JAPANESE AMBASSADOR DISCUSSES ELECTIONS,

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 001857

SIPDIS

E.O. 12958: DECL: 08/28/2019
TAGS: PGOV PREL JA IN AF
SUBJECT: JAPANESE AMBASSADOR DISCUSSES ELECTIONS,
NONPROLIFERATION, AFGHANISTAN WITH AMBASSADOR ROEMER

Classified By: Ambassador Timothy Roemer for Reasons 1.4 (B) and (D).


1. (C) SUMMARY. Japanese Ambassador Hideaki Domichi
described the Indo-Japanese relationship as "on an upswing"
in a meeting with Ambassador Roemer August 31. The
implications for Japan's foreign policy of the Democratic
Party of Japan's (DPJ) victory in the August 30 elections
were not yet clear, but Domichi expected the new government
to place greater emphasis on nonproliferation and
disarmament. Encouraging India to sign the Nuclear
Nonproliferation Treaty (NPT) was "unrealistic," but he hoped
India would cooperate on the Fissile Material Cut-off Treaty
(FMCT) and sign the Comprehensive Test Ban Treaty (CTBT) once
the United States had done so. Domichi said he would like to
coordinate on civil nuclear cooperation due to the role
Japanese technology would likely play in building India's
civil nuclear program. Since a bilateral Indo-Japanese civil
nuclear cooperation agreement was unlikely, Domichi said
Japan had to find a way to "honor the consensus" in the
Nuclear Suppliers Group (NSG) and not become a "stumbling
block" for other countries. Domichi, who was previously
posted to Tehran, shared his belief that India was more keen
on the proposed Iran-Pakistan-India (IPI) pipeline than is
commonly believed and that India and Iran cooperated closely
on Afghanistan. He acknowledged that Japanese logistical
support to Operation Enduring Freedom was controversial, and
said the United States needed to "clearly convey to the new
government why the logistical mission was important" above
and beyond the considerable non-military assistance Japan
continued to provide to the international effort in
Afghanistan. END SUMMARY.

Indo-Japanese Relationship
- - -


2. (SBU) In his introductory meeting with Ambassador Roemer
August 31, Japanese Ambassador Hideaki Domichi said the
Japanese relationship with India was "on an upswing," giving
much of the credit to Prime Minister Singh's efforts to
develop the Indo-Japanese Global and Strategic Partnership.
Japanese business investment in India was expanding at a rate
of 30 percent annually.


3. (SBU) The centerpiece of Japan's engagement was its USD 2
billion annual concessional loans to develop the Dedicated
Freight Corridor (DFC). Just as the Delhi Metro had
introduced a "new culture" in public transportation to India,
Domichi said the DFC was meant to redefine the way India
views railways as an engine for economic growth. Japan was
financing the western Mumbai-Delhi portion of the DFC, while
the Asian Development Bank and World Bank were financing the
Eastern Delhi-Kolkata portion. The project also required the
construction of hubs in six states, which was proceeding with
varying degrees of success. Gujarat had built an
international airport, roads, and new rail lines connecting
to the corridor, while other states such as Uttar Pradesh and
Maharashtra were more "difficult." Domichi observed that
while India was developing quickly, it lacked sufficient
manufacturing capability -- unlike China.

Japan's Historic Elections
- - -


4. (SBU) Domichi described the Democratic Party of Japan's
(DPJ) victory in the August 30 elections as expected, but
added that the implications for Japan's foreign policy were
not yet clear. Prime Minister-designate Yukio Hatoyama
planned to appoint a new National Strategic Office in the
PM's office, which would "become the most important ministry
in the government." Domichi, a career diplomat, said it
would not be practical to seek mass resignations from the
civil service, but opined that the government may "shake

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things up" domestically by cutting budgets, but it
"understood the importance of continuity" in foreign policy.
The UN General Assembly and the G20 Summit in Pittsburgh
would be opportunities for the new government to make its
policies known. Domichi shared that the Japanese Prime
Minister was due to visit India this year, consistent with
the annual alternating head of state visits envisioned in
their Strategic Partnership.

Nonproliferation and Civil Nuclear Cooperation
- - -


5. (SBU) The new Japanese government was likely to form a
coalition with the Socialists, which Domichi suggested would
result in greater emphasis on nonproliferation and
disarmament. Domichi observed that India had "made it clear
it would never sign the NPT as a non-nuclear weapon state,"
and encouraging it to do so was "neither feasible nor
realistic." Domichi said he hoped India would cooperate on
the Fissile Material Cut-off Treaty (FMCT) and sign the
Comprehensive Test Ban Treaty (CTBT) once the United States
had done so. He acknowledged India's claim to support
disarmament and maintain its testing moratorium, but said the
new Japanese government would need to see "some new
development" on nonproliferation with India.


6. (C) Complicating matters, Domichi confided that his
government "was not sure" whether India in fact voted for new
IAEA Director General Yukiya Amano's candidacy, saying
someone else may have abstained. Prime Minister Singh was
clear that he supported Japan, but there was doubt in the
Japanese Foreign Ministry whether the Indian Mission in
Vienna followed through.


7. (SBU) Domichi said he would like to coordinate with the
United States on civil nuclear cooperation due to the role
Japanese companies may play in building India's civil nuclear
program. Domichi said the key question was whether the
Japanese government would be willing to grant licenses to
permit GE-Hitachi and Westinghouse-Toshiba to make use of
Japanese technologies in their work in India absent a
bilateral Indo-Japanese civil nuclear cooperation agreement.
He said Areva was in much the same position because it relied
on the latest technology, much of which had been developed by
Japanese companies. Domichi stressed Japan had to find a way
to "honor the consensus" in the Nuclear Suppliers Group (NSG)
and that it "could not be a stumbling block if other
countries want to do business with India." He stressed that
a bilateral cooperation agreement with India would be very
difficult. Domichi said he has raised this issue "from time
to time" with the government, and that the U.S. Department of
Energy had queried the Japanese government on this point, but
that resolving the issue "could take some time."

Region: Afghanistan and Iran
- - -


8. (C) Ambassador Roemer asked Domichi for his views on the
Indo-Iranian relationship as he was previously posted to
Tehran. He stated that when he was in Tehran, he did not see
much evidence of a close relationship, but since he has been
in India, he said he saw Iranian diplomats visiting Prime
Minister Singh "often." He said India does not want to
highlight the relationship, mostly due to U.S. pressure, but
that it does want access to Iran's cheap natural gas. India
"pretends" that differences about pricing issues impede the
proposed Iran-Pakistan-India (IPI) pipeline, but in fact
India does want it. Iran has a "huge" influence in
Afghanistan, according to Domichi, who implied that India and
Iran coordinate more than we know there.


9. (C) Domichi foresaw "basically no change" in Japanese

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policy toward Afghanistan following elections in both
countries, but acknowledged that the U.S.-Japan relationship
had been "a subject of discussion" during the election
campaign. While the Japanese logistical support to Operation
Enduring Freedom was controversial, the DPJ did not in the
end include it in its election manifesto. Domichi, who was
Director General for the Middle East prior to his
ambassadorship in Tehran, shared that he had been "grilled"
by the opposition in Parliament over this issue. He said the
United States needed to "clearly convey to the new government
why the logistical mission was important" above and beyond
the considerable non-military assistance Japan continued to
provide to the international effort in Afghanistan.
(Comment: The USG needs to raise this issue on a priority
basis with the new government in Japan. Given that this
supertanker logistical support is both crucial financially
and important symbolically, as it would cause serious harm to
lose a critical partner is this effort.)
ROEMER