C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000759

SIPDIS

PLEASE PASS COMMERCE/BIS FOR MATT BORMAN AND NRC FOR
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E.O. 12958: DECL: 12/31/2014
TAGS: PREL KNNP ETTC TSPA IN NSSP
SUBJECT: RESTORING MOMENTUM TO OUR NSSP RELATIONSHIP

REF: NEW DELHI 72

Classified By: DCM Robert O. Blake, Jr. for Reasons 1.4 (B, D)


1. (C) MEA Joint Secretary Americas Jaishankar called in DCM
and PolCouns on January 31 to reiterate his earlier message
(reftel) regarding the likely impasse in our Next Steps in
Strategic Partnership (NSSP) relationship if we are not able
to achieve buy-in from key GOI scientific agencies that for
now blame MEA for the shortfall between "the promise and the
reality" of our high tech relationship. Jaishankar
acknowledged real progress under the NSSP, as demonstrated,
for instance in the growing volume of licensed trade. He
characterized the Defense Research and Development
Organization (DRDO) as the most "clued in" of the three key
NSSP constituencies, but indicated that ISRO (space) and AEC
(civil nuclear) were problematic. Following up on our
earlier encouragement for India to produce the draft export
control documentation required for Phase 2 of NSSP,
Jaishankar warned that he faced increasing opposition from
AEC and to a lesser degree ISRO because of "question marks
about commitment (to NSSP) on the US side."


2. (C) Echoing earlier comments by the Prime Minister,
Jaishankar emphasized that India in some areas could take
steps on export control that surpass the US benchmarks.
However, he reiterated, he had a sense that AEC in particular
was starting to "disassociate itself" from the NSSP process,
because of a perception that nothing was really changing in
their relationship with the US.


3. (C) Elaborating on this point, Jaishankar flagged two
major areas of potential cooperation:

-- On civil nuclear issues, India wants to address safety
issues within the reactor island. This will be a GOI focus
during the upcoming visit by NRC Commissioner Meserve.
Echoing Foreign Secretary Saran's November pitch to NSA Rice,
Jaishankar also urged that the US not persist in blocking
others (a reference to Russia and France) from their
proposals for civil nuclear cooperation with India.

-- On space, Jaishankar passed on a non-paper (full text para
6) seeking a US non-objection for the Indian launch of a Thai
earth observation satellite containing US scientific
components. He warned that US opposition to transactions of
this sort ("killing their commercial prospects elsewhere")
made it hard for him to build a constituency in ISRO for
US-India space cooperation.

Concluding, Jaishankar asked for an update of US
deliberations on these issues, reiterating the GOI hope that
Washington will consider steps to maintain momentum in the
NSSP.


4. (C) PolCouns noted that the NSSP is a two way street, with
several steps outstanding that India could usefully take to
maintain momentum behind the process, including the sharing
of Indian export control legislation and completion of
India's space cooperation wish list. DCM also warned that a
US reply on these issues could be delayed by the transition
in Washington. Jaishankar took these points, but reiterated
that without a "forthcoming attitude on both sides" progress
in the NSSP framework is likely to be slow.


5. (C) Comment: Reftel laid out a series of possible steps to
address GOI dissatisfaction with the nuclear leg of the NSSP,
including Indian participation in ITER, other cooperation on
nuclear fusion, or more robust safety collaboration with the
US Nuclear Regulatory Commission. Jaishankar acknowledged
that US flexibility in these areas is constrained by US law
and our NPT obligations, but also underlined that India wants
to find common ground with the US, accepts the basic
framework of NSSP quid-pro-quos, and hopes Washington will
look again at options for deepening our civil nuclear
cooperation.


6. (U) Begin text, MEA non-paper:

Astrium, a 100% subsidiary of EADS, is examining the launch
of a Thai earth observation satellite, Theos, on the Indian
PSLV. Technically, the launch platform parameters appear to
be appropriate.

However, Theos contains some US components and there appear
to be apprehensions, possibly misplaced, that USG may not
give requisite clearance for such a launch.

The conclusion of NSSP I and ongoing discussions on NSSP II
have created a climate of confidence and understanding
between GOI and USG. It is GOI's expectation that USG would
not have reservations on a launch proposal that has only
commercial significance.

Accordingly, GOI requests USG confirmation that it would not
have objection to the proposed launch. End text.
MULFORD