Thursday, April 27, 2006

Guam relocation deal result of horse-trading



Yomiuri Shimbun (Japan), Apr 27, 2006

Apr. 27--TOKYO -- The arrangement to split the cost of relocating U.S. marines from Okinawa Prefecture to Guam was finally settled in a rare forum--ministerial level talks.

Defense Agency Director General Fukushiro Nukaga had made sophisticated preparations before the heated negotiations with U.S. Defense Secretary Donald Rumsfeld before reaching Sunday's agreement.

Before meeting with Rumsfeld, Nukaga made two preparations.

One was a secret early-morning meeting with U.S. Ambassador to Japan Thomas Schieffer at which Nukaga told the ambassador, "The moment for U.S. military realignment [in Japan] will be missed unless it is done when the prime minister is [Junichiro] Koizumi and the defense chief is me," according to government sources.

Schieffer agreed and said he would convey the message to Rumsfeld.

Schieffer is a close friend of U.S. President George W. Bush and has influence at the Pentagon.

Nukaga's second action was a visit the same morning to the Arlington National Cemetery near Washington, where he offered a silent prayer in front of the graves of U.S. soldiers.

His aides said Nukaga decided to do so after considering overnight what he should do before meeting Rumsfeld. He took the action because he was informed Rumsfeld was scheduled to visit U.S. soldiers injured in Iraq before attending the meeting.

A senior diplomat in the Japanese Embassy in Washington also advised Nukaga, "If you immediately begin talking about money, the meeting will fall apart in 10 minutes," according to the sources.

At the start of their meeting in the evening, Nukaga told Rumsfeld he had visited the cemetery and that Japan supported the United States for having fought terrorism and threats of weapons of mass destruction, and having made efforts for world peace and justice.

Rumsfeld, long considered a hawk in the U.S. government, said he thanked Japan for its contributions, with slightly teary eyes, the sources said.

Though the talks started in a friendly mood, Rumsfeld kept his hard-line stance about the meeting's main agenda. He continued to demand that Japan should shoulder 75 percent of the total cost of the relocation.

Rumsfeld told Nukaga it is rare that an economic power such as Japan spends only 1 percent of its gross domestic product for defense, and it was Japan that demanded the relocation of the marines to Guam.

Nukaga replied the Japanese public would not be convinced the nation should shoulder 75 percent of the burden. He reiterated Tokyo's demand that Washington should show detailed calculations over how much is needed to relocate the marines.

Nukaga also mentioned a compromise option presented by Schieffer, which proposed that one-third of the cost be paid through direct spending by Japan, one-third with Japan's investment and loans, and one-third by direct spending by the U.S. government.

"We can't accept a plan of roughly dividing into three. Japan's direct spending should be smaller than that of the United States. Prime Minister Koizumi has the same opinion. We can't compromise over this point at any cost," Nukaga told Rumsfeld, according to the sources.

Nukaga adhered to the point because, unlike loans which will be later paid back, the direct spending will not be recovered.

Nukaga and Rumsfeld continued arguing the point for an hour. After a break, Rumsfeld softened his stance.

As an alternative demand, the U.S. side asked for $1 billion in financial assistance for the construction of a highway connecting a port and a U.S. Air Force base in Guam.

But the demand was withdrawn after Nukaga replied that offering the money was possible if it is in the form of investment or loans, but not as direct spending.

The U.S. side presented the final proposal that the total cost would be $10.27 billion, of which Japan should pay $6.09 billion, or 59.3 percent.

Japan's direct spending amounts to $2.8 billion, less than the United States' $3.18 billion.

Rumsfeld urged Nukaga to make a decision, saying the negotiations would be broken off if the Japanese side did not accept the final proposal.

The amounts were in the range Nukaga and the Finance Ministry had agreed was acceptable just before his departure to the United States.

Nukaga told Rumsfeld he would accept the terms three hours after their talks started.

Rumsfeld seemed to be satisfied and even joked that Nukaga would be happier if his agency was upgraded to a ministry.