INDIA EMPHASIZES SUPPORT FOR NON-PROLIFERATION IN

UNCLAS SECTION 01 OF 03 NEW DELHI 008254

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV KNNP MNUC PREL ENRG IN NSSP
SUBJECT: INDIA EMPHASIZES SUPPORT FOR NON-PROLIFERATION IN
LANDMARK JULY 18 DEFENSE


1. (SBU) Summary: In a landmark October 24 speech aimed at an
elite group of strategic analysts, Foreign Secretary Sham
Saran forcefully defended the India-US civil nuclear
framework, offered helpful interventions on NSG and MTCR
harmonization, and highlighted India's vigorous support for
the global non-proliferation effort. Saran also explicitly
countered arguments that India has sold out to the US.
Throughout the speech, Saran projected confidence that India
and the US can sustain a cooperation based on shared
interests, with India reaping visible benefits in terms of
technology transfers. Pressed during the Q and A on the
separation of civilian and military nuclear facilities, Saran
emphasized the value of India declaring the maximum number of
civilian facilities in order to benefit fully from
international nuclear cooperation. The majority of questions
concerned India's September vote on Iran in the IAEA,
reflecting domestic sensitivities around the issue. Saran's
responses, as well as his prepared statement, mark an
important watershed in the Congress government's attempt to
advance India's emergence as a global power. End summary.

Saran Rap: India is Responsible and Consistent
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2. (SBU) On October 24, Saran spoke to a group convoked by
the Institute of Defence Studies and Analyses, an eminent
local strategic think tank. He opened by noting the
"healthy" level of debate surrounding the Next Steps in
Strategic Partnership (NSSP),the July 18 agreement with the
US, India's September vote on Iran in the IAEA, and the
recent deliberations of the NSG. He then defined the GOI's
policy as a consistent, principled approach that takes into
account both India's own national security interests and its
commitment to a rules-based international system.


3. (U) After briefly outlining India's history of engagement
on non-proliferation issues, he went on to explain how the
July 18 agreement with the US commits India not to transfer
reprocessing or enrichment technologies and to supporting
international efforts to limit their spread. According to
Saran, this measure is well within the framework of India's
obligations under UNSC Resolution 1540. Saran continued that
India's own security interests had been seriously undermined
by clandestine nuclear activities within the region, and, in
a dig at Pakistan, argued that transparency was key.

Iran and the IAEA
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4. (U) In addressing India's controversial September 24 vote
on Iran in the IAEA, he said: "We should avoid a divisive
vote at the IAEA's next meeting in Vienna," and added that
India hopes to resolve the Iranian crisis through dialogue.
Saran observed that "with respect to the Iran nuclear issue,
we welcome Iran's cooperation with the IAEA in accounting for
previously undeclared activities, but it is important that
remaining issues which involve the Pakistan-based A.Q. Khan
network are satisfactorily clarified as well."


5. (U) Turning to India's agenda, Saran stated: "For the
future, we believe we have the responsibility and capability
to participate fully and actively in global R and D efforts
to evolve proliferation-resistant nuclear technologies, which
enable us to derive the full benefit of nuclear energy,
minimizing the risk of diversion to military uses." He added
his hope that India will become a full partner in the
International Thermonuclear Energy Research (ITER) project
and the US-led Generation IV initiative.

Specific Benefits of Sharing Interests With US
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6. (U) Saran targeted his remarks to detractors who have
claimed the GOI is blindly allying itself with the US. He
pointed out that in the context of India's history, the
current decisions on non-proliferation reflect continuity.
Referring to the UPA government's controversial vote on Iran
at the IAEA BOG in September, he stated that the GOI's
decision-making in sensitive matters is rooted in self
interest and good judgment rather than in external
influences. Recalling U/S Burns's public comments, Saran
insisted there was "no linkage" between India's IAEA vote and
the July 18 framework. He then added that India must adapt
to changing global expectations and become "an increasingly
influential actor on the international stage."

Following the Rules
--------------


7. (U) Saran acknowledged that India would have to answer the
question: "What does the international community gain in
making an exception to the current regulations for India?"
He felt the answer lies in one of India's key objectives,
gaining global recognition as a responsible non-proliferator.
He stressed that India's steps, including "enactment of the
WMD Bill, the upgradation of the national export control
lists so as to harmonize them with those of the NSG and MTCR,
the proposed separation of our civilian and military nuclear
facilities, and the negotiation of an additional protocol in
the IAEA" have all given the international community greater
confidence in India's robust and effective export control
system, thereby making India a more viable destination for
advanced dual-use technologies. He cited the example of the
US already providing more liberal and predictable licensing
for dual-use technology for Indian industry. Saran also
argued tht the completion of the NSSP as beneficial for
licensing, and he reiterated that 'NSG plus' and 'MTCR plus'
restrictions had already been abolished. He indicated that
India-US space and satellite cooperation had an economic pay
off for India and also opened the door to a dialogue on
missile defense.

Separation of Civilian and Strategic Nuclear Facilities
-------------- --------------


8. (U) Saran likened the global non-proliferation regime to a
tent, and said "Obviously, we cannot be inside the tent if we
do not measure up to the required norms." He emphasized the
July 18 agreement with the US as one that concerns civilian
nuclear energy cooperation rather than weapons
non-proliferation and noted that it is legitimate for
partners to request a distinction between civilian and
military uses of the nuclear sector. He refused to be drawn
out on whether specific facilities would be safeguarded under
the July 18 framework, averring that the GOI is still
debating this internally. Saran addressed comments directly
to the non-proliferation community and "those who fear an
effort to keep out some civil facilities" when saying there
is no point "salting away" certain facilities since India's
goal is the widest possible civil nuclear cooperation with
the international community. He frankly acknowledged the
potentially high costs of separating nuclear facilities.

Comment: An Emerging Global Power
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9. (SBU) Saran's strong, specific defense of Indo-US
cooperation is especially welcome in light of media and
public criticism of the perceived US influence on Indian
foreign policy. An October 22 op-ed column in the Asian Age,
for instance, savaged the GOI for allegedly selling out
Indian interests. Nevertheless, Saran very clearly outlined
the reasons why Indian policies and American interests can
coincide. The fact that this ringing endorsement comes on
the heels of U/S Burns's visit suggests by inference that
Saran was receptive to the newly elaborated US agenda and
remains firmly convinced that we can sustain a lasting
relationship based on shared interests. Saran did not address
the Proliferation Security Initiative, reminding us that this
is an issue we must continue to push. Nevertheless, the
speech reveals a new level of maturity and confidence in
India's role as an emerging, responsible global power. End
comment.
MULFORD