US embassy cable - 05NEWDELHI72

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000072 
 
SIPDIS 
 
COMMERCE FOR MATT BORMAN, PASS TO NRC 
 
E.O. 12958: DECL: 01/02/2015 
TAGS: PREL, PGOV, ETTC, KNNP, TRGY, IN, NSSP 
SUBJECT: INDIAN INITIATIVES TO FURTHER HIGH TECH, BIOTECH, 
AND NUCLEAR COOPERATION 
 
REF: 04 STATE 263394 
 
Classified By: Deputy Chief of Mission, Robert O. Blake, Jr., Reasons 1 
.4 (B,D). 
 
1.  (C) Summary:  Despite changes in key USG interlocutors, 
the GOI hopes to preserve momentum on high-tech trade and 
other cooperation under the Next Steps in Strategic 
Partnership (NSSP) umbrella and is looking to Washington for 
similar signals.  In a December 29 meeting with PolCouns and 
Pol-MilOff, MEA Joint Secretary (Americas) S. Jaishankar 
outlined an ambitious agenda for the High Tech Cooperation 
Group (HTCG) focusing on private sector initiatives over the 
next six months while Commerce U/S Juster's replacement is 
identified and confirmed.  He also suggested the NSSP 
Implementation Group meet in early February to take advantage 
of US officials coming to India for other events.  Jaishankar 
underscored the need to expand US-India nuclear cooperation 
in order to build scientific support for the NSSP process and 
maintain progress on other NSSP benchmarks.  MEA Additional 
Secretary Meera Shankar echoed these points on January 4, 
 
SIPDIS 
suggesting that US-India cooperation in new areas of nuclear 
research (she mentioned the ITER fusion project) could be an 
important catalyst to Indian scientific support for the NSSP 
quid-pro-quos.  End Summary. 
 
High-Level High Tech Events in the Works 
---------------------------------------- 
 
2.  (C) In an December 29 meeting focused on next steps in 
the US-India strategic relationship, MEA Joint Secretary 
(Americas) S. Jaishankar emphasized the GOI intention to 
sustain the positive momentum created by our agreement on 
Phase 1 of the NSSP.  Noting the potential convergence of key 
HTCG and NSSP players in India in February for AeroIndia and 
an international life sciences conference, PolCouns asked 
about GOI plans for leveraging these events.  Noting the GOI 
expectation that it could take several months to nominate and 
confirm a successor for Commerce Undersecretary Juster, 
Jaishankar suggested that we should focus the next few months 
on the private sector side of the HTCG.  He indicated, for 
instance, that an informal meeting of the HTCG defense 
subcommittee could happen on the margins of AeroIndia, adding 
that he had already recommended such an event to the Ministry 
of Defense, although the Confederation of Indian Industries 
(CII) would host it.  He likewise expressed interest in 
mobilizing a private sector event in the area of life 
sciences hosted by the Ministry of Science's Secretary for 
Biotech. 
 
Need for New Ideas on Nuclear Cooperation to Keep NSSP Moving 
--------------------------------------------- ---------------- 
 
3.  (C) Noting the upcoming visit to India of Nuclear 
Regulatory Commission (NRC) Commissioner Merrifield, PolCouns 
suggested this would be a good opportunity to rebut concern 
among the Indian scientific establishment about limited 
cooperation on nuclear issues under the NSSP.  As the first 
among equals in the Indian scientific establishment, 
Jaishankar explained, Department of Atomic Energy chairman 
Kakodkar has the ability to set the tone for other agencies. 
If he feels that India's nuclear sector will not benefit from 
the NSSP, Jaishankar continued, Kakodkar could retard 
progress in the other areas of NSSP cooperation (export 
controls, defense research and space).  With this in mind, 
Jaishankar appealed for a more liberal interpretation of 
nuclear safety collaboration in Phase II, noting that this 
issue was also raised in the November meeting between Foreign 
Secretary Saran and NSA Rice. 
 
SIPDIS 
 
4. (C) Jaishankar remarked on the sense among some in the GOI 
that India's desires for expanding cooperation with the US on 
nuclear safety are being "brushed off" by the Department, as 
well as general skepticism that progress on the later phases 
of the NSSP will be hampered by "nit-picky" lawyers.  "We 
should be picking up momentum right now, not just cruising 
along," Jaishankar stated.  Echoing U/S Juster, PolCouns 
argued that "progress begets progress," and urged that the 
Indian side to avoid creating the impression that New Delhi 
was trying to renegotiate the NSSP, but rather take tangible 
steps to implement it.  Jaishanker nodded his head in 
agreement, but also flagged the political problem he faces 
from the Indian nuclear establishment. 
 
5. (C) We heard a similar message in a January 4 meeting with 
our other key NSSP interlocutor, MEA Additional Secretary 
Meera Shankar.  Responding to PolCouns' description of the 
Washington desire to maintain forward momentum on the NSSP, 
Shankar warned that the Indian nuclear establishment had 
become a real obstacle to steps such as NSG adherence and 
stronger export controls.  The scientific community, she 
claimed, believes that nothing has really changed in our 
nuclear relationship, and uses this view to argue that India 
should not change its own policies.  This dynamic, she 
continued, helps to explain the strong GOI push for a more 
flexible US interpretation of matters such as the NSG safety 
exception.  Responding to PolCouns warning that some areas of 
nuclear cooperation will remain "a bridge too far," she 
suggested that cooperation in areas not restricted by the NSG 
lists might help to change the view of NSSP among India's 
atomic establishment.  For instance, she suggested that US 
support for India's involvement in the ITER fusion project 
(as proposed at the recent EU-India summit) would be an 
important step forward.  Elaborating on this theme, she 
emphasized the Indian potential to contribute to ITER, and 
asked whether a letter to this effect from the GOI to DOE 
would be helpful.  PolCouns undertook to seek guidance on 
this topic. 
 
Scheduling the Next NSSP Meeting 
-------------------------------- 
 
6. (C) With both Shankar and Jaishankar, PolCouns pressed the 
Indians for documentation about progress on India's 
commitments under Phase II of the NSSP.  Since most Phase II 
steps involve revising laws and regulations, it serves 
India's interests to get the texts of these to us early. 
Jaishankar responded that early US identification of a date 
for the next meeting of the NSSP Implementation Group would 
enable him to start pressing the GOI bureaucracy to generate 
the required legislation and related documentation.  He 
specifically suggested that the next implementation group 
meeting be set for mid-February in Delhi in conjunction with 
the AeroIndia and the life sciences conference -- adding that 
"with NSSP nothing gets decided until a meeting is fixed." 
MULFORD