US embassy cable - 05NEWDELHI6655

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 006655 
 
SIPDIS 
 
E.O. 12958: DECL: 08/30/2030 
TAGS: IN, IZ, MARR, MOPS, PREL, External Political Relations 
SUBJECT: AMBASSADOR CALLS ON MOD HIERARCHY 
 
Classified By: Ambassador David Mulford.  Reasons 1.4 (B,D). 
 
1.  (C)  Summary:  Defense Minister Mukherjee expressed great 
satisfaction with his visit to the US.  Opposition to the New 
Framework for Defense Relations mainly comes from those mired 
in "Old Think Syndrome."  Mukherjee interested in visiting 
upcoming Indo-US military exercises, and visiting USS Nimitz. 
 MOD has been informed of death of US soldier of Indian 
origin.  Mukherjee pledges to work in support of civil 
nuclear initiative and engage NSG representatives.  MOD is 
ready to meet LTG Kohler to discuss P3C, PAC-3, and MRCA RFI. 
 Agricultural reforms are badly needed.  There is great 
interest in reviving Indo-US agricultural college 
connections.  MoD still unclear on how they will affect 
liaison officer to PACOM.  Defense Secretary Dutt wants to 
schedule the next Defense Policy Group.  Mukherjee says 
Indian participation in PSI needs more discussion.  Mukherjee 
agrees to examine US industry paper on India's Broadcasting 
policy.  End Summary: 
 
New Framework for Defense Relations 
----------------------------------------- 
 
2.  (C)  Ambassador Mulford, DATT and Chief Office of 
Defense Cooperation met with Defense Minister Pranab 
Mukherjee on 26 Aug 2005 to review a variety of topics.  Also 
present were Defense Secretary Shekhar Dutt, Joint Secretary 
(International Cooperation) Debnath Shaw, and Additional 
Secretary MoD Banerjee.  Ambassador congratulated Mukherjee 
 
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on his successful June US visit and the signing of the New 
Framework for Defense Relations (NFDR), as well, Ambassador 
complimented Mukherjee on his effort to explain the NFDR to 
Parliament, the Left, and the Opposition Parties.  Mukherjee 
thanked the Ambassador and explained that his US visit was 
"simply superb in all aspects."  Mukherjee explained that 
criticism of the NFDR was coming from certain segments of 
"old thinkers" who were caught in the "old ideas syndrome." 
 
Malabar and COPE India 
---------------------------- 
 
3.  (C)  Ambassador hightlighted to Mukherjee that we were 
looking forward to two major exercises here in India, Naval 
Exercise Malabar 05 (25 Sep-7 Oct) which will be the most 
complex ever, involving Carriers USS Nimitz and INS Viraat 
and Cope India in West Bengal (7 - 19 Nov).  Ambassador 
highlighted that exercise planners were assigning 26-27 Sep 
as the Malabar VIP visitors day and suggested that if 
Mukherjee were available, he should consider a visit to the 
Nimitz.  Mukherjee said that he thinks he has a commitment 
outside of India, but if not, then he'd like to visit the 
exercise and the Nimitz.  Ambassador also highlighted 
IAF-PACAF COPE India DACT exercise to be held 7-19 November 
in Kalaikunda, and the VIP day set for 18 November. 
 
Another US Soldier of Indian Origin KIA in Iraq 
--------------------------------------------- ---- 
 
4.  (C)  Ambassador then mentioned to Mukherjee the death of 
US Army Specialist Hatim Kathiria, who was KIA in Iraq on 22 
August 2005.  Kathiria was born in Gujarat, US Naturalized 
Citizen as of January 2005, and his remains were being 
arranged for return and funeral in Dahod, Gujarat.  Mukherjee 
was moved by the information, and Ambassador alerted 
Mukherjee to the possible negative press implications. 
Ambassador explained that DAO/ODC were undertaking a Casualty 
Assistance mission to support the Kathiria family. 
 
Civil Nuclear Initiative 
------------------------ 
 
5.  (C)  Ambassador then touched upon the successful official 
US visit of Prime Minister Manmohan Singh, underscoring that 
a lot of work needed to be done by US and India to follow 
through on the various initiatives.  Ambassador highlighted 
the challenges in effecting the civil nuclear initiative. 
Mukherjee stated that he would insure the GOI works on its 
end to meet the expectations of the USG and also to convince 
the NSG members to support the initiative.  Mukherjee pointed 
out the importance of making a breakthrough on the civil 
nuclear front and how such a breakthrough will open up lots 
of other areas for cooperation. 
 
LTG Kohler's Visit 
-------------------- 
 
6.  (C)  Ambassador then highlighted the upcoming visit of 
LTG Kohler, DSCA from 7-10 September, the focus of which is 
the PAC-3 classified briefing, update on the Indian request 
for two leased P-3C Orions, and follow-up information on the 
MRCA RFI.  Defense Secretary Dutt assured Ambassador that 
meetings are set up for LTG Kohler with Defense Secretary, 
Additional Secretaries and Service Chiefs.  Ambassador 
highlighted that DSCA is working hard to ensure LTG Kohler 
comes here with a lease or draft lease and the configuration 
on the planes for purchase, and that LTG Kohler will come 
here with more answers to the MRCA RFI. 
 
Agricultural Reforms 
--------------------- 
 
7.  (C)  Ambassador then engaged Mukherjee on the subject of 
agricultural reform initiatives in West Bengal.  Ambassador 
recounted his recent visit with West Bengal Chief Minister 
Bhattacharjee.  Mukherjee pointed out that agricultural 
reform is extremely important to the GOI and to rural 
infrastructure development.  Mukherjee stressed that what is 
needed most is reform and investment in research and 
development.  Mukherjee pointed out that investment in 
agriculture had slowed significantly following the Green 
Revolution, and that there was too much variance in crop 
yields in many states, as well as too many protective 
tariffs.   In addition to rural infrastructure development, 
what India needed most was to reestablish links between US 
and Indian agricultural colleges, according to Mukherjee. 
Secretary Dutt offered that there had been links between 
 
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agricultural colleges, but these had more or less stopped. 
Dutt also point out the problems in the area "dry land 
farming."  Ambassador pointed out Chief Minister 
Bhattacharjee's most interesting remarks made in Singapore in 
favor of 100 percent FDI in Kolkata airport's development. 
Mukherjee explained that Bhattacharjee has undergone the most 
amazing political transformation.  He explained that he knew 
Bhattacharjee when he was a student activist, and now he has 
completely changed his views on private investment. 
 
Indian LNO to PACOM and Defense Policy Group 
--------------------------------------------- ------- 
 
8. (C)  Ambassador then brought up the issue of an Indian 
Liaison Officer to USPACOM.   Ambassador asked Mukherjee what 
MOD intended to do to effect this offer.  Ambassador also 
explained that PACOM is preparing to present MOD a formal 
Memo of Arrangement for MOD to consider, and that this is the 
procedure we go through for LNOs for all the other countries 
who have posted officers to PACOM.  Ambassador also explained 
that PACOM's desire is to have the LNO posted in Hawaii and 
not D.C.  Mukherjee explained that his original idea was to 
have two more attaches posted to the embassy in D.C. and they 
would travel to Hawaii as needed.  Mukherjee explained that 
if it is needed, then the LNO will spend more time in Hawaii. 
 Ambassador reiterated that PACOM really wants a full time 
LNO, who will stay in Hawaii, and with whom PACOM can 
interact daily.  DATT explained that the reason for the MOA 
is to outline the various parameters of information 
disclosure, access, interactions, working areas/office space, 
etc.  Secretary Dutt mentioned that they intended to post 
additional officers at the same senior rank as their military 
attaches.  An idea was then mentioned that perhaps the issue 
should be discussed at the Defense Policy Group, at which 
point Mukherjee then asked when the DPG was going to occur. 
DATT mentioned that USD(P) Edelman has just taken over the 
job, and OSD staff is considering DPG dates of late October 
or late November.  Ambassador mentioned that we had heard the 
Indian embassy was suggesting that the DPG should be held in 
India, instead of D.C.  Secretary Dutt responded that MOD 
thought that perhaps it was a good idea for Mr Edelman to 
come to India, because he had not yet visited India.  DATT 
then suggested that MOD and OSD exchange a couple of sets of 
dates from which to choose. Secretary Dutt mentioned that he 
had already sent a congratulatory letter to Mr Edelman, and 
he looked forward to meeting him. 
 
PSI 
----- 
 
9. (C)  Ambassador then mentioned Proliferation Security 
Initiative (PSI) and explained that this is low-hanging fruit 
now that we have scrapped the Core Group.  Ambassador 
suggested that a public statement in support of the Statement 
of Principles will send a good political message.  Ambassador 
also mentioned that the UK is hosting an interdiction 
exercise in the Indian Ocean in November, and would like 
India to participate somehow.  Mukherjee explained that 
India's participation in PSI can be worked out after another 
round of talks on the issue. 
 
 
India's Broadcasting Policy 
---------------------------- 
 
10.  (C)  Finally, the Ambassador asked Mukherjee about 
changes to India's Broadcasting policy, and queried Mukherjee 
about leading a group of Ministers assigned to evaluate new 
policy and regulations on broadcasting -- including policy on 
up-loading and down-loading of satellite broadcast links. 
Ambassador mentioned that some U.S. broadcasting companies 
(AOL and Time Warner) have approached the USG and expressed 
concerns about three restrictive proposals being considered 
by the GOM committee.  Ambassador offered that he would share 
with Mukherjee an issue paper on this subject, which now is 
being prepared by the U.S. broadcasting industry.  Mukherjee 
said he would gladly look at the paper. 
 
11.  (U)  Visit New Delhi's Classified Website: 
(http//www.state.sgov/p/sa/newdelhi). 
MULFORD