(CORRECTED COPY) CHINA/INDIA: DIFFERENCES ON IRAN,

C O N F I D E N T I A L BEIJING 001992

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/24/2016
TAGS: PREL CH IN NP IR
SUBJECT: (CORRECTED COPY) CHINA/INDIA: DIFFERENCES ON IRAN,
NEPAL NOTED AT INDIAN EMBASSY READOUT ON FOREIGN SECRETARY
SARAN'S BEIJING VISIT


Classified By: Acting Political Section Chief Robert
Griffiths. Reasons 1.4 (b/d).

CORRECTED COPY: ADDS NOTE TO PARA 5, CORRECTED TEXT IN
PARA 7.

Summary
--------------


1. (C) India and China maintain different positions on
Iran and Nepal, according to Indian Embassy Deputy
Chief of Mission Vinay Kwatra. In a readout to Acting
Polmincouns on Indian Foreign Secretary Shyam Saran's
visit to Beijing and in follow-on discussion, Kwatra
noted India's continued opposition to Iranian uranium
enrichment and contrasted this with Beijing's
preference for indefinite negotiations. China's
support for Nepal is bound up with its principle of
"nonintervention," but India seeks the revival of
Nepal's political parties alongside the monarchy.
India will host the next phase of border demarcation
talks in New Delhi. India views its civilian nuclear
power accord with the United States as a strictly
bilateral issue. India, China and Russia are
developing a trilateral mechanism for consultations
among their foreign ministers. End Summary.

India and China: Strategic Dialogue Partners
--------------


2. (C) Indian Embassy Deputy Chief of Mission and
Head of Economic and Commercial Department Vinay
Kwatra briefed Acting Polmincouns January 25 on the
visit of Indian Foreign Secretary Shyam Saran to
Beijing, January 9-11. In this second annual China-
India strategic dialogue meeting, Saran held meetings
with MFA Foreign Minister Li Zhaoxing, Executive Vice
Foreign Minister Dai Bingguo, Vice Foreign Minister
for Asia Wu Dawei and State Councilor Tang Jiaxuan.
The two sides discussed the full range of bilateral,
regional and global issues facing the two countries.
The two sides' first strategic dialogue in New Delhi
in January 2005, Kwatra noted, was dominated by
planning for Chinese Premier Wen Jiabao's April 2005
visit. This year's talks focused more on substantive
issues.

China-India Differences on Iran
--------------


3. (C) India's and China's positions on Iran are "not
the same," Kwatra stated. India has made clear its
position against continued uranium enrichment research
by Iran. The Chinese emphasized the importance of
constantly seeking a diplomatic solution.


4. (C) Kwatra said he previously served as Deputy
Director General for Iran and Afghanistan and is
familiar with the Iranian situation. India and Iran
have several consultative mechanisms, including annual
Foreign Minister-level talks. Kwatra said that
bilateral National Security Advisor talks were held in
the past but he was not sure if they continue. India
has explained to Iran the impracticality of Iran's
approach but these meetings were essentially an
exchange of positions.

Differences on Nepal's Internal Situation
--------------


5. (C) The situation in Nepal was discussed at great
length in the dialogue, according to Kwatra. China
emphasized its principle of "noninterference in
internal affairs" with respect to the King's
monopolization of power. India and Nepal have a
special relationship and their border is India's only
completely open border, Kwatra noted. Saran
reiterated to his Chinese hosts that India strongly
supports the restoration of the "three pillars" of
Nepali government- the constitutional monarchy, the
parliament representing the people and multiparty
democracy. The King should allow the revival of
independent political parties. (NOTE: The Government
of India traditionally expresses this idea as the
"twin pillars" of democracy comprised of a
constitutional monarchy and multiparty democracy. END
NOTE)



Sino-Indian Border Talks Set For Early 2006
--------------


6. (C) India expects to host the second phase of
Sino-Indian border talks in the first quarter of this
year. The issue was discussed only briefly during
Saran's meeting with Dai Bingguo. For the border
talks, India's National Security Advisor Narayanan and
China's EVFM Dai meet on a separate track as Special
Representatives of their respective Prime Ministers.
The first phase of talks, concluded late in 2005,
reached consensus on the principles and parameters of
the talks. India seeks a "comprehensive packet"
solution to border demarcation. The second phase will
be tougher than the first, Kwatra stated, because it
needs to resolve "nitty-gritty" issues along the
border.

U.S.-India Civilian Nuclear Cooperation
--------------


7. (C) Both sides raised India's civilian nuclear
cooperation accord with the United States during the
talks, Kwatra said. India's position is that the
agreement should be seen in a strictly bilateral
context. Furthermore, India's record of controlling
exports of WMD and missile-related materials is
"second to none." The Chinese did not voice
dissatisfaction with the U.S.-India arrangement,
according to Kwatra.

Russia-India-China Trilateral Mechanism
--------------


8. (C) India is developing a trilateral consultation
mechanism with Russia and China at the Foreign
Minister level, Kwatra said. The initial meeting was
held earlier in 2005. The next meeting is planned for
July 2006. The focus of the discussions is energy and
economic issues.

UNSC Reform
--------------


9. (C) Regarding India's interest in UN Security
Council reform, the Chinese told Saran they support
India's membership, but cannot support the G-4 because
of the inclusion of "a certain country."

Overall Direction of Cooperation
--------------


10. (C) India and China have rapidly expanded
contacts and institutional cooperation mechanisms
since 2000, Kwatra summarized, expanding from economic
issues to agriculture, health, and educational
exchanges. The two sides have established dialogues
on counterterrorism, energy, trade and hydrocarbon
emissions. China has become India's second-largest
trade partner, after the United States, with total
annual trade volume of USD 18.5 billion, growing at
40% per year. Joint projects have diversified to
include tuberculosis research, WTO positions and
global issues. The two countries' similar levels of
population, economy and development drive their common
interests.
Sedney