Identifier
Created
Classification
Origin
05NEWDELHI5879
2005-07-29 11:46:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

INDIAN PM BRIEFS PARLIAMENT ON US TIES: IT'S ALL

Tags:  PGOV PREL MNUC ENRG EINV KNNP IN NSSP 
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C O N F I D E N T I A L SECTION 01 OF 07 NEW DELHI 005879 

SIPDIS

PASS TO NRC

E.O. 12958: DECL: 07/30/2015
TAGS: PGOV PREL MNUC ENRG EINV KNNP IN NSSP
SUBJECT: INDIAN PM BRIEFS PARLIAMENT ON US TIES: IT'S ALL
GOOD

Classified By: Charge Robert Blake, for Reasons 1.4 (B, D)

C O N F I D E N T I A L SECTION 01 OF 07 NEW DELHI 005879

SIPDIS

PASS TO NRC

E.O. 12958: DECL: 07/30/2015
TAGS: PGOV PREL MNUC ENRG EINV KNNP IN NSSP
SUBJECT: INDIAN PM BRIEFS PARLIAMENT ON US TIES: IT'S ALL
GOOD

Classified By: Charge Robert Blake, for Reasons 1.4 (B, D)


1. (C) Summary: Indian Prime Minister Manmohan Singh
heralded his first state visit to the US as an unqualified
success for India's foreign and economic policy in a speech
to Parliament on July 29, and emphasized that India's
relationship with the US was based on equality and
reciprocity, sentiments that consistently received resounding
applause from government supporters in the chambers.
Touching on the wide range of initiatives agreed upon during
the PM's visit, Singh's speech focused primarily on
explaining the benefits of civil nuclear cooperation with the
US and assuring detractors that India's commitments in this
area were predicated on reciprocity by the US and would not
compromise the country's strategic posture. Parliamentary
discussion was postponed until the following week, but based
on the decidedly positive tone of the public reaction to the
PM's visit and Singh's own obvious confidence in the deal, we
anticipate parliament to endorse these deliverables,
notwithstanding vociferous criticism from Leftists who harbor
their own discredited agendas and despite hollow-sounding
grumbling from the BJP, which wishes that it, not the PM, had
clinched this historic agreement. Full text of the statement
in para 6. End Summary.

A Triumphal Return to the Cradle of Indian Democracy
-------------- --------------


2. (U) In his first interaction with Parliament since
returning from the US, the PM explained the economic
objectives of his visit: "to sensitize the US Government
about the full extent of the changes that have taken place in
India since 1991," and to showcase India as a "competitive
destination for investment" and "a center for knowledge-based
industries." He went on to outline benefits India would
accrue from various initiatives such as the CEO Forum, the
Science and Technology Agreement, and cooperation on
agriculture, HIV/AIDS, and disaster relief, among others.


Bullish on Nuclear Cooperation
--------------


3. (U) Perhaps mindful of sniping from the left and right
since his return, the lion's share of the PM's speech was
devoted to explaining why India would gain -- not lose --
from nuclear cooperation with the US. Asserting that India
will never accept discrimination, he reiterated that
"reciprocity" was key to the implementation of all the steps
enumerated in the Joint Statement made by President Bush and
the PM on July 18. "Indian actions will be contingent at
every stage on actions taken by the other side," he
explained. Identification and separation of civilian nuclear
facilities will be taken in phases, consistent with India's
national security interests, according to the PM. "Before
voluntarily placing our civilian facilities under IAEA
safeguards, we will ensure that all restrictions on India
have been lifted. Our autonomy of decision-making will not be
circumscribed in any manner," he stated.


4. (U) Singh also rejected criticism that the Joint
Statement would fatally constrain India's strategic defenses.
"There is nothing in this Joint Statement that amounts to
limiting or inhibiting our strategic nuclear weapons program
over which we will retain unrestricted, complete and
autonomous control," he stressed. The PM further added, "we
have never made, nor will we ever make, any compromises
insofar as our fundamental and strategic needs are concerned."

Comment: Ties with the US Enjoy Broad Public Support
-------------- --------------


5. (C) Parliamentary discussion was postponed until the
following week, but based on the decidedly positive tone of
the public reaction to the PM's visit and his own obvious
confidence in the deal, we anticipate Parliament to
eventually endorse these deliverables. MEA Joint Secretary
(Americas) S. Jaishankar indicated to us that opposition
leader Jaswant Singh has asked that debate in Parliament's
Upper House be combined with a discussion of the US-India
Defense Framework, suggesting the BJP will raise broad
questions about the direction of US-India ties. For
political gain, the BJP is trying manfully to knock down an
achievement that it wishes it had been in power to complete,
while the Left is continuing its obstructionist and
anachronistic criticism. Despite this, the Indian elite
seems largely supportive of this agreement, and rightly so.
The wider public, however, has still to understand the
benefits of the new US-India partnership. Convincing that
wider public will be the Prime Minister's challenge in the
weeks ahead.

Full Text of PM's Statement
--------------


6. (U) Begin GOI text:

Prime Minister's Suo-motu Statement in Parliament on his
recent official visit to The United States of America, 29
July 2005


A. I am pleased to present to this House a statement on my
recent visit to the United States. President Bush invited me
to pay an official visit and my wife and I were received by
President Bush and the First Lady Mrs. Laura Bush with great
warmth and with ceremonial honors. My talks with the
President covered a wide range of bilateral and global
issues. The Vice President and senior Cabinet members of the
US Administration such as Secretary of State Condoleezza
Rice, Defense Secretary Rumsfeld and Treasury Secretary Snow
also called on me during my stay. I had the honor to be
invited to address the Joint Session of the US Congress. I
believe that the visit was a success in furthering our
foreign policy interests and in terms of its substantive
outcome. It was evident that the United States wished to
signal that we are embarking on a transformation of our ties
so as to realize their inherent potential.


B. The purpose of my visit was to sensitize the US
Government about the full extent of the changes that have
taken place in India since 1991. These changes have given us
a stronger capability to work with the United States on more
equal terms as we address common concerns and challenges. I
also sought to emphasize that the Indian economy is stronger
than it has ever been and we hope to participate in and
benefit from the economic processes of globalization. We are
determined to be a competitive destination for investment,
including foreign investment and the US business community
could contribute to development in India through greater
investment and trade. We are uniquely placed to enter into
such mutually beneficial interaction drawing on the strength
of our knowledge sector. Hence another important goal was to
underline to the US that the emergence of India as a center
of knowledge based industries and services would provide a
good basis for long-term collaboration between our economies.
The expansion of the Indian economy and acceleration of our
growth rates is crucial not just for our own people but would
be beneficial to global economic progress and stability.


C. My discussions in Washington with President Bush and
members of his Administration were productive and helped
advance these national goals. Both sides agreed that our
relationship was based on shared values and shared interests
that included the strengthening of democratic capacities
where desired and without coercion, and in combating
terrorism without selectivity or segmentation. The
conclusion of the UN Comprehensive Convention on
International Terrorism proposed by India, at an early date,
was deemed a priority by both countries. On the economic
side, we welcomed the launching of a CEOs Forum that has
brought together the best business minds of both countries.
We discussed the urgent need for modernization of India's
infrastructure and our quest for greater investments in this
sector, in view of its centrality for the continued growth of
the Indian economy. Recognizing the importance of the rural
economy, we also agreed on an agricultural initiative aimed
at facilitating a new generation of research and agricultural
practices to build on the green revolution.


D. Appreciating the importance of technology to India's
economic and social development we also discussed measures
that would ensure more liberal and predictable access to US
high technology. We will endeavor to build closer ties in
frontier areas such as space exploration, satellite
navigation and launch, and related commercial activities that
would greatly benefit our space industry, which is recognized
as a global leader. A Science and Technology Framework
Agreement has been agreed during my visit that provides for
expanded joint research and training. Underlining the intent
of working at a new level of cooperation, the United States
announced the removal of five Indian organizations from its
Entity List - three from the space sector and two from atomic
energy - and indicated further review in this matter.


E. India's quest for energy security as an essential
component of our vision for our development was a significant
theme of my talks. I elaborated the imperative need for
India to have unhindered access to all sources of energy,
including nuclear energy, if we are to maintain and
accelerate our rate of economic growth. I am pleased to
state that the US understood our position in regard to our
securing adequate and affordable energy supplies, from all
sources. This approach, I underlined, would enable us to
reduce our dependence on fossil fuels. This would have
concomitant advantages for all in terms of reduced pressure
on oil prices and environmental sustainability. It was in
this context that we affirmed the importance of cooperation
in the civilian nuclear energy sector.


F. Accordingly, a central element of my interaction with
President Bush was the resumption of bilateral civilian
nuclear cooperation between India and the United States,
which has been frozen for decades. President Bush and I
agreed that we would work towards promoting nuclear energy as
a means for India to achieve energy security. The US side
undertook to adjust its laws and policies domestically and to
work with its friends and allies to adjust relevant
international regimes. Full civilian nuclear energy
cooperation would include, but not limit itself, to the
expeditious consideration of fuel supplies for Tarapur. The
US will also encourage other partners to consider similar
requests favorably. We also obtained consideration of our
desire to participate as full partners in the International
Thermo Nuclear Research Project and the Generation IV
International Forum. These programs in frontier areas of
science & technology have considerable potential for our
country's and indeed global energy security in the future.
The US agreed to consult other participants with a view
towards India's inclusion. This is a testimony not only to
the enormous international stature and respect achieved by
our nuclear scientists but recognition of their attainments.


G. Our nuclear program is unique. It encompasses the
complete range of activities that characterize an advanced
nuclear power including generation of electricity, advanced
research and development and our strategic program. Our
scientists have mastered the complete nuclear fuel cycle. The
manner of the development of our program which has been
envisaged is predicated on our modest uranium resources and
vast reserves of thorium. While the energy potential
available in these resources is immense, we remain committed
to the three-stage nuclear power program consisting of
Pressurized Heavy Water Reactors (PHWRs) in the first stage,
fast breeder reactors in the second stage and thorium
reactors in the third stage. These would need sequential
implementation in an integrated manner. Our scientists have
done excellent work and we are progressing well on this
program as per the original vision outlined by Pandit
Jawaharlal Nehru and Dr. Homi Bhabha. We will build on this
precious heritage.


H. Energy is a crucial input to propel our economic growth.
We have assessed our long-term energy resources and it is
clear that nuclear power has to play an increasing role in
our electricity generation plans. While our indigenous
nuclear power program based on domestic resources and
national technological capabilities would continue to grow,
there is clearly an urgent necessity for us to enhance
nuclear power production rapidly. Our desire is to attain
energy security to enable us to leapfrog stages of economic
development obtained at the least possible cost. For this
purpose, it would be very useful if we can access nuclear
fuel as well as nuclear reactors from the international
market.


I. Presently, this is not possible because of the nuclear
technology restrictive regimes that operate around us. What
we have now agreed with the US should open up the possibility
of our being able to access nuclear fuel and nuclear power
reactors and other technologies from outside to supplement
our domestic efforts. There is also considerable concern
with regard to global climate change arising out of CO2
emissions. Thus, we need to pursue clean energy
technologies. Nuclear power is very important in this
context as well.


J. The Joint Statement recognizes that as a responsible
State with advanced nuclear technology, India should acquire
the same benefits and advantages as other such States which
have advanced nuclear technology. As a result we expect that
the resumption of India's nuclear trade and commerce with the
US, and globally, is an achievable goal, involving the
dismantling of the technology denial regimes which have
hitherto targeted India.


K. Predicated on our obtaining the same benefits and
advantages as other nuclear powers, is the understanding that
we shall undertake the same responsibilities and obligations
as such countries, including the United States.
Concomitantly, we expect the same rights and benefits. Thus
we have ensured the principle of non-discrimination. I would
like to make it very clear that our commitments would be
conditional upon, and reciprocal to, the US fulfilling its
side of this understanding. The Joint Statement refers to
our identifying, and separating civilian and military nuclear
facilities in a phased manner and taking a decision to place
voluntarily civilian nuclear facilities under IAEA
safeguards. India will never accept discrimination. There
is nothing in this Joint Statement that amounts to limiting
or inhibiting our strategic nuclear weapons program over
which we will retain unrestricted, complete and autonomous
control.


L. Reciprocity is key to the implementation of all the steps
enumerated in the Joint Statement. We expect a close
co-relation between the actions to be taken by the United
States and by India. Indian actions will be contingent at
every stage on actions taken by the other side. Should we
not be satisfied that our interests are fully secured, we
shall not feel pressed to move ahead in a pre-determined
manner.


M. Hence phased action, in terms of identification and
separation of civilian nuclear facilities based solely on our
own duly calibrated national decisions will be taken at
appropriate points in time, consistent with our national
security interests. Before voluntarily placing our civilian
facilities under IAEA safeguards, we will ensure that all
restrictions on India have been lifted. Our autonomy of
decision-making will not be circumscribed in any manner.


N. I wish to emphasize to this House that the basis for this
understanding was a clear recognition that India is a
responsible nuclear power with an impeccable record on
nuclear non-proliferation. Our strategic policies and assets
are a source of national security and will continue to be so,
and will remain outside the scope of our discussions with any
external interlocutors. I should like to take this
opportunity to assure Hon'ble Members that the Government
will not allow any fissile material shortages or any other
material limitations on our strategic, programs in order to
meet current or future requirements. The defense and
security interests of our country are our highest priority
and will continue to remain so.


O. Our policies and actions have earned us global
recognition and widespread esteem, which I am sure, the House
recognizes and welcomes. This allows us not only to make a
credible case for an end to three decades of technology
denial but also to find a central and growing place in
international organizations.


P. I used the occasion of my visit to the US to spell out
the basis on which India has made a compelling case for
expansion of the UN Security Council, and for our admission
as a Permanent Member. The US has a different position on
this matter and has not found it possible to endorse India's
position. It is my hope that over time the US will recognize
the validity of what we say. In fact, the Joint Statement
itself reflects growing US recognition of this position. It
states, "international institutions must fully reflect
changes in the global scenario that have taken place since
1945." The US President also reiterated that international
institutions are going to have to adapt to reflect India,s
central and growing role. In this regard, global initiatives
that we have initiated with the United States, which include
disaster relief, HIV/AIDS and strengthening democratic
capacities in societies that seek such assistance testify to
the greater recognition of our strengths and capabilities.


Q. I therefore believe my visit to the United States has led
to greater understanding and appreciation of our concerns and
interests. It has contributed to significant initiatives that
have important economic and developmental implications for
India. I have made a strong case on behalf of the Indian
people that our voice be heard when decisions that affect us
are made in global councils. I am confident that this House
would welcome these developments.


R. I would like to conclude by stating that we can feel
justly proud that our achievements are being recognized
globally. This is a tribute to our scientists, engineers,
teachers, workers, farmers, entrepreneurs and professionals.
We are now a nation of over one billion people. We are the
world's fourth-largest economy, with the second highest rate
of GDP growth today. The manner in which we have achieved
this progress within the framework of a democratic
dispensation is the subject of admiration and respect.
Increasingly, India is seen as a benchmark for the rest of
the world. I therefore believe our strength lies in the
essential correctness of the path we have chosen, and in the
creativity and enterprise of our people. This has enabled
India to stand tall in the comity of nations.


S. I realize that that there would be criticism in some
quarters regarding aspects of the Joint Statement.
Constructive criticism is part of the Parliamentary
tradition, and I welcome it. This adds clarity to our debates
and vibrancy to the institution of our democracy. I can
however assure this August House, and through it, our nation,
that my visit to the United States was undertaken solely with
the purpose of enhancing relations with one of the world's
pre-eminent powers, so as to widen our development options.
It was my endeavour to expand our-access to energy supplies
to fuel our growth, while protecting our strategic interests.
I believe our effort to undo some of the long-standing
restrictive nuclear regimes will enable us to secure access
to the significantly greater quantities of energy that we
will need to spur massive growth in our industrialization
program. Once secured, cheap and affordable energy will
enable India to leapfrog its current pace of economic growth,
to secure the future for generations to come.


T. All of us gathered together in this august House
recognize that inspired by our freedom struggle, we have
inherited a proud and patriotic tradition. Our commitment to
work for universal nuclear disarmament in the long run will
remain our core concern. At the same time, I can assure the
House that we have never made, nor will we ever make, any
compromises insofar as our fundamental and strategic needs
are concerned. Our inheritance gives us confidence, our
experience gives us courage, and our belief gives us
conviction to assert today that our nation stands on the
threshold of an even better future. I therefore venture to
think that my visit to the USA has opened up new
opportunities and possibilities for promoting our energy
security and pathways to accelerated social and economic
development. We must all work together as a united nation to
realize these opportunities to make India a major powerhouse
of the evolving global economy. Thank you.

End GOI text.
BLAKE