Identifier
Created
Classification
Origin
06NEWDELHI8469
2006-12-22 01:20:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

NEW DELHI DECLARES PM SINGH'S TOKYO "VERY

Tags:  PREL PGOV ECON EQRD KNNP MARR JA IN 
pdf how-to read a cable
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C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 008469 

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/20/2026
TAGS: PREL PGOV ECON EQRD KNNP MARR JA IN
SUBJECT: NEW DELHI DECLARES PM SINGH'S TOKYO "VERY
SATISFYING"

REF: A. TOKYO 7067

B. NEW DELHI 8137

NEW DELHI 00008469 001.2 OF 004


Classified By: PolCouns Ted Osius for Reasons 1.4 (B,D)

C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 008469

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/20/2026
TAGS: PREL PGOV ECON EQRD KNNP MARR JA IN
SUBJECT: NEW DELHI DECLARES PM SINGH'S TOKYO "VERY
SATISFYING"

REF: A. TOKYO 7067

B. NEW DELHI 8137

NEW DELHI 00008469 001.2 OF 004


Classified By: PolCouns Ted Osius for Reasons 1.4 (B,D)


1. (C) SUMMARY: Japan watchers in New Delhi regard PM
Singh's Tokyo visit a success, one that achieved India's main
goal of taking the relationship one level higher. Economic
cooperation agreements highlighted the summit for the
Indians, while political principles which had been
established in previous Indo-Japan summits were reinforced.
Singh's visit was overwhelmingly positive, contacts here say,
although the warm rhetoric may be difficult to match in
reality. The only visible disappointments from the Indian
perspective were in the amount of coverage seen in the
Japanese press, overemphasis on the civil-nuclear cooperation
agreement, and the lack of an explicit reference to a
quadrilateral strategic dialogue. A proposed $3 billion of
foreign direct investment from Japan to India is "just the
tip of the iceberg," say Japanese Embassy officers. Note: Ref
A thoroughly covered the agenda and outcomes of PM Singh's
recent visit to Tokyo, along with Japanese reaction, which
Post does not intend to repeat. Rather, this cable describes
Indian reaction to the visit. End Note. END SUMMARY.

Bilateral Relations A Level Higher Than 2005
--------------


2. (C) India is "very satisfied" to have taken bilateral
relations one level higher as the result of Prime Minister
Singh's December 13-16 visit to Tokyo, former Indian
Ambassador to Japan Arjun Asrani told PolCouns in a December
19 readout. Noting that the 2005 Indo-Japanese joint
statement had focused on political and defense strategies,
Ambassador Asrani underlined that this one has new economic
material which "has a lot of meat in it." He added that much
of the language in the new joint statement, particularly in
regard to political, defense and security cooperation,
essentially repeated principles PM Koizumi and Singh had

agreed to in 2005. To Asrani, the mere confirmation of those
principles was positive enough, but Asrani attached
particular significance to PM Abe's endorsement, saying Abe,
with his thoroughbred background and deep connections, was
much more powerful than the two previous Japanese prime
ministers who held summits with India, Mori and Koizumi.
Professor Brij Tankha of the University of Delhi said such a
successful visit so early in Abe's term provides "a new
political climate which gives optimism. The basis has been
laid for building a deeper relationship." Japanese diplomats
agreed on the success of the visit, as Yoshi Kitamura told
Poloff, "There really were no negatives" coming out of the
summit.

Economic Agreements The Highlight
--------------


NEW DELHI 00008469 002.2 OF 004



3. (C) Professor Tankha highlighted the proposed Delhi-Mumbai
industrial corridor -- which will include special economic
zones, the development of industrial parks and upgrading
transport infrastructure -- as the most significant
deliverable, calling it an ambitious project with great
potential that will lay the basis for building a relationship
between the two countries. Japanese companies are already
starting to build townships along the corridor, he noted, and
the associated construction and commerce could act as a
springboard for economic development. There were also two
projects in the power sector which stood out to Tankha, one
in Tamil Nadu and another in Arunachal Pradesh. Ambassador
Asrani pointed to the significance of getting a Japanese
agreement on investment in Arunachal Pradesh; in November
Chinese Ambassador to India Sun Yuxi claimed the state of
Arunachal Pradesh was a Chinese territory, resulting in
immediate condemnation from all corners of India. Asrani
speculated that the call for a bilateral Economic Partnership
Agreement/Comprehensive Economic Partnersip Agreement, as
well as the Special Economic Partnership Initiative, will be
well received by India's business community, noting the
complementarity of the two economies, which, he added was
lacking in other countries courting India for an economic
partnership agreement, such as Australia and Singapore.
Asrani also cited the agreement to launch a consultation
mechanism to facilitate bilateral high technology trade as a
significant achievement, predicting it would clear
long-standing barriers to two-way high-tech transfer and
trade. The Japanese Embassy foresees this summit as the
beginning of greater long-term economic cooperation; Japanese
PolCouns Takio Yamada declared that the projected $3 billion
worth of foreign direct investment to India is just "the tip
of the iceberg."

A Few Disappointments: Japanese Press, Overemphasis On
Civ-Nuke, And No Quad Language
--------------


4. (C) While the overall assessment of the visit was
excellent, observers here noted a few disappointments. The
most frequent complaint in New Delhi was the lack (according
to our contacts) of headline news coverage in Tokyo. "The
(Japanese) press carried it on page 3," Tankha complained,
although Ambassador Asrani quickly noted that PM Koizumi's
visit to India in 2005 was covered in more detail in Tokyo
than in New Delhi. Asrani and Dr. G.V.C. Naidu of the
Institute of Defense Studies and Analyses were also
disappointed by what they perceived was an overemphasis in
the Indian press on statements regarding Japan's support for
India's civil nuclear energy cooperation. "The Indian media
has blown the nuclear issue out of proportion, as thought
that was the only reason for PM Singh's visit" Asrani stated,
adding "That was never the expectation. In fact, they (both
India and Japan) deliberately tried to keep that part low
key."


NEW DELHI 00008469 003.2 OF 004



5. (C) The only other disappointment, according to both
Indian and Japanese contacts here, was that there was no
announcement of a quadrilateral dialogue among Japan, India,
the U.S. and Australia. Asrani, who had obviously been aware
that such a statement was a possibility, opined that PM Abe
has set a priority on fomenting a quadrilateral relationship,
and lamented that the joint statement included only one
carefully worded reference to "dialogue among like-minded
countries on themes of mutual interest in paragraph 46."
Asked what China's reaction would be to a quadrilateral
dialogue, the Ambassador observed that the Chinese reaction
is not as important as the Indian communist reaction. "It is
not just what China thinks that matters," he declared.
Asrani also noted that "'China' is never mentioned in the
joint statement, but it is very much there behind the
scenes." Environmental issues, anti-piracy, energy and
democracy initiatives are all areas that can be worked on
without disturbing the delicate balance in the region, he
argued.

Australian Concerns Over Quad
--------------


6. (C) Australian High Commissioner John McCarthy, whose
previous post was Tokyo, discussed with PolCouns Canberra's
concerns about a quadrilateral arrangement. First, he said,
Canberra was concerned that a Minister-level quadrilateral
would weaken the trilateral security dialogue (TSD) now
underway between Washington, Tokyo and Canberra. Second, the
TSD is an arrangement between allies; India has not yet

SIPDIS
entered into a formal alliance with any of its prospective
quad partners. Third, according to McCarthy, Canberra was
concerned that its relative influence on the process could
diminish, especially because the TSD is held at the
vice-Minister level, while the Japanese had proposed a
quadrilateral at the Minister level. Finally, Canberra had
some qualms about entering into an arrangement that might
anger the PRC. More important, McCarthy opined, was the
domestic obstacle in India, where Parliament was grappling
with civil nuclear legislation that binds India to the U.S.
India's left-wing parties would reject any arrangement that
further underscored U.S.-India relations, especially if the
arrangement could be perceived as aimed at China.

The Next Steps: Nuclear Power, Defense and Partnerships
--------------


7. (C) Looking ahead, Japanese PolCouns Takio Yamada
remarked that the two countries can focus on their
commonalities now that old differences, such as differing
economic policies and the nuclear issue, are being worked
out. The next Indo-Japan summit will likely occur next
summer, Yamada stated, when PM Abe is projected to travel to
New Delhi. Japan and India will try to build on the
political and security relationship at the next meeting, he
said, outlining Japan's emerging priorities for strengthening

NEW DELHI 00008469 004.2 OF 004


ties with India. Should Abe travel during the summer, India
could very likely be in the final stages of negotiating
civil-nuclear cooperation with the Nuclear Suppliers Group
and International Atomic Energy Agency, and Japan will need
to come to an internal conclusion on support for India's
civil-nuclear program, indicated Yamada. He also said more
emphasis will be put on bilateral security cooperation,
noting that Japan is ready to cooperate more closely on
defense and adding that joint exercises with India are in the
works, including a first ever ship visit to India. Finally,
Japan will continue to explore trilateral or quadrilateral
cooperation with the U.S., India and possibly Australia, he
said.

Comment: Overly Optimistic Or Not, Moving In The Right
Direction
--------------
--------------


8. (C) While PM Singh and PM Abe parted with a warm and fuzzy
Joint Statement, Post tends to agree with Japanese diplomat
Yamada's more candid assessment that "The atmosphere may be
better than the reality right now." One word of caution
contacts here gave was that Indian and Japanese cultures are
very different, and Post worries that actors on both sides
may get frustrated while trying to implement some of the
bolder agreements and seeing a clash of bureaucracies,
infrastructures, and ways of doing business that contrast
strikingly. Regardless, it is obvious that Indo-Japan
relations are blossoming, and that is good news for the U.S.
Ref B offered concrete ideas for joint projects which advance
U.S., Indian and Japanese interests. While it is too early
for a Quadrilateral Strategic Dialogue, lower-level and
informal trilateral interaction would surely generate more
opportunities. END COMMENT.
MULFORD