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Viewing cable 08STATE50792, DEMARCHE REQUEST - RELEASE OF JAPANESE RICE STOCKS

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Reference ID Created Released Classification Origin
08STATE50792 2008-05-13 20:21 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Secretary of State
VZCZCXYZ0015
OO RUEHWEB

DE RUEHC #0792 1342029
ZNR UUUUU ZZH
O 132021Z MAY 08
FM SECSTATE WASHDC
TO RUEHKO/AMEMBASSY TOKYO IMMEDIATE 4145
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC IMMEDIATE
UNCLAS STATE 050792 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AID EAGR ECON ETRD JA
SUBJECT: DEMARCHE REQUEST - RELEASE OF JAPANESE RICE STOCKS 
 
 
1. (SBU) This is an action request.  Please see para 4. 
 
2. (SBU) Japan currently holds stocks of approximately 2.4 
million metric tons (MT) of rice, of which 1.5 million MT was 
imported to fulfill its Uruguay Round Minimum Market Access 
requirements (MMA).  Under its MMA obligations, Japan is 
obligated to purchase 682,000 MT of imported rice annually. 
About half of the MMA rice purchased by Japan is of U.S. 
origin.  This rice is stored in near-optimal conditions, but 
some may be damaged due to long-term storage. 
 
3. (SBU) In light of the food crisis, some countries and 
organizations have called upon Japan to release its rice 
stocks onto the international market.  It is unclear whether 
Indonesia and the Philippines have already approached Japan 
directly to sell or donate its stocks into the market to 
alleviate the current pricing problem.  However, the Japanese 
press reported on May 11, 2008, that according to the 
Philippines National Food Authority, "Japan has offered to 
ship 60,000 MT of rice to the Philippines to help the 
world,s biggest importer of the grain boost its stockpiles." 
 In the past, Japan has exported some foreign rice as food 
aid to North Korea and after the Tsunami, but U.S. rice 
producers feel strongly that this issue must be discussed in 
the right context with Japan so that exports are not seen by 
Japan as an unlimited venue to dispose of MMA rice. 
 
4. (SBU) ACTION REQUESTED:  In light of the global food price 
crisis, Embassy is requested to deliver a demarche 
emphasizing the following objectives to the Ministry of 
Agriculture, Forestry and Fisheries (MAFF) at the most senior 
level possible: 
 
-- Emphasize that the current conditions in the global rice 
markets are very unusual.  Even though aggregate supply, 
demand, and stocks are not significantly changed over recent 
years, we have seen unprecedented sudden price increases. 
These market conditions have created increased risk of hunger 
and civil unrest in certain countries, while these high 
prices have significantly impacted the budgets of the World 
Food Program and other food aid donors. 
 
-- Communicate the importance that the USG places on efforts 
to address the current food crisis.  President Bush recently 
announced approximately $200 million in emergency food aid 
and has also asked Congress to provide an additional $770 
million to support food aid and development programs. 
Together, this amounts to nearly $1 billion in new funds to 
bolster global food security. 
 
-- Thank Japan for the significant steps it is also taking to 
increase its contributions to food aid programs in response 
to rising food prices.  Japan recently announced USD 100 
million in emergency aid to help poor countries cope with 
rising food costs.  Suggest that the USG is interested in 
exploring ways in which our two countries can alleviate 
hunger and help calm global rice markets. 
 
-- Remind your interlocutor that the USG has traditionally 
opposed the re-export of the rice which Japan imported under 
its WTO Minimum Market Access Obligations.  The USG 
understands that Japan may have been approached about using 
its rice stocks for food aid as well.  Japan is obligated to 
make this rice available to Japanese consumers. 
 
-- Communicate that the unique conditions in the rice market 
this year, coupled with the growing humanitarian and 
political dimensions of recent food price increases in 
developing countries, may warrant consideration of taking 
additional measures with respect to the release of Japan's 
rice stocks on this occasion.  Suggest that our experts get 
together soon to discuss this idea.  Point out that this will 
also provide an opportunity to discuss our traditional 
concerns that might arise. Offer to facilitate such a meeting 
with Embassy staff. 
 
-- Resist offering additional details regarding what 
additional measures the GOJ can take to address the sudden 
price increases in rice.  Defer any request for detailed 
discussions to future discussions by experts. 
 
5. (SBU) Embassy is requested to report back the results of 
this engagement by COB Thursday, May 15 (local Washington, DC 
time). 
RICE