INDIAN OFFER TO HELP IRAQ "STILL ON THE TABLE"

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 006722

SIPDIS

PASS TO USAID

E.O. 12958: DECL: 08/31/2015
TAGS: PREL EAID ENRG KDEM IZ IN
SUBJECT: INDIAN OFFER TO HELP IRAQ "STILL ON THE TABLE"
DESPITE SECURITY CONCERNS

REF: A. STATE 158420

B. NEW DELHI 6660

Classified By: A/DCM Geoff Pyatt for Reasons 1.4 (B, D)


1. (U) This is an action request for USAID Mission in Iraq.
See para 6.


2. (C) Summary: India's previous offers to provide
training, advice, and material assistance to assist Iraq's
electoral and constitutional processes are "still on the
table," but remain constrained by security concerns, MEA
Joint Secretary (Gulf) Sanjay Singh told A/DCM and PolMilOff
on August 31. He expressed doubt, however, that Iraq could
use what India has offered because of Baghdad's limited
capacity to respond to matters beyond their immediate
political and security concerns. Of $20 million the GOI has
allocated for projects in Iraq, about $10 million is still
available. The GOI is especially interested in getting more
information about local electricity projects to consider
funding. End Summary.

Democracy: India Can Play a Helpful Role Outside Iraq
-------------- --------------


3. (C) A/DCM underscored Foreign Minister Singh and Foreign
Secretary Saran's enthusiasm for the US-India Global

SIPDIS
Democracy Initiative and pressed the GOI for ideas about how
to translate this interest into action in Iraq. Singh
reiterated the continuing caveat that any training or
consultations should happen outside Iraq because of the
ongoing GOI travel ban for Iraq due to ongoing security
concerns. A/DCM stressed that even making a statement of
support for Iraq's constitutional process would make a
difference, noting the positive reverberations following the
GOI statement about Iraq's elections in January.


4. (C) Singh raised questions about several factors which
may influence acceptance of the draft constitution, e.g.,
whether Sunni leaders' rejection of the constitution was
serious or merely a negotiating ploy, and why Sadr opposes
provisions to share oil revenues. He also expressed
confusion about unspecified provisions regarding oil revenue
in the draft constitution. In addition, Singh asked if UNSYG
Special Representative Brahimi would play a role in
"fine-tuning" the current draft constitution, as he had
during the drafting of the Transitional Administrative Law.


5. (C) Singh mentioned he was closely watching the US
domestic debate about the war, opining that the dynamics of
US public opinion had perhaps more impact on the increasing
level of violence in Iraq than anything else. "I think the
insurgents take strength from what is happening in the US,"
he stated.

Indian Interest in Electricity Sector
--------------


6. (C) Following up on earlier discussions about Indian
interest in providing assistance to Iraq's energy sector,
PolMilOff asked about the availability of funding for such
projects. Singh responded that, of the $20 million the GOI
has allocated for Iraqi assistance, about $7 million has been
committed to various food assistance and capacity-building
projects. Of the balance, about $2 million may be used for
water pumps in the marshlands, leaving about $10 million for
other projects. Singh reported that this money is available
immediately and projects could be funded via a mix of grant
or loan, as long as equipment is sourced from India. As in
previous meetings, he expressed special interest in getting
specific information about high priority local electricity
projects, ideally in areas where India had electricity
projects in the past, e.g., Khor Zubayr. Action Request for
USAID/Iraq: Please send information about projects that
might meet these criteria to Embassy New Delhi. Slug
responses for PolMilOff Stacy Gilbert.


7. (C) Finally, Singh mentioned that India will host two
trade delegations from Iraq in September, one focused on
agricultural issues with representation from all provinces,
as well as the Ministry of Trade and Industry. He was less
optimistic about the preparatory steps toward re-establishing
the Indo-Iraq Joint Commission (JC),stating that the date of
the first working group meeting to precede the JC had not yet
been set, but the Iraqi Ministry of Oil would prepare a
technical paper outlining the issues they would like the JC
to address.


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