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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