DOMICHI AFFIRMS CONTINUED CLOSE U.S-JAPAN

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 005258 SIPDIS SIPDIS E.O. 12958: DECL: 12/06/2012 TAGS: PGOV PREL KNUC KNNP JA IN SUBJECT: DOMICHI AFFIRMS CONTINUED CLOSE U.S-JAPAN COOPERATION ON INDIA Classified By: AMB David Mulford for Reasons 1.4 (B, D) ¶1. (C) Summary. Japanese Ambassador-Designate Domichi, in an initial courtesy call on Ambassador: -- hinted that Japan will likely support the civil-nuclear deal in the IAEA and NSG, while expressing his hope that the U.S. will understands Japan's sensitivities on nuclear issues; -- said he believed the U.S. and Japan share the view of promoting bilateral relations with India in the context of their larger global strategies; -- explained that he expects PM Fukuda to continue the path of closer Indo-Japan relations; -- listed infrastructure development and energy among Japan's priorities for assistance to India; and -- agreed on the desire to move forward with the quadrilateral U.S.-Japan-Australia-India dialogue concept, in a way that would not alarm China, as one means for shaping the strategic dynamics of the Asia region. End Summary. Improving Ties To Continue -------------- ¶2. (C) Japanese Ambassador-Designate Hideki Domichi paid a courtesy call on the Ambassador on December 6, noting that he expected to present his credentials on December 12. Domichi began the meeting by saying he believed the U.S. and Japan shared the view of promoting bilateral relations with India in the context of a global strategy. He assured the Ambassador that Japan's policy of pursuing closer ties with India, a policy that preceded Prime Minister Koizumi, would continue under PM Fukuda. Priority On Infrastructure, Energy -------------- ¶3. (C) Listing what he believes will be his priorities during his tenure, Domichi said Japan is committed to assisting India improve its infrastructure, particularly business infrastructure, and mentioned the Kolkata-Mumbai-Delhi industrial and freight corridors as priority projects. He added that, in addition to infrastructure, addressing India's energy needs will be important levers to Indian growth, particularly in rural sectors. Domichi said Japanese companies are trying to catch up with others' enthusiasm for India's economic potential, but wondered whether such enthusiasm was losing sight of India's weaknesses, such as an estimated $500 billion in needed infrastructure. Broad Support For Civ-Nuke, But With Sensitivities -------------- ¶4. (C) Turning to civil-nuclear energy, Domichi asked the Ambassador for his views on progress in the 123 Agreement and the "difficult to understand" politics surrounding debate over the deal. Following the Ambassador's readout, Domichi said that Japan's unique experience with nuclear weapons makes it a delicate subject for the GOJ, but referred to PM Fukuda's message to President Bush that Japan will consider the initiative positively. Noting that opposition leader Ichiro Ozawa has had success in politicizing the issue of Japan's support for Operation Enduring Freedom, Domichi worried whether the Democratic Party of Japan might also try to politicize the civil-nuclear deal. Explaining it is unlikely Japan will come out publicly to support the deal, Domichi said he hoped the U.S. would understand Japan's sensitivity on the issue. Value In Quad -------------- NEW DELHI 00005258 002 OF 002 ¶5. (C) The Ambassador and Domichi agreed on the desirability of quadrilateral U.S.-Japan-Australia-India dialogue, however such interaction needs to be handled in such a way as to not alarm China. While the quad concept has been slow in taking hold, Domichi said, "it could develop quite significantly." Given India's rise, Domichi opined, the quadrilateral dynamic -- which could be expanded to include the EU -- could be important for the future structure of the world. Same Level As China? -------------- ¶6. (C) Domichi ended the meeting by saying that he had a bold dream for Japan's relationship with India, and that was, in the long term, to raise Japan-India trade and investment flows to the same level as China. MULFORD