INDIA PREPARED TO ENGAGE INTERNATIONAL

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 003811

SIPDIS

PASS TO NRC

E.O. 12958: DECL: 05/21/2015
TAGS: PREL MASS KSTC KNNP KOMC ETTC IN GOI
SUBJECT: INDIA PREPARED TO ENGAGE INTERNATIONAL
NON-PROLIFERATION REGIMES

REF: A. NEW DELHI 3653

B. NEW DELHI 3652

Classified By: PolCouns Geoffrey Pyatt, for Reasons 1.4 (B, D)


1. (U) Summary: In an important May 17 address at the
Defense Research and Development Organization (DRDO),India's
premier military R&D facility, Prime Minister Manmohan Singh
declared that with the passage of the new WMD law, India is
prepared for "the broadest form of engagement with the
international non-proliferation regime," as long as this
engagement does not endanger its indigenous strategic
programs. He argued that India has a "double imperative" to
pursue opportunities for greater high-tech trade from foreign
sources while maintaining its own development of critical
strategic technology. Stressing that indigenous development
of strategic technology would remain a priority to maintain
India's autonomy, the PM encouraged greater collaboration
between DRDO and the Indian private sector and more
interaction with foreign R&D institutions as means to improve
the effectiveness of India's defense research industry.


2. (C) We believe the GOI is committed to fulfilling NSSP
conditions regarding the Missile Technology Control Regime
(MTCR) and the Nuclear Suppliers Group (NSG) guidelines. The
PM's speech, however, highlights the thin line he must walk
between the Indian political elite's dislike of these control
regimes and GOI commitment to non-proliferation to achieve
its larger objectives, i.e., nuclear fuel for its growing
energy needs, greater access to high-tech goods, and most
importantly, acceptance as an emerging global power. End
Summary.

Maintaining Strategic Autonomy
--------------


3. (U) Throughout his address to the defense scientists,
Manmohan Singh returned to the theme of maintaining and
maximizing GOI strategic programs and autonomy. With the
recent passage of the WMD law (Ref B),the PM boldly declared
that "India is prepared for the broadest form of engagement
with the international non-proliferation regime." He also
highlighted an important nuance that such engagement was
evidence of GOI commitment to stop outward proliferation, but
would not curb the country's indigenous strategic programs.
"In the defense and nuclear fields, our strategic programs
are indigenous and not dependent on external sources of
support. Nor can they be the subject of externally imposed
constraints." He went on to emphasize the need to continue
strategic self-reliance so that India's defense options are
not constrained by "bilateral and multilateral technology
denial regimes." He added pointedly that "such regimes are
contrary to the logic of globalization, and are increasingly
an anachronism from the past."


4. (U) The PM also spoke about finding the right balance
between indigenous development and acquiring critical
technology from foreign sources. "We must concentrate our
indigenous efforts on critical technologies of strategic
value, for which, in most cases we have no option but to rely
on our own resources. At the same time, we must explore
fully what is available through external sourcing, be it
through technology transfer or co-production, both for use in
the Indian market or for third country exports." He cited
the Indian-Russian BrahMos cruise missile joint venture as a
successful example of the benefits of defense co-production
and as an answer to the persistent problem of reliability of
spares and product support.

Indigenous Development a Priority
--------------


5. (U) While pursuing opportunities for greater high tech
trade and collaboration, the PM stressed that indigenous
development of strategic technology would continue to be a
priority to maintain India's autonomy. "The higher the
indigenous content of our weapon systems, the greater our
confidence that the autonomy of national decision-making will
not be affected in a crisis."

Need to Improve Defense Research Effectiveness
-------------- -


6. (U) Praising DRDO's wide-ranging contributions to both
defense and civilian objectives, the PM also cautioned
against delays and cost overruns, outlining opportunities to
make the organization more effective. Addressing DRDO's
notoriously sluggish production times, the PM outlined the
economic, tactical, and strategic consequences of such
delays, "Delays not only affect the national exchequer, they
can also seriously undermine the confidence of the defense
services if a weapon system is practically obsolete by the
time of its induction. Most importantly, delays also limit
our strategic options."

7. (U) The PM went on to encourage initiatives to make DRDO
more efficient: greater collaboration with India's private
sector and leveraging the country's human resources to
attract more foreign R&D opportunities. In this context, he
lauded DRDO's efforts to set up Research and Development
Boards in areas such as aeronautics, armament research, naval
research and life sciences research, to promote collaborative
arrangements with academic institutions and other national
R&D laboratories.

Comment
--------------


8. (C) To complete Phase II of the NSSP, the GOI must agree
to adhere to MTCR and NSG guidelines, two primary examples of
the "multilateral technology denial regimes" which the PM
seemed to rebuke in his address to the defense scientists.
However, senior GOI officials such as FS Saran have assured
us that the GOI will fulfill its NSSP obligations by
Executive Decree.


9. (C) The PM's statement highlights the fine line he must
walk: On one side, assuring the defense industry that the GOI
will not accede to external controls on its legitimate
defensive programs, while on the other, associating India
with domestically unpopular regimes in order to demonstrate
GOI commitment to non-proliferation and achieve India's
larger objectives, i.e., nuclear fuel for its burgeoning
energy needs, greater access to high-tech goods, and most
importantly, acceptance of India as an emerging global power.
Considering the profound distaste for "discriminatory"
control regimes among the influential Indian scientific
establishment and many of the political elite, the GOI will
have to boost its efforts to explain the nuances of its
policy regarding MTCR and NSG as it moves ahead with our NSSP
partnership.
BLAKE