US embassy cable - 05NEWDELHI5879

C O N F I D E N T I A L SECTION 01 OF 07 NEW DELHI 005879 
 
SIPDIS 
 
PASS TO NRC 
 
E.O. 12958: DECL: 07/30/2015 
TAGS: PGOV, PREL, MNUC, ENRG, EINV, KNNP, IN, NSSP 
SUBJECT: INDIAN PM BRIEFS PARLIAMENT ON US TIES: IT'S ALL 
GOOD 
 
Classified By: Charge Robert Blake, for Reasons 1.4 (B, D) 
 
1.  (C) Summary: Indian Prime Minister Manmohan Singh 
heralded his first state visit to the US as an unqualified 
success for India's foreign and economic policy in a speech 
to Parliament on July 29, and emphasized that India's 
relationship with the US was based on equality and 
reciprocity, sentiments that consistently received resounding 
applause from government supporters in the chambers. 
Touching on the wide range of initiatives agreed upon during 
the PM's visit, Singh's speech focused primarily on 
explaining the benefits of civil nuclear cooperation with the 
US and assuring detractors that India's commitments in this 
area were predicated on reciprocity by the US and would not 
compromise the country's strategic posture.  Parliamentary 
discussion was postponed until the following week, but based 
on the decidedly positive tone of the public reaction to the 
PM's visit and Singh's own obvious confidence in the deal, we 
anticipate parliament to endorse these deliverables, 
notwithstanding vociferous criticism from Leftists who harbor 
their own discredited agendas and despite hollow-sounding 
grumbling from the BJP, which wishes that it, not the PM, had 
clinched this historic agreement.  Full text of the statement 
in para 6.  End Summary. 
 
A Triumphal Return to the Cradle of Indian Democracy 
--------------------------------------------- ------- 
 
2.  (U) In his first interaction with Parliament since 
returning from the US, the PM explained the economic 
objectives of his visit: "to sensitize the US Government 
about the full extent of the changes that have taken place in 
India since 1991," and to showcase India as a "competitive 
destination for investment" and "a center for knowledge-based 
industries."  He went on to outline benefits India would 
accrue from various initiatives such as the CEO Forum, the 
Science and Technology Agreement, and cooperation on 
agriculture, HIV/AIDS, and disaster relief, among others. 
 
Bullish on Nuclear Cooperation 
------------------------------ 
 
3.  (U) Perhaps mindful of sniping from the left and right 
since his return, the lion's share of the PM's speech was 
devoted to explaining why India would gain -- not lose -- 
from nuclear cooperation with the US.  Asserting that India 
will never accept discrimination, he reiterated that 
"reciprocity" was key to the implementation of all the steps 
enumerated in the Joint Statement made by President Bush and 
the PM on July 18. "Indian actions will be contingent at 
every stage on actions taken by the other side," he 
explained.  Identification and separation of civilian nuclear 
facilities will be taken in phases, consistent with India's 
national security interests, according to the PM.  "Before 
voluntarily placing our civilian facilities under IAEA 
safeguards, we will ensure that all restrictions on India 
have been lifted. Our autonomy of decision-making will not be 
circumscribed in any manner," he stated. 
 
4.  (U) Singh also rejected criticism that the Joint 
Statement would fatally constrain India's strategic defenses. 
 "There is nothing in this Joint Statement that amounts to 
limiting or inhibiting our strategic nuclear weapons program 
over which we will retain unrestricted, complete and 
autonomous control," he stressed. The PM further added, "we 
have never made, nor will we ever make, any compromises 
insofar as our fundamental and strategic needs are concerned." 
 
Comment:  Ties with the US Enjoy Broad Public Support 
--------------------------------------------- -------- 
 
5.  (C) Parliamentary discussion was postponed until the 
following week, but based on the decidedly positive tone of 
the public reaction to the PM's visit and his own obvious 
confidence in the deal, we anticipate Parliament to 
eventually endorse these deliverables.  MEA Joint Secretary 
(Americas) S. Jaishankar indicated to us that opposition 
leader Jaswant Singh has asked that debate in Parliament's 
Upper House be combined with a discussion of the US-India 
Defense Framework, suggesting the BJP will raise broad 
questions about the direction of US-India ties.  For 
political gain, the BJP is trying manfully to knock down an 
achievement that it wishes it had been in power to complete, 
while the Left is continuing its obstructionist and 
anachronistic criticism.  Despite this, the Indian elite 
seems largely supportive of this agreement, and rightly so. 
The wider public, however, has still to understand the 
benefits of the new US-India partnership.  Convincing that 
wider public will be the Prime Minister's challenge in the 
weeks ahead. 
 
Full Text of PM's Statement 
--------------------------- 
 
6.  (U) Begin GOI text: 
 
Prime Minister's Suo-motu Statement in Parliament on his 
recent official visit to The United States of America, 29 
July 2005 
 
A.  I am pleased to present to this House a statement on my 
recent visit to the United States.  President Bush invited me 
to pay an official visit and my wife and I were received by 
President Bush and the First Lady Mrs. Laura Bush with great 
warmth and with ceremonial honors.  My talks with the 
President covered a wide range of bilateral and global 
issues.  The Vice President and senior Cabinet members of the 
US Administration such as Secretary of State Condoleezza 
Rice, Defense Secretary Rumsfeld and Treasury Secretary Snow 
also called on me during my stay.  I had the honor to be 
invited to address the Joint Session of the US Congress.  I 
believe that the visit was a success in furthering our 
foreign policy interests and in terms of its substantive 
outcome.  It was evident that the United States wished to 
signal that we are embarking on a transformation of our ties 
so as to realize their inherent potential. 
 
B.  The purpose of my visit was to sensitize the US 
Government about the full extent of the changes that have 
taken place in India since 1991.  These changes have given us 
a stronger capability to work with the United States on more 
equal terms as we address common concerns and challenges.  I 
also sought to emphasize that the Indian economy is stronger 
than it has ever been and we hope to participate in and 
benefit from the economic processes of globalization.  We are 
determined to be a competitive destination for investment, 
including foreign investment and the US business community 
could contribute to development in India through greater 
investment and trade.  We are uniquely placed to enter into 
such mutually beneficial interaction drawing on the strength 
of our knowledge sector.  Hence another important goal was to 
underline to the US that the emergence of India as a center 
of knowledge based industries and services would provide a 
good basis for long-term collaboration between our economies. 
 The expansion of the Indian economy and acceleration of our 
growth rates is crucial not just for our own people but would 
be beneficial to global economic progress and stability. 
 
C.  My discussions in Washington with President Bush and 
members of his Administration were productive and helped 
advance these national goals.  Both sides agreed that our 
relationship was based on shared values and shared interests 
that included the strengthening of democratic capacities 
where desired and without coercion, and in combating 
terrorism without selectivity or segmentation.  The 
conclusion of the UN Comprehensive Convention on 
International Terrorism proposed by India, at an early date, 
was deemed a priority by both countries.  On the economic 
side, we welcomed the launching of a CEOs Forum that has 
brought together the best business minds of both countries. 
We discussed the urgent need for modernization of India's 
infrastructure and our quest for greater investments in this 
sector, in view of its centrality for the continued growth of 
the Indian economy.  Recognizing the importance of the rural 
economy, we also agreed on an agricultural initiative aimed 
at facilitating a new generation of research and agricultural 
practices to build on the green revolution. 
 
D.  Appreciating the importance of technology to India's 
economic and social development we also discussed measures 
that would ensure more liberal and predictable access to US 
high technology.  We will endeavor to build closer ties in 
frontier areas such as space exploration, satellite 
navigation and launch, and related commercial activities that 
would greatly benefit our space industry, which is recognized 
as a global leader.  A Science and Technology Framework 
Agreement has been agreed during my visit that provides for 
expanded joint research and training.  Underlining the intent 
of working at a new level of cooperation, the United States 
announced the removal of five Indian organizations from its 
Entity List - three from the space sector and two from atomic 
energy - and indicated further review in this matter. 
 
E.  India's quest for energy security as an essential 
component of our vision for our development was a significant 
theme of my talks.  I elaborated the imperative need for 
India to have unhindered access to all sources of energy, 
including nuclear energy, if we are to maintain and 
accelerate our rate of economic growth.  I am pleased to 
state that the US understood our position in regard to our 
securing adequate and affordable energy supplies, from all 
sources. This approach, I underlined, would enable us to 
reduce our dependence on fossil fuels.  This would have 
concomitant advantages for all in terms of reduced pressure 
on oil prices and environmental sustainability.  It was in 
this context that we affirmed the importance of cooperation 
in the civilian nuclear energy sector. 
 
F.  Accordingly, a central element of my interaction with 
President Bush was the resumption of bilateral civilian 
nuclear cooperation between India and the United States, 
which has been frozen for decades.  President Bush and I 
agreed that we would work towards promoting nuclear energy as 
a means for India to achieve energy security.  The US side 
undertook to adjust its laws and policies domestically and to 
work with its friends and allies to adjust relevant 
international regimes.  Full civilian nuclear energy 
cooperation would include, but not limit itself, to the 
expeditious consideration of fuel supplies for Tarapur.  The 
US will also encourage other partners to consider similar 
requests favorably.  We also obtained consideration of our 
desire to participate as full partners in the International 
Thermo Nuclear Research Project and the Generation IV 
International Forum.  These programs in frontier areas of 
science & technology have considerable potential for our 
country's and indeed global energy security in the future. 
The US agreed to consult other participants with a view 
towards India's inclusion.  This is a testimony not only to 
the enormous international stature and respect achieved by 
our nuclear scientists but recognition of their attainments. 
 
G.  Our nuclear program is unique.  It encompasses the 
complete range of activities that characterize an advanced 
nuclear power including generation of electricity, advanced 
research and development and our strategic program.  Our 
scientists have mastered the complete nuclear fuel cycle. The 
manner of the development of our program which has been 
envisaged is predicated on our modest uranium resources and 
vast reserves of thorium.  While the energy potential 
available in these resources is immense, we remain committed 
to the three-stage nuclear power program consisting of 
Pressurized Heavy Water Reactors (PHWRs) in the first stage, 
fast breeder reactors in the second stage and thorium 
reactors in the third stage.  These would need sequential 
implementation in an integrated manner.  Our scientists have 
done excellent work and we are progressing well on this 
program as per the original vision outlined by Pandit 
Jawaharlal Nehru and Dr. Homi Bhabha.  We will build on this 
precious heritage. 
 
H.  Energy is a crucial input to propel our economic growth. 
We have assessed our long-term energy resources and it is 
clear that nuclear power has to play an increasing role in 
our electricity generation plans.  While our indigenous 
nuclear power program based on domestic resources and 
national technological capabilities would continue to grow, 
there is clearly an urgent necessity for us to enhance 
nuclear power production rapidly.  Our desire is to attain 
energy security to enable us to leapfrog stages of economic 
development obtained at the least possible cost.  For this 
purpose, it would be very useful if we can access nuclear 
fuel as well as nuclear reactors from the international 
market. 
 
I.  Presently, this is not possible because of the nuclear 
technology restrictive regimes that operate around us.  What 
we have now agreed with the US should open up the possibility 
of our being able to access nuclear fuel and nuclear power 
reactors and other technologies from outside to supplement 
our domestic efforts.  There is also considerable concern 
with regard to global climate change arising out of CO2 
emissions.  Thus, we need to pursue clean energy 
technologies.  Nuclear power is very important in this 
context as well. 
 
J.  The Joint Statement recognizes that as a responsible 
State with advanced nuclear technology, India should acquire 
the same benefits and advantages as other such States which 
have advanced nuclear technology.  As a result we expect that 
the resumption of India's nuclear trade and commerce with the 
US, and globally, is an achievable goal, involving the 
dismantling of the technology denial regimes which have 
hitherto targeted India. 
 
K.  Predicated on our obtaining the same benefits and 
advantages as other nuclear powers, is the understanding that 
we shall undertake the same responsibilities and obligations 
as such countries, including the United States. 
Concomitantly, we expect the same rights and benefits.  Thus 
we have ensured the principle of non-discrimination.  I would 
like to make it very clear that our commitments would be 
conditional upon, and reciprocal to, the US fulfilling its 
side of this understanding.  The Joint Statement refers to 
our identifying, and separating civilian and military nuclear 
facilities in a phased manner and taking a decision to place 
voluntarily civilian nuclear facilities under IAEA 
safeguards.  India will never accept discrimination.  There 
is nothing in this Joint Statement that amounts to limiting 
or inhibiting our strategic nuclear weapons program over 
which we will retain unrestricted, complete and autonomous 
control. 
 
L.  Reciprocity is key to the implementation of all the steps 
enumerated in the Joint Statement.  We expect a close 
co-relation between the actions to be taken by the United 
States and by India. Indian actions will be contingent at 
every stage on actions taken by the other side.  Should we 
not be satisfied that our interests are fully secured, we 
shall not feel pressed to move ahead in a pre-determined 
manner. 
 
M.  Hence phased action, in terms of identification and 
separation of civilian nuclear facilities based solely on our 
own duly calibrated national decisions will be taken at 
appropriate points in time, consistent with our national 
security interests.  Before voluntarily placing our civilian 
facilities under IAEA safeguards, we will ensure that all 
restrictions on India have been lifted.  Our autonomy of 
decision-making will not be circumscribed in any manner. 
 
N.  I wish to emphasize to this House that the basis for this 
understanding was a clear recognition that India is a 
responsible nuclear power with an impeccable record on 
nuclear non-proliferation.  Our strategic policies and assets 
are a source of national security and will continue to be so, 
and will remain outside the scope of our discussions with any 
external interlocutors.  I should like to take this 
opportunity to assure Hon'ble Members that the Government 
will not allow any fissile material shortages or any other 
material limitations on our strategic, programs in order to 
meet current or future requirements.  The defense and 
security interests of our country are our highest priority 
and will continue to remain so. 
 
O.  Our policies and actions have earned us global 
recognition and widespread esteem, which I am sure, the House 
recognizes and welcomes.  This allows us not only to make a 
credible case for an end to three decades of technology 
denial but also to find a central and growing place in 
international organizations. 
 
P.  I used the occasion of my visit to the US to spell out 
the basis on which India has made a compelling case for 
expansion of the UN Security Council, and for our admission 
as a Permanent Member.  The US has a different position on 
this matter and has not found it possible to endorse India's 
position.  It is my hope that over time the US will recognize 
the validity of what we say.  In fact, the Joint Statement 
itself reflects growing US recognition of this position.  It 
states, "international institutions must fully reflect 
changes in the global scenario that have taken place since 
1945."  The US President also reiterated that international 
institutions are going to have to adapt to reflect India,s 
central and growing role.  In this regard, global initiatives 
that we have initiated with the United States, which include 
disaster relief, HIV/AIDS and strengthening democratic 
capacities in societies that seek such assistance testify to 
the greater recognition of our strengths and capabilities. 
 
Q.  I therefore believe my visit to the United States has led 
to greater understanding and appreciation of our concerns and 
interests. It has contributed to significant initiatives that 
have important economic and developmental implications for 
India. I have made a strong case on behalf of the Indian 
people that our voice be heard when decisions that affect us 
are made in global councils. I am confident that this House 
would welcome these developments. 
 
R.  I would like to conclude by stating that we can feel 
justly proud that our achievements are being recognized 
globally. This is a tribute to our scientists, engineers, 
teachers, workers, farmers, entrepreneurs and professionals. 
We are now a nation of over one billion people. We are the 
world's fourth-largest economy, with the second highest rate 
of GDP growth today. The manner in which we have achieved 
this progress within the framework of a democratic 
dispensation is the subject of admiration and respect. 
Increasingly, India is seen as a benchmark for the rest of 
the world. I therefore believe our strength lies in the 
essential correctness of the path we have chosen, and in the 
creativity and enterprise of our people. This has enabled 
India to stand tall in the comity of nations. 
 
S.  I realize that that there would be criticism in some 
quarters regarding aspects of the Joint Statement. 
Constructive criticism is part of the Parliamentary 
tradition, and I welcome it. This adds clarity to our debates 
and vibrancy to the institution of our democracy. I can 
however assure this August House, and through it, our nation, 
that my visit to the United States was undertaken solely with 
the purpose of enhancing relations with one of the world's 
pre-eminent powers, so as to widen our development options. 
It was my endeavour to expand our-access to energy supplies 
to fuel our growth, while protecting our strategic interests. 
I believe our effort to undo some of the long-standing 
restrictive nuclear regimes will enable us to secure access 
to the significantly greater quantities of energy that we 
will need to spur massive growth in our industrialization 
program. Once secured, cheap and affordable energy will 
enable India to leapfrog its current pace of economic growth, 
to secure the future for generations to come. 
 
T.  All of us gathered together in this august House 
recognize that inspired by our freedom struggle, we have 
inherited a proud and patriotic tradition. Our commitment to 
work for universal nuclear disarmament in the long run will 
remain our core concern. At the same time, I can assure the 
House that we have never made, nor will we ever make, any 
compromises insofar as our fundamental and strategic needs 
are concerned. Our inheritance gives us confidence, our 
experience gives us courage, and our belief gives us 
conviction to assert today that our nation stands on the 
threshold of an even better future. I therefore venture to 
think that my visit to the USA has opened up new 
opportunities and possibilities for promoting our energy 
security and pathways to accelerated social and economic 
development. We must all work together as a united nation to 
realize these opportunities to make India a major powerhouse 
of the evolving global economy.  Thank you. 
 
End GOI text. 
BLAKE