US embassy cable - 05NEWDELHI2416

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002416 
 
SIPDIS 
 
E.O. 12958: DECL: 12/31/2010 
TAGS: MARR, MASS, MCAP, IN, NSSP 
SUBJECT: DEFENSE MINISTER UPBEAT ON INDO-US RELATIONS, BUT 
USG RESPONSE TO THE MRCA RFI MAY FALL SHORT 
 
 
Classified By: Ambassador David C. Mulford for reasons 1.4 (a), (b), (d 
), (e) 
 
1. (C) Summary.  During a 30 March meeting with Indian 
Defense Minister Mukherjee, Ambassador Mulford reviewed the 
scope and results of SECSTATE's visit, NSSP, the desire for 
greater defense cooperation, rationale of F-16s to Pakistan, 
and next steps in the MRCA competition process.  Mukherjee 
was very receptive to the message on broadening US-Indian 
relations. He appreciated the Secretary's non-patronizing 
message of support for India's global power aspirations and 
expressed his desire for a deeper defense supply relationship 
with special emphasis on the importance of co-production and 
technology transfer.  Mukherjee assured the Ambassador that 
India understood the compulsions and complexities of US 
decision-making vis a vis supply of F-16s to Pakistan; 
although, India does not agree with the decision.  On the 
MRCA RFI, Mukherjee was pleased with the recent US response 
and expected US companies to compete in the tender.  However, 
note taker Joint Secretary (P&C) Mukhopadhaya warned that the 
US response to the specific RFI questions appears inadequate 
to guarantee the USG receives the upcoming RFP.  End Summary. 
 
2.  (C)  Ambassador Mulford opened the meeting by 
highlighting the achievements of Secretary Rice's visit.  He 
explained the overall goals of the visit and the potential 
that now exists to advance the security interests of both 
nations.  Reinforcing Secretary Rice's theme that our 
relationship has progressed, but still more should be done to 
broaden it, Ambassador Mulford summarized that energy, 
military cooperation, space and defense sales were the key 
areas where the US seeks to assist India in assuming its 
place as a world power in the 21st century.  Ambassador also 
highlighted the significant US-India cooperation on tsunami 
relief and suggested that if the PSI Core Group issue could 
be solved there will be a great opportunity to work together 
in this area. 
 
3.  (C) Turning to the notification of the F-16 sale to 
Pakistan, Ambassador Mulford acknowledged that the US 
decision has created concerns within the GOI.  Ambassador 
then explained some of the factors which led to the decision 
and the deliberate approach of Secretary Rice and President 
Bush to consult and inform the GOI on the matter. 
 
4.  (C) Mukherjee responded by saying that in his previous 
dialogue with Secretary Rumsfeld he had the opportunity to 
explain India's view of Pakistan.  This conversation had also 
given him a better understanding of the compulsions and 
complexities of the US relationship with Pakistan.  He went 
on to say that the GOI can appreciate the relevance of 
Pakistan's role in the Global War on Terrorism. Mukherjee 
assured Ambassador that India understood the compulsions of 
the US to supply of F-16s to Pakistan, although, India does 
not agree with the decision.  Mukherjee explained that 
despite the GOI's perceptions of the decision to supply F-16s 
to Pakistan, this will not stand in the way of expanded 
relations between India and the US. On the whole, explained 
Mukherjee, "I feel our relations have entered a new phase of 
rapid progress in areas such as energy, politics, economics, 
security, and commerce."  Mukherjee further stated that he 
desires Indo-US relations to deepen, especially in the area 
of defense cooperation. 
 
5.  (C) Mukherjee was encouraged by Secretary Rice's visit to 
India and appreciated her conveying President Bush's desire 
to help India realize its goal of becoming a world power in 
the coming years.  Mukherjee pointed out that the Secretary's 
message was not seen as patronizing in any way, although some 
media sources have characterized the initiative in this way. 
Referencing the USG response received from USD(P) Feith on 
the MRCA, Mukherjee said, "US companies are expected to 
participate."  On defense cooperation in general, Mukherjee 
stated that "defense equipment sales while important, do not 
carry the same strategic significance as 
co-production/technology transfer and that this type of 
arrangement will establish a long-term sturdy relationship." 
Mukherjee explained this is a major beginning and he 
appreciated being told that a US briefing team would soon be 
coming to India to brief details on the F-16 and F-18 
aircraft.  Ambassador underscored that it is important that 
we fully understand India's equipment specification 
requirements and its expectations, so that we feel that have 
complied with India's expectations in the RFI. Ambassador 
underscored that we think we have complied with the RFI and 
now await the RFP. 
 
 6.  (C) The discussion turned to the upcoming series of high 
level US and GOI visits scheduled to take place over the next 
10 months.  Mukherjee confirmed that he was also 
contemplating a visit to the US in late June in conjunction 
with the World Bengali Forum, and said India's Ambassador in 
Washington was working on an official program with the US 
Department of Defense.  He also alluded that the Prime 
Minister may wish to delay his US visit in order to 
synchronize it with the UN General Assembly session. 
 
7.  (C)  At the conclusion of the meeting, MOD's note-taker 
Joint Secretary (International Cooperation) Gautam 
Mukhopadhaya raised concerns that the US response to the MRCA 
RFI may not be sufficient to guarantee an RFP.  Mukhopadhaya 
did not elaborate but urged that US ODC contact the Indian 
Air Force soonest on the matter.  ODC representative LTC 
Denney informed Mukhopadhaya that ODC has already asked for a 
meeting with the Deputy Chief of the Air Staff which will 
take place on April 1st with DCM Robert Blake, LTC Denney and 
MAJ Hedden: at this meeting we will determine whether the 
letter provided by Mr. Feith satisfies the conditions set out 
in the RFI so that we will shortly receive the RFP.  If 
additional questions are received to be answered, we will 
report these and seek pentagon guidance. 
 
8.  (C)  Comment.  Previously the Indian Air Force had stated 
that the intent of the RFI was to ensure USG would permit US 
companies to compete.  Based on this fact, ODC had 
recommended to DSCA that the US response did not have to 
address the specific details highlighted in the RFI.  If the 
USG response is deemed incomplete, the IAF may be seeking a 
categorical statement such as, "the USG agrees to the terms 
and conditions of the RFI without reservation", before 
releasing the RFP. End Comment. 
MULFORD