EDIT: April 10 2016
GAE now offers Second Generation cloud mysql where even a basic tier like 'db-g1-small' performs as fast as a D8 tier in the old Cloud SQL offering. It is also significantly cheaper. This seems to be a big milestone and there is no reason to resort to hacks and workarounds any longer.
You can refer to Cloud SQL pricing but the approximate minimum cost is around $20 per month.
ORIGINAL POST
Google just provisions the VM on a slow box for the D0 tier. You could choose D4 but RAM is not the main issue as much as the processor (they don't mention the GHz).
Network latency is not the problem. For e.g. the 0.05s below is the query execution time on the server only. Any amount of time thereafter could be spent in data transmission.
mysql> select * from tracking limit 5;
+--------------------------------+-----------+-----------+
| id | scan_date | status |
+--------------------------------+-----------+-----------+
| 420006929400111899561510697350 | NULL | Delivered |
| 420010859400111899561989496058 | NULL | Delivered |
| 420019849400111899561989496331 | NULL | Delivered |
| 420100109400111899561903290311 | NULL | Delivered |
| 420100319400111899561944407020 | NULL | Delivered |
+--------------------------------+-----------+-----------+
5 rows in set (0.05 sec)
Edit: March 2016
For several apps I no longer use Cloud SQL and use a remotely hosted basic MySql cluster instead since GAE opened outbound socket connections. Sounds crazy? Not according to the numbers - sending a query and getting data back over this socket connection is faster than a co-located D3.