US embassy cable - 92TOKYO4774

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IRAN, THE ADB, AND THE IBRD

Identifier: 92TOKYO4774
Wikileaks: View 92TOKYO4774 at Wikileaks.org
Origin: Embassy Tokyo
Created: 1992-04-01 04:19:00
Classification: CONFIDENTIAL
Tags: EFIN JA
Redacted: This cable was not redacted by Wikileaks.
P 010419Z APR 92
FM AMEMBASSY TOKYO
TO SECSTATE WASHDC PRIORITY 4168
TREASURY DEPT WASHDC PRIORITY
INFO AMEMBASSY MANILA
C O N F I D E N T I A L TOKYO 04774 
 
 
TREASURY FOR HENNESEY/OASIA/IDB 
 
MANILA FOR USADB 
 
E.O. 12356:  DECL:OADR 
TAGS:  EFIN, JA 
SUBJECT:  IRAN, THE ADB, AND THE IBRD 
 
REF:  (A) STATE 69132  (B) TOKYO 3330 
      (C) STATE 97814 
 
1.  CONFIDENTIAL - ENTIRE TEXT. 
 
2.  FINATT CALLED ON HIROSHI TOYODA (DIRECTOR, DEVELOPMENT 
INSTITUTIONS DIVISION, MINISTRY OF FINANCE) TO ASCERTAIN 
WHETHER GOJ HAD FINALIZED ITS VIEW ON IRAN JOINING THE ASIAN 
DEVELOPMENT BANK. 
 
3.  TOYODA SAID THE MATTER IS CURRENTLY BEING DISCUSSED 
INTERNALLY WITHIN THE FOREIGN MINISTRY, BUT AS FAR AS THE 
FINANCE MINISTRY OF JAPAN IS CONCERNED, THEY WILL SUPPORT IRAN 
JOINING THE ADB.  TOYODA NOTED THAT EVEN BEFORE FINATT HAD 
MADE EARLIER DEMARCHE (REF B), MOF HAD INFORMALLY COMMUNICATED 
ITS SUPPORT OF IRAN TO THE ADB.  A FORMAL POSITION WON'T BE 
ANNOUNCED UNTIL MOFA HAS COMPLETED ITS INTERNAL DELIBERATIONS, 
BUT ON MATTERS OF THIS TYPE MOF TYPICALLY PREVAILS OVER MOFA 
UNLESS THERE ARE EXCEPTIONAL POLITICAL REASONS WEIGHING IN 
MOFA'S FAVOR. 
 
4.  MOF'S DECISION IS BASED ON IRAN BEING A MEMBER OF OTHER 
IFIS (IMF, IBRD) AND ITS INCLUSION AS A REGIONAL COUNTRY UNDER 
ESCAP.  TOYODA SAID MOF SYMPATHIZES WITH USG ON NOT WANTING A 
SPONSOR OF STATE TERRORISM TO HAVE ACCESS TO IFI RESOURCES, 
WHICH MAY THEN ALLOW DIVERSION OF FUNDS TO TERRORIST 
PURPOSES.  BUT GIVEN THE ESCAP DEFINITION OF REGIONAL 
COUNTRIES, AND IRAN'S OTHER IFI MEMBERSHIPS, MOF FEELS IT 
APPROPRIATE TO SUPPORT MEMBERSHIP IN THE ADB. 
 
5.  ON THE OTHER HAND, MOF WILL NOT LOBBY OTHER COUNTRIES TO 
SUPPORT MEMBERSHIP. 
 
6.  TOYODA SAID NONE OF THIS HAS BEEN COMMUNICATED TO THE 
IRANIANS. 
 
7.  WITH RESPECT TO IBRD LENDING, AND POSSIBLE FUTURE LENDING 
BY THE ADB IF IRAN BECOMES A MEMBER OF THAT INSTITUTION, 
TOYODA SAID MOF WOULD BE FLEXIBLE, AND POSSIBLY OPPOSE LOANS 
"A LA THE PRC" FOLLOWING THE TIANANMEN SQUARE INCIDENT AND THE 
G-7 AGREEMENT.  HOWEVER, IF THE ECONOMIC VIABILITY OF A 
PROJECT IS SO OVERWHELMINGLY CONVINCING, MOF WOULD HAVE 
DIFFICULTY OPPOSING SUCH A LOAN FOR IRAN IN IBRD OR ELSEWHERE. 
 
8.  ON RELATED MATTERS, TOYODA CONTINUES TO ASK "WHO" ASKED US 
ABOUT NORTH KOREA'S OBSERVER STATUS AT THE ADB.  FINATT SAID 
HE WOULD INQUIRE.  WITH REGARD TO THE MULTILATERAL INVESTMENT 
FUND OF THE EAI, TOYODA NOTED THAT JAPAN'S DIET CLEARED THE 
WAY LAST FRIDAY (MARCH 27) FOR JAPAN TO PARTICIPATE IN THE MIF 
UP TO $500 MILLION OVER 5 YEARS.  MOF ASKS THE STATUS OF USG 
APPROPRIATIONS. 
 
ARMACOST 

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