BLAIR SUPPORTS INDIA CIVIL NUCLEAR COOPERATION AND

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 007197

SIPDIS

E.O. 12958: DECL: 09/15/2015
TAGS: PREL ETRD EINV EAID KDEM KNNP PHUM IN UK EU IR GM NSSP
SUBJECT: BLAIR SUPPORTS INDIA CIVIL NUCLEAR COOPERATION AND
SQUEEZES ON IRAN, BUT THE BIG NEWS IS POSITIVE CHEMISTRY

REF: A. NEW DELHI 6994

B. NEW DELHI 7028

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


1. (C) Summary: In a briefing on the September 7-8 India-EU
Summit, British High Commissioner Sir Michael Arthur
emphasized the UK's support for civil nuclear cooperation
with India, the success of the UK's effort to play up its
European personality during this visit, and the excellent
personal chemistry between PM Blair and Singh. Despite a
long and difficult negotiation process, Sir Michael praised
the EU's 21-page Joint Action Plan (JAP),with particular
attention to the sections on energy and the environment. The
High Commissioner also summarized EU pressure on India to
toughen its policy on Iran. The UK will devote the rest of
its EU presidency to carrying out its commitments with India
on the JAP. In this regard, the UK and EU are trying to
catch-up to the US. End Summary.

UK Plays Catch-up on Nuclear Cooperation
--------------


2. (C) The UK announced support for greater civilian nuclear
cooperation with India at the summit and are beginning to
look at "next steps." The British expect a meeting of the P3
with the US and France in November to coordinate a collective
way forward. British Foreign Policy Advisor to the PM Sir
Nigel Sheinwald has formally invited Chairman of the Indian
Atomic Energy Commission Anil Kakodkar to London to "break
the ice" with British atomic energy counterparts, but the
Indians have not yet responded. When PM Blair called on
President Kalam, the former rocket scientist discussed Indian
ambitions to operate thorium-based fast breeder nuclear power
reactors within ten to fifteen years. Sir Michael commented
that this is ten years earlier than the UK had heard
previously.

India Must Take a Stand on Iran
--------------


3. (C) The British have been putting pressure on the GOI to
take a stand on Iran's nuclear program while assuring the
Indians they are not looking for immediate UN sanctions. FS
Straw briefed FM Natwar Singh on the British position, to
which Singh gave a "flimsy response" that India does not want
confrontation at the UNSC level over Iran. When Germany's
point-person on Iran nuclear negotiations Michael Schaefer
spoke with Indian MEA Additional Secretary for International
Security Meera Shankar, the Brits told us her only response
was "we hear what you're saying." Shankar indicated that she
was waiting for a Non-Alligned Movement opinion in order to
proceed, to which Schaefer emphasized that the EU-3 were
looking for Indian leadership to bring the NAM around to the
right view.

Blair and Singh Cozy Up in Udaipur
--------------


4. (C) Sir Michael characterized the good chemistry between
Prime Ministers Blair and Singh as the "single most important
thing of the day," placing the Singh-Blair dynamic on par
with the British PM's closest international relationships.
Leading up to the summit, the UK had a "bloody impossible"
time negotiating between various EU and Indian bureaucracies.
Sir Michael stressed that the Indians, who view the EU as an
economic actor, were "falling over backwards" to separate the
UK and Europe; although the UK was representing the entire
EU, the High Commissioner stressed that the European body as
a whole needs to develop a closer relationship with the
Indians. After entertaining fifty European CEOs during the
India-EU Summit (Ref B),the second day bilateral meetings
gave the GOI time for intimate discussions with top British
leaders amidst the picturesque Rajastani backdrops in
Udaipur. Sir Michael noted that Blair and Singh had an hour
and a half of one-on-one "high quality discussions," during
which he intentionally kept Natwar Singh occupied so that
Blair and PM Singh could talk alone without the Indian
Foreign Minister crowding out the discussion. The two spoke
for another hour and a half at a larger lunch meeting which
included Natwar Singh and NSA Narayanan.

UK and India Agree on Regional Issues
--------------


6. (C) During their plenary conversations, Blair and Singh
touched on assessments of Pakistan, Bangladesh, and Nepal,
but avoided Iran. Sir Michael commented that a "carefully
balanced discussion" on Pakistan reassured Blair that Singh
was "prepared to think like a leader" on improving ties with
Islamabad. Singh stressed that a reduction in terrorism is
the absolute precondition for progress and did not preview
any future steps, but Blair was impressed with the Indian
PM's "positive views" on the subject and shared his
experiences working with Northern Ireland. Noting
similarities, Blair explained how he worked to keep the Irish
peace process moving forward even under intense pressure.


7. (C) On Bangladesh, the Prime Ministers had similar
analyses of the problem and agreed to a more systematic
exchange of information. Singh stressed that Bangladesh is
causing migration and economic problems for India. Sir
Michael was surprised at a tacit Indian recognition that
"they aren't always the easiest to work with" on Bangladesh.
While GOI leadership is united over the eastern neighbor, the
Indians admitted to an internal debate over how to confront
Nepal, with NSA Narayanan confessing that he and FS Saran
have "different views."

Joint Action Plan and EU Assistance
--------------


8. (C) The British High Commissioner told us that the UK
will use the remainder of its EU Presidency to make sure that
the Joint Action Plan (JAP) is implemented, noting the risk
with the EU is that such declarations end up being "just
words." He emphasized the energy and environment sections of
the JAP as the "most substantial" (Ref A). Other EU
priorities include anti-terrorism cooperation and increasing
development assistance, which comes in response to the GOI's
late July request for a substantial new European development
assistance initiative.

Economics Most Important to EU
--------------


9. (C) From the European point of view, Sir Michael argued
that economics and business are India's biggest advantages
(Ref B). With the presence of fifty top CEOs, the summit had
a strongly economic flavor. In a remarkable role reversal,
India has also emerged as one of the UK's largest foreign
investors. Still, the High Commissioner worried that the PM
has not set up the necessary infrastructure within his own
office, such as the "special cells" he created on political
and nuclear issues, to push through economic reform.

Comment: High on Chemistry, Low on Substance
--------------


10. (C) Comment: The Brits got the symbolism of this visit
just right -- a widely circulated photo of Cherie Blair
meeting kids at a AIDS hospice helped add a note of
seriousness to images of Blair and Singh back slapping amid
Rajastani castles. The excitement over the July 18th
US-India joint statement upped the stakes for the India-EU
Summit, and the recent British and French meetings have
echoed many of our major accomplishments, to include the
revival of nuclear scientific contacts and the commitment to
full civil nuclear cooperation. The British had a harder
time because they had to trudge through the massive EU
bureaucracy and contend with their unique colonial history.
After Singh indicated that Europe is no longer the preferred
destination for work or business, the Brits were left playing
catch-up and scored several notable successes, to include the
GOI commitment to fund a Nehru chair at Cambridge University.
In this regard, India's relationship with the US is shaping
and modernizing its relationship with Europe. End comment.


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