Rituparna Bhuyan, Centre Protests ‘Copyright Violation’ by Google Books, Financial Express (New Delhi), Nov. 9, 2009:
Web portal Google Books’ initiative to create a digital library by scanning printed publications has triggered alarm bells in India, forcing the Centre to take up the matter with the US government. In a meeting held in the last week of October here, senior Indian officials told their US counterparts that the portal would encroach upon the copyrights of Indian authors and publishers. …
India’s point of view on Google’s initiative was conveyed by commerce and industry ministry to a team of officials lead by United States Trade Representative, Ron Kirk. “The US side took on board India’s concerns,” a official privy to the development told FE on condition of anonymity.
I believe this is some of the “diplomatic stress” that Marybeth Peters was referring to.