INDIAN INITIATIVES TO FURTHER HIGH TECH, BIOTECH,

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000072

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COMMERCE FOR MATT BORMAN, PASS TO NRC

E.O. 12958: DECL: 01/02/2015
TAGS: PREL PGOV ETTC KNNP TRGY IN NSSP
SUBJECT: INDIAN INITIATIVES TO FURTHER HIGH TECH, BIOTECH,
AND NUCLEAR COOPERATION

REF: 04 STATE 263394

Classified By: Deputy Chief of Mission, Robert O. Blake, Jr., Reasons 1
.4 (B,D).


1. (C) Summary: Despite changes in key USG interlocutors,
the GOI hopes to preserve momentum on high-tech trade and
other cooperation under the Next Steps in Strategic
Partnership (NSSP) umbrella and is looking to Washington for
similar signals. In a December 29 meeting with PolCouns and
Pol-MilOff, MEA Joint Secretary (Americas) S. Jaishankar
outlined an ambitious agenda for the High Tech Cooperation
Group (HTCG) focusing on private sector initiatives over the
next six months while Commerce U/S Juster's replacement is
identified and confirmed. He also suggested the NSSP
Implementation Group meet in early February to take advantage
of US officials coming to India for other events. Jaishankar
underscored the need to expand US-India nuclear cooperation
in order to build scientific support for the NSSP process and
maintain progress on other NSSP benchmarks. MEA Additional
Secretary Meera Shankar echoed these points on January 4,

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suggesting that US-India cooperation in new areas of nuclear
research (she mentioned the ITER fusion project) could be an
important catalyst to Indian scientific support for the NSSP
quid-pro-quos. End Summary.

High-Level High Tech Events in the Works
--------------


2. (C) In an December 29 meeting focused on next steps in
the US-India strategic relationship, MEA Joint Secretary
(Americas) S. Jaishankar emphasized the GOI intention to
sustain the positive momentum created by our agreement on
Phase 1 of the NSSP. Noting the potential convergence of key
HTCG and NSSP players in India in February for AeroIndia and
an international life sciences conference, PolCouns asked
about GOI plans for leveraging these events. Noting the GOI
expectation that it could take several months to nominate and
confirm a successor for Commerce Undersecretary Juster,
Jaishankar suggested that we should focus the next few months
on the private sector side of the HTCG. He indicated, for
instance, that an informal meeting of the HTCG defense
subcommittee could happen on the margins of AeroIndia, adding
that he had already recommended such an event to the Ministry
of Defense, although the Confederation of Indian Industries
(CII) would host it. He likewise expressed interest in
mobilizing a private sector event in the area of life
sciences hosted by the Ministry of Science's Secretary for
Biotech.

Need for New Ideas on Nuclear Cooperation to Keep NSSP Moving
-------------- --------------


3. (C) Noting the upcoming visit to India of Nuclear
Regulatory Commission (NRC) Commissioner Merrifield, PolCouns
suggested this would be a good opportunity to rebut concern
among the Indian scientific establishment about limited
cooperation on nuclear issues under the NSSP. As the first
among equals in the Indian scientific establishment,
Jaishankar explained, Department of Atomic Energy chairman
Kakodkar has the ability to set the tone for other agencies.
If he feels that India's nuclear sector will not benefit from
the NSSP, Jaishankar continued, Kakodkar could retard
progress in the other areas of NSSP cooperation (export
controls, defense research and space). With this in mind,
Jaishankar appealed for a more liberal interpretation of
nuclear safety collaboration in Phase II, noting that this
issue was also raised in the November meeting between Foreign
Secretary Saran and NSA Rice.

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4. (C) Jaishankar remarked on the sense among some in the GOI
that India's desires for expanding cooperation with the US on
nuclear safety are being "brushed off" by the Department, as
well as general skepticism that progress on the later phases
of the NSSP will be hampered by "nit-picky" lawyers. "We
should be picking up momentum right now, not just cruising
along," Jaishankar stated. Echoing U/S Juster, PolCouns
argued that "progress begets progress," and urged that the
Indian side to avoid creating the impression that New Delhi
was trying to renegotiate the NSSP, but rather take tangible
steps to implement it. Jaishanker nodded his head in
agreement, but also flagged the political problem he faces
from the Indian nuclear establishment.


5. (C) We heard a similar message in a January 4 meeting with
our other key NSSP interlocutor, MEA Additional Secretary
Meera Shankar. Responding to PolCouns' description of the
Washington desire to maintain forward momentum on the NSSP,
Shankar warned that the Indian nuclear establishment had
become a real obstacle to steps such as NSG adherence and
stronger export controls. The scientific community, she
claimed, believes that nothing has really changed in our
nuclear relationship, and uses this view to argue that India
should not change its own policies. This dynamic, she
continued, helps to explain the strong GOI push for a more
flexible US interpretation of matters such as the NSG safety
exception. Responding to PolCouns warning that some areas of
nuclear cooperation will remain "a bridge too far," she
suggested that cooperation in areas not restricted by the NSG
lists might help to change the view of NSSP among India's
atomic establishment. For instance, she suggested that US
support for India's involvement in the ITER fusion project
(as proposed at the recent EU-India summit) would be an
important step forward. Elaborating on this theme, she
emphasized the Indian potential to contribute to ITER, and
asked whether a letter to this effect from the GOI to DOE
would be helpful. PolCouns undertook to seek guidance on
this topic.

Scheduling the Next NSSP Meeting
--------------


6. (C) With both Shankar and Jaishankar, PolCouns pressed the
Indians for documentation about progress on India's
commitments under Phase II of the NSSP. Since most Phase II
steps involve revising laws and regulations, it serves
India's interests to get the texts of these to us early.
Jaishankar responded that early US identification of a date
for the next meeting of the NSSP Implementation Group would
enable him to start pressing the GOI bureaucracy to generate
the required legislation and related documentation. He
specifically suggested that the next implementation group
meeting be set for mid-February in Delhi in conjunction with
the AeroIndia and the life sciences conference -- adding that
"with NSSP nothing gets decided until a meeting is fixed."
MULFORD