US embassy cable - 05NEWDELHI5867

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 005867 
 
SIPDIS 
 
E.O. 12958: DECL: 07/29/2015 
TAGS: PREL, PHUM, KDEM, ENRG, EPET, IZ, IN, India-Iraq 
SUBJECT: INDIAN INITIATIVES IN IRAQ STILL ON HOLD 
 
REF: A. NEW DELHI 4798 
 
     B. NEW DELHI 4619 
     C. NEW DELHI 3878 
 
Classified By: PolCouns Geoffrey Pyatt for Reasons 1.4 (B, D) 
 
1.  (C) Summary: Following the Dead Sea conference on Iraq, 
MEA Joint Secretary (Gulf) Sanjay Singh told PolCouns and 
PolMilOff on July 28 that he was impressed with how Iraqis 
were taking control of their political process, and expressed 
confidence that this would result in greater support for 
reconstruction.  At the same time, however, Iraqis were 
exerting so much effort to clear the Constitutional hurdles 
before them that they had few resources left to devote 
to other political and economic initiatives, such as 
reconstituting the Indo-Iraq Joint Commission.  Despite 
concern about increased violence in the run-up to national 
elections in December, the GOI is still interested in 
getting details about small-scale, high-priority 
electricity projects. 
End Summary. 
 
Constitution a Priority Over the Joint Commission 
--------------------------------------------- ---- 
 
2.  (C) In contrast to what he previously called an "access 
unfriendly" conference in Brussels, Singh was pleased with 
the level of access the Indian delegation had to both 
senior Iraqi and American officials at the Dead Sea 
conference on Iraq, July 18-19.  The Joint Secretary was 
impressed with how Iraqis were taking control of their 
political process, and he expressed confidence that this 
would result in greater support for reconstruction.  At the 
same time, however, he thought that less pressing initiatives 
such as the Indo-Iraq Joint Commission would not happen while 
Iraqis were fully engaged in trying to meet the deadlines for 
drafting and voting on the constitution and national 
government. 
 
3.  (C) Timing aside, Singh outlined the practical steps 
toward resurrecting the Joint Commission.  As a result of 
Charge's meeting with Oil Ministry Additional Secretary 
Talmiz Ahmad on May 25 (Ref C), Singh said that Ahmad had 
proposed that the GOI field a small team to begin to develop 
ideas for bilateral projects in Iraq.  A bilateral technical 
group would also meet to discuss pending issues and an agenda 
before the first meeting of the Joint Commission.  According 
to the Joint Secretary, the GOI would like bidding and 
procurement to be on the agenda because of Indian complaints 
about lack of understanding and transparency in the bidding 
process. 
 
Concern with Decreased Iraqi Oil Production 
------------------------------------------- 
 
4.  (C) Singh went on to express concern about decreasing 
Iraqi oil production, down from "break-even production" of 
2.2 million barrels/day to the current level of 1.4 million 
barrels, due to refineries' low production capacity and 
sabotage.  Asked whether the July 27 fire that destroyed an 
offshore platform which generates a significant percentage 
of India's oil production would hasten a GOI decision to 
re-engage quickly in Iraq, Singh was non-committal. 
 
Sparks of Interest in Electricity Sector 
---------------------------------------- 
 
5.  (C) PolCouns asked about Indian interest in projects in 
the electricity sector, as discussed during Ambassador Jones' 
visit (Ref B) and referenced in FM Singh's speech at the 
Brussels conference (Ref A).  Singh and the Indian Charge 
in Baghdad had met with the governor of Basra, the 
Electricity Minister, and industry officials in Jordan, and 
identified contractors who would be willing to undertake 
projects in Iraq, but the GOI did not yet have projects to 
offer.  Singh also mentioned that there are Indian engineers 
in Jordan who regularly travel to Iraq, despite the travel 
ban.  PolMilOff mentioned that USAID sector experts in Iraq 
would compile a list of small-scale, high priority projects 
in the electricity sector for GOI consideration, including a 
former Indian project in Khor Zubayr, south of Basra.  Singh 
will encourage Indian electricity experts to be part of the 
technical working group to further explore these 
possibilities. 
 
Democratic Infrastructure 
------------------------- 
6.  (C) Although India was still willing to assist Iraq with 
any questions it had on drafting its constitution, or 
developing a "democratic infrastructure," he acknowledged 
that there was little time, given the tight deadline for 
drafting and voting on the constitution and national 
government.  "The process seems to be on track," but noted 
that other countries, including Denmark and the EU shared 
India's concern about the significant role of Shari'a law in 
Iraq's constitution.  Singh said he was also concerned about 
the potential for increased insecurity in the country in the 
run-up to the national elections for a permanent government 
in December.  The GOI invitation to senior Iraqi leaders to 
visit India is "still on the table," but given the 
constitution and subsequent election process, he did not 
expect that high-level Iraqi officials would visit India 
soon. 
 
Ambassadors 
----------- 
 
7.  (C) Finally, in response to PolCouns' question about the 
status of installing their respective ambassadors, Singh 
stated that India had designated its ambassador and awaited 
agrement, but declined to give the name.  He stated that the 
GOI had not yet heard from the Iraqis about their candidate 
for New Delhi. 
 
8.  (U) Minimize considered. 
BLAKE