CANADA NUCLEAR "COOPERATION" WITH INDIA:

C O N F I D E N T I A L OTTAWA 002909

SIPDIS

NOFORN

E.O. 12958: DECL: 09/27/2015
TAGS: PARM MNUC PREL CA
SUBJECT: CANADA NUCLEAR "COOPERATION" WITH INDIA:
SIGNIFICANT, BUT LESS THAN MEETS THE EYE

REF: (A) OTTAWA 2768 (B) STATE 166864

Classified By: POL M/C Brian Flora. Reason 1.4 (b) and (d).

1.(C) In what is described as a major policy shift for
Canada, Foreign Minister Pettigrew announced September 26
that his government is ending Canada's 7-year moratorium on
civilian nuclear cooperation with India. Pettigrew made the
announcement at a joint press conference with Indian FM Singh
in Ottawa, following a meeting of the two Foreign Ministers.


2. (C/NF) In a discussion on September 27, Nuclear Affairs
Deputy Director Ron Stansfield told us privately that despite
media exaggerations and the verbal fist-pounding of "diehard"
nonproliferation activists, the new policy does not engender
any "real" commitments. He outlined four key elements of the
agreement with India:

-- India's positive response to Canada's long-standing (15
years) proposal for nuclear safety collaboration
(specifically not/not "cooperation," Stansfield asserted) and
agreement by both governments to develop a "mutually
beneficial bilateral framework" (Canada had proposed
announcing formation of an "experts group," India declined);
-- scientific and technical exchanges in the public domain
(i.e. principally academic venues; nothing commercially
sensitive or subject to NSG controls);
-- Canada's willingness to provide nuclear-related dual-use
items to Indian civilian nuclear facilities under IAEA
safeguards, in accordance with NSG dual-use guidelines
(Stansfield noted that crucial "government-to-government
assurances" for such potential exports have yet to be worked
out);
-- the readiness of both governments to explore further
opportunities for development of peaceful uses of nuclear
energy, consistent with their international commitments
(Stansfield noted, but was noncommittal about, prospective
USG-led changes at NSG).


3. (C/NF) Stansfield acknowledged that Canada's change in
policy was spurred by the USG's own civil nuclear cooperation
initiative with India announced July 18. There was a genuine
sense within the Canadian government that it was "time to
deal with India realistically," he said, and the GOC wanted
to offer encouragement to the Indians and welcome their new
commitment to nonproliferation. The change was also
consistent, Stansfield asserted, with the government's 2005
International Policy Statement and PM Martin's
acknowledgment, in New Delhi earlier this year, that India is
an important strategic partner for Canada. There had been
considerable pressure from the Prime Minister's office in the
run-up to the Singh visit, he said, "to be forthcoming with
India." While the announcement was warmly received by the
industry sector and Canada's influential Indo-Canadian
community, Stansfield continued, the government anticipated a
political backlash, led by the likes of (former Foreign
Minister) Lloyd Axworthy and others who had invested heavily
in shaping Canada's nuclear nonproliferation policy,
including its stance toward India.

Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa

WILKINS