INDIA ENTHUSIASTIC ABOUT SECRETARY RICE'S VISIT

S E C R E T SECTION 01 OF 03 NEW DELHI 002050

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PASS TO NRC

E.O. 12958: DECL: 03/18/2015
TAGS: PGOV PREL ENRG ETRD MASS TSPA ETTC IN NSSP
SUBJECT: INDIA ENTHUSIASTIC ABOUT SECRETARY RICE'S VISIT

Classified By: DCM Robert O. Blake, Jr. for Reasons 1.4 (B, D)


1. (C) Summary: In an upbeat assessment of Secretary Rice's
first visit to India, MEA Joint Secretary (Americas) S.
Jaishankar described the action agenda that the Secretary
left behind as "the most significant road map we've had in
the last 47 years." Areas for immediate progress include
expanding the bilateral dialogue on strategic issues,
initiating an Energy Dialogue, and reinvigorating the
Economic Dialogue. Using the Secretary's comment that
international institutions must adapt to reflect how the
world has changed, the GOI is also eager to engage the US on
India's role in those organizations. End Summary.

Expanding Strategic Dialogue
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2. (C) Following Secretary Rice's positive and productive
visit to New Delhi, DCM, PolCouns, and PolMilOff met with J/S
Jaishankar, MEA Director (Americas) Renu Pall, and Deputy
Secretary (Americas) Santosh Jha on March 17 to review ways

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to advance issues raised during the Secretary's visit. DCM
thanked the GOI for their efforts to make Secretary Rice's
first visit to India a success. Jaishankar was clearly very
pleased with the substance of the Secretary's visit and about
the glowing response her visit inspired in the national and
international press.


3. (C) Using the impetus of the Secretary's visit, the DCM
outlined the three key ideas that had emerged from the visit
that need immediate action: expanding the current strategic
dialogue, inaugurating an energy dialogue, and revitalizing
the economic dialogue. While the NSSP will remain a valuable
framework for strengthening US-India relations, the array of
strategic issues on which the US and India have complementary
interests is broader than the NSSP alone and should be
reflected in an expanded, senior-level strategic dialogue.
In addition to civil nuclear, space, high tech, and missile
defense under the NSSP umbrella, the Secretary and her
interlocutors had agreed that a high-level strategic dialogue
would address broader global and regional security concerns,
India's defense requirements, including co-production, early
warning and command and control systems, high tech trade
facilitation, and the Proliferation Security Initiative
(PSI).


4. (C) Expanding on some these ideas, the DCM suggested both
sides explore forming a working group of ISRO, NASA, and
other officials to identify more areas for US-India
cooperation in the civil space field. Irrespective of the
status of the PSI Core Group, the DCM reiterated the
Secretary's hope that India would agree to adhere to the

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Statement of Principles and might host a regional PSI event
this year.


5. (C) Jaishankar asked whether the proposed strategic
dialogue would have Cabinet-level representation. DCM noted
this idea is only in the formative stages, but the Secretary
would likely be the intellectual lead, with most of the
substantive discussion done at lower levels. Noting the
broad scope of the strategic dialogue, and the increasing
degree of commonality in our global security interests,
PolCouns encouraged the GOI to consider that such a dialogue
has the potential to surpass the NSSP in its significance to
the bilateral relationship.


6. (C) In light of the Secretary and FM's common desire to
conclude NSSP Phase II soon, DCM inquired about the status of
draft export control legislation. Jaishankar acknowledged
that the US decision to include a civil nuclear component in
the energy dialogue would be helpful, but cautioned that,
unlike the US system, in the Indian system, "drafting
legislation is the hard part, not passing it." The Ministry
of Commerce is officially in charge of drafting the
legislation, but Jaishankar lamented that Commerce had
earlier been "completely laid back" about the priority of
this legislation, "giving equal weight to export controls as
the import of car parts." However, he was encouraged by
Commerce Minister Kamal Nath's lunch discussion with the
Secretary and promised to invoke the commitments made by the

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FM to Secretary Rice to generate movement in Commerce.
PolCouns pointed out that Washington has now taken several
steps to improve the atmosphere for NSSP progress, and urged
the GOI to share its draft export control legislation in
fulfillment of Phase II of the NSSP as quickly as possible.

Emerging Energy Dialogue
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7. (C) Recognizing that India's growing energy needs will
continue to influence its foreign policy, an Indo-US energy
dialogue might address issues such as energy security,
civil-nuclear cooperation, and environmental concerns.
Remarking that the March 16 New York Times article, "US May
Help India to Build a Nuclear Power Plant" may have been
overly optimistic, DCM noted that Secretary Rice's
discussions on this issue nevertheless still represent a
great step forward. Jaishankar described "asymmetrical"
systems for energy engagement, with the Department of Energy
leading US energy policy, including nuclear energy. In the
Indian system, responsibility is split among several
ministries, including Petroleum, Environment,
Non-Conventional Energy, and the Department of Atomic Energy.



8. (C) On the proposed India-Iran pipeline, DCM lamented
that Indian press articles on the subject overemphasized the
disagreement, especially considering that there has not yet
been a determination that the GOI will proceed with the
project, while underplaying the significance of initiating a
broad energy dialogue. Jaishankar stated that he was
impressed with the high degree of openness in the Secretary's
discussions and agreed that the press had overplayed
disagreement in her comments regarding Iran.

Reinvigorating the Economic Dialogue
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9. (C) DCM hoped that upcoming visits by Transportation
Secretary Mineta and Treasury Secretary Snow to India would

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re-energize the Economic Dialogue. Further, Ambassador
Mulford would likely use his late April visit to the US to
discuss the CEO Forum with appropriate Washington officials.

India's International Role
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10. (C) Jaishankar carefully explained that the GOI viewed
the Secretary's statement that the world had changed and
international institutions should reflect those changes was
viewed by the GOI as "forward movement," but understood this
was no commitment about the US position on UNSC reform.
Jaishankar said he had spoken to other members of the
Secretary's delegation who underscored that the Secretary

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said "international institutions," not specifically the UN,
and invited India to explore what that might mean.
Jaishankar queried whether, with "reasonable inference,"
India might seek to participate in the G-8. Jaishankar
acknowledged that the US had "consciously chosen not to show
its hand" regarding UNSC membership, but emphasized that
India wanted to "get into the process early" and define their
position on UN reforms. Toward this goal, Jaishankar said he
would draft a cable instructing Ambassador Sen to invite
Senior Advisor on UN Reform Shirin Tahir-Kheli to India in
March or early April to discuss US priorities for UN reform
with FS Saran. Explaining that she had just been appointed,
the DCM cautioned that Ambassador Tahir-Kheli may not be able
to meet on such a short time frame Failing a separate visit
to India, Jaishankar offered that perhaps the FS might join
the FM on the April visit to Washington to discuss the matter
with Ambassador Tahir-Kheli.

Clarification about MRCA Response
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11. (S) Jaishankar also sought clarification about the
Secretary's indication that the US will participate in the

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Request for Information (RFI) for the sale of 126 multi-role
combat aircraft (MRCA),asking whether the US must seek a
license to respond to the RFI. DCM clarified that the US
will need a license in the next step, the Request for
Proposals (RFP),but the US will deliver its formal response
in a letter more quickly. Jaishankar was relieved, saying,
"We have creatively stretched this window for a long time,"
and the GOI was under pressure from "those who might lose
out" because of US participation in the bid. He strongly
urged that the US deliver the letter as soon as possible, in
a few days.

Cooperation on Bangladesh
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12. (S) Citing US-India cooperation on Nepal as a "model,"
Jaishankar suggested that A/S Rocca stop in New Delhi before
a proposed visit to Bangladesh in April. DCM inquired about
the possibility of greater intelligence-sharing to which
Jaishankar responded that the GOI could organize a "fairly
detailed" briefing for A/S Rocca during her visit.

Maintaining Policy Line on the LOC
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13. (C) In response to apparently differing Indian
interpretations about discussions about the Line of Control,
and noting that the FM and Manmohan Singh had also raised the
issues of LOC sanctity and infiltrations, PolCouns clarified
that there was "no change in US policy" on this matter.

Next Steps
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14. (U) Jaishankar cautioned that the suggestion to slightly
postpone the FM's trip to Washington to April 17-18 was only
tentative until the GOI can confirm that he is available on
these dates. Both the DCM and Jaishankar agreed that the
FM's visit should lay the groundwork for the PM's visit to
Washington in the summer, the dates of which also have to be
fixed.
MULFORD