NETHERLANDS/EU/INDIA: "NEW PARTNERSHIP" HAS LITTLE

C O N F I D E N T I A L SECTION 01 OF 03 THE HAGUE 002924

SIPDIS

E.O. 12958: DECL: 11/12/2014
TAGS: PREL PGOV KNNP IN NL EUN
SUBJECT: NETHERLANDS/EU/INDIA: "NEW PARTNERSHIP" HAS LITTLE
SUBSTANCE

REF: NEW DELHI 7078

Classified By: POL Counselor Andrew Schofer for reasons 1.4 (b/d)


1. (C) Summary: Beyond welcoming a new "strategic
partnership," the November 8 EU-India Summit was perhaps more
notable for what it lacked than what it included. The new
"strategic partnership" appears to be little more than a
wishlist of topics for cooperation to be fleshed out over the
next year. As recounted by Dutch contacts, the
two-and-a-half hour meeting and follow-on lunch consisted of
skin-deep exchanges on UN issues, counterterrorism,
non-proliferation, WTO, environment, recent developments in
Europe, and regional developments in South Asia and the
Middle East. The evening business round-table, which was to
provide a venue for India to attract trade and investment,
devolved into an exchange about the problems both sides
experience in getting access to the other's economy. End
Summary.


2. (U) The fifth Summit between the EU and India was held in
The Hague on November 8. The EU was represented by Dutch PM
Balkenende and FM Bot in their Presidency capacity, EC
President Romano Prodi, High Rep for CFSP Javier Solana, and
Trade Commissioner Pascal Lamy. Indian PM Manmohan Singh,
External Affairs Minister Natwar Singh, and Commerce and
Industry Secretary Kamal Nath represented India. Following
the summit, the two sides issued a Joint Declaration on
Cultural Relations and Joint Press Statement, available
on-line at www.eu2004.nl/20041108-151953-A.

"Strategic Partnership"
--------------


3. (C) The new "strategic partnership" is the sixth such EU
partnership. Dutch Head of Southern Asia affairs Wilfred
Mohr and India desk officer Louise Huijbens described the
EU-India strategic partnership to poloff as a recognition of
India's growing importance in the world, with both sides
determined to "deepen economic cooperation and broaden
political cooperation." The partnership also reflects shared
values and interests with regard to democracy, free press,
secularism and multilateralism and embodies the hope that
India will play a crucial regional role for stability in
South Asia and will support democratic reforms in places such
as Burma.


4. (C) The partnership, however, appeared to be less a set of
concrete proposals than a "wishlist" describing various areas
for future cooperation -- to be drawn together in an Action
Plan for acceptance at the next Summit. For example, Mohr
and Huijbens expected that the partnership will
institutionalize the previously ad hoc economic cooperation
in such areas as Galileo, maritime and agricultural fields,
and provide a forum for anticipated dialogue in areas
including industry, environment, transport, IT, and
biotechnology. Dialogue on disarmament and
non-proliferation, conflict resolution, and a panel on energy
are all mentioned on the Joint Declaration's wishlist for the
strategic partnership, but were not discussed at the Summit;
nor did the Dutch have an understanding about the direction
in which these topics would ultimately move. The
best-articulated area for cooperation was outlined in a Joint
Declaration on Cultural Relations released after the Summit,
which looks forward to expanded cultural exchanges and
cooperation in fields including education, public and private
organizations, art, film and tourism.

Multilateral Issues
--------------


5. (C) In a discussion of "effective multilateralism," the
two sides reportedly embraced their strongly shared value in
multilateralism. Yet, in specifics, their differences and
the topics left out of discussion weighed heavier than those
included:

- United Nations

(SBU) India made clear its desire for a seat on the Security
Council, noting in particular that its level of democracy,
economy, and peacekeeping support are in line with its own
idea of criteria for permanent membership. The EU responded
that it did not yet have a position on UNSC membership, but
instead would wait for the December release of the UN
high-level panel opinion.

- Human Rights

(C) While India desk officer Louise Huijbens had told poloff
September 16 that she hoped human rights would appear on the
Summit's agenda this year, Huijbens confirmed November 11
that India had refused to discuss the issue on a bilateral
basis. Although the Joint Declaration asserts that both
sides "affirmed our willingness to continue discussing Human
Rights in a comprehensive manner," Huijbens said the Dutch
and EU would look for a discussion of the topic in
multilateral contexts such as the UN and would potentially
move it back into a bilateral context in the future.

- Counterterrorism
(SBU) The EU deferred a discussion of "root causes of
terrorism" when India refused to discuss what it felt could
lead to a distinction between "good and bad terrorism." The
EU agreed that "all acts of terrorism are bad" but continued
to feel that addressing conditions it sees as underlying
terrorist behavior could prove beneficial. The EU agreed to
look into ways to increase dialogue and cooperation in
terrorism-related areas including narcotics, cyber-terrorism,
and money laundering.

- Disarmament and Non-proliferation

(C) Instead of a real discussion of disarmament and
non-proliferation issues, the two sides made statements of
position and "agreed to disagree." India stated it believes
the NPT is discriminatory and should be overhauled. The EU
responded with vague references to non-proliferation as an
issue of increasing importance and stressed the role of the
IAEA, but only noted concerns about India's export control
regime. Huijbens told poloff that while overall she saw "no
movement" on either side during this discussion, she and Mohr
both believed India seemed to attach greater importance to
improving its export controls. Huijbens noted that the EU
did not feel it could state its desire for India to sign up
to the NPT, however. Also missing was any discussion of
non-military technology or civilian nuclear issues.

- Economics and Trade

(C) During a discussion of the WTO Doha Round, India noted
its desire to see further agricultural liberalizations from
the EU, reductions in hidden barriers to trade, further
progress on trade in services, and reductions in the
anti-dumping measures taken by the EU. Missing from the
economic agenda was any discussion of India's level of
development, including progress toward Millennium Goals.
Huijbens commented that, as in the area of human rights,
India asserts that it is capable of handling development on
its own, and takes offense to bilateral discussion as an
attack on its status as a developed nation.

- Business Round Table

(SBU) A Round Table of Business Leaders was held in the
evening following the Summit, attended by trade
representatives of both sides and leaders of several European
businesses. India briefed on its investment plan and
infrastructure, agricultural reform investments, and made a
pitch for the benefits of outsourcing. Business leaders
described problems encountered in trade with India, including
intellectual property problems, limits on FDI ownership, and
a lack of openness in India's retail sector. In its turn,
Indian representatives complained about visa restrictions in
Europe, non-tariff barriers, and again lamented the EU's use
of anti-dumping regulations.

- Environment

(SBU) Both India and the EU praised Russia's recent
ratification of the Kyoto Protocol and looked forward to
increasing multilateral attention to environment. Missing
from the discussion was any address of post-Kyoto
understandings, practical cooperation, or moves on the part
of India to lower gas emissions. According to Huijbens,
India stated that "since gas emissions are lower in
developing countries India should not have to pay more
attention to such emissions."

South Asian and Other Regional Issues
--------------


6. (C) While discussion of developments in South Asia were
relatively substantive and only marred by disagreement over
handling of Burma, the discussions was limited in most areas
to an exchange of updates:

- Pakistan

(SBU) The EU expressed its wish to enter into a structural
political dialogue with Pakistan, and welcomed the composite
dialogue between India and Pakistan. The EU encouraged India
to continue dialogue and CBMs. India said that progress in
normalization discussions were on track and that it is
satisfied with the current situation, and noted that
Pakistani President Musharraf will visit Delhi later this
month.

- Bangladesh.

(C) Huijbens noted that Bangladesh was added late to the
Summit agenda at the request of "certain EU member states."
The EU stated its concern about the deteriorating political
and rule of law situation in Bangladesh. India said it was
also concerned about the situation, stating it was not able
to work with Bangladesh, and cited particular concerns about
fundamental Islam. India mentioned interest in the potential
for trade and energy in Bangladesh. India said it is seeking
progress on this issue within the South Asian Association for
Regional Cooperation (SAARC) context.

- Nepal

(SBU) The EU expressed its concern about the ongoing conflict
in Nepal. India said it is worried about its open border
with Nepal and the possibility of spillover, and that it is
encouraging the Government of Nepal that there must be a
negotiated rather than military solution.

- Burma

(SBU) The EU explained its ASEM enlargement decision,
expressed disappointment that Burma had not met the EU's
conditions of participation, and described the expanded
sanctions regime put in place after the meeting. India said
it as also dissatisfied that democratic reforms in Burma were
lagging, but strongly disagreed with the effectiveness of
pressure. India said engagement and economic cooperation
would be more effective than the EU's policy of pressuring
Burma.

- Afghanistan

(SBU) Both sides agreed that the Afghan presidential
elections had been successful and looked forward to success
in the remaining parliamentary elections. The EU and India
agreed that in the way forward special attention will have to
be paid to counternarcotics, as it will affect many other
sectors of reconstruction.

- Middle East, Iraq and Iran

(SBU) The EU briefed on its perception of the Middle East
Peace Process, emphasizing the Quartet's role, and adding
that the pace of the process should be stepped up. India
stressed the need for democratic reforms in the Palestinian
authority and agreed with the EU that Israeli withdrawal was
a positive first step. Turning to Iraq, India said it had
been unable to get military involvement passed through
parliament but looked forward to elections and emphasized
that Iraq's territorial integrity should not be open to
discussion. A discussion of Iran was added at India's
request, during which the EU briefed on the Iran nuclear
program while India listened without comment.
SOBEL