US embassy cable - 05NEWDELHI4619

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 004619 
 
SIPDIS 
 
E.O. 12958: DECL: 06/16/2015 
TAGS: PREL, PHUM, PTER, EAID, IZ, IN, India-Iraq 
SUBJECT: AMBASSADOR JONES DISCUSSES INDIAN OPPORTUNITIES IN 
IRAQ 
 
REF: A. NEW DELHI 4205 
 
     B. NEW DELHI 4194 
 
Classified By: DCM Bob Blake, for Reasons 1.4 (B, D) 
 
1.  (C) Summary:  In meetings with the GOI, strategic 
analysts, and journalists in New Delhi on June 10, Iraq 
Coordinator Ambassador Richard Jones encouraged high-level 
GOI participation at the upcoming US-EU conference on Iraq 
and suggested several priority areas in which the GOI may 
support political, economic, and security initiatives in the 
country.  In his meeting with Amb. Jones, MEA Additional 
Secretary (East) Rajiv Sikri stated that GOI Special Envoy to 
 
SIPDIS 
West Asia Ambassador Chinmaya Gharekhan would represent India 
at the Brussels conference on June 22, but MEA later informed 
us that FM Natwar Singh will be the GOI representative. 
Although time may be too short for face-to-face consultations 
on the constitutional drafting process, videoconferencing 
facilities could bring the two sides together on specific 
issues.  The GOI plans to make another $5 million deposit to 
the International Reconstruction Fund Facility for Iraq 
(IRFFI) this month, but is less interested in forgiving Iraqi 
debt, unless it is tied to future oil deliveries. 
Considering India's extensive past experience working in the 
power sector in Iraq, Jones encouraged the GOI to consider 
local projects to increase the capacity of local electrical 
grids.  Sikri confirmed that New Delhi is still interested in 
providing security training, but is waiting for a response 
from Baghdad.  End Summary. 
 
2.  (C) During a June 10 meeting with Ambassador Jones joined 
by Charge, PolMilOff and Joint Secretary (Gulf) Sanjay Singh, 
Secretary Sikri said that Special Envoy to West Asia 
 
SIPDIS 
Ambassador Gharekhan would represent India at the June 22 
conference in Brussels (Ref A).  Amb. Jones noted that most 
other countries would be represented at the FM-level and that 
the working lunch would likely be for ministers only.  Sikri 
noted that Ambassador Gharekhan was appointed personally by 
the Prime Minister for this role because of his extensive 
experience in the Middle East and with the UN, and, according 
to Sikri, unlike most ministers who would be attending the 
Brussels conference, Gharekhan had just returned from 
meetings with the ITG in Baghdad (Ref B).  (Note:  Since this 
meeting, MEA informed us that FM Natwar Singh would represent 
the GOI at the Brussels conference.  We believe this change 
is a result of Amb. Jones' advocacy for minister-level 
representation by the GOI, and the critical mass of other 
ministers expected, particularly Secretary Rice.  End Note.) 
 
Political Pillar:  Focus on the Constitution 
-------------------------------------------- 
 
3.  (C) Noting important parallels between Indian and Iraqi 
government and society, Amb. Jones thanked India for its 
offer to help Iraq draft its new constitution, but thought 
that the August 15 deadline to complete the draft would 
preclude members of the constitutional drafting committee 
from visiting India.  Jones did suggest, however, that 
members of the drafting committee might consult with Indian 
legal experts by videoconference on specific issues. 
Recalling India's relatively recent experience in drafting 
its constitution, Sikri cautioned against hastily drafting 
the document, stressing that it must reflect the aspirations 
of all Iraqis or be a source of discord in the future.  Jones 
assured him that US and other members of the international 
community were pressing the Iraqis for broader representation 
by Sunnis in the Transitional National Assembly's 
constitutional drafting committee, but hoped that this could 
still be done within the timeframe set out in the 
Transitional Administrative Law (TAL). 
 
Economic Pillar:  Mobilizing Pledges, Forgiving Debt 
--------------------------------------------- ------- 
 
4.  (C) With only $2 billion mobilized from $13 billion in 
pledges from the Madrid conference (not including the US 
contribution), Jones stressed that the Brussels conference 
would not be a donors conference, but an opportunity for the 
international community to hear from Iraqis themselves about 
their priorities, and encourage donors to mobilize the 
balance of their pledges in line with these priorities. 
Sikri stated that the GOI planned to release another $5 
million of its $10 million pledge this month.  (Note:  Sikri 
stated that $5 million was the remaining balance of the GOI 
pledge, but according to the UN Assistance Mission for Iraq, 
to date, the GOI has only deposited $2.5 million, not $5 
million, into the IRFFI.  End Note.) 
 
5.  (C) Highlighting successful efforts to forgive Iraqi debt 
by the Paris Club and other countries, Jones also asked 
whether the GOI would consider forgiving some of the $1.6 
billion it holds in Iraqi debt.  "We take a different view," 
Sikri said, explaining that, "Regimes may change, but states 
have a responsibility for their financial liabilities." 
According to Sikri, India has never defaulted on a loan, and 
depleted its foreign currency holdings in 1991 to repay its 
debt to the USSR, even as the Soviet Union was unraveling. 
While the GOI generally does not support writing off debt, 
India supported debt forgiveness for HIPC in 2002 as part of 
a World Bank initiative.  Iraq, he said bluntly, does not 
fall in that category.  Sikri added, however, that the GOI 
might be willing to tie debt "forgiveness" to future oil 
provision. 
 
Generating Indian Interest in Electricity 
----------------------------------------- 
 
6.  (C) Jones went on to describe the results of recent 
opinion polls in Iraq which identified electricity as the 
single greatest demand of the entire population, even over 
security.  Jones explained that while only 4 of Iraq's 18 
provinces have critical security concerns, all provinces have 
a critical shortage of electricity.  Even if electricity 
generation were at 100 percent, local power lines could 
probably only carry about 20 percent more electricity than 
now.  Noting that India has a long history of large 
electricity projects in Iraq and has undertaken successful 
power projects in Afghanistan, Jones asked that the GOI 
consider assisting local communities improve their 
electricity distribution capacity.  Such a project would 
employ local labor, provide visible and almost immediate 
improvement to local communities, and the GOI could target 
communities based on need and security.  Sikri, in turn, 
asked about the need for social projects such as hospitals. 
Jones responded that there are many countries that are 
interested in assisting hospitals and schools, but few 
countries that have India's experience in the electricity 
sector in Iraq.  Sikri stated that the GOI was interested in 
identifying projects that would resonate in India, such as 
with the countries' 15 million strong Shia population, the 
2nd largest Shia population in the world after Iran, he noted. 
 
Security Pillar:  Police and the Rule of Law 
-------------------------------------------- 
 
7.  (C) Jones described a two-track approach to improving 
security: increasing the number of Iraqi security forces, and 
simultaneously strengthening the rule of law.  To date, 
165,000 Iraqi forces have been trained and equipped, a number 
that will increase by about 10,000 per month reaching 270,000 
forces trained and equipped by next year.  Training takes 
place in Iraq, as well as at international police academies 
in Jordan and the UAE.  Jones asked whether the GOI was still 
interested in security training.  Sikri responded that New 
Delhi was waiting for a response from Baghdad on the Indian 
offer to train Iraqis in India, but he also expressed 
interest in learning more about the international academies. 
Jones also encouraged the GOI to consider programs to 
strengthen the newly independent judicial system as well as 
helping build a new penal system. 
8.  (C) Sikri inquired about the long term plans for a US 
military presence in Iraq, asking specifically about a UN 
vote that would extend US military presence in Iraq 
indefinitely.  Jones clarified that for security reasons, the 
US would not give a timetable for withdrawal from Iraq, but 
would base its withdrawal on security-related conditions. 
Jones also stressed that, despite rumors to the contrary, the 
US had not asked, nor currently has plans to ask for 
permanent military bases in the country. 
 
9.  (U) Ambassador Jones cleared this cable. 
MULFORD