US embassy cable - 05NEWDELHI8627

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 008627 
 
SIPDIS 
 
E.O. 12958: DECL: 11/08/2015 
TAGS: PREL, ENRG, KDEM, PTER, IN, IZ, India-Iraq 
SUBJECT: IRAQI CHARGE CAUTIOUSLY OPTIMISTIC ON INDIA 
DESPITE NATWAR MELTDOWN 
 
REF: NEW DELHI 8535 
 
Classified By: A/DCM Geoff Pyatt for Reasons 1.4 (B, D) 
 
1.  (C) Summary: Iraqi Charge Muayad Hussain told A/DCM on 
November 9 that while he was unhappy at former FM Natwar 
Singh's parting criticism of Iraq's government (reftel), he 
remained optimistic about continued engagement with the GOI. 
The Indian Petroleum Minister has proposed a renewal of the 
Indo-Iraq Joint Commission to discuss continued Indian 
participation in the Iraqi oil industry, but that, and any 
progress on the reciprocal naming of ambassadors, would have 
to await the new government in 2006, Hussain stated.  End 
Summary. 
 
Iraq, MEA Disappointed by Cancellation 
-------------------------------------- 
 
2.  (C) Natwar Singh's outburst claiming that the Iraqi 
government "has no credibility" forced the cancellation 
(prior to the Foreign Minister's ouster) of the planned 
November 8 ceremonial handover in New Delhi of 40 tonnes of 
fortified biscuits for Iraqi schoolchildren to the World Food 
Program, Hussain explained.  The Iraqi Embassy drafted a 
predictable diplomatic note of protest, but as Hussain had 
not yet heard any response from Baghdad, he had not yet 
delivered it to the MEA.  In a separate conversation with 
A/DCM on November 7, MEA Joint Secretary (Gulf) Sanjay Singh 
lamented the cancellation of the ceremony as a consequence of 
the Natwar imbroglio, pointing out that it was an MEA 
initiative, a cautious step forward toward more engagement in 
Iraq.  The biscuits had already been delivered to the WFP in 
Iraq, he noted. 
 
Next Year: Petroleum Cooperation, Diplomatic Uncertainty 
--------------------------------------------- ----------- 
 
3.  (C) Hussain reported that Indian Petroleum Minister Mani 
Shankar Aiyar has sent a letter to his Iraqi counterpart 
proposing a meeting to reconstitute the Indo-Iraq Joint 
Commission to discuss Indian participation in the Iraqi oil 
industry.  However, Hussain has yet to receive a response 
from Baghdad, and speculated that any decision would be taken 
by the new government expected to be formed in 2006 following 
elections.  The letter, however, was a positive signal from 
New Delhi, as Aiyar stated that India was fully committed to 
helping in Iraq's reconstruction, and Hussain commented on 
Aiyar's accessibility and willingness to do business with the 
Iraqi diplomat.  Although India and Iraq have agrement on 
sending Ambassadors to each other's capitals, the GOI is 
still concerned about Baghdad security, and Iraq's diplomatic 
corps is awaiting "big changes" at top levels with the new 
government, as different parties attempt to maximize the 
presence of their preferred candidates in the foreign 
service, Hussain confirmed.  Hussain said that all Chiefs of 
Mission are unsure whether they will continue in their 
present posts in 2006. 
 
Counterterrorism 
---------------- 
 
4.  (C) In addition to aid and petroleum, a third area of 
engagement between Iraq and India is counterterrorism 
cooperation, kicked off by the 2004 Iraq visit of India's 
Iraq point-man RM Abhyankar.  The Iraqi Embassy here has 
recently been drawing attention to comments made by the Iraqi 
Foreign Ministry in October regarding the presence of Indian 
and Pakistani terrorists (presumably part of Lashkar-e-Toiba) 
in Iraq, and the efforts of the Iraqi government to get more 
information on this possibility. 
 
Comment: No Lasting Damage 
-------------------------- 
5.  (C) Although the Charge appeared deeply upset by Natwar's 
loose-cannon remarks, he understood that it does not reflect 
official GOI policy, which is growing increasingly 
comfortable with normalized relations with the new Iraqi 
government.  The cancellation of the biscuits ceremony is a 
missed opportunity to showcase that comfort, but the 
sentiment that inspired it remains alive and well in New 
Delhi.  The next hurdle for the government in building 
relationships will be the politically sensitive decision to 
allow Indian workers to return to Iraq; the GOI is hoping 
that a new government in 2006 will result in a reduction of 
violence, making that step easier. 
MULFORD