US embassy cable - 05OTTAWA2909

C O N F I D E N T I A L OTTAWA 002909 
 
SIPDIS 
 
NOFORN 
 
E.O. 12958: DECL: 09/27/2015 
TAGS: PARM, MNUC, PREL, CA 
SUBJECT: CANADA NUCLEAR "COOPERATION" WITH INDIA: 
SIGNIFICANT, BUT LESS THAN MEETS THE EYE 
 
REF: (A) OTTAWA 2768 (B) STATE 166864 
 
Classified By: POL M/C Brian Flora.  Reason 1.4 (b) and (d). 
 
1.(C) In what is described as a major policy shift for 
Canada, Foreign Minister Pettigrew announced September 26 
that his government is ending Canada's 7-year moratorium on 
civilian nuclear cooperation with India.  Pettigrew made the 
announcement at a joint press conference with Indian FM Singh 
in Ottawa, following a meeting of the two Foreign Ministers. 
 
2. (C/NF) In a discussion on September 27, Nuclear Affairs 
Deputy Director Ron Stansfield told us privately that despite 
media exaggerations and the verbal fist-pounding of "diehard" 
nonproliferation activists, the new policy does not engender 
any "real" commitments.  He outlined four key elements of the 
agreement with India: 
 
-- India's positive response to Canada's long-standing (15 
years) proposal for nuclear safety collaboration 
(specifically not/not "cooperation," Stansfield asserted) and 
agreement by both governments to develop a "mutually 
beneficial bilateral framework" (Canada had proposed 
announcing formation of an "experts group," India declined); 
-- scientific and technical exchanges in the public domain 
(i.e. principally academic venues; nothing commercially 
sensitive or subject to NSG controls); 
-- Canada's willingness to provide nuclear-related dual-use 
items to Indian civilian nuclear facilities under IAEA 
safeguards, in accordance with NSG dual-use guidelines 
(Stansfield noted that crucial "government-to-government 
assurances" for such potential exports have yet to be worked 
out); 
-- the readiness of both governments to explore further 
opportunities for development of peaceful uses of nuclear 
energy, consistent with their international commitments 
(Stansfield noted, but was noncommittal about, prospective 
USG-led changes at NSG). 
 
3. (C/NF) Stansfield acknowledged that Canada's change in 
policy was spurred by the USG's own civil nuclear cooperation 
initiative with India announced July 18.  There was a genuine 
sense within the Canadian government that it was "time to 
deal with India realistically," he said, and the GOC wanted 
to offer encouragement to the Indians and welcome their new 
commitment to nonproliferation.  The change was also 
consistent, Stansfield asserted, with the government's 2005 
International Policy Statement and PM Martin's 
acknowledgment, in New Delhi earlier this year, that India is 
an important strategic partner for Canada. There had been 
considerable pressure from the Prime Minister's office in the 
run-up to the Singh visit, he said, "to be forthcoming with 
India."  While the announcement was warmly received by the 
industry sector and Canada's influential Indo-Canadian 
community, Stansfield continued, the government anticipated a 
political backlash, led by the likes of (former Foreign 
Minister) Lloyd Axworthy and others who had invested heavily 
in shaping Canada's nuclear nonproliferation policy, 
including its stance toward India. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS