Identifier
Created
Classification
Origin
07TOKYO5270
2007-11-16 09:20:00
CONFIDENTIAL
Embassy Tokyo
Cable title:  

RUSSIA EYEING JAPANESE RAIL, ENERGY TECHNOLOGY

Tags:  ECON ETRD JA PGOV PREL XH 
pdf how-to read a cable
VZCZCXRO8121
PP RUEHFK RUEHKSO RUEHNH
DE RUEHKO #5270/01 3200920
ZNY CCCCC ZZH
P 160920Z NOV 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9613
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 0178
RUEHHE/AMEMBASSY HELSINKI PRIORITY 0274
RUEHMO/AMEMBASSY MOSCOW PRIORITY 1963
RUEHUL/AMEMBASSY SEOUL PRIORITY 6231
RUEHFK/AMCONSUL FUKUOKA PRIORITY 4456
RUEHHK/AMCONSUL HONG KONG PRIORITY 6364
RUEHNH/AMCONSUL NAHA PRIORITY 6859
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 8121
RUEHKSO/AMCONSUL SAPPORO PRIORITY 5124
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RHHJJPI/PACOM IDHS HONOLULU HI PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 3183
RHMFISS/USFJ PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 7003
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 005270 

SIPDIS

SIPDIS

HELSINKI PASS ST. PETERSBURG
MOSCOW PASS VLADIVOSTOK

E.O. 12958: DECL: 11/14/2017
TAGS: ECON ETRD JA PGOV PREL XH
SUBJECT: RUSSIA EYEING JAPANESE RAIL, ENERGY TECHNOLOGY

REF: A. TOKYO 04661

B. TOKYO 02690

C. TOKYO 05019

Classified By: CDA Donovan for reasons 1.4 (b/d)

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 005270

SIPDIS

SIPDIS

HELSINKI PASS ST. PETERSBURG
MOSCOW PASS VLADIVOSTOK

E.O. 12958: DECL: 11/14/2017
TAGS: ECON ETRD JA PGOV PREL XH
SUBJECT: RUSSIA EYEING JAPANESE RAIL, ENERGY TECHNOLOGY

REF: A. TOKYO 04661

B. TOKYO 02690

C. TOKYO 05019

Classified By: CDA Donovan for reasons 1.4 (b/d)


1. (C) Summary. Russian Deputy Prime Minister
Naryshkin's November 4-6 visit demonstrates both
countries' commitment to strengthening the bilateral
relationship, according to a Japanese Foreign Ministry
official. Russia would like to build a high-speed
railway using Japanese expertise and technology, but
Japan Railways is skeptical its Shinkansen "bullet
train" could withstand harsh Siberian winters.
Completion of a nuclear cooperation agreement in 2007
is unlikely as the two countries remain divided on
many issues. Japanese officials made no progress
toward resolving the Northern Territories issue with
Naryshkin, whose portfolio covers economic and
cultural issues. End Summary.


2. (SBU) Russian Deputy Prime Minister Sergey
Naryshkin visited Japan November 4-6 to follow-up on
the September Sydney APEC meeting between President
Putin and then-Prime Minister Shinzo Abe (ref A),
Ministry of Foreign Affairs (MOFA) Russian Division
Principal Deputy Director Kotaro Otsuki told Embassy
officers on November 13. Naryshkin met with PM Yasuo
Fukuda, Chief Cabinet Secretary Nobutaka Machimura, FM
Masahiko Koumura, Economy, Trade, and Industry
Minister Akira Amari, and former PM Yoshiro Mori (who
heads a Japan-Russia parliamentary exchange group).
The Russian DPM also attended an international
business roundtable, and the closing ceremony of the
Russian Cultural Festival. Otsuki noted this was
Naryshkin's second visit to Japan in 2007, reflecting
both countries' desire to strengthen bilateral
relations.

A Siberian Shinkansen?
--------------


3. (SBU) According to Otsuki, much discussion during
the visit focused on Russian Far East (RFE)/Eastern
Siberian development initiatives (Ref B). Russia
would like to build a high-speed railway between St.
Petersburg, Moscow and Nizhny Novgorod and would like

to tap Japanese expertise and technology to do so.
Japanese manufacturers in Russia would also benefit
from this project as it would reduce the cost of
transporting components from Japan, Otsuki explained.

Japan Railways Not "Enthusiastic"
--------------


4. (SBU) MOFA has convened two public-private study
groups -- one for passenger rail service and one for
freight -- to consider the proposal, Otsuki continued.
Japan Railways (JR),which owns and operates Japan's
bullet train (Shinkansen),is a key member of both
groups, and MOFA hopes JR will be an "enthusiastic"
participant. At the first meeting November 7,
however, JR representatives expressed doubts whether
Shinkansen technology could withstand the harsh
Siberian climate. The Shinkansen has only been tested
at -20C and not at the -50C temperature often seen in
Siberia during winter months. JR is worried its
reputation would suffer should the project go awry,
Otsuki stated.

Nuclear Cooperation Agreement "Not Likely" in 2007

TOKYO 00005270 002 OF 002


-------------- --------------


5. (C) Naryshkin also discussed energy issues,
including the nuclear cooperation agreement (NCA)
currently under negotiation (Refs A,C). Otsuka
explained Russia would also like to acquire Japanese
nuclear technology, but the GOJ is concerned such
technology could be used for military purposes. NCA
working groups met for the third time in Tokyo
November 9-10 in the hopes of concluding an agreement
by the end of 2007. Otsuki believes this timing is
"not likely" as the two sides remain divided on many
issues.

LNG Production
--------------


6. (C) FM Koumura discussed with Naryshkin the
importance Japan placed on beginning LNG shipments
next year, Otsuki said. Tokyo and Moscow will use a
ship constructed in a Japanese shipyard to transport
the LNG. Japanese officials view the joint
shipbuilding effort a symbolic project demonstrating
cooperation between the two nations.

Northern Territories
--------------


7. (C) Otsuki stated the two sides failed to make
progress toward resolving the Northern Territories
issue during Naryshkin's meetings with PM Fukuda,
CCS Machimura, and FM Koumura. Otsuki, noting that
the issue did not fall under Naryshkin's economic-
cultural affairs portfolio, added "If we do not talk
about the issue, Japanese taxpayers will ask why we
did not raise the question." The Japanese
nevertheless asked Naryshkin to relay to President
Putin that Japan is ready to raise Japan-Russia
relations to a higher level in every field and thinks
it necessary to push forward to solve the NT issue,
Otsuki added.


8. (C) Japan submitted a proposal for
intergovernmental consultation on climate change
calling for cooperation under the Kyoto Protocol and
the post-Kyoto process, Otsuki said.


9. (C) Comment: Despite claims the visit demonstrated
both countries' commitment to strengthening ties, it
concluded with many official platitudes and few
concrete results. Naryshkin's perfunctory discussion
on the Northern Territories indicates that Tokyo and
Moscow will continue to put the territorial dispute aside
while moving forward on other aspects of the bilateral
relationship. End comment.
DONOVAN