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Cablegate: Minister Haraguchi Raises Postal Reform With

VZCZCXRO6339
PP RUEHFK RUEHGH RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0317 0490325
ZNR UUUUU ZZH
P 180325Z FEB 10
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9460
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 3119
RUEHFR/AMEMBASSY PARIS PRIORITY 6624
RUEHUL/AMEMBASSY SEOUL PRIORITY 9800
RUEHFK/AMCONSUL FUKUOKA PRIORITY 8877
RUEHHK/AMCONSUL HONG KONG PRIORITY 6905
RUEHNAG/AMCONSUL NAGOYA PRIORITY 5880
RUEHNH/AMCONSUL NAHA PRIORITY 1211
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 2693
RUEHKSO/AMCONSUL SAPPORO PRIORITY 9365
RUEHGH/AMCONSUL SHANGHAI PRIORITY 0653
RUEHIN/AIT TAIPEI PRIORITY 7584
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
RUEATRS/TREASURY DEPT WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS TOKYO 000317

SENSITIVE
SIPDIS

STATE FOR E, EEB AND EAP/J
NSC FOR JLOI, DRUSSELL
USTR FOR AUSTR WCUTLER, MBEEMAN, AND DLEE

E.O. 12958: N/A
TAGS: ECON EFIN PGOV JA
SUBJECT: MINISTER HARAGUCHI RAISES POSTAL REFORM WITH
AMBASSADOR

SENSITIVE BUT UNCLASSIFIED. CONTAINS BUSINESS SENSITIVE
INFORMATION.

1. (SBU) In a wide-ranging meeting with the Ambassador,
Minister for Internal Affairs and Communications Kazuhiro
Haraguchi said the Japan Post group companies need freedom of
management in the face of losses and decreasing deposits. He
said the organization would be reorganized from three to five
companies. Haraguchi stated that postal service is a common
good for all citizens, but he characterized Japan's current
system as out of date. Although noting historically, postal
assets have been put into Japanese government bonds, he
mentioned the possibility of diversifying into U.S.
treasuries to promote greater growth. Haraguchi proposed
discussing potential private sector tie-ups with U.S. firms
and suggested possibly forming a joint task force to explore
strategic direction and future business models to improve the
profitability of both private sector companies and Japan Post
group companies.

2. (SBU) Haraguchi signaled a desire to continue pursuing
postal reform in an open and transparent manner. This
continues the trend of senior DPJ officials engaging with the
USG and U.S. industry as they move forward with their reform
program. Haraguchi said he hopes for a "common
understanding" and cooperation with the USG. His concept of
a task force was vague, and he offered no details. The
Ambassador expressed interest in learning more about
Haraguchi's ideas on this.
ROOS

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