US embassy cable - 05NEWDELHI6994

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 006994 
 
SIPDIS 
 
E.O. 12958: DECL: 09/08/2015 
TAGS: PREL, ETRD, EINV, KPKO, KDEM, KNNP, PHUM, IN, UK, EU, IR, GM, External Political Relations 
SUBJECT: INDIA-EU,UK SUMMITS: THE SINCEREST FORM OF FLATTERY 
 
REF: A. NEW DELHI 4226 
     B. NEW DELHI 6974 
 
Classified By: A/DCM Geoff Pyatt for Reasons 1.4 (B, D) 
 
1.  (U) Summary: Tony Blair wrapped up two days of EU and UK 
summits on September 8, leaving behind an EU-India joint 
action plan, British and European support for Indian ITER 
participation, a framework agreement on Galileo, and UK 
assent to increased civil nuclear cooperation.  Trade 
representatives sparred over market access for Indian and EU 
products, but EU delegates emphasized the "close 
coordination" that India and the EU aim for on regional 
political matters like Sri Lanka and Nepal.  Germany's EU-3 
Iran point-person arrived in New Delhi for talks with MEA 
officials September 9.  End Summary. 
 
EU Strategic Partnership 
------------------------ 
 
2.  (SBU) Manmohan Singh identified as "the most important 
outcome" of the September 7 EU discussions an (overly) 
comprehensive 21-page Joint Action Plan, intended to give 
meat to the year-old EU-India "strategic relationship." 
During the negotiation of this document, one EU diplomat 
described the process as an encounter between "the world's 
two worst bureaucracies" -- Brussels and the GOI.  Calling 
India and the EU "the largest democracies in the world," the 
plan restates a joint commitment to democracy, pluralism, 
human rights and the rule of law, and enshrines the 
"fundamental importance of multilateralism" in maintaining 
international security.  Highlights of envisioned cooperation 
sifted from the plan include: 
 
-- EU-SAARC exchanges on regional cooperation; 
 
-- A commitment to seek "initiatives to promote human rights 
and democracy;" 
 
-- Consultation on peacekeeping, including "exchange of 
trainees and instructors" between peacekeeping training 
centers, reflecting the Italian-led COESPU initiative (Ref A); 
 
-- Cooperation to reduce terrorist financing and money 
laundering; 
 
-- A High-level Trade Group to increase bilateral economic 
ties; 
 
-- Launch of an India-EU Initiative on Clean Development and 
Climate Change to include voluntary measures to promote 
cleaner technologies; 
 
-- Creation of Energy Panel Working Groups in Energy 
Efficiency, Coal, and Fusion (including India's membership in 
ITER); 
-- Concluding a framework agreement for Indian participation 
in Galileo. 
 
3.  (U) Indian pundits focused on the EU backing of India's 
participation in ITER and the Galileo framework agreement as 
the most significant announcements of the summit.  The 
agreement outlines steps for India to discuss details of the 
Galileo project and then decide on equity commitments.  EU 
Commissioner for External Affairs Benita Ferrero Waldner 
stated that these steps recognized India's scientific 
capabilities, but reiterated the EU commitment to the NPT and 
urged "all countries" to join the treaty. 
 
Political Cooperation 
-------------------- 
 
4.  (U) The EU and India committed to establishing a security 
dialogue on disarmament, nonproliferation, and regional and 
global security issues.  Waldner flagged EU and Indian plans 
to maintain contacts on regional affairs, including the 
shared commitment to restoration of democracy in Nepal, and 
her hope that further EU-India cooperation would help promote 
peace in Sri Lanka, given India's "particular leverage." 
Press questions to the PMs elicited further emphasis on 
coordinated counter-terrorism efforts, an aspect that Indian 
media attributed to Europe's recent terrorist attacks. 
 
Trade Disputes Mar Bonhomie 
--------------------------- 
 
5.  (U) In contrast to the summit-level camaraderie, a 
business leaders' meeting featuring EU Trade Commissioner 
Peter Mandelson and Indian Minister for Commerce and Industry 
Kamal Nath became a forum to spar on accusations of 
protectionism.  Mandelson complained that Indian tariffs on 
European food products (in particular alcohol) depressed 
trade, while Nath responded that EU non-tariff barriers posed 
an evolving obstacle to Indian exports including shrimp and 
herbal products.  Nath complained that the hygiene 
regulations used to block shrimp were "not in conformity" 
with international standards, and were a disguise for 
"ever-changing goalposts" intended to protect domestic 
producers. 
 
UK Offers Heightened Cooperation 
-------------------------------- 
 
6.  (U) Blair's second day in India was devoted to a 
bilateral UK-India summit.  Following their huddle in 
Udaipur, where terrorism was again a focus, Blair and Singh 
announced MOUs on enhanced cooperation in hydrocarbons, 
intellectual property rights, and airline services.  Blair 
also unveiled a 10 million-pound fund to provide scholarships 
for Indian students to reverse the decline in the number of 
Indians studying in Britain.  An anonymous GOI official 
reported to the press that Britain had "agreed to follow 
Indian advice in the region," particularly on Nepal policy. 
Blair also reiterated the UK's "strongest support" for a 
permanent UNSC seat for India and affirmed the UK's decision 
to pursue civil nuclear cooperation. 
 
EU3 and Iran: Germany's Turn 
---------------------------- 
 
7.  (C) Following hot on the heels of the EU summit, 
Germany's point-person on Iran nuclear negotiations, Michael 
Schaefer, visited New Delhi September 9 to hold talks with 
MEA Additional Secretary (International Security) Meera 
Shankar and Secretary (East) Rajiv Sikri.  D/PolCouns and 
Poloff emphasized to German Embassy counterparts the 
importance of giving India the message that Iran should not 
be able to hide behind New Delhi's support to avoid 
accounting for its nuclear activities (Ref B). 
 
Comment: India Rising, and Reaffirming its Values 
--------------------------------------------- ---- 
 
8.  (C) The EU-India accords in large measure echo the July 
18 US-India joint statement and bilateral working groups, and 
reaffirm the global interest in India as a rising power. 
However, India still appears to be relatively uninterested in 
the EU as a political actor, reserving its most serious 
interest for trade and economic discussions where the 
European Commission holds sway.  Even in the economic area, 
PM Singh publicly told PM Blair and his EU colleagues that 
India was increasingly looking to its economic future in 
regions other than Europe (Mission will report on economic 
results in greater detail septel).  In political 
interactions, New Delhi continues to see the UK as the EU 
member most worth dealing with, and the broad Action Plan 
owes much to the UK Presidency.  The reinforced commitments 
to democracy, good governance and human rights as shared 
principles of foreign policy articulated in the Action Plan 
will assist us as we enlist GOI support in efforts ranging 
from the Democracy Initiative to the Human Rights Council. 
 
9.  (U) Visit New Delhi's Classified Website: 
(http//www.state.sgov/p/sa/newdelhi) 
MULFORD