RUSSIA EYEING JAPANESE RAIL, ENERGY TECHNOLOGY

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" -------------- �0A;¶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