STRATEGIC DIALOGUE WITH CHINA JUST THE BEGINNING,

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 000757

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E.O. 12958: DECL: 01/30/2015
TAGS: PREL PGOV IN CH
SUBJECT: STRATEGIC DIALOGUE WITH CHINA JUST THE BEGINNING,
BUT "GAP IS STILL WIDE" ON BOUNDARY ISSUES

REF: NEW DELHI 719

Classified By: PolCouns Geoff Pyatt, for Reasons 1.4 (B, D).


1. (C) Summary: "If China had proposed a strategic dialogue
a few years ago, we would have been wary," MEA Joint
Secretary (East Asia) told PolCouns and Poloff on January 31,

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adding that the PRC now seems willing to engage with India on
issues of global importance. Echoing Foreign Secretary
Saran's comments (reftel),Kantha described the recent
India-China meetings as upbeat but relatively weak on
substance. He reported that Beijing offered private support
for India's Security Council bid, and that the countries
discussed Iraq, Afghanistan, Pakistan, Iran, North Korea, and
Taiwan. More sensitive topics, including Burma, Nepal and
Central Asia, were not addressed. Despite the positive
atmospherics ahead of Wen Jiabao's expected March visit,
Kantha said "the gap is still wide" on the boundary issue, a
matter India is not prepared to let go unresolved. He
reiterated Indian interest in an invitation to the East Asia
Summit, providing there is consensus within ASEAN. End
Summary.

Willing to Engage
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2. (C) On January 31, following up our previous discussions
with the MEA on the India-China strategic dialogue (reftel),
MEA Joint Secretary (East Asia) Ashok Kantha briefed PolCouns
and Poloff, remarking that "if China had proposed a strategic
dialogue a few years ago, we would have been wary."
Underlining the improving ties between New Delhi and Beijing,
Kantha said that although the PRC had previously wanted to
confine India to South Asia, "now China seems eager to
discuss bigger issues with us." Kantha attributed this
change to Beijing's desire that India-US relations not become
"warmer than necessary" and commented that the Chinese want
something more than the current officially recorded
"cooperative, constructive relationship." While India has no
objections to simply re-labelling the relationship, "it
should not lead to obligations," he said.


3. (C) Kantha was impressed by the upbeat tone of the
meetings, telling PolCouns that Vice Foreign Minister Wu
Dawei made an effort to highlight the positive aspects of
India-China ties during his discussions with Foreign
Secretary Saran. It was also useful to understand those

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issues where Beijing and New Delhi do not agree, he remarked.
Calling the talks the beginning of a process, Kantha
expressed the hope that at later discussions would be more
substantive.

UN Security Council
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4. (C) According to Kantha, China privately supports India's
candidature for membership on an expanded Security Council.
Publicly, the PRC is not willing to go beyond "expressing
understanding" for India's bid for a Security Council seat
and indicating support for India to play a more important
role in international affairs.

Global Review
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5. (C) According to Kantha, Dawei was upbeat on Afghanistan,
describing the election of President Karzai as a positive
step. However, Dawei went on to describe US actions in Iraq
and Afghanistan as "the biggest tragedy of our times,"
complaining that the US had overthrown two regimes (the
Taliban and the Saddam Hussein regime) that it had created
(sic). Kantha found this part of the Chinese presentation
overdrawn.


6. (C) Kantha described Dawei as upbeat on the US approach
to Iran, telling Saran that the US seemed to favor a
"Libya-type solution" and that there was a good possibility
of a "soft landing" there. Dawei also provided a readout on
North Korea, arguing that six-party talks should resume.


7. (C) Although India raised the AQ Khan proliferation
network as a matter of concern, Kantha commented that China
was not prepared to engage substantively on the subject of
Pakistan's nuclear program, despite underlining general
concerns about non-proliferation.

Boundary Talks
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8. (C) Asked about the status of the boundary discussions,
Kantha emphasized that the GOI was not willing to defer
resolution of the boundary question indefinitely.
Working-level discussions on the boundary dispute would
continue, he said, but larger issues would have to wait until
India appoints another Special Representative to replace the
late NSA JN Dixit. Noting that "the gap that separates us is
still wide," Kantha emphasized that both sides must make
tough decisions. From New Delhi's perspective, territorial
concessions in the Eastern sector is "out of the question, a
non-starter," and even concessions in the Western sector
would be difficult. He argued that China should accept the
territorial status-quo in furtherance of their broader
bilateral agenda.

Regional Organizations
--------------


9. (C) According to Kantha, despite Beijing's interest in
SAARC, Chinese involvement there would be premature because
"SAARC needs to get its act together." China's involvement
could detract from the core issues, he added.


10. (C) Asked about the East Asia Summit, Kantha described
two schools of thought within ASEAN regarding India's
participation there. While some would like to see a 10 3
arrangement, with ASEAN nations plus Japan, China and South
Korea, others argue that this would be no different from
ASEAN plus three. Beijing has argued that ASEAN should take
the lead in the East Asia Summit, he said, but remarked that
China has offered to host the second Summit before
participants had even decided whether to have another Summit,
a move which "makes us nervous." He reiterated Indian
interest in an invitation to the East Asia Summit, providing
there is consensus within ASEAN.


11. (C) Kantha reported that China was "warming up" to the
idea of an India-Russia-China trilateral meeting, but
emphasized that "relations with the US are so important, we
do not want a trilateral dialogue to become a group."
Discussion would focus instead on economic issues, he stated.
He suggested that the Russians were still the strongest
advocate of this trilateral forum.

Taiwan
--------------


12. (C) China raised the issue of Taiwan and briefed India
on Taiwan's "secessionist legislation." Kantha noted that
Dawei had raised the issue in a "pro forma" manner,
suggesting that Beijing accepts India's "low-key" approach to
the issue. Our interests in Taiwan are economic, he
underlined.

Comment and Action Request
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13. (C) Kantha repeatedly stressed the convergence of US and
Indian interests with respect to China and underlined the
need to expand the US-India regional dialogue to include the
PRC. He also reiterated Indian requests for EAP officials at
the DAS level or above to come to New Delhi for discussions
on our interests and concerns related to China.
MULFORD