Identifier
Created
Classification
Origin
06TOKYO6926
2006-12-11 08:25:00
CONFIDENTIAL
Embassy Tokyo
Cable title:  

INDIAN PM VISIT: LIKELY JOINT STATEMENT, ECONOMIC

Tags:  ECON ETRD PREL MARR JA IN 
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C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 006926 

SIPDIS

SIPDIS

PARIS FOR USOECD

E.O. 12958: DECL: 12/10/2016
TAGS: ECON ETRD PREL MARR JA IN
SUBJECT: INDIAN PM VISIT: LIKELY JOINT STATEMENT, ECONOMIC
PARTNERSHIP ANNOUNCEMENT DETAILS

REF: A. TOKYO 5574


B. TOKYO 6468

C. NEW DELHI 8137

D. STATE 197184

Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 b/d.

Summary
-------
C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 006926

SIPDIS

SIPDIS

PARIS FOR USOECD

E.O. 12958: DECL: 12/10/2016
TAGS: ECON ETRD PREL MARR JA IN
SUBJECT: INDIAN PM VISIT: LIKELY JOINT STATEMENT, ECONOMIC
PARTNERSHIP ANNOUNCEMENT DETAILS

REF: A. TOKYO 5574


B. TOKYO 6468

C. NEW DELHI 8137

D. STATE 197184

Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 b/d.

Summary
--------------

1. (C) Preparations for Indian Prime Minister Singh's
December 13-16 visit to Japan are proceeding well, a Ministry
of Foreign Affairs (MOFA) official told Econoff, and it
appears the prime ministers will issue a joint statement
announcing negotiations toward an "economic partnership
agreement" (EPA). Areas still under discussion include
whether the joint statement will include Japanese support for
the U.S.-India civilian nuclear deal and whether negotiators
will start their first round of EPA talks in January. End
summary.

PM Singh Visit Preparations Going Well
--------------

2. (C) Preparations for Indian Prime Minister Singh's
December 13-16 visit to Japan are going well, Ministry of
Foreign Affairs (MOFA) Southwest Asia Division official
Naoshige Aoshima told Econoff in December 5 and 8
conversations, and the two sides are exchanging joint
statement drafts. Although negotiations on the statement are
ongoing, Aoshima stated that the following items are likely
to be announced under the four broad categories of political
and security measures, economic initiatives, cultural and
human exchanges, and regional and international cooperation:

-- Upgrading the name of Japan and India's current "Global
Partnership with Strategic Orientation," which before 2005
had been simply a "Global Partnership," to something like the
"Strategic and Global Partnership."

-- Endorsing areas of security cooperation that were proposed
in May when India's defense minister visited. (Note: The
joint statement signed in May promoted high-level dialogue
and goodwill exchanges between the Maritime Self-Defense
Force and the Indian Navy.)

-- Announcing further cooperation between the countries'
coast guards (which have conducted combined anti-piracy and

search and rescue exercises yearly since 2000).

-- Announcing the start of negotiations toward the creation
of an "economic partnership agreement" (similar to a free
trade agreement).

-- Announcing a new youth exchange program.

-- Announcing continued cooperation in international fora,
such as the UN, East Asian Summit, or the Asia-Europe
Meeting, and possibly regional cooperation on
counter-terrorism, (non-nuclear) energy, the environment, or
disaster management.

Top Outstanding Issues
--------------

3. (C) The top outstanding request from the Indian side is
clear Japanese support in the joint statement for the
U.S.-India civilian nuclear deal. Aoshima speculated that PM
Abe would have to decide the final wording of the statement,
and that it would only be decided at the last moment.
Aoshima said MOFA hoped that some kind of "positive nuance"
could be applied to the surface of Japan's neutral stance.

TOKYO 00006926 002 OF 002




4. (C) Next on India's list is the creation of a high
technology working group to reduce Ministry of Economy,
Trade, and Industry (METI) controls on exports to Indian
companies. Aoshima did not speculate on the likelihood that
such a group could be established, but noted internal
Japanese discussions had focused on the fact that an
export-control framework and mechanism for consultations
already exist.


5. (C) During the December 5 meeting, Aoshima stated that
MOFA's top negotiating priority was to get a mention of
Japan-India-U.S.-Australia quadrilateral cooperation into the
joint statement, as PM Abe had directly requested the
inclusion of such language. For their part, the Indian
negotiators had rejected mention of quadrilateral security
discussions or cooperation, said Aoshima, who raised
economic, environmental, or maritime security cooperation as
negotiating possibilities. (Note: Aoshima's comments preceded
Japanese Political Minister Masafumi Ishii's December 6
conversation with EAP PDAS Stephens on the subject, detailed
in ref D. As of December 8, Aoshima stated he no longer knew
Japan's negotiating position because discussions had gone to
such high levels within the Japanese government.)

Remaining Details in Economic Negotiations
--------------

6. (C) Although launching the EPA has been agreed in
principle, Aoshima stated that Japan and India were still
negotiating over whether the first round of talks will start
in January. It would be at that round of talks, he
continued, that major questions of restricted or sensitive
sectors and tariff lines would be addressed.


7. (C) Discussions of whether the prime ministers will be
able to announce a "Japan-India Economic Partnership
Initiative" are also ongoing. The idea would be to establish
a program where Japanese manufacturing companies share their
expertise with Indian companies, which, Aoshima explained,
tend to be stronger in services than manufacturing. To
facilitate that exchange, India would set up a Special
Economic Zone between New Delhi and Mumbai where Japanese
companies would enjoy a favorable tax regime; Japan would
direct some of its development assistance toward Mumbai's
port and rail facilities.


8. (C) Finally, India has requested the creation of a "CEO
Group," reportedly modeled on a U.S.-Indian organization, to
give input to EPA negotiators once a year. Aoshima explained
that Japan was not opposed to such a group in principle, but
in Japanese organizations it is usually the president, rather
than the CEO, who would be most appropriate to deal with
"external" issues. A hybrid "Business Leaders' Forum" where
Indian CEOs and Japanese company presidents can meet is
likely but has not yet been finalized.

Comment
--------------

9. (C) Although Aoshima volunteered that a number of the
visit's deliverables were incremental or a re-packaging of
developments over the past year, and that the international
and regional cooperation agenda was admittedly "lackluster,"
he seemed pleased with progress so far, and was surprisingly
relaxed for a working-level official preparing for a major
event.


SCHIEFFER