US embassy cable - 05NEWDELHI1521

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 001521 
 
SIPDIS 
 
E.O. 12958: DECL: 02/27/2015 
TAGS: PREL, ENRG, EAID, MASS, IN, AF, IR, PK, India-Afghanistan 
SUBJECT: KARZAI IN NEW DELHI: FUNDING FOR PUL-I-KHUMRI 
LEADS INDIA'S COMMITMENTS 
 
REF: NEW DELHI 395 
 
Classified By: Political Counselor Geoff Pyatt. Reasons 1.4 (B, D) 
 
1.  (C) Summary: Afghan President Hamid Karzai's visit to New 
Delhi and Indian Foreign Minister Natwar Singh's prior trip 
to Kabul were "immensely successful," MEA Joint Secretary 
(Pakistan, Afghanistan and Iran) Arun Singh told PolCouns on 
February 28.  In connection with Karzai's visit, India made 
an additional USD 100 million development assistance 
commitment, raising its total to USD 500 million, with an eye 
to furthering its long-term foreign policy goals in Central 
Asia.  Following Karzai's raising of the military assistance 
issue, the GOI would welcome a dialogue with us on how New 
Delhi could best contribute to the expansion of the ANA.  End 
Summary. 
 
2.  (C) MEA Joint Secretary Arun Singh was ecstatic about 
Karzai's successful February 23-25 visit to New Delhi, as 
well as the visit by FM Natwar Singh to Kabul one week 
earlier.  In a meeting with PolCouns and PolOff on February 
28, he outlined several areas of increasing Indian-Afghan 
cooperation, including infrastructure, ANA development, and 
transit trade. 
 
Completion of Pul-i-Khumri Power Line Promised 
--------------------------------------------- - 
 
3.  (C) Singh explained that India will fully fund and 
execute the 200 km mountainous segment of the Pul-i-Khumri to 
Kabul power transmission line, as well as construct a 
transformer substation in Kabul, committing USD 100 million 
to this project, and raising the total amount of Indian aid 
planned for 2002-2008 to USD 500 million.  The power project 
is expected to ease critical shortages of electricity in 
Kabul.  Singh said construction will begin after the snows 
melt this year.  New Delhi now would like trilateral 
discussions with Kabul and the Asian Development Bank, which 
will fund the construction of another 200 km segment in the 
plains, in order to agree on technical specifications and 
timing of construction.  Singh noted that the Indian Power 
Grid Corporation, the executing entity for the project, has 
been responsible for the surveys, but suggested that it might 
be helpful for US technical experts from Kabul to meet their 
Afghan and Indian counterparts to share plans.  Singh 
suggested that further use of US helicopters might be needed 
for transport during the construction phase. 
 
4.  (C) According to Singh, India has completed a warehouse 
project in Kandahar for dry goods and produce and now plans 
an expansion of capacity.  The GOI has also completed 
installation of satellite uplink facilities at Kabul and 
downlink stations in ten provincial capitals to facilitate TV 
coverage, and plans to expand that coverage to the rest of 
the country.  During his visit to Kabul, FM Singh also handed 
over the penultimate batch of 49 vehicles from a total 
commitment of 300 trucks for the Afghan National Army, and 
inaugurated the Indian-funded Indira Gandhi Hospital 
(reftel).  Other assistance measures announced during the 
Karzai visit included an Indian plan to implement on a pilot 
basis a community development program to generate alternative 
employment in opium growing areas, and the signing of an MOU 
on cooperation in civil aviation, including training in 
airport management, air traffic control, navigation aids, and 
aircraft maintenance and safety procedures. 
 
What Afghanistan Needs Next 
--------------------------- 
 
5.  (C) Reviewing potential areas for future assistance, 
Singh noted that Afghanistan has a shortage of skilled 
laborers, particularly in construction fields such as 
plumbing, carpentry, and electrical work.  Additionally, a 
large cohort of 15-18 year olds is about to enter the job 
market.  He suggested that these issues might be addressed 
through "train-the-trainer" type assistance in which Afghans 
would be trained to teach needed skills.  He noted that the 
establishment of a central certification authority for 
skilled workers would increase the value of skills learned, 
and enhance the job mobility of the workers who hold 
certificates.  (Note: a central certification authority might 
help to strengthen the influence, authority, and visibility 
of the central government outside of Kabul.  End Note.) 
During his visit here, Karzai highlighted requests for more 
Indian teachers and doctors to work in Afghanistan, and 
Indian expertise to assist in setting up telemedicine 
facilities to provide services in remote areas. 
 
6.  (C) Asked about military assistance to the ANA, including 
parts for the Army's Soviet-origin equipment, Singh agreed 
that GOI-USG coordination would be useful.  He stated that 
Karzai had raised the ANA issue during his visit to Delhi. 
With this step accomplished, the Joint Secretary added, the 
time had come for the US to review and consolidate requests 
for assistance to the ANA, and present the coordinated 
requests to the GOI. 
 
Transit of Goods and Gas 
------------------------ 
 
7.  (C) Singh emphasized that India supports Afghanistan's 
inclusion in the SAARC regional organization.  Afghanistan 
has already broached the idea with India and Pakistan, 
suggesting that the GOA wanted to confirm support for its 
accession before making the next step of a formal request to 
the SAARC Secretary General.  Singh stressed the benefit to 
trade and assistance programs of a transit agreement with 
Pakistan for links between India and Afghanistan, and stated 
that Karzai had committed to press the government of Pakistan 
for agreement.  Karzai publicly bemoaned the "miserably low" 
level of bilateral trade between India and Afghanistan (USD 
180 million/year) at an industry-sponsored meeting, and a 
transit agreement would further his efforts to increase 
trade.  Underlining the GOI vision of a comprehensive 
partnership with Afghanistan, Singh noted that Natwar Singh 
was joined in Kabul by eight technical ministers, all of whom 
met with their GOA counterparts. 
 
8.  (C) Singh emphasized that India now has no political 
objections to gas pipeline links from either Turkmenistan 
(via Afghanistan) or Iran (via Pakistan).  In New Delhi, 
Singh reported, Karzai pushed hard for the pipeline from 
Turkmenistan.  However, the Joint Secretary added, gas 
supplies from Turkmenistan now appear uncertain, and the GOI 
was not sure of extra gas production capacity there that was 
not already committed to Russia.  India would not commit to 
the costs of a pipeline in light of the uncertainty of 
supply, but would seek an arrangement similar to what was 
recently reached with Iran (payment only for supplies 
delivered at the border, leaving the pipeline construction 
and operation costs on the supplier). 
 
Iranian aspects of the Indo-Afghan relation 
------------------------------------------- 
 
9.  (C) Reflecting on the recent visit by Iranian Foreign 
Minister Kharrazi, Singh stated that the Iranian Foreign 
Office and establishment are supportive of Karzai, but the 
"other lot," meaning the mullahs, "was of two minds," and 
supported his electoral opponents.  Iran has also complained 
to the GOI about the Indian-sponsored Salma Dam in 
Afghanistan, fearing a reduction in water supplies downriver. 
 In these cases, India told the Iranians to discuss their 
complaints with the Afghans, Singh stated. 
 
Comment 
------- 
 
10.  (C) The commitment of USD 500 million in development 
assistance to Afghanistan is a major step for India, 
establishing this as the GOI's largest commitment as a donor 
nation anywhere in the world, and demonstrating the priority 
New Delhi accords to this relationship.  We would encourage 
early US engagement on the Kabul-Pul-i-Khumri project as a 
means to build on the positive atmospherics of the Karzai 
visit. 
MULFORD