[War] Japan: "On Africa"

[Ian Martell]

“On Africa”
Prime Minister Shunichi Sato
Japan
Sept 18th 2006
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“So,” Sato said moving on in the Foreign Affairs and METI (Ministry of 
Economy, Trade and Industry) briefing. “What is the situation with Africa?” 
he asked the two ministers and their staffs who had shoehorned themselves 
into his Diet Building offices.

“Well there are the usual disputes going on, though the development of the 
Somali army has certainly made things interesting there. Have any of the 
Intelligence Agencies mentioned how that came to pass?”

Sato shook his head and sipped his coffee, finding his choice somewhat 
ironic, like almost all coffee sold in Japan it was from Ethiopia. At last 
accounting Japan was Ethiopia’s largest trading partner buying nearly 67% of 
the nations exports, most of it coffee.

“Do we have any proposals for the that area?” Sato asked his Ministers and 
their senior bureaucrats.

“Yes Prime Minister,” the Minister of METI, Kunosuke Yubuki, said. “The new 
Prime Minister has instituted a series of agricultural reforms and I’d like 
to suggest we offer them support for these reforms by providing specialists 
and equipment to help them get over this hurdle.”

“What sort of equipment?” Sato asked. Japan’s farming was of a very 
different sort than the kind done in Ethiopia. “And from where?”

“Initially we could import some farming equipment from other countries for 
them, as a donation, but my thought is that with cooperation from one or 
more of the Keiretsu we could look at developing a market there for farm 
equipment provided it could be created at a cost affordable to the people or 
government of Ethiopia.”

Sato nodded any such project would have to be done in Ethopia to keep the 
transport costs from making them too expensive, and then they faced the 
problem that small production runs would mean higher costs. Still if other 
nations could use what this arrangement produced it could be feasible.

“Alright, what about specialist support?”

“Well despite the difference in our types of agriculture, we do have the 
expertise they’re looking for in regards to soil erosion and other things, 
my proposal is as part of our aid package we pay for the specialists to go 
over and begin working with their government to develop an agricultural 
strategy that could be passed down to the people.”

Sato nodded. “Very good, what about terms of the aid package?”

“Well its past due we made Ethiopia a STEP partner, and given their annual 
income that would put the standard terms for our ODA loan .4% interest with 
a 10 year grace period and a 40 year repayment plan. Tied of course.”

“Of course,” Sato replied. “What do we think the final total will be?”

“Hard to say,” Yubuki admitted. “I’d cap our expenditures on the import and 
donation of farm equipment and costs of the specialists at $50,000,000 USD.”

Sato nodded, as this was a tied loan the money would be given to Japanese 
firms to provide the equipment and ship it, which meant the 50 million would 
go in part back into the Japanese economy.

“Agreed,” Sato said.

Yubuki nodded. “If there’s now objections I’ll schedule a meeting with their 
Ambassador to discuss the proposed aid package.”

Everyone nodded their approval.

“What’s next?” Sato asked Yubuki.

“The Gabonese Republic,” he said. “They’re looking for buyers for their oil 
and support to better educate their population. I think this could be 
handled by brokering an arrangement between the Japanese oil industry and 
the Gabonese government, basically in exchange for our oil companies helping 
to pay for their education reforms, the Gabonese government gives Japanese 
oil companies certain considerations in expanding their operations in Gabon 
and exporting oil to Japan.”

Sato nodded. “Sounds reasonable. What sort of considerations?”

“First bid on new fields and so forth, as well as perhaps a set price of 
sale for any oil they purchase from Gabonese firms to be exported to Japan,” 
Yubuki replied.

“Very good, speak to our oil industry and the Gabonese government about the 
idea and see what comes from it.”

Yubuki nodded and they moved on to other parts of the world.

1>	Offer Ethiopia a tied yen loan for agricultural development, valued at 
$50,000,000 USD, the money will be spent in three projects. The first 
purchasing and transporting farm equipment to Ethiopia, the second to pay 
for specialists to help Ethiopia develop a new agricultural strategy and 
third to lay the groundwork for a possible farm machine production facility 
in Ethopia run by a Japanese firm and exporting excess machines to other 
African nations. Loan terms .4% interest, 40 year payment scheme and 10 year 
grace period per MOFA terms and conditions for ODA 
(http://www.mofa.go.jp/policy/oda/note/yenloan.html)
2>	Suggest to both the Japanese oil industry and the Gabonese government the 
idea of the companies helping with the Gabonese educational reforms in 
exchange for special considerations in expanding their operations in Gabon.

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