VZCZCXRO7552
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3543/01 3660409
ZNR UUUUU ZZH
R 310409Z DEC 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 9788
INFO RUCPDOC/USDOC WASHDC
RUEHFK/AMCONSUL FUKUOKA 1665
RUEHNAG/AMCONSUL NAGOYA 9587
RUEHNH/AMCONSUL NAHA 4018
RUEHOK/AMCONSUL OSAKA KOBE 5452
RUEHKSO/AMCONSUL SAPPORO 2227

UNCLAS SECTION 01 OF 02 TOKYO 003543 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J 
 
E.O. 12958: N/A 
TAGS: ECON ETRD SENV EFIN EAGR PREL JA
SUBJECT: Japan Economic Scope for December 29, 2008 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. 
 
¶1. (U) This cable contains the Japan Economic Scope from December 17 
to 29, 2008 
 
Foreign Relations 
----------------- 
 
¶2. (U) Nippon Oil/Nippon Mining Merger 
Nippon Oil and Nippon Mining Holdings, Japan's largest and 5th 
largest oil companies, announced they have reached a basic agreement 
to merge under a holding company.  The firms plan to sign an 
"Agreement on Management Integration" by March 2009 and establish 
the holding company by October 2009 and core subsidiaries by April 
¶2010.  The subsidiaries will likely be organized to cover petroleum 
refining and marketing, oil and natural gas exploration, and metals. 
 The merged entity is estimated to have 13.15 trillion yen in 
combined sales, making the new Nippon Oil the world's eighth largest 
energy company.  Its estimated 33 percent domestic market share will 
reportedly be nearly twice that of the nearest competitor, 
ExxonMobil. 
 
¶3. (U) GOJ Attends Bali Democracy Forum Ministerial Meeting 
 
Masahiko Koumura, former GOJ Minister for Foreign Affairs, attended 
the Bali Democracy Forum Ministerial Meeting in Bali, as Special 
Envoy of Prime Minister Taro Aso in early December.  This Forum, 
hosted by Indonesia, sought to promote and consolidate democracy in 
Asia. 
 
¶4. (U) Japan-Philippine Economic Partnership Agreement (EPA) Holds 
First Meeting 
 
The Japan-Philippine Economic Partnership Agreement recently entered 
into force at the first meeting of the Joint Committee in Tokyo. 
Hirofumi Nakasone, Minister for Foreign Affairs, Koichi Hirata, 
Senior Vice Minister of Finance, Tetsuro Nomura, Vice-Minister for 
Agriculture, Forestry and Fisheries, and Masaaki Taniai, 
Parliamentary Secretary for Economy, Trade and Industry, represented 
the GOJ.  Alberto G. Romulo, Foreign Secretary, and Ralph Gonzalez 
Recto, Secretary of Socio-Economic Planning, represented the GOP. 
The Joint Committee adopted operational rules for trade in 
commodities, rules of origin, and mutual recognition. 
 
¶5. (U) Malawi's Foreign Minister Visits Japan 
 
Malawi's Foreign Minister Joyce Banda visited Japan December 14. 
Japan established its embassy in Lilongwe in January 2008 and has 
been working to strengthen bilateral relations with the country. 
Foreign Minister Banda also visited Oita Prefecture, which has a 
close relationship with Malawi through the "One-Village-One-Product 
Campaign."  Japan continues to support economic development in 
Malawi through assistance measures announced at this year's Tokyo 
International Conference on African Development (TICAD IV). 
 
¶6. (U) Japanese NGO Recognized for Mine Removal Work in Cambodia 
 
A Japanese non-Governmental Organization (NGO) working to remove 
landmines in Cambodia for the past ten years was selected to receive 
the 10th Asia Human Rights Award.  The Cambodia Mines-Removal 
Campaign, based in Fukuoka City, is the first Japanese organization 
to receive the award given to individuals or groups that have 
contributed to improving human rights issues in Asia.  Past 
recipients include Burma's pro-democracy leader Aung San Suu Kyi. 
Established in 1998, the Cambodia Mines-Removal Campaign has 
undertaken a range of activities to help remove landmines in 
Cambodia, including donating artificial limbs and medications to 
mine victims, and school construction. 
 
¶7. (U) JICA to Support Victims of Human Trafficking 
 
The Japan International Cooperation Agency (JICA) will begin a $3 
million, five-year program in January to support victims of 
trafficking in persons (TIP) in Thailand, Cambodia, Laos, and 
Vietnam.  JICA plans to rescue women and children who have fallen 
victim to human trafficking and protect them temporarily in shelters 
and provide technical training to prepare for the return to their 
original communities. 
 
¶8. (U) JICA and ASEAN Leaders Discuss Mutual Cooperation and 
Regional Issues 
 
Japan International Cooperation Agency (JICA) President Sadako Ogata 
and Dr. Surin Pitsuwan, Secretary General of ASEAN, discussed future 
 
TOKYO 00003543  002 OF 002 
 
 
cooperation between the two organizations and the latest regional 
developments December 8 in Tokyo.  They reviewed a recent agreement 
between the two organizations to accelerate further ASEAN 
integration, drawing on JICA's extensive development experience in 
the region.  A new ASEAN charter entered into force on December 14 
when The ASEAN Secretariat is expected to play a larger role in 
regional integration.  Now that the ASEAN Chater has come into 
effect earlier this month, Dr. Surin underlined his commitment to 
help newer ASEAN members such as Cambodia, Laos, Burma and Vietnam 
to narrow the development gap in the region and expressed his 
expectations for JICA's close cooperation in this endeavor. 
 
¶9. (U) Japan and United Nations Development Program (UNDP) to 
Implement $92m Climate Change Program in Africa 
 
The GOJ and UNDP agreed to implement a $92.1 million program for 
climate change adaptation in 21 African countries, under the 
"Japan-UNDP Joint Framework for Building Partnership to Address 
Climate Change in Africa," established at the Tokyo International 
Conference on African Development (TICAD IV) in May.  A total of $11 
million will be allocated to joint programs with the United Nations 
Children's Fund (UNICEF), the World Food Programme (WFP) and the 
United Nations Industrial Development Organization (UNIDO). 
Preparations for implementating the program are underway through 
UNDP, in coordination with the governments of Ethiopia, Ghana, 
Gabon, Cameroon, Kenya, Republic of Congo, Senegal, Nigeria, 
Namibia, Niger, Burkina Faso, Malawi, Mozambique, Morocco, and 
Lesotho -- countries that established the Cool Earth Partnership 
with Japan.  The group is considering expanding the Cool Earth 
Partnership to include six additional countries.  The Joint 
Framework includes introducing long-term planning mechanisms to 
manage the effects of climate change; building leadership capacities 
and institutional frameworks to manage climate change risks across 
ministries and at the local and national levels; implementing 
climate-resilient policies and measures in high-priority sectors; 
and providing guidance on a financing framework to meet national 
adaptation costs.  Japan hopes this effort will help African 
countries overcome their vulnerability to climate change and promote 
their active engagement in developing an effective post-2012 climate 
change framework. 
 
¶10. (U) GOJ Extends Assistance for Palestine Refugees 
 
The GOJ extended assistance of about $2.85 million to the United 
Nations Relief and Works Agency for Palestine Refugees in the Near 
East (UNRWA) to support the general fund, a universal scholarship 
program, and a project to expand implementation of a maternal and 
child health handbook. 
 
¶11. (U) GOJ Extends Emergency Aid to Yemen for Flood Disaster 
 
The GOJ extended emergency grant aid of about $800,000 through the 
United Nations High Commissioner for Refugees (UNHCR) and the United 
Nations Children's Fund (UNICEF), to support the victims of the 
recent serious flooding in Yemen.  The GOJ provided about $180,000 
in emergency relief goods to Yemen in late October. 
 
¶12. (U) Japan-China-Korea Hold Trilateral Consultation on Foreign 
Policy towards Africa 
 
Japan, China, and Korea held trilateral policy consultations on 
foreign policy towards Africa in Tokyo December 12.  Officials from 
the three countries discussed priorities on Africa policy, as well 
as their economic relations and development cooperation with Africa, 
and regional issues. 
 
ZUMWALT