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    Japan
     Nov 20, 2007
Page 2 of 3
Japan has a mission in the Iraqi desert

By Michael Penn

direct bilateral relationship between Japan and the Baghdad regime was little more than an afterthought.

The focus on oil development
Just about two weeks after the GSDF pulled out of Iraq - on August 3, 2006 - Japanese foreign minister Aso suddenly appeared in Baghdad on a visit that had not been previously announced to the public. Officials such as US President George W Bush and former British prime minister Tony Blair had already



used this kind of political theater to demonstrate their commitment to Iraq, and clearly the Foreign Ministry of Japan had been taking notes.

Aso met with both Iraqi Prime Minister Nuri al-Maliki and Foreign Minister Hoshyar Mahmud Zebari. In the latter meeting, Aso announced: "Japan intends to further widen the range of future Japan-Iraqi relations which entered a new stage following the withdrawal of the SDF and the inauguration of the new government by, for example, strengthening political dialogue and economic relations." Aso's comments may, perhaps, be regarded in hindsight as the starting point for the policies that would eventually become known as the "strategic partnership".

At any rate, commentary at that particular time began to center on a somewhat different issue: the possibility of major Japanese involvement in Iraqi oil development projects.

Oil was a background factor in Japanese support for US policy from before the March 2003 invasion of Iraq. Although not necessarily a crucial reason why Tokyo supported Washington, the idea was certainly circulating that only the countries that gave positive support would be rewarded by Washington with Iraqi oil contracts after the Saddam regime was toppled. But as the security situation deteriorated, all of those vague plans about Iraqi oil development also tended to evaporate.

Still, Japanese oil companies did get involved. In April 2005 the Japan Petroleum Exploration Company signed a technical assistance agreement with the Iraqi Oil Ministry. The Arabian Oil Company followed suit a couple of months later in June 2005. These moves were well-understood by all parties as being preliminary steps toward much deeper Japanese involvement in the Iraqi oil industry in the future.

By the summer of 2006, as the GSDF was preparing to depart Samawa, Japanese government officials indicated that much of the $3.5 billion earmarked as loans for the Iraqi government would in fact be targeted on the oil sector. Explained one official: "The development of oil and natural gas in energy-rich Iraq is directly linked to its foreign currency earnings, which in turn will drive reconstruction." While it was certainly true that the Iraqi government was eager to increase its revenues, that added money could be used for any number of purposes beyond simply "reconstruction".

By the beginning of August the Yomiuri Shinbun had actually quoted an official of Japan's Ministry of Economy, Trade and Industry who openly admitted that Japan's aid policies had the supplementary purpose of assisting private Japanese companies in receiving future Iraqi oil development contracts.

In October 2006, this issue came fully into the open when Iraqi Oil Minister Husain al-Shahristani visited Japan to promote bilateral oil links. Shahristani revealed to reporters that several Japanese oil companies had expressed interest in developing the Nasiriya oil field in southern Iraq. This was even billed by some as a possible substitute for Inpex's loss of the majority stake in Iran's Azadegan oil field a month or so earlier.

Japanese government loans indeed began to give special consideration to the oil industry and the transportation infrastructure of Iraq. For example, about $18 million was provided at this time for the construction of a refinery in Basra. Some months later, the Inpex oil company was involved in concrete negotiations over the Qaiyarah Oil Field in northern Iraq together with its Canadian business partner, Ivanhoe Energy.

Concerns over Washington's policy
These active moves by the Japanese government and Japanese oil companies were particularly striking in light of the growing pessimism in both the United States and in Japan about the future prospects of the "New Iraq".

Shortly after the withdrawal of the GSDF mission in Samawa, major Japanese news services began to make ex-post facto criticisms about government censorship of their reporting on Japanese activities in Iraq. There was a perceptible change in which the Japanese media seemed freer to vent harsher verdicts on both US and Japanese policies in the region.

Of even greater concern to Japanese policymakers was the result of the midterm elections in the United States in which the Democratic Party swept to victory in both the House of Representatives and, much more narrowly, in the Senate, on the back of widespread popular dissatisfaction with the results of the Iraq War. Then-prime minister Abe, then being hailed as the architect of a bolder and more confident Japan, publicly dismissed the verdict of the US elections, declaring: "There will be no change in Japan's support for Iraq. Reconstruction aid for Iraq is being undertaken by the international community." But behind his bold words there were in fact growing concerns about the future of American policy in Iraq and elsewhere.

While most LDP politicians managed to keep their private thoughts to themselves, director general Kyuma Fumio of the Defense Agency revealed more than he should have.

First, in December 2006, Kyuma made a clumsy effort to distance Japan from the entire Iraq War project. Speaking of Koizumi's official policies in March 2003, Kyuma remarked: "The Japanese government never announced its support (for the Iraq invasion). The Prime Minister just made some statements for the media ... It is not correct to say that the government offered 'support' - it was more like 'understanding'." Only one day after saying this, Kyuma backtracked, claiming that his comments had reflected "insufficient awareness" on his part.

But the following month Kyuma revealed his real views once again. During a press conference he stated that Bush's decision to invade Iraq was "based on an assumption that weapons of mass destruction existed was a mistake". Kyuma once again offered a retraction shortly thereafter.

All of Kyuma's comments were being reported globally, and the damage to the Japanese official line had been done. This became all the more true when James Zumwalt, director of the Office of Japanese Affairs at the State Department, publicly castigated Kyuma and asserted that his remarks "could have a negative impact on the bilateral alliance".

Two weeks later Aso made some ill-considered public comments on this issue. Speaking to the local media during a visit to Kyoto, Aso opined that the Bush administration had "launched a very immature operation that did not work so well, and that is why there is trouble".

The emergence of the 'strategic partnership'
After Kyuma and Aso made these comments there was a significant amount of anxious speculation in Washington that Tokyo was preparing to pull support from Iraq and to fundamentally reconsider its broad support for US policies in the region.

In fact, less than two months later in March 2007, the Ministry of Foreign Affairs started talking about Japan's relationship with Iraq as being a "strategic partnership". The press release that carried this language for the first time was issued on March 17, just in advance of the visit to Tokyo of Iraqi Vice President Tariq al-Hashimi.

The statement explained the new framework as follows:
Stability in Iraq is necessary for the national interests of Japan, which imports 90% of the crude oil that it needs from the Middle Eastern region. Japan has actively assisted the reconstruction of Iraq by, for example, dispatching our Self Defense Forces to conduct humanitarian assistance, Official Development Assistance (ODA) amounting to about US$5 billion, and debt relief measures amounting to about US$6 billion. By making use of Japan's assistance up until this point, it is important for Japan and Iraq, which is a friendly country toward Japan and a country with the third-largest oil reserves in the world, to establish a long-term and strategic partnership and to build mutually beneficial relations.
The March visit of the Iraqi vice president was quickly followed by the April visit of Maliki. When the Japanese and Iraqi prime

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