AMBASSADOR CALLS ON MOD HIERARCHY

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 006655

SIPDIS

E.O. 12958: DECL: 08/30/2030
TAGS: IN IZ MARR MOPS PREL
SUBJECT: AMBASSADOR CALLS ON MOD HIERARCHY

Classified By: Ambassador David Mulford. Reasons 1.4 (B,D).


1. (C) Summary: Defense Minister Mukherjee expressed great
satisfaction with his visit to the US. Opposition to the New
Framework for Defense Relations mainly comes from those mired
in "Old Think Syndrome." Mukherjee interested in visiting
upcoming Indo-US military exercises, and visiting USS Nimitz.
MOD has been informed of death of US soldier of Indian
origin. Mukherjee pledges to work in support of civil
nuclear initiative and engage NSG representatives. MOD is
ready to meet LTG Kohler to discuss P3C, PAC-3, and MRCA RFI.
Agricultural reforms are badly needed. There is great
interest in reviving Indo-US agricultural college
connections. MoD still unclear on how they will affect
liaison officer to PACOM. Defense Secretary Dutt wants to
schedule the next Defense Policy Group. Mukherjee says
Indian participation in PSI needs more discussion. Mukherjee
agrees to examine US industry paper on India's Broadcasting
policy. End Summary:

New Framework for Defense Relations
--------------


2. (C) Ambassador Mulford, DATT and Chief Office of
Defense Cooperation met with Defense Minister Pranab
Mukherjee on 26 Aug 2005 to review a variety of topics. Also
present were Defense Secretary Shekhar Dutt, Joint Secretary
(International Cooperation) Debnath Shaw, and Additional
Secretary MoD Banerjee. Ambassador congratulated Mukherjee

SIPDIS
on his successful June US visit and the signing of the New
Framework for Defense Relations (NFDR),as well, Ambassador
complimented Mukherjee on his effort to explain the NFDR to
Parliament, the Left, and the Opposition Parties. Mukherjee
thanked the Ambassador and explained that his US visit was
"simply superb in all aspects." Mukherjee explained that
criticism of the NFDR was coming from certain segments of
"old thinkers" who were caught in the "old ideas syndrome."

Malabar and COPE India
--------------


3. (C) Ambassador hightlighted to Mukherjee that we were
looking forward to two major exercises here in India, Naval
Exercise Malabar 05 (25 Sep-7 Oct) which will be the most
complex ever, involving Carriers USS Nimitz and INS Viraat
and Cope India in West Bengal (7 - 19 Nov). Ambassador
highlighted that exercise planners were assigning 26-27 Sep
as the Malabar VIP visitors day and suggested that if
Mukherjee were available, he should consider a visit to the
Nimitz. Mukherjee said that he thinks he has a commitment
outside of India, but if not, then he'd like to visit the
exercise and the Nimitz. Ambassador also highlighted
IAF-PACAF COPE India DACT exercise to be held 7-19 November
in Kalaikunda, and the VIP day set for 18 November.

Another US Soldier of Indian Origin KIA in Iraq
-------------- --------------


4. (C) Ambassador then mentioned to Mukherjee the death of
US Army Specialist Hatim Kathiria, who was KIA in Iraq on 22
August 2005. Kathiria was born in Gujarat, US Naturalized
Citizen as of January 2005, and his remains were being
arranged for return and funeral in Dahod, Gujarat. Mukherjee
was moved by the information, and Ambassador alerted
Mukherjee to the possible negative press implications.
Ambassador explained that DAO/ODC were undertaking a Casualty
Assistance mission to support the Kathiria family.

Civil Nuclear Initiative
--------------


5. (C) Ambassador then touched upon the successful official
US visit of Prime Minister Manmohan Singh, underscoring that
a lot of work needed to be done by US and India to follow
through on the various initiatives. Ambassador highlighted
the challenges in effecting the civil nuclear initiative.
Mukherjee stated that he would insure the GOI works on its
end to meet the expectations of the USG and also to convince
the NSG members to support the initiative. Mukherjee pointed
out the importance of making a breakthrough on the civil
nuclear front and how such a breakthrough will open up lots
of other areas for cooperation.

LTG Kohler's Visit
--------------


6. (C) Ambassador then highlighted the upcoming visit of
LTG Kohler, DSCA from 7-10 September, the focus of which is
the PAC-3 classified briefing, update on the Indian request
for two leased P-3C Orions, and follow-up information on the
MRCA RFI. Defense Secretary Dutt assured Ambassador that
meetings are set up for LTG Kohler with Defense Secretary,
Additional Secretaries and Service Chiefs. Ambassador
highlighted that DSCA is working hard to ensure LTG Kohler
comes here with a lease or draft lease and the configuration
on the planes for purchase, and that LTG Kohler will come
here with more answers to the MRCA RFI.

Agricultural Reforms
--------------


7. (C) Ambassador then engaged Mukherjee on the subject of
agricultural reform initiatives in West Bengal. Ambassador
recounted his recent visit with West Bengal Chief Minister
Bhattacharjee. Mukherjee pointed out that agricultural
reform is extremely important to the GOI and to rural
infrastructure development. Mukherjee stressed that what is
needed most is reform and investment in research and
development. Mukherjee pointed out that investment in
agriculture had slowed significantly following the Green
Revolution, and that there was too much variance in crop
yields in many states, as well as too many protective
tariffs. In addition to rural infrastructure development,
what India needed most was to reestablish links between US
and Indian agricultural colleges, according to Mukherjee.
Secretary Dutt offered that there had been links between

SIPDIS
agricultural colleges, but these had more or less stopped.
Dutt also point out the problems in the area "dry land
farming." Ambassador pointed out Chief Minister
Bhattacharjee's most interesting remarks made in Singapore in
favor of 100 percent FDI in Kolkata airport's development.
Mukherjee explained that Bhattacharjee has undergone the most
amazing political transformation. He explained that he knew
Bhattacharjee when he was a student activist, and now he has
completely changed his views on private investment.

Indian LNO to PACOM and Defense Policy Group
-------------- --------------


8. (C) Ambassador then brought up the issue of an Indian
Liaison Officer to USPACOM. Ambassador asked Mukherjee what
MOD intended to do to effect this offer. Ambassador also
explained that PACOM is preparing to present MOD a formal
Memo of Arrangement for MOD to consider, and that this is the
procedure we go through for LNOs for all the other countries
who have posted officers to PACOM. Ambassador also explained
that PACOM's desire is to have the LNO posted in Hawaii and
not D.C. Mukherjee explained that his original idea was to
have two more attaches posted to the embassy in D.C. and they
would travel to Hawaii as needed. Mukherjee explained that
if it is needed, then the LNO will spend more time in Hawaii.
Ambassador reiterated that PACOM really wants a full time
LNO, who will stay in Hawaii, and with whom PACOM can
interact daily. DATT explained that the reason for the MOA
is to outline the various parameters of information
disclosure, access, interactions, working areas/office space,
etc. Secretary Dutt mentioned that they intended to post
additional officers at the same senior rank as their military
attaches. An idea was then mentioned that perhaps the issue
should be discussed at the Defense Policy Group, at which
point Mukherjee then asked when the DPG was going to occur.
DATT mentioned that USD(P) Edelman has just taken over the
job, and OSD staff is considering DPG dates of late October
or late November. Ambassador mentioned that we had heard the
Indian embassy was suggesting that the DPG should be held in
India, instead of D.C. Secretary Dutt responded that MOD
thought that perhaps it was a good idea for Mr Edelman to
come to India, because he had not yet visited India. DATT
then suggested that MOD and OSD exchange a couple of sets of
dates from which to choose. Secretary Dutt mentioned that he
had already sent a congratulatory letter to Mr Edelman, and
he looked forward to meeting him.

PSI
--------------


9. (C) Ambassador then mentioned Proliferation Security
Initiative (PSI) and explained that this is low-hanging fruit
now that we have scrapped the Core Group. Ambassador
suggested that a public statement in support of the Statement
of Principles will send a good political message. Ambassador
also mentioned that the UK is hosting an interdiction
exercise in the Indian Ocean in November, and would like
India to participate somehow. Mukherjee explained that
India's participation in PSI can be worked out after another
round of talks on the issue.


India's Broadcasting Policy
--------------


10. (C) Finally, the Ambassador asked Mukherjee about
changes to India's Broadcasting policy, and queried Mukherjee
about leading a group of Ministers assigned to evaluate new
policy and regulations on broadcasting -- including policy on
up-loading and down-loading of satellite broadcast links.
Ambassador mentioned that some U.S. broadcasting companies
(AOL and Time Warner) have approached the USG and expressed
concerns about three restrictive proposals being considered
by the GOM committee. Ambassador offered that he would share
with Mukherjee an issue paper on this subject, which now is
being prepared by the U.S. broadcasting industry. Mukherjee
said he would gladly look at the paper.


11. (U) Visit New Delhi's Classified Website:
(http//www.state.sgov/p/sa/newdelhi).
MULFORD