleeping mats, water purifiers, 
etc.) equivalent to about $180,000 to the Government of the Republic 
of Yemen, which sustained damage from flooding caused by torrential 
rainfall. 
 
¶5. (U) Emergency Assistance For Earthquake Disaster In Pakistan 
 
On October 29, the GOJ agreed to provide emergency relief goods 
(blankets, tents, etc.) equivalent to about $110,000 to Pakistan for 
earthquake-related relief. 
 
¶6. (U) Japanese Grant Aid To The Palestinian Authority 
 
Japan will provide $10 million of non-project grant aid to ease the 
budgetary burden of the Palestine Authority.  In an exchange of 
notes on October 29, Japan committed to help Palestinians improve 
their economy, institutional capacity, and livelihood, and to 
support the peace process.  Japan has proposed "The Corridor for 
Peace and Prosperity Initiative" to build an agro-industrial park in 
the Jordan Valley, which will provide the Palestinians job 
opportunities by facilitating the export of value-added products. 
Japan's contributions since the Oslo Process started in 1993 total 
$1 billion. 
 
¶7. (U) Japan Assists Southern Sudan Through UNHCR With High-tech 
Water Purifiers 
 
The GOJ decided October 28 to provide assistance through the UNHCR 
to Sudan for refugee relief.  The number of refugee returnees to 
Southern Sudan is anticipated to increase to at least 80,000 within 
a year following the end of this coming rainy season and the general 
 
TOKYO 00003163  002 OF 002 
 
 
election planned for 2009, according to UNHCR.  There is concern 
rapid deterioration of sanitary conditions in the region resulting 
from the influx of refugees may lead to disease outbreaks.  The 
GOJ's assistance includes 60 portable-type high-technology water 
purifiers and 60 spare filters to be used at nine medical 
facilities. 
 
¶8. (U) JICA Exchanges MOU With The African Development Bank (AfDB 
 
JICA President Ogata signed a Memorandum of Understanding October 29 
in Tokyo with the President of the African Development Bank, Donald 
Kaberuka, to strengthen the partnership between the two 
organizations.  The MOU aims to ensure sustained economic growth 
throughout the continent.  Ogata and Kaberuka agreed that in an 
increasingly complex environment for development aid, the ability to 
deliver effective assistance depends on much closer cooperation and 
collaboration between organizations such as JICA and AfDB.  The new 
MOU is designed to "facilitate collaboration" and "maintain a 
continuous working relationship" between the signatories, with the 
overall aim of improving Africa's economic performance.  Areas of 
cooperation include regional infrastructure development, 
agricultural productivity, private sector development, environment 
and climate change, water and sanitation, and post conflict 
situations.  The parties also agreed to strengthen cooperation in 
research, staff exchanges, and knowledge-sharing in areas such as 
the relevance of Asia's "economic miracle" to Africa's current 
situation. 
 
Trade 
----- 
 
¶9. (SBU) Jail For Ex-Vice Defense Minister Moriya (SBU) 
 
The Tokyo District Court sentenced former Vice Minister of Defense 
Takemasa Moriya to two and half years in prison and ordered him to 
pay 12.5 million yen in penalties for taking bribes totalling 
roughly the same amount from defense equipment trading company 
Yamada Yoko Corporation.  The court refused Moriya's request for a 
suspended sentence.  Moriya was also convicted of giving false 
testimony to the Diet.  Motonobu Miyazaki, former managing director 
of Yamada Corporation, received a two-year prison sentence for 
bribing Moriya.  Two other Yamada executives received suspended 
sentences. 
 
SCHIEFFER