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C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 008469 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/20/2026 
TAGS: PREL PGOV ECON EQRD KNNP MARR JA IN
SUBJECT: NEW DELHI DECLARES PM SINGH'S TOKYO "VERY 
SATISFYING" 
 
REF: A. TOKYO 7067 
     ¶B. NEW DELHI 8137 
 
NEW DELHI 00008469  001.2 OF 004 
 
 
Classified By: PolCouns Ted Osius for Reasons 1.4 (B,D) 
 
¶1.  (C) SUMMARY:  Japan watchers in New Delhi regard PM 
Singh's Tokyo visit a success, one that achieved India's main 
goal of taking the relationship one level higher.  Economic 
cooperation agreements highlighted the summit for the 
Indians, while political principles which had been 
established in previous Indo-Japan summits were reinforced. 
Singh's visit was overwhelmingly positive, contacts here say, 
although the warm rhetoric may be difficult to match in 
reality.  The only visible disappointments from the Indian 
perspective were in the amount of coverage seen in the 
Japanese press, overemphasis on the civil-nuclear cooperation 
agreement, and the lack of an explicit reference to a 
quadrilateral strategic dialogue.  A proposed $3 billion of 
foreign direct investment from Japan to India is "just the 
tip of the iceberg," say Japanese Embassy officers. Note: Ref 
A thoroughly covered the agenda and outcomes of PM Singh's 
recent visit to Tokyo, along with Japanese reaction, which 
Post does not intend to repeat.  Rather, this cable describes 
Indian reaction to the visit. End Note. END SUMMARY. 
 
Bilateral Relations A Level Higher Than 2005 
-------------------------------------------- 
 
¶2. (C) India is "very satisfied" to have taken bilateral 
relations one level higher as the result of Prime Minister 
Singh's December 13-16 visit to Tokyo, former Indian 
Ambassador to Japan Arjun Asrani told PolCouns in a December 
19 readout.  Noting that the 2005 Indo-Japanese joint 
statement had focused on political and defense strategies, 
Ambassador Asrani underlined that this one has new economic 
material which "has a lot of meat in it."  He added that much 
of the language in the new joint statement, particularly in 
regard to political, defense and security cooperation, 
essentially repeated principles PM Koizumi and Singh had 
agreed to in 2005.  To Asrani, the mere confirmation of those 
principles was positive enough, but Asrani attached 
particular significance to PM Abe's endorsement, saying Abe, 
with his thoroughbred background and deep connections, was 
much more powerful than the two previous Japanese prime 
ministers who held summits with India, Mori and Koizumi. 
Professor Brij Tankha of the University of Delhi said such a 
successful visit so early in Abe's term provides "a new 
political climate which gives optimism.  The basis has been 
laid for building a deeper relationship."  Japanese diplomats 
agreed on the success of the visit, as Yoshi Kitamura told 
Poloff, "There really were no negatives" coming out of the 
summit. 
 
Economic Agreements The Highlight 
--------------------------------- 
 
 
NEW DELHI 00008469  002.2 OF 004 
 
 
¶3. (C) Professor Tankha highlighted the proposed Delhi-Mumbai 
industrial corridor -- which will include special economic 
zones, the development of industrial parks and upgrading 
transport infrastructure -- as the most significant 
deliverable, calling it an ambitious project with great 
potential that will lay the basis for building a relationship 
between the two countries.  Japanese companies are already 
starting to build townships along the corridor, he noted, and 
the associated construction and commerce could act as a 
springboard for economic development.  There were also two 
projects in the power sector which stood out to Tankha, one 
in Tamil Nadu and another in Arunachal Pradesh.  Ambassador 
Asrani pointed to the significance of getting a Japanese 
agreement on investment in Arunachal Pradesh; in November 
Chinese Ambassador to India Sun Yuxi claimed the state of 
Arunachal Pradesh was a Chinese territory, resulting in 
immediate condemnation from all corners of India.  Asrani 
speculated that the call for a bilateral Economic Partnership 
Agreement/Comprehensive Economic Partnersip Agreement, as 
well as the Special Economic Partnership Initiative, will be 
well received by India's business community, noting the 
complementarity of the two economies, which, he added was 
lacking in other countries courting India for an economic 
partnership agreement, such as Australia and Singapore. 
Asrani also cited the agreement to launch a consultation 
mechanism to facilitate bilateral high technology trade as a 
significant achievement, predicting it would clear 
long-standing barriers to two-way high-tech transfer and 
trade.  The Japanese Embassy foresees this summit as the 
beginning of greater long-term economic cooperation; Japanese 
PolCouns Takio Yamada declared that the projected $3 billion 
worth of foreign direct investment to India is just "the tip 
of the iceberg." 
 
A Few Disappointments: Japanese Press, Overemphasis On 
Civ-Nuke, And No Quad Language 
-------------------------------------- 
 
¶4. (C) While the overall assessment of the visit was 
excellent, observers here noted a few disappointments.  The 
most frequent complaint in New Delhi was the lack (according 
to our contacts) of headline news coverage in Tokyo.  "The 
(Japanese) press carried it on page 3," Tankha complained, 
although Ambassador Asrani quickly noted that PM Koizumi's 
visit to India in 2005 was covered in more detail in Tokyo 
than in New Delhi.  Asrani and Dr. G.V.C. Naidu of the 
Institute of Defense Studies and Analyses were also 
disappointed by what they perceived was an overemphasis in 
the Indian press on statements regarding Japan's support for 
India's civil nuclear energy cooperation.  "The Indian media 
has blown the nuclear issue out of proportion, as thought 
that was the only reason for PM Singh's visit" Asrani stated, 
adding "That was never the expectation.  In fact, they (both 
India and Japan) deliberately tried to keep that part low 
key." 
 
 
NEW DELHI 00008469  003.2 OF 004 
 
 
¶5.  (C) The only other disappointment, according to both 
Indian and Japanese contacts here, was that there was no 
announcement of a quadrilateral dialogue among Japan, India, 
the U.S. and Australia.  Asrani, who had obviously been aware 
that such a statement was a possibility, opined that PM Abe 
has set a priority on fomenting a quadrilateral relationship, 
and lamented that the joint statement included only one 
carefully worded reference to "dialogue among like-minded 
countries on themes of mutual interest in paragraph 46." 
Asked what China's reaction would be to a quadrilateral 
dialogue, the Ambassador observed that the Chinese reaction 
is not as important as the Indian communist reaction.  "It is 
not just what China thinks that matters," he declared. 
Asrani also noted that "'China' is never mentioned in the 
joint statement, but it is very much there behind the 
scenes."  Environmental issues, anti-piracy, energy and 
democracy initiatives are all areas that can be worked on 
without disturbing the delicate balance in the region, he 
argued. 
 
Australian Concerns Over Quad 
----------------------------- 
 
¶6.  (C) Australian High Commissioner John McCarthy, whose 
previous post was Tokyo, discussed with PolCouns Canberra's 
concerns about a quadrilateral arrangement.  First, he said, 
Canberra was concerned that a Minister-level quadrilateral 
would weaken the trilateral security dialogue (TSD) now 
underway between Washington, Tokyo and Canberra.  Second, the 
TSD is an arrangement between allies; India has not yet 
 
SIPDIS 
entered into a formal alliance with any of its prospective 
quad partners.  Third, according to McCarthy, Canberra was 
concerned that its relative influence on the process could 
diminish, especially because the TSD is held at the 
vice-Minister level, while the Japanese had proposed a 
quadrilateral at the Minister level.  Finally, Canberra had 
some qualms about entering into an arrangement that might 
anger the PRC.  More important, McCarthy opined, was the 
domestic obstacle in India, where Parliament was grappling 
with civil nuclear legislation that binds India to the U.S. 
India's left-wing parties would reject any arrangement that 
further underscored U.S.-India relations, especially if the 
arrangement could be perceived as aimed at China. 
 
The Next Steps:  Nuclear Power, Defense and Partnerships 
-------------------------------------------- 
 
¶7.  (C) Looking ahead, Japanese PolCouns Takio Yamada 
remarked that the two countries can focus on their 
commonalities now that old differences, such as differing 
economic policies and the nuclear issue, are being worked 
out.  The next Indo-Japan summit will likely occur next 
summer, Yamada stated, when PM Abe is projected to travel to 
New Delhi.  Japan and India will try to build on the 
political and security relationship at the next meeting, he 
said, outlining Japan's emerging priorities for strengthening 
 
NEW DELHI 00008469  004.2 OF 004 
 
 
ties with India.  Should Abe travel during the summer, India 
could very likely be in the final stages of negotiating 
civil-nuclear cooperation with the Nuclear Suppliers Group 
and International Atomic Energy Agency, and Japan will need 
to come to an internal conclusion on support for India's 
civil-nuclear program, indicated Yamada.  He also said more 
emphasis will be put on bilateral security cooperation, 
noting that Japan is ready to cooperate more closely on 
defense and adding that joint exercises with India are in the 
works, including a first ever ship visit to India.  Finally, 
Japan will continue to explore trilateral or quadrilateral 
cooperation with the U.S., India and possibly Australia, he 
said. 
 
Comment:  Overly Optimistic Or Not, Moving In The Right 
Direction 
---------------------------- 
------------------------------------ 
 
¶8. (C) While PM Singh and PM Abe parted with a warm and fuzzy 
Joint Statement, Post tends to agree with Japanese diplomat 
Yamada's more candid assessment that "The atmosphere may be 
better than the reality right now."  One word of caution 
contacts here gave was that Indian and Japanese cultures are 
very different, and Post worries that actors on both sides 
may get frustrated while trying to implement some of the 
bolder agreements and seeing a clash of bureaucracies, 
infrastructures, and ways of doing business that contrast 
strikingly.  Regardless, it is obvious that Indo-Japan 
relations are blossoming, and that is good news for the U.S. 
Ref B offered concrete ideas for joint projects which advance 
U.S., Indian and Japanese interests.  While it is too early 
for a Quadrilateral Strategic Dialogue, lower-level and 
informal trilateral interaction would surely generate more 
opportunities.  END COMMENT. 
MULFORD