US embassy cable - 05NEWDELHI2050

S E C R E T SECTION 01 OF 03 NEW DELHI 002050 
 
SIPDIS 
 
PASS TO NRC 
 
E.O. 12958: DECL: 03/18/2015 
TAGS: PGOV, PREL, ENRG, ETRD, MASS, TSPA, ETTC, IN, NSSP 
SUBJECT: INDIA ENTHUSIASTIC ABOUT SECRETARY RICE'S VISIT 
 
Classified By: DCM Robert O. Blake, Jr. for Reasons 1.4 (B, D) 
 
1.  (C) Summary:  In an upbeat assessment of Secretary Rice's 
first visit to India, MEA Joint Secretary (Americas) S. 
Jaishankar described the action agenda that the Secretary 
left behind as "the most significant road map we've had in 
the last 47 years."  Areas for immediate progress include 
expanding the bilateral dialogue on strategic issues, 
initiating an Energy Dialogue, and reinvigorating the 
Economic Dialogue.  Using the Secretary's comment that 
international institutions must adapt to reflect how the 
world has changed, the GOI is also eager to engage the US on 
India's role in those organizations.  End Summary. 
 
Expanding Strategic Dialogue 
---------------------------- 
 
2.  (C) Following Secretary Rice's positive and productive 
visit to New Delhi, DCM, PolCouns, and PolMilOff met with J/S 
Jaishankar, MEA Director (Americas) Renu Pall, and Deputy 
Secretary (Americas) Santosh Jha on March 17 to review ways 
 
SIPDIS 
to advance issues raised during the Secretary's visit.  DCM 
thanked the GOI for their efforts to make Secretary Rice's 
first visit to India a success.  Jaishankar was clearly very 
pleased with the substance of the Secretary's visit and about 
the glowing response her visit inspired in the national and 
international press. 
 
3.  (C) Using the impetus of the Secretary's visit, the DCM 
outlined the three key ideas that had emerged from the visit 
that need immediate action:  expanding the current strategic 
dialogue, inaugurating an energy dialogue, and revitalizing 
the economic dialogue.  While the NSSP will remain a valuable 
framework for strengthening US-India relations, the array of 
strategic issues on which the US and India have complementary 
interests is broader than the NSSP alone and should be 
reflected in an expanded, senior-level strategic dialogue. 
In addition to civil nuclear, space, high tech, and missile 
defense under the NSSP umbrella, the Secretary and her 
interlocutors had agreed that a high-level strategic dialogue 
would address broader global and regional security concerns, 
India's defense requirements, including co-production, early 
warning and command and control systems, high tech trade 
facilitation, and the Proliferation Security Initiative 
(PSI). 
 
4.  (C) Expanding on some these ideas, the DCM suggested both 
sides explore forming a working group of ISRO, NASA, and 
other officials to identify more areas for US-India 
cooperation in the civil space field.  Irrespective of the 
status of the PSI Core Group, the DCM reiterated the 
Secretary's hope that India would agree to adhere to the 
 
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Statement of Principles and might host a regional PSI event 
this year. 
 
5.  (C) Jaishankar asked whether the proposed strategic 
dialogue would have Cabinet-level representation.  DCM noted 
this idea is only in the formative stages, but the Secretary 
would likely be the intellectual lead, with most of the 
substantive discussion done at lower levels.  Noting the 
broad scope of the strategic dialogue, and the increasing 
degree of commonality in our global security interests, 
PolCouns encouraged the GOI to consider that such a dialogue 
has the potential to surpass the NSSP in its significance to 
the bilateral relationship. 
 
6.  (C) In light of the Secretary and FM's common desire to 
conclude NSSP Phase II soon, DCM inquired about the status of 
draft export control legislation.  Jaishankar acknowledged 
that the US decision to include a civil nuclear component in 
the energy dialogue would be helpful, but cautioned that, 
unlike the US system, in the Indian system, "drafting 
legislation is the hard part, not passing it."  The Ministry 
of Commerce is officially in charge of drafting the 
legislation, but Jaishankar lamented that Commerce had 
earlier been  "completely laid back" about the priority of 
this legislation, "giving equal weight to export controls as 
the import of car parts."  However, he was encouraged by 
Commerce Minister Kamal Nath's lunch discussion with the 
Secretary and promised to invoke the commitments made by the 
 
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FM to Secretary Rice to generate movement in Commerce. 
PolCouns pointed out that Washington has now taken several 
steps to improve the atmosphere for NSSP progress, and urged 
the GOI to share its draft export control legislation in 
fulfillment of Phase II of the NSSP as quickly as possible. 
 
Emerging Energy Dialogue 
------------------------ 
 
7.  (C) Recognizing that India's growing energy needs will 
continue to influence its foreign policy, an Indo-US energy 
dialogue might address issues such as energy security, 
civil-nuclear cooperation, and environmental concerns. 
Remarking that the March 16 New York Times article, "US May 
Help India to Build a Nuclear Power Plant" may have been 
overly optimistic, DCM noted that Secretary Rice's 
discussions on this issue nevertheless still represent a 
great step forward.  Jaishankar described "asymmetrical" 
systems for energy engagement, with the Department of Energy 
leading US energy policy, including nuclear energy.  In the 
Indian system, responsibility is split among several 
ministries, including Petroleum, Environment, 
Non-Conventional Energy, and the Department of Atomic Energy. 
 
 
8.  (C) On the proposed India-Iran pipeline, DCM lamented 
that Indian press articles on the subject overemphasized the 
disagreement, especially considering that there has not yet 
been a determination that the GOI will proceed with the 
project, while underplaying the significance of initiating a 
broad energy dialogue.  Jaishankar stated that he was 
impressed with the high degree of openness in the Secretary's 
discussions and agreed that the press had overplayed 
disagreement in her comments regarding Iran. 
 
Reinvigorating the Economic Dialogue 
------------------------------------ 
 
9.  (C) DCM hoped that upcoming visits by Transportation 
Secretary Mineta and Treasury Secretary Snow to India would 
 
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re-energize the Economic Dialogue.  Further, Ambassador 
Mulford would likely use his late April visit to the US to 
discuss the CEO Forum with appropriate Washington officials. 
 
India's International Role 
-------------------------- 
 
10.  (C) Jaishankar carefully explained that the GOI viewed 
the Secretary's statement that the world had changed and 
international institutions should reflect those changes was 
viewed by the GOI as "forward movement," but understood this 
was no commitment about the US position on UNSC reform. 
Jaishankar said he had spoken to other members of the 
Secretary's delegation  who underscored that the Secretary 
 
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said "international institutions," not specifically the UN, 
and invited India to explore what that might mean. 
Jaishankar queried whether, with "reasonable inference," 
India might seek to participate in the G-8.  Jaishankar 
acknowledged that the US had "consciously chosen not to show 
its hand" regarding UNSC membership, but emphasized that 
India wanted to "get into the process early" and define their 
position on UN reforms.  Toward this goal, Jaishankar said he 
would draft a cable instructing Ambassador Sen to invite 
Senior Advisor on UN Reform Shirin Tahir-Kheli to India in 
March or early April to discuss US priorities for UN reform 
with FS Saran.  Explaining that she had just been appointed, 
the DCM cautioned that Ambassador Tahir-Kheli may not be able 
to meet on such a short time frame  Failing a separate visit 
to India, Jaishankar offered that perhaps the FS might join 
the FM on the April visit to Washington to discuss the matter 
with Ambassador Tahir-Kheli. 
 
Clarification about MRCA Response 
--------------------------------- 
 
11.  (S) Jaishankar also sought clarification about the 
Secretary's indication that the US will participate in the 
 
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Request for Information (RFI) for the sale of 126 multi-role 
combat aircraft (MRCA), asking whether the US must seek a 
license to respond to the RFI.  DCM clarified that the US 
will need a license in the next step, the Request for 
Proposals (RFP), but the US will deliver its formal response 
in a letter more quickly.  Jaishankar was relieved, saying, 
"We have creatively stretched this window for a long time," 
and the GOI was under pressure from "those who might lose 
out" because of US participation in the bid.  He strongly 
urged that the US deliver the letter as soon as possible, in 
a few days. 
 
Cooperation on Bangladesh 
------------------------- 
 
12.  (S) Citing US-India cooperation on Nepal as a "model," 
Jaishankar suggested that A/S Rocca stop in New Delhi before 
a proposed visit to Bangladesh in April.  DCM inquired about 
the possibility of greater intelligence-sharing to which 
Jaishankar responded that the GOI could organize a "fairly 
detailed" briefing for A/S Rocca during her visit. 
 
Maintaining Policy Line on the LOC 
---------------------------------- 
 
13.  (C) In response to apparently differing Indian 
interpretations about discussions about the Line of Control, 
and noting that the FM and Manmohan Singh had also raised the 
issues of LOC sanctity and infiltrations, PolCouns clarified 
that there was "no change in US policy" on this matter. 
 
Next Steps 
---------- 
 
14.  (U) Jaishankar cautioned that the suggestion to slightly 
postpone the FM's trip to Washington to April 17-18 was only 
tentative until the GOI can confirm that he is available on 
these dates.  Both the DCM and Jaishankar agreed that the 
FM's visit should lay the groundwork for the PM's visit to 
Washington in the summer, the dates of which also have to be 
fixed. 
MULFORD