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### Viewing cable 06PANAMA1233, PANAMA: REACHING OUT TO ASIAN MISSIONS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PANAMA1233 | 2006-06-23 16:15 | 2011-05-31 00:00 | CONFIDENTIAL | Embassy Panama

`

    VZCZCXYZ0026
    RR RUEHWEB

    DE RUEHZP #1233/01 1741615
    ZNY CCCCC ZZH
    R 231615Z JUN 06
    FM AMEMBASSY PANAMA
    TO RUEHC/SECSTATE WASHDC 8418
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHBJ/AMEMBASSY BEIJING 0151
    RUEHUL/AMEMBASSY SEOUL 0192
    RUEHKO/AMEMBASSY TOKYO 0095
    RUEAIIA/CIA WASHDC
    RHEFDIA/DIA WASHDC
    RHMFISS/JOINT STAFF WASHINGTON DC
    RUEKJCS/OSD WASHDC
    RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD//

` `

    C O N F I D E N T I A L PANAMA 001233

    SIPDIS

    SIPDIS

    DEPARTMENT FOR WHA A/S SHANNON
    DEPARTMENT FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD

    E.O. 12958: DECL: 06/22/2016
    TAGS: OTRA PREL ETRD ECON LA XK CH JA KS
    SUBJECT: PANAMA: REACHING OUT TO ASIAN MISSIONS

    REF: STATE 70035

    Classified By: AMBASSADOR WILLIAM EATON FOR REASONS 1.4 (B) AND (D).

    SUMMARY
    -------

    ¶1.  (SBU) Following up on A/S Shannon's visit to Asia, we
    reached out to our Chinese, Japanese, and South Korean
    counterparts to discuss issues of common concern in Panama.
    While the three Asian missions share a strong focus on
    developing their countries' commercial and business interests
    in Panama, they differ widely in their connectivity to and
    understanding of political developments in the country.
    Embassy will continue to work closely with these countries to
    explore areas of common interest and cooperation.  END
    SUMMARY.

    CHINA: OPTIMISTIC AND RISING
    ----------------------------

    ¶2.  (C) China's commercial office, while not an official
    embassy, appears to have close connections to parts of the
    GOP.  At a recent event, the outgoing and incoming MFA
    Foreign Relations chiefs rushed to greet the new PRC
    representative, addressing him as "Mr. Ambassador" and
    conversing tightly huddled for many minutes.  The commercial
    office is well versed on political developments in Panama,
    with the China-Taiwan recognition issue clearly at the
    forefront.  The PRC representative told us that China will
    make no trouble over Taiwan unless Taiwan declares
    independence, which would bring a "disaster."  He did not
    express any particular hope or expectation that the GOP will
    change its diplomatic alignment away from Taiwan, but
    ventured that if the current GOP did not recognize China, the
    next GOP probably would.

    ¶3.  (C) According to the PRC representative, however, China's
    interest in Panama is overwhelmingly commercial.  China, the
    world's number two user of the Panama Canal, wants political
    stability in Panama and the region to encourage further
    development of trade and business ties.  Chinese companies
    are eager to participate in the Canal expansion, and he
    hinted that discussions on joint Chinese-U.S. ventures are
    already underway.  He said China viewed expansion as
    essential to its national interest.

    JAPAN: WATCHFUL OF CHINA AND THE CANAL
    --------------------------------------
    ¶4.  (C) The Japanese embassy is one of the larger missions in
    Panama and closely follows a number of issues, closely tied
    to the concerns identified in reftel.  China is a main focus
    of attention and the embassy is carefully tracking China's
    growing role in Panama and the region.  The Japanese Charge
    mentioned that China is searching for more resources,
    particularly food, in the hemisphere and shares Japan's
    interest in securing the use of the Canal.  He concurred with
    the PRC's sentiment that Panama's diplomatic recognition of
    China is not far off.  In other political matters, the
    Japanese Charge does not believe political populism can take
    hold in Panama.  He believes that the Panamanian people are
    pragmatic and Panama would be the last place for populism to
    rise.

    ¶5.  (C) Panama plays a crucial role for Japanese economic
    interests, since the country serves as a base for Japanese
    businesses working in Latin America.  Japan's main economic
    concern is securing the use of the Canal.  Japan remains
    worldwide one of the most popular flags of convenience for
    international shipping, and the embassy is very interested in
    issues of ship registry.  The Japanese embassy reports no
    special programs to attract Japanese investment, but
    mentioned that the Japan Bank of International Cooperation
    (JBIC) is preparing a public seminar on the Canal expansion
    project for the Panamanian Foreign Minister's July visit to
    Japan.

    ¶6.  (SBU) Japan funds two main assistance programs in Panama.
     It provides $10 million annually to support a technical
    cooperation project and this year provided $1 million to fund
    a grass roots development grant.  The embassy is also
    planning a sanitation project for the Bay of Panama through a
    loan from the JBIC this fiscal year.  (Comment: Japan clearly
    hopes that its assistance also eventually wins Panama's
    support at the International Whaling Commission for lifting
    the IWC's 20-year ban on whaling.  End Comment.)

    SOUTH KOREA: MAKING A START IN THE REGION
    -----------------------------------------

    ¶7.  (C) The Korean embassy, with a staff of only four, seems
    to be poorly informed about political developments in Panama.
     As compared to elsewhere in the region (see reftel), the
    Korean embassy in Panama does not work directly with regional
    groups like the Organization of American States or the
    Inter-American Development Bank.

    ¶8.  (SBU) Korean companies, especially Samsung and LG, do
    very well here, using the Colon Free Zone as a hub and
    distribution point.  The Korean embassy reports that it does
    little to assist Korean companies directly and has no set
    programs to promote Korean business or investment in Panama.

    The embassy's interaction with the Korean business community
    is generally limited to requesting private sponsorship of the
    embassy's cultural activities and occasionally helping out
    when Korean companies work with Panamanian counterparts.

    ¶9.  (C) Korean assistance to Panama for this year includes a
    $2 million e-government grant to the Ministry of Health and
    $500,000 in electronic enhancements for the Cabinet meeting
    room at the Presidential palace.  The Korean ambassador
    mentioned that giving aid to the GOP is difficult because the
    Panamanian agencies cannot produce their own development
    plans and the Koreans have to hire contractors to do that for
    the GOP.

    NEXT STEPS
    ----------

    ¶10.  (SBU) China, Japan, and South Korea share many of our
    interests in Panama and are eager to cooperate with the
    United States, whom they view as having better access and
    influence on the GOP.  The potential Canal expansion and a
    stable, investor-friendly business climate are two important
    areas of mutual interest.  Embassy Panama maintains a strong
    working relationship with its Asian counterparts, and will
    look for further opportunities to work together to further
    USG strategic objectives in the region.

    EATON

`