US embassy cable - 04ROME2854

UNCLAS  ROME 002854 
 
SIPDIS 
 
 
SENSITIVE 
 
FROM U.S. MISSION TO THE UN AGENCIES IN ROME 
 
TOKYO FOR AMBASSADOR BAKER AND USDA/FAS COUNSELOR HALE 
SEOUL FOR AMBASSADOR HUBBARD AND USDA/FAS COUNSELOR PETTRIE 
STATE FOR U/S MGROSSMAN, IO A/S KHOLMES, EAP A/S JKELLY, A/S 
PRM ADEWEY, EAP/CM, AND IO/EDA RBEHREND 
USDA/FAS FOR U/S JPENN AND MCHAMBLISS 
USAID FOR ADMINISTRATOR NATSIOS, JBRAUSE, AA/DCHA RWINTER, 
AND DCHA/FFP LLANDIS 
NSC FOR JMELINE, MGREEN 
 
 
E.O. 12958:  N/A 
TAGS: EAID, PREL, PREF, EAGR, ECON, KN, KS, UN 
SUBJECT: JAPANESE DONATION OF 250,000 METRIC TONS FOR WFP'S 
 
 
 MSI9614  SECURITY ERROR 
NORTH KOREA 2004 EMERGENCY OPERATION 
 
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY. NOT 
SUITABLE FOR INTERNET POSTING. 
 
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SUMMARY 
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1. (SBU) WFP advised US Mission that Japan will donate 
250,000 tons of cereals to WFP's 2004 emergency operation 
(EMOP) in North Korea, with delivery over the period August- 
September/October 2004. The value of the donation is up to 
U.S. $80 million. Final details of the transaction have been 
sent to the Japanese Cabinet for final approval. The first 
shipment could be moving end July-beginning of August. End 
summary. 
 
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Background 
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2. (SBU) As a follow up to Prime Minister Junichiro 
Koizumi's pledge in his May meeting with North Korean leader 
Kim Jong Il to provide North Korea with humanitarian aid, 
the Japanese government has decided to offer 250,000 metric 
tons of food assistance through WFP. The government plans to 
give at least 100,000 metric tons of rice, in addition to 
wheat and corn. WFP puts the value of the donation at up to 
U.S. $80 million. The first shipment of food assistance is 
expected to reach North Korea in August. 
 
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Foreign rice or local rice? 
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3. (SBU) It is unclear to WFP whether Japan intends to offer 
foreign rice, which is reportedly cheaper than domestic 
rice. Also unclear is whether the donation will be in one or 
two lots. These details are apparently contained in a paper 
that has been submitted to the Japanese Cabinet for 
approval. Note. Given the reported price of domestic rice 
(U.S. $3,000 per metric ton), it is unlikely that domestic 
rice would be supplied. End note. 
 
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Other donations to date 
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4. (SBU) Through June 28, 2004, against WFP's 2004 emergency 
operations appeal for North Korea totaling U.S. $171.3 
million (484,445 mts), contribution are as follows: $28.4 
million (68,757 mts). Major contributors are: European 
Commission-ECHO, $4.98 million (10,989 mts); Australia, $4.3 
million (11,337 mts); Canada, $4.5 million (5,817 mts); 
Germany, $2.8 million (6,165 mts); and multilateral 
unrestricted funding, $8.3 million (28,352 mts). 
 
5. (SBU) WFP informs that Deputy Executive Director Jean- 
Jacques Graisse will visit Pyongyang, Seoul and Tokyo in 
October. 
 
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Comment from Ambassador Hall 
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6. (SBU) Now that Japan has moved forward to partially fill 
WFP's annual appeal (towards which they have not contributed 
since 2001), finalization of a U.S. commitment to bring WFP 
within range of its 2004 emergency operation (EMOP) target 
of 484,445 mts is strongly encouraged. Moreover, the 
 
 MSI9615  SECURITY ERROR 
NORTH KOREA 2004 EMERGENCY OPERATION 
 
Republic of Korea's Embassy here in Rome has called our US 
Mission regarding U.S. intentions. Reportedly they are 
considering a 100,000 metric ton in-kind maize contribution 
to WFP (similar to last year). In my view, U.S. leadership 
could play an important catalytic role here. Hall 
 
 
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 2004ROME02854 - Classification: UNCLASSIFIED