US embassy cable - 04NEWDELHI7380

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007380 
 
SIPDIS 
 
PASS TO NRC 
 
E.O. 12958: DECL: 11/18/2014 
TAGS: PREL, KNNP, ENRG, IR, IN, IAEA, GOI, NSSP 
SUBJECT: IAEA DG ON INDIA'S NUCLEAR ENERGY NEEDS, IRAN, 
PROLIFERATION, AND NSSP 
 
REF: STATE 244304 (NOTAL) 
 
Classified By: PolCouns Geoffrey Pyatt, Reasons 1.4 (B,D). 
 
1.  (U) Summary:  The GOI used a recent visit by IAEA 
Director General Dr. Mohammed El Baradei to press its case 
for reform of Nuclear Suppliers Group (NSG) requirements to 
facilitate India's cooperation with others in the 
international community in using nuclear power to fill the 
country's growing energy needs.  In Delhi, El Baradei met 
with NSA Dixit, FS Saran and other MEA officials with whom he 
also discussed Iran, and proliferation.  In Mumbai, he met 
with India's civilian nuclear establishment.  According to 
our MEA contacts, the IAEA DG indicated that India's 
engagement with the US is crucial to its hopes for enhanced 
international nuclear cooperation, and in this context 
welcomed recent progress on the NSSP.  End Summary. 
 
Full-Scope Safeguards: US in the Driver's Seat 
--------------------------------------------- - 
 
2.  (C) In a November 18 meeting with PolCouns and PolOff, 
MEA Deputy Secretary (Disarmament and International Security) 
Naveen Srivastava reported that in both his keynote speech to 
Indian scientists and in meetings with GOI officials, El 
Baradei stressed the role of the IAEA in promoting access to 
nuclear technology for peaceful purposes, an objective that 
is especially critical for rapidly expanding economies such 
as India and China.  In meetings with the IAEA DG, GOI 
officials pressed for "positive discrimination" to enable 
India to safely develop its nuclear power program in order to 
meet its energy requirements while addressing global concern 
about greenhouse gases.  El Baradei agreed that nuclear power 
should be a larger percentage of India's energy mix, i.e., 
increasing from 3.4% to 25% of India's energy sources. 
PolCouns queried whether GOI officials asked El Baradei about 
options for reconciling this goal with the NSG's full-scope 
safeguards requirement.  Srivastava confirmed that they had, 
but El Baradei referred them back to the USG.  The Indian 
media note on the visit said the GOI "emphasized that while 
there is a need to address the emerging concerns about 
proliferation...this should not impede the fullest use of 
nuclear energy by states with a proven record of safety and 
responsibility, such as India whose record in this regard was 
second to none." 
 
El Baradei Believes Security Drives the Iran Program 
--------------------------------------------- ------- 
 
3.  (C) On Iran, El Baradei told GOI officials that he 
believes security is best addressed "by partnerships (between 
countries), not dominance."  He prefers to continue to engage 
Iran rather than refer the matter to the UN Security Council. 
 Because Iran is surrounded by hostile neighbors, the IAEA 
chief said that he believes Iran's nuclear objectives are 
based primarily on its security concerns and that its energy 
requirements are secondary.  The Indians reaffirmed their 
view that Iran should comply with its NPT obligations, adding 
that Iranian nuclear weaponization would be a threat to the 
region. 
 
State Support for Proliferators 
------------------------------- 
 
4.  (C) Regarding proliferation, GOI officials raised their 
concern about "the receiving side, not the supply side" of 
the AQ Khan network.  El Baradei outlined a network reaching 
more than 20 states, including some Western countries. 
According to Srivastava, the IAEA chief said he believed that 
Libya's involvement in the network may have been limited to 
one person, but contacts with the DPRK and Iran were more 
extensive than that and would have required state support. 
Adding his own comment, Srivastava stated that although El 
Baradei was careful not to say that Pakistani, DPRK or 
Iranian state structures were involved, "that is clearly what 
he implied." 
 
US Engagement Crucial to India's Civilian Nuclear Goals 
--------------------------------------------- ---------- 
 
5.  (C) El Baradei also told GOI officials that India's 
engagement with the US was crucial to its hopes for enhanced 
international nuclear cooperation.  In this context, he was 
pleased with the progress on the NSSP, according to 
Srivastava.  The Indians used the occasion to reaffirm their 
strong commitment to maintaining "a pristine onward 
proliferation record."  In follow-up with PolCouns, MEA 
Director (Disarmament and International Security) Venu 
Rajamony confirmed New Delhi's recognition that Indo-US 
cooperation on the reactor island would not be possible as 
part of the first three phases of the NSSP, but would be a 
GOI priority for later phases.  PolCouns remarked that the 
NSSP is moving rapidly, noting that Indian Ambassador Sen 
optimistically hopes to conclude Phase Two by the end of the 
year (reftel).  PolCouns reiterated Washington's suggestion 
that India look to Israel as an example of a country that has 
benefited from stricter export controls because greater trust 
in their business environment has resulted in more high-tech 
trade.  "But you haven't sanctioned them," Rajamony 
countered, adding that the NSSP will help to build an 
atmosphere of mutual trust between the US and India.  He 
remarked that NSSP issues will likely be addressed in the 
upcoming India-Israel non-proliferation dialogue. 
BLAKE