Cablegate: Engaging Japan On Economic Affairs

VZCZCXRO4354
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2415 2930624
ZNR UUUUU ZZH
R 200624Z OCT 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 6922
INFO RUEHFK/AMCONSUL FUKUOKA 6981
RUEHNAG/AMCONSUL NAGOYA 4251
RUEHNH/AMCONSUL NAHA 9336
RUEHOK/AMCONSUL OSAKA KOBE 0799
RUEHKSO/AMCONSUL SAPPORO 7493

UNCLAS TOKYO 002415

SIPDIS

STATE FOR E, EEB, EAP/J AND EAP/EP

E.O. 12958: N/A
TAGS: ECON EFIN ETRD JA PREL
SUBJECT: ENGAGING JAPAN ON ECONOMIC AFFAIRS

REF: TOKYO 2302

MESSAGE FROM AMBASSADOR ROOS TO UNDERSECRETARY HORMATS

Mission Japan congratulates you on your confirmation and
assumption of duties as the new Undersecretary of State for
Economic, Energy and Agricultural Affairs. I appreciate your
recent message to economic officers in the field, which
serves as a springboard for us to talk about our work here in
Japan. I wish to share the highlights of our thinking with
you.

While the Democratic Party of Japan's (DPJ) historic August
30 Lower House election victory has changed Japan's political
landscape, things remain more of the same ) for good and bad
) with respect to the economy. Japan is still the world's
second largest economy, the United States' fourth largest
trading partner ($750 million in goods and services trade a
day), the fifth largest provider of ODA, and a significant
source of FDI. However, Japan also remains mired in a long
period of under-potential economic growth (estimated to be 1
percent in 2010). Unemployment and deflation are both at
historic highs.

Reftel lays out what I believe is a good strategy for
engaging the new DPJ government in Japan on economic issues
over the next nine months. I know you can help. The
election of a new government here provides us with openings
to further our collaboration in areas like climate change and
energy security, rebalancing the global economy (in Japan
this means promoting domestic demand), strengthening APEC,
foreign assistance, and strengthening rules on terrorist
financing/sanctions enforcement.

A new initiative of great personal interest to me is our
effort to promote innovation and entrepreneurship in Japan.
I have asked an interagency team to find ways to assist the
Japanese in unlocking some of the vast innovative potential
here as our countries confront great economic challenges to
promote sustainable growth. We are also highlighting these
themes in our public outreach activities.

As you develop your travel and meeting calendar for the
months ahead, I strongly encourage you to visit Tokyo at an
early date. The entire Mission team stands ready to assist
you and we can organize a substantive and productive visit.
Japan is also an important early stop for you because 2010
will be a pivotal year in our bilateral relationship. We
will celebrate the 50th anniversary of our security alliance
next year, and Japan will chair the Asia Pacific Economic
Cooperation forum, including the leaders' meetings in
Yokohama next November. These two events represent an
opportunity for our governments to highlight all that we do
bilaterally and globally.

All of the members of Mission Japan and I look forward to
organizing a visit and to welcoming you here.
ROOS

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