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Viewing cable 08TOKYO1021, MLIT DG SUZUKI DEFENDS NEED FOR FDI LIMITS FOR

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Reference ID Created Released Classification Origin
08TOKYO1021 2008-04-14 08:38 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tokyo
VZCZCXRO6752
RR RUEHFK RUEHGH RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1021 1050838
ZNR UUUUU ZZH
R 140838Z APR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 3429
INFO RUEHBK/AMEMBASSY BANGKOK 4438
RUEHBJ/AMEMBASSY BEIJING 2810
RUEHUL/AMEMBASSY SEOUL 8832
RUEHGP/AMEMBASSY SINGAPORE 7155
RUEHFK/AMCONSUL FUKUOKA 7264
RUEHNAG/AMCONSUL NAGOYA 5682
RUEHNH/AMCONSUL NAHA 9642
RUEHOK/AMCONSUL OSAKA KOBE 0935
RUEHKSO/AMCONSUL SAPPORO 7858
RUEHGH/AMCONSUL SHANGHAI 0386
UNCLAS TOKYO 001021 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J, EEB/TRA FOR BYERLY 
PASS TO USTR FOR BEEMAN 
PASS TO DOT FOR GRETCH 
 
E.O. 12958: N/A 
TAGS: EAIR EINV PREL PGOV JA
SUBJECT: MLIT DG SUZUKI DEFENDS NEED FOR FDI LIMITS FOR 
"CRITICAL" JAPAN AIRPORTS 
 
REF: TOKYO 572 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET. 
 
1.  (SBU) During an April 11 meeting, Transport Ministry 
Director General Hisayasu Suzuki told EMIN Japan must 
continue to look for a legislative means to protect four 
critical airports, i.e., Tokyo's two main hubs and Chubu and 
Kansai International Airports. Suzuki's name appeared 
frequently in the press earlier this year as an actor pushing 
for new Japanese legislation to limit foreign investment in 
Japan's airports (ref). Suzuki dismissed Asia Gateway, noting 
only that it was a former Prime Minister Abe initiative.  He 
told EMIN that Japan has been engaged in civil aviation talks 
with South Korea, China, Thailand and Hong Kong, but 
congested airspace has prevented Japanese airlines from 
moving forward into Beijing and Shanghai as Japan's industry 
and government would like. 
 
2.  (SBU) Suzuki said private sector Australian efforts to 
purchase 20 percent of the Japan Airport Terminal Co., which 
runs terminal buildings and parking lots at Haneda Airport, 
provoked MLIT's legislative proposal.  The GOJ continues to 
look to double total foreign investment in the country by 
2010.  However that policy did not mean there needed to be 
foreign investment in all Japan's airports, Suzuki continued. 
 Suzuki asked what the USG would do if a Chinese, Russian or 
Arab investor tried to purchase significant stock in JFK or 
other New York airports or O,Hare.  EMIN pointed to positive 
U.S. experiences with foreign investment and noted ways the 
U.S. has developed to deal with national security questions 
that can arise from individual investment cases (i.e., CFIUS). 
 
3.  (SBU) Suzuki also raised U.S. rules limiting foreign 
ownership of U.S. carriers.  Japanese airlines cannot have 
more than one-third foreign ownership, he continued.  Suzuki 
reasoned that limiting foreign ownership of the shares in 
airports in Japan to one third simply brings them to the same 
level as that allowed for Japanese airlines.  EMIN noted the 
history of U.S. civil aviation negotiations with the EU 
showed the Administration's thinking and willingness to work 
on this front and again recounted the benefits of a more open 
investment regime. 
 
4.  (SBU) Comment: Each GOJ ministry defends clients' 
interests when it comes to discussing foreign investment, and 
MLIT is unabashedly looking at old-line Japanese domestic 
interests.  Therefore, unlike the Financial Services Agency, 
which seeks to promote Tokyo as a global financial center, or 
JETRO, with the specific mandate to increase FDI, MLIT rarely 
considers the international impact of its decisions. 
 
5.  (SBU) Although Deputy Director General (and lead 
negotiator on civil aviation matters with the U.S.) Ryuhei 
Maeda participated in the meeting, he did not make any 
substantive statements.  Other than agreeing on the need for 
positive talks, Suzuki did not engage or offer any comment on 
the upcoming bilateral negotiations with the U.S.  End 
Comment. 
SCHIEFFER