Offering Favors

Shinzo Abe stressed strong Japan, while Manmohan Singh just kept his smile. The Prime Ministers of Japan and India had a meeting in Tokyo on Wednesday. Restricted in developing new nuclear plants in Japan, Abe expect Indian market to buy Japan-made nuclear plants. Singh looked like having superior position, in which he could compare all options offered by countries. Making contrast to Singh with nothing to lose, Abe’s seriousness for the achievement was outstanding.

Both premiers agreed with having an atomic agreement as soon as possible. The government of India has a plan to build eighteen nuclear plants by 2020. Calculating the price of one reactor as $5 billions, Japan was joining the competition among US, France or Russia with establishing joint team of public and private sectors. Looking at other competing markets, including Saudi Arabia, Vietnam, or Poland, the success in India will have a great significance for Japan business, and growth strategy of Abe.

However, nuclear deal with India has some negative elements. On the top of it, there is a fact that India is not included in the framework of Non-proliferation Treaty. Japan was reluctant to exporting nuclear plants to India, when Nuclear Suppliers Group exceptionally lifted the ban to India in 2008. Singh promised Abe that India would maintain the moratorium of nuclear test, the condition which Japan set for its export to India. Plant developers of Japan is worrying about Indian law to ask for the responsibility of plant makers, not only the operating company, in case of an accident.

In Japan, Nuclear Regulation Authority is setting new strict standard for resuming nuclear reactors. It is unlikely for developers to expect good deals inside Japan at least for next few decades. But it is questioned whether it would be morally correct that country which invited great disaster is exporting nuclear plants to other nations.

Both leaders also made a deal for joint research to introduce India the bullet train system already prevailing in Japan. Japan looks to lay the super railroad between Mumbai to Ahmedabad. Abe also offered governmental aid to the subway system in New Delhi and to Indian Institute of Technology Hyderabad. Singh welcomed all those offer in the way of multi-directed diplomacy.

Japan also exporting India the amphibious aircraft, US-2, as a symbol of bilateral security cooperation. In this deal, Japan intends to make India stay close to Japan rather than China. But, as shown in the previous meetings between premiers of India and China earlier this month, India is not taking one side in maintaining its security. Japan still needs to cultivate business ties to further develop relationship with growing India.