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Viewing cable 07TOKYO373, S/P DIRECTOR KRASNER DISCUSSES ASIAN REGIONAL

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Reference ID Created Released Classification Origin
07TOKYO373 2007-01-26 07:54 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tokyo
VZCZCXRO9139
PP RUEHCHI RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHNH RUEHPB
DE RUEHKO #0373 0260754
ZNR UUUUU ZZH
P 260754Z JAN 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0136
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION PRIORITY
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 8262
RHMFIUU/COMUSJAPAN YOKOTA AB JA PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
UNCLAS TOKYO 000373 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD APECO ASEAN JA
SUBJECT: S/P DIRECTOR KRASNER DISCUSSES ASIAN REGIONAL 
ARCHITECTURE WITH MOFA OFFICIAL 
 
1.  (SBU) S/P Director Krasner January 12 met with MOFA 
Senior Official Deputy Director General Masashi Mizukami to 
discuss East Asian "architecture."   Mizukami said the GOJ 
was only now starting to coordinate its positions on the 
multiple proposals for different forms of East Asian 
integration.  He stated that in Japan's view, APEC is a good 
forum but not the only one. 
 
2.  (SBU) He admitted that the GOJ was somewhat surprised by 
the U.S. call for a Free Trade Area of the Asia Pacific 
(FTAAP) at the recent APEC summit in Hanoi because when ABAC 
had proposed a similar idea two years earlier the U.S. had 
dismissed it.  For Japan, the first priority on trade 
liberalization remained the Doha Round (DDA) of the WTO. 
Nevertheless, Japan supported the U.S. proposal at Hanoi 
although it did not see the U.S. idea as more or less 
appropriate than competing integration proposals.  Rather, 
Japan would like regional players to begin to study the 
various proposal concurrently so that, depending on future 
economic circumstances, they could later decide which path to 
take.  At the same time, Mizukami noted, that there was some 
doubt within the GOJ (although he did not indicate how 
widespread it was) as to the seriousness of the United 
States' FTAAP proposal.  Some in the GOJ saw it a "tactical" 
move to push the EU into making additional concession in the 
DDA. 
 
3.  (SBU) For Japan, APEC had both advantages and 
disadvantages.  One advantage is "coverage"; APEC consists of 
21 members covering approximately 60 percent of world trade. 
 On the negative side, APEC is not an appropriate forum for 
negotiation since it is difficult to build a consensus within 
the organization to take concrete actions.  An advantage of 
Japan's "ASEAN plus 6" proposal is that it includes India 
which was a growing factor in the region, while APEC has the 
advantage of including Taiwan, although this, Mizukami noted 
several times, was " a very sensitive issue", especially for 
the Chinese who, he explained, are insisting that only "one 
China" can negotiate trade liberalization. 
 
4.  (SBU) Krasner assured Mizukami that the FTAAP was a 
"sincere" proposal on the part of the United States and not a 
tactical move to increase leverage in the DDA.  At the same 
time, the FTAAP proposal did not signal a lessening of U.S. 
support for the WTO, which remained the U.S.' top trade 
priority.  The United States was moving forward 
simultaneously on trade liberalization in bilateral, regional 
and global arenas and saw these efforts as complimentary, not 
contradictory.  The U.S. shared Mizukami's concern's about 
the difficulty of reaching "concrete" outcomes in APEC but 
noted that, after almost 20 years, APEC has history behind 
it" and the challenge for members was to find ways to provide 
the organization a more focused agenda.  S/P staffer James 
Green noted that, for the United States, the inclusion of 
Taiwan was one of APEC's key advantages.  China today is in a 
much stronger regional position than it was at the time of 
the first APEC Leaders' Meeting in 1993 so that any new 
regional structure would almost certainly exclude Taiwan. 
Since the WTO includes both Hong Kong and Taiwan as separate 
members, Krasner added he believed there would be a way to 
address these concerns within APEC in the process of moving 
forward on an FTAAP. 
 
5.  (SBU) In response to final question as to whether, in 
Japan's view, there was any other regional organizations that 
could fulfill what the United States saw as the key unifying 
role of APEC, Mizukami briefly mentioned a less obviously but 
tangible benefit of APEC's current structure.  As opposed to 
an "academic-type forum" such as the OECD, APEC's system of 
rotating hosts provided the opportunity for small and 
medium-sized economies to take a leadership role in the 
region and grab the attention of world leaders.  Vietnam's 
experience was an excellent example of this intangible 
benefit. He described 2006, the year Vietnam both hosted APEC 
and joined the WTO, as "a turning point" for that country 
equivalent to Japan's hosting of the Olympic Games in 1964. 
 
6. (U) This cable was cleared by S/P Director Krasner. 
MESERVE