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Viewing cable 06TOKYO502, ITER: GOJ RESPONSE TO DEMARCHE ON FINALIZATION

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Reference ID Created Released Classification Origin
06TOKYO502 2006-01-30 08:25 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tokyo
VZCZCXYZ0009
PP RUEHWEB

DE RUEHKO #0502/01 0300825
ZNR UUUUU ZZH
P 300825Z JAN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7979
INFO RUCNITN/ITER COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS TOKYO 000502 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
OES/SAT FOR MAXSTADT 
EAP/J FOR WINSHIP 
STAS FOR REYNOLDS 
DOE FOR HARDING AND M.ROBERTS 
 
E.O. 12958: N/A 
TAGS: PREL ENRG ITER TRGY KSCA JA
SUBJECT: ITER: GOJ RESPONSE TO DEMARCHE ON FINALIZATION 
 
REF: STATE 13967 
 
1. (U) This is an action request.  Please see paragraph seven. 
 
2. (SBU) On January 30, EST M/C and ESToff met with Ministry 
of Foreign Affairs (MOFA) International Science Cooperation 
Office Director Kozo Honsei and Ministry of Education, 
Culture, Sports, Science and Technology (MEXT) Fusion Energy 
Office Director Shuichiro Itakura and others and delivered 
reftel demarche. 
 
3. (SBU) Honsei began by thanking EST M/C for the U.S. 
position and explained that the GOJ has discussed the P&I 
issue at length in the interagency since the Jeju meeting. 
He said that the Ministry of Finance (MOF) and certain 
offices within MOFA were concerned that the U.S. position 
could lead to the possibility of unequal treatment for the 
other partners, as without a statement in writing, there is 
the possibility that there may be no guarantee of immunities 
and reciprocity.  Without such a document, Honsei said that 
it would be difficult to convince MOF that problems would not 
arise in the future with direct and indirect taxes, for 
example.  He also related that it would be hard to convince 
the Diet of the same if there is a separate agreement for 
only the United States. 
 
4. (SBU) Honsei told EST M/C that even after the extensive 
interagency discussions, there still is no clear or unified 
GOJ position on the U.S. approach.  He passed a list of 
questions provided by MOF (see para 6) that he said was 
important to answer in order to persuade the ministry to come 
on board.  EST M/C told Honsei that we would try to get 
responses to the questions as soon as possible. 
 
5. (SBU) In response to the U.S. point that the Barcelona 
meeting may not take place if no agreement is reached, Honsei 
replied that the GOJ has already decided to participate in 
that meeting.  However, Honsei explained that Tokyo may need 
to set some conditions for the meeting because Washington has 
rejected the Japanese request to make a commitment in 
writing.  He then rhetorically asked how we could better 
coordinate to meet our respective requirements for moving 
forward with the final ITER agreement.  Honsei then suggested 
that using the record of discussion from the Barcelona 
meeting may be a possible compromise solution.  He explained 
that if the United States were to make a statement 
guaranteeing P&I and reciprocity during the meeting and that 
this was recorded in the record of discussions document, 
Honsei would be able to use it as proof of the U.S. 
commitment during the Diet ratification process.   He 
stressed that it was important to remove any doubts that the 
Diet may have and that simply stating the U.S. would rely on 
the IOIA was not enough.  A MOFA lawyer added that even 
though the Ministry recognizes that the U.S. record on P&I 
commitments is good, it remains theoretically possible that 
Congress could make amendments to the IOIA and that this 
could change the United States' commitment to P&I in ITER 
sometime in the future.  Both officials stressed again that 
it was important for Japan to have some type of "recorded" 
commitment from the United States.  Honsei finished by saying 
that it was just as important for Japan to successfully 
conclude the agreement as soon as possible as it was for any 
of the other six partners. 
 
6. (SBU) MOF Questions 
 
-- According to the IOIA, the government of the U.S. levies 
income tax on the U.S. nationals who work for international 
organizations in the United States.  Does the U.S. government 
levy income tax also on the U.S. nationals who work for 
international organizations abroad? 
 
-- If the answer to the question above is yes, does the tax 
reimbursement agreement which the U.S. intends to conclude 
with the ITER organization cover the entire U.S. national 
staff that will be directly employed by the ITER organization 
regardless of where they will be posted? 
 
-- Is it U.S. general policy to conclude a tax reimbursement 
agreement with the international organization in which the 
U.S. participates?  Approximately how many international 
organizations have concluded tax reimbursement agreements 
with the USG?  Please provide some names of such 
international organizations which have concluded such 
agreements with the United States. 
-- Our understanding is that the U.S. has concluded a tax 
reimbursement agreement with the IAEA.  Are there any other 
agreements regarding privileges and immunities between the 
United States and the IAEA including ones based on Article 
15c of the statute of IAEA? 
 
End questions. 
 
7. (SBU) Action requested: Please provide responses to 
Japanese MOF questions and advise whether the Japanese 
proposal to have language in the record of discussion 
document may be a way forward, and if so, what language the 
U.S. would be prepared to offer. 
SCHIEFFER