US embassy cable - 05NEWDELHI364

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 000364 
 
SIPDIS 
 
E.O. 12958: DECL: 01/13/2015 
TAGS: PREL, ETRD, ETTC, EAID, KDEM, PINR, IN, PK, Indo-US, INDO-PAK 
SUBJECT: INDIAN LEGISLATORS TELL CODEL LEACH THEY ARE 
EXCITED ABOUT US/INDIA RELATIONS, BUT WORRIED ABOUT 
PAKISTAN ARMS 
 
Classified By: Ambassador David C. Mulford, Reason 1.5 (B,D) 
 
1.  (SBU) Summary:  Senators Sam Brownback and John Corzine, 
and Representatives James Leach, Earl Blumenaur, Scott 
Garrett, Wayne Gilchrest, Frank Pallone, and Diane Watson 
discussed a broad range of issues with an Indian 
parliamentary delegation led by MP Murli Deora, the President 
of the India/US Parliamentary Forum (IUPF) during their 
January 13 meeting.  Topics of discussion included Tsunami 
Disaster Relief, US-India ties, India/Pakistan and 
US/Pakistan relations, trade, development, and UNSC reform, 
but it was US arms for Pakistan that most animated the Indian 
MPs.  Both sides acknowledged that US/India relations are 
close and getting closer and were enthusiastic about the 
prospects for further US/India cooperation.  However, several 
Indian parliamentarians pointed out that "irritants" such as 
the American supply of sophisticated weapons to Pakistan need 
to be addressed.  End Summary. 
 
Arms to Pakistan 
---------------- 
 
2.  (SBU) Several Indian MP's described the US supply of 
sophisticated arms to Pakistan as an "irritant" in the 
bilateral relationship.  BJP legislator Ravi Shankar Prasad 
emphasized that "India wishes well for Pakistan," and hopes 
that it can become a stable and prosperous society, and sees 
no problem should the US provide generous assistance. 
However, the US "must ensure" that Pakistan does not become a 
base for international terrorism.  For example, he stated, US 
aid must be used to change Pakistan's outlook so that it does 
not commit acts like smuggling nuclear technology to other 
countries.  While clearly opposed to US arms sales to 
Pakistan, he claimed that India would deal with the challenge 
this presents. 
 
3.  (C) Senator Brownback noted that there are differing 
views on the subject, but Pakistan has played a key role in 
the war on terrorism, which has been very important to the 
US.  He told the MP's that while there are "rumors" that the 
US will sell F-16 aircraft to Pakistan, he did not think it 
was going to happen, as Congress would not clear the sale, 
and the powerful Indian/American community would organize 
against it.  The administration may offer the planes to 
Pakistan, he said, but would not find the votes to get it 
approved by Congress.  He urged the Indian legislators to 
"look at the flip side," in that if the Indian armed forces 
integrated American equipment into their inventory and 
ensured interoperability, it would serve as a powerful 
counterpoint to Pakistan. 
 
4.  (SBU) Congressman Leach replied that "there is no 
monopoly of anger vis a vis Pakistan," but it is in India's 
best interest that the US/Pakistan relationship is amicable. 
He emphasized that for the US there is no "zero sum game" in 
regards to India and Pakistan.  Pointing out that the US has 
"difficulties" with "aspects" of the Muslim world, he noted 
that the US does not want Pakistan to "trip into terrorism 
and instability."  While the US would have "respectful" 
relationships with both India and Pakistan, the relationship 
with India would be "dominant" as the two countries share 
common values and interests, while not being "discordant" to 
the US/Pakistan relationship. 
 
The Role of the Tsunami 
----------------------- 
 
5.  (SBU) Saying he was happy that the US and India were 
working together to assist the victims of the Tsunami, 
Congress spokesman Anand Sharma pointed to the relief effort 
as an indicator of the growing closeness of India and the US. 
 Murli Deora asked whether there was too much Tsunami relief 
money coming in, and whether it could all be utilized. 
 
6.  (SBU) Congressman Leach replied that the delegation has 
toured the Tsunami stricken region and seen the extraordinary 
depth of the catastrophe, which he described as 
"unprecedented."  He called the US/Indian joint response a 
"bellwether" of the other types of cooperation that were 
possible and an indicator of the convergence of interests. 
Senator Brownback described the devastation as "mind 
boggling," saying that in Sri Lanka it was "numbing."  He 
thanked India for its close cooperation with the US and for 
extending help to neighboring countries while dealing with 
its own disaster. The Senator noted that the disaster had 
"touched the American people," and provided an opportunity 
for the two countries to work together not just on this 
immediate issue, but a number of others in the future.  He 
said the relief money would be spent, but may not be spent 
wisely.  He hoped that the money could be committed to a ten 
year effort for major infrastructural improvement in the 
region.  The Ambassador pointed out that the close 
cooperation was based on two years of preparation by the 
militaries of the US and India, who had held joint maneuvers 
to prepare for disaster response.  This daily contact between 
our militaries will deepen in the coming days as 
reconstruction takes off, he noted.  He called the formation 
of the core group of countries a "significant signal" and a 
positive sign of deepening ties. 
 
Economic Development and Trade 
------------------------------ 
 
7.  (SBU) Congress MP Jyotiraditya Scindia urged both 
countries to make economics the centerpiece of the India/US 
relationship.  He emphasized that economic opportunities 
would provide a firmer basis than military equipment sales, 
and result in a "win win" situation."  Scindia urged both 
countries to quickly address economic "irritants" such as 
IPR, outsourcing, and India's need for extensive 
infrastructural development, and take a good look at the 
social sector, particularly health and education.  Case 
studies demonstrate, he said, that it is not the amount of 
aid or investment that is important but how it is spent. 
With proper diligence, India could become the heart of a new 
economic zone.  PK Maheshwari complained that the US had 
benefited more from outsourcing and IT than India, and urged 
the US to lift import quotas on Indian products and end 
limits on the numbers of H visas issued to Indian IT 
professionals.  Anand Sharma complained of a lack of 
understanding of the interests of developing countries in new 
international regimes addressing the environment, trade, and 
economic development, resulting in discriminatory subsidies 
and tariffs. 
 
8.  (SBU) Representative Blumenaur replied that there are not 
only differences between India and the US on these issues, 
but within Congress itself.  He pointed out that the United 
States was not in a strong position to address global warming 
and environmental issues because of its poor record, and this 
was a major irritant to developing countries.  He paraphrased 
PM Manmohan Singh, who said that if the rest of the world 
followed the American example regarding energy consumption, 
it would destroy the earth.  Congressman Leach emphasized 
that developing world concerns are "well understood" in the 
US, and the gap between the "haves and the have nots" must be 
addressed for us to have a humane world.  While the world 
needs a more open and competitive trading system, he noted, 
the US has a very open market, and its agricultural 
protectionism is only 1/6 that of the EU.  This does not give 
the developing world the right to institute protectionist 
trade barriers which actually put India at a "disadvantage." 
 
United Nations Reform 
--------------------- 
 
9.  (SBU) "Pioneer" Editor and independent MP Chandran Mitra 
pointed out that there was a new issue that could cause 
problems between India and the US.  India wants a permanent 
seat on the UNSC, and the perception in India is that all the 
G-8 countries are supportive except the United States and 
China, and that the US is not interested in UN reform. 
Congressman Leach replied that he was a strong advocate of 
India and felt that it should be given a permanent seat on 
the UNSC.  Circumstances had changed, he said, and India now 
deserved the seat. 
 
Close and Getting Closer 
------------------------ 
 
10.  (SBU) Despite the open and frank discussion regarding 
problem issues, there was overall agreement that the US/India 
relationship is close and getting closer.  Anand Sharma 
emphasized that promoting US/India cooperation is essential, 
and that there must be a continuous dialogue on all issues at 
all levels between the two countries.  Noting that there has 
been a shift in relations over the past decade, Sharma 
pointed out that there is now a "better awareness" in the US 
regarding India and its interests.  Although the two 
countries have their respective and sometimes differing views 
on a number of issues, they share the same outlook on most 
things, including terrorism, world security, and the need for 
economic growth.  Dialog is essential at all levels, he 
reiterated, to "further consolidate" the relationship. 
Senator Brownback replied that the growth in the India/US 
relationship over the past five years has been "phenomenal" 
and it was good not only for the two countries, but for the 
world at large.  He agreed that there are a number of issues 
that India and the US can work together on to improve the 
region and the world, including extending freedom and 
democracy, and encouraging religious tolerance. 
 
11.  (U) Codel Leach cleared this message. 
MULFORD