VZCZCXRO4133
RR RUEHDBU RUEHPW RUEHSL
DE RUEHKO #2606 3140925
ZNR UUUUU ZZH
R 100925Z NOV 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 7449
INFO RUEHIL/AMEMBASSY ISLAMABAD 2195
RUEHBUL/AMEMBASSY KABUL 0698
RUCNAFG/AFGHANISTAN COLLECTIVE

UNCLAS TOKYO 002606 
 
STATE PLEASE PASS TO SRAP 
STATE PLEASE PASS TO USAID/ASIA - CNORTH AND LDOLAN 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: ETRD EAID EINV AF PK JA
SUBJECT: AFGHANISTAN/PAKISTAN: AUSTR DELANEY RAISES RECONSTRUCTION 
OPPORTUNITY ZONES WITH JAPANESE OFFICIALS 
 
¶1. (SBU) SUMMARY: Senior Government of Japan (GOJ) officials told 
Assistant U.S. Trade Representative for South Asia (AUSTR) Michael 
Delaney November 2 that Japan's development assistance strategy in 
Afghanistan and Pakistan would in principle complement U.S.-proposed 
Reconstruction Opportunity Zones (ROZ).  While GOJ assistance has 
not focused specifically on trade capacity-building, Foreign 
Ministry (MOFA) and Japan International Cooperation Agency (JICA) 
officials noted Japan is investing heavily in related infrastructure 
and job creation activities in both countries.  END SUMMARY. 
 
¶2. (SBU) In response to AUSTR Delaney's overview of the state of ROZ 
legislation in the U.S., JICA Director General for South Asia 
Masataka Nakahara said Afghanistan and Pakistan are high priorities 
for Japan's overseas development assistance (ODA), and that job 
creation is fundamental to GOJ strategy in both countries.  Nakahara 
reviewed JICA's framework for assistance to build Pakistan's 
industrial base, which focuses on three outcomes: (1) more 
consistent and effective policy implementation; (2) improved 
governance to create a high-value added market based on fair 
competition; and (3) strengthening manufacturing capabilities and 
productivity in specific sectors, including the automotive industry. 
 
 
¶3. (SBU) Nakahara noted Japan has dispatched several advisors to 
provide technical assistance on trade policy and small and medium 
enterprise management, centered on the Karachi area.  Delaney said 
Pakistan's industrial base is in urgent need of modernization and 
export diversification, and he encouraged JICA officials to 
coordinate future assistance efforts to improve the business 
infrastructure in both countries with the opportunities created by 
the ROZs.  Nakahara also suggested Delaney follow-up with Japan's 
Embassy in Islamabad. 
 
¶4. (SBU) Foreign Ministry Deputy Director General for Southwest 
Asian Affairs Kazuo Sunaga said Japan has reached a "critical 
moment" as senior policymakers are currently deliberating the future 
of Japan's assistance to Afghanistan and Pakistan; however, the 
creation of job opportunities will no doubt remain a "pillar" of 
Japan's efforts.  Sunaga noted the creation of ROZs would be an 
"interesting input" that would factor into Japan's future 
decision-making on the scope of its assistance.  Sunaga added 
Japan's aid efforts in Afghanistan center on infrastructure creation 
(in addition to agriculture, health, and police support), noting 
that a lack of basic essentials such as water and power hinder 
further economic growth.  However, the unstable security situation, 
including a recent bombing just 500 meters from Japan's Embassy in 
Kabul, has complicated these efforts, he observed.  Delaney said the 
security situation in southern Afghanistan where the ROZs are being 
contemplated appears to be improving, with less Taliban influence. 
Civil society in that region is in critical need of support, he 
added. High unemployment, he said, is a major factor fueling the 
insurgency as the Taliban is frequently the only employer. 
 
¶5. (SBU) Sunaga said Japan has yet to disburse any of the $1 billion 
pledged at the Tokyo Pakistan Donors Conference in April.  Sunaga 
said the Government of Japan has allocated $300 million for a World 
Bank poverty reduction program pending completion of World Bank 
survey mission.  Sunaga thanked AUSTR Delaney for his visit and for 
sharing what he called "very timely" information on the current and 
prospective trade development situation in Afghanistan-Pakistan. 
(Note: $123 million of Japan's $1 billion pledge at the April 
Donor's Conference has been obligated but not yet disbursed.  End 
note.) 
 
¶6. (SBU) Sunaga also noted the Chinese presence in Pakistan appears 
to be increasing, citing Chinese renovation of port facilities in 
Karachi as an example. 
 
¶7. (U) AUSTR Delaney cleared this message after his departure from 
Tokyo. 
 
ROOS