US embassy cable - 05NEWDELHI7197

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 007197 
 
SIPDIS 
 
E.O. 12958: DECL: 09/15/2015 
TAGS: PREL, ETRD, EINV, EAID, KDEM, KNNP, PHUM, IN, UK, EU, IR, GM, NSSP 
SUBJECT: BLAIR SUPPORTS INDIA CIVIL NUCLEAR COOPERATION AND 
SQUEEZES ON IRAN, BUT THE BIG NEWS IS POSITIVE CHEMISTRY 
 
REF: A. NEW DELHI 6994 
     B. NEW DELHI 7028 
 
Classified By: A/DCM Geoffrey Pyatt, for Reasons 1.4 (B, D) 
 
1.  (C) Summary: In a briefing on the September 7-8 India-EU 
Summit, British High Commissioner Sir Michael Arthur 
emphasized the UK's support for civil nuclear cooperation 
with India, the success of the UK's effort to play up its 
European personality during this visit, and the excellent 
personal chemistry between PM Blair and Singh.  Despite a 
long and difficult negotiation process, Sir Michael praised 
the EU's 21-page Joint Action Plan (JAP), with particular 
attention to the sections on energy and the environment.  The 
High Commissioner also summarized EU pressure on India to 
toughen its policy on Iran.  The UK will devote the rest of 
its EU presidency to carrying out its commitments with India 
on the JAP.  In this regard, the UK and EU are trying to 
catch-up to the US.  End Summary. 
 
UK Plays Catch-up on Nuclear Cooperation 
---------------------------------------- 
 
2.  (C) The UK announced support for greater civilian nuclear 
cooperation with India at the summit and are beginning to 
look at "next steps."  The British expect a meeting of the P3 
with the US and France in November to coordinate a collective 
way forward.  British Foreign Policy Advisor to the PM Sir 
Nigel Sheinwald has formally invited Chairman of the Indian 
Atomic Energy Commission Anil Kakodkar to London to "break 
the ice" with British atomic energy counterparts, but the 
Indians have not yet responded.  When PM Blair called on 
President Kalam, the former rocket scientist discussed Indian 
ambitions to operate thorium-based fast breeder nuclear power 
reactors within ten to fifteen years.  Sir Michael commented 
that this is ten years earlier than the UK had heard 
previously. 
 
India Must Take a Stand on Iran 
------------------------------- 
 
3.  (C) The British have been putting pressure on the GOI to 
take a stand on Iran's nuclear program while assuring the 
Indians they are not looking for immediate UN sanctions.  FS 
Straw briefed FM Natwar Singh on the British position, to 
which Singh gave a "flimsy response" that India does not want 
confrontation at the UNSC level over Iran.  When Germany's 
point-person on Iran nuclear negotiations Michael Schaefer 
spoke with Indian MEA Additional Secretary for International 
Security Meera Shankar, the Brits told us her only response 
was "we hear what you're saying."  Shankar indicated that she 
was waiting for a Non-Alligned Movement opinion in order to 
proceed, to which Schaefer emphasized that the EU-3 were 
looking for Indian leadership to bring the NAM around to the 
right view. 
 
Blair and Singh Cozy Up in Udaipur 
---------------------------------- 
 
4.  (C) Sir Michael characterized the good chemistry between 
Prime Ministers Blair and Singh as the "single most important 
thing of the day," placing the Singh-Blair dynamic on par 
with the British PM's closest international relationships. 
Leading up to the summit, the UK had a "bloody impossible" 
time negotiating between various EU and Indian bureaucracies. 
 Sir Michael stressed that the Indians, who view the EU as an 
economic actor, were "falling over backwards" to separate the 
UK and Europe; although the UK was representing the entire 
EU, the High Commissioner stressed that the European body as 
a whole needs to develop a closer relationship with the 
Indians.  After entertaining fifty European CEOs during the 
India-EU Summit (Ref B), the second day bilateral meetings 
gave the GOI time for intimate discussions with top British 
leaders amidst the picturesque Rajastani backdrops in 
Udaipur.  Sir Michael noted that Blair and Singh had an hour 
and a half of one-on-one "high quality discussions," during 
which he intentionally kept Natwar Singh occupied so that 
Blair and PM Singh could talk alone without the Indian 
Foreign Minister crowding out the discussion.  The two spoke 
for another hour and a half at a larger lunch meeting which 
included Natwar Singh and NSA Narayanan. 
 
UK and India Agree on Regional Issues 
------------------------------------- 
 
6.  (C) During their plenary conversations, Blair and Singh 
touched on assessments of Pakistan, Bangladesh, and Nepal, 
but avoided Iran.  Sir Michael commented that a "carefully 
balanced discussion" on Pakistan reassured Blair that Singh 
was "prepared to think like a leader" on improving ties with 
Islamabad.  Singh stressed that a reduction in terrorism is 
the absolute precondition for progress and did not preview 
any future steps, but Blair was impressed with the Indian 
PM's "positive views" on the subject and shared his 
experiences working with Northern Ireland.  Noting 
similarities, Blair explained how he worked to keep the Irish 
peace process moving forward even under intense pressure. 
 
7.  (C) On Bangladesh, the Prime Ministers had similar 
analyses of the problem and agreed to a more systematic 
exchange of information.  Singh stressed that Bangladesh is 
causing migration and economic problems for India.  Sir 
Michael was surprised at a tacit Indian recognition that 
"they aren't always the easiest to work with" on Bangladesh. 
While GOI leadership is united over the eastern neighbor, the 
Indians admitted to an internal debate over how to confront 
Nepal, with NSA Narayanan confessing that he and FS Saran 
have "different views." 
 
Joint Action Plan and EU Assistance 
----------------------------------- 
 
8.  (C) The British High Commissioner told us that the UK 
will use the remainder of its EU Presidency to make sure that 
the Joint Action Plan (JAP) is implemented, noting the risk 
with the EU is that such declarations end up being "just 
words."  He emphasized the energy and environment sections of 
the JAP as the "most substantial" (Ref A).  Other EU 
priorities include anti-terrorism cooperation and increasing 
development assistance, which comes in response to the GOI's 
late July request for a substantial new European development 
assistance initiative. 
 
Economics Most Important to EU 
------------------------------ 
 
9.  (C) From the European point of view, Sir Michael argued 
that economics and business are India's biggest advantages 
(Ref B).  With the presence of fifty top CEOs, the summit had 
a strongly economic flavor.  In a remarkable role reversal, 
India has also emerged as one of the UK's largest foreign 
investors.  Still, the High Commissioner worried that the PM 
has not set up the necessary infrastructure within his own 
office, such as the "special cells" he created on political 
and nuclear issues, to push through economic reform. 
 
Comment: High on Chemistry, Low on Substance 
-------------------------------------------- 
 
10.  (C) Comment: The Brits got the symbolism of this visit 
just right -- a widely circulated photo of Cherie Blair 
meeting kids at a AIDS hospice helped add a note of 
seriousness to images of Blair and Singh back slapping amid 
Rajastani castles.  The excitement over the July 18th 
US-India joint statement upped the stakes for the India-EU 
Summit, and the recent British and French meetings have 
echoed many of our major accomplishments, to include the 
revival of nuclear scientific contacts and the commitment to 
full civil nuclear cooperation.  The British had a harder 
time because they had to trudge through the massive EU 
bureaucracy and contend with their unique colonial history. 
After Singh indicated that Europe is no longer the preferred 
destination for work or business, the Brits were left playing 
catch-up and scored several notable successes, to include the 
GOI commitment to fund a Nehru chair at Cambridge University. 
 In this regard, India's relationship with the US is shaping 
and modernizing its relationship with Europe.  End comment. 
 
11. (U) Visit New Delhi's Classified Website: 
(http//www.state.sgov/p/sa/newdelhi) 
PYATT