Identifier
Created
Classification
Origin
06KABUL1977
2006-05-02 14:28:00
CONFIDENTIAL
Embassy Kabul
Cable title:  

PRESIDENT KARZAI'S VISIT TO INDIA

Tags:  PREL ECON EAID ETRD EFIN MARR AF IN 
pdf how-to read a cable
VZCZCXRO0941
OO RUEHDBU
DE RUEHBUL #1977/01 1221428
ZNY CCCCC ZZH
O 021428Z MAY 06
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9964
INFO RUCNAFG/AFGHANISTAN COLLECTIVE PRIORITY
RUEHDBU/AMEMBASSY DUSHANBE PRIORITY 0220
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 6885
C O N F I D E N T I A L SECTION 01 OF 02 KABUL 001977 

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/26/2016
TAGS: PREL ECON EAID ETRD EFIN MARR AF IN
SUBJECT: PRESIDENT KARZAI'S VISIT TO INDIA

REF: A. DUSHANBE 00776

B. DELHI 2603

KABUL 00001977 001.2 OF 002


Classified By: AMBASSADOR RONALD NEUMANN BY REASON 1.4(A) AND (D)

C O N F I D E N T I A L SECTION 01 OF 02 KABUL 001977

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/26/2016
TAGS: PREL ECON EAID ETRD EFIN MARR AF IN
SUBJECT: PRESIDENT KARZAI'S VISIT TO INDIA

REF: A. DUSHANBE 00776

B. DELHI 2603

KABUL 00001977 001.2 OF 002


Classified By: AMBASSADOR RONALD NEUMANN BY REASON 1.4(A) AND (D)


1. (SBU) SUMMARY: President Karzai had a productive
visit to India earlier this month to discuss a variety
of bilateral and regional issues. The visit of
President Karzai and his 109 member delegation,
including nine parliamentarians, religious leaders,
and businessmen, reinforced the close relationship
between India and Afghanistan and resulted in the
signing of three bilateral cooperation agreements on
rural development, education, and standards. Prime
Minister Singh pledged an additional $50 million under
India's Assistance Program for Afghanistan, targeting
infrastructure, human resource development, and
humanitarian assistance. Afghan business leaders and
their Indian counterpart business associations
discussed further collaboration and mentorship.
During the visit, there was no bilateral Defense
Ministers meeting, and the issue of GOI equipment
support for the ANA and ANP was not formally
discussed. Karzai was careful not to do anything that
would create problems with respect to Afghanistan,s
relations with Pakistan. End Summary.


2. (U) PolCouns met with Indian DCM Sandeep Kumar on
April 20th to get a readout on President Karzai's
April visit to India. PolCouns later met with National
Security Rassoul to find out more about the Afghan
perspective on the visit.

INCREASED PLEDGES


3. (U) In an increasing show of support for
Afghanistan, India pledged an additional $50 million
dollars in assistance. Cooperation on infrastructure
development, human resource development and
humanitarian aid has already brought $600 million
dollars in assistance to Afghanistan.

EDUCATIONAL EXCHANGE EFFORTS


4. (SBU) India continues to work on developing human
capacity in Afghanistan through 500 long-term and 500

short-term scholarships at Indian universities. So
far, the Afghan response has been overwhelming.
Qualified applications well exceeded the number of
spots available even after the initial screening test.
DCM Sandeep Kumar expressed frustration over a
(relatively small) fee assessed by the GOA to cover
exam costs stating that the fee may have prevented
more disadvantaged students from applying. The DCM
also related that many applicants continued to apply
to the most selective universities in India despite
repeated warnings that admission would be extremely
difficult, even for the most qualified. Kumar noted
that the GOI funds the program, but individual
universities make their own admissions decisions.
(Comment: Nonetheless, this generous program has the
potential to contribute greatly to the skills
development of Afghanistan,s youth and future
leadership. End Comment.)

BUSINESS DEVELOPMENT INITIATIVES


5. (U) The Indian DCM said, now that democracy has
taken root in Afghanistan, the focus of the Afghan-
Indian relationship will shift towards expanded
commercial ties and joint rural economic development
initiatives. Afghan business delegates met with
India,s three premier business federations: The
Confederation of Indian Industries (CII); the
Federation of Indian Chambers of Commerce and Industry
(FICCI); and the Associated Chambers of Commerce and
Industry of India (ACCII) to explore the potential for
expanded business-to-business cooperation. To further
business development, the Indian Prime Minister
offered to consider extending a $50 million line of
credit through the GoI Export Import Bank to promote
trade and development between the two countries.
(Note: We understand that the GoI is considering
trade credits with a grant element of 40%.
Discussions are ongoing between the GoI and IMF to
meet the Fund,s 60% grant element threshold. End Note)
An Indian products show was also proposed later this
year in Afghanistan.


6. (U) Karzai also visited several high-tech
projects in Hyderabad. He expressed a strong desire

KABUL 00001977 002.2 OF 002


to see technological development come to Afghanistan
despite many roadblocks. Particularly noteworthy to
Afghans were the substantial export earnings generated
without significant natural resource endowments. In
Hyderabad the delegation also visited the Indian
National Remote Sensing Agency and a Rural Development
Pilot Project.


7. (U) The Indian DCM also highlighted housing
development as an area for collaboration. He said
that Indian organizations and businesses are well-
suited to provide low cost housing that the free-
market would not naturally provide.

TRANSIT OF GOODS THROUGH PAKISTAN


8. (SBU) Transit of Indian goods through Pakistan
continues to be a serious problem. Talks centered on
the need for Afghanistan to continue to apply
diplomatic pressure on the Pakistanis in order to
expedite the transit of goods between India and
Afghanistan. Alternatives such as shipping goods
through Karachi's port were also discussed, but GoA
officials called this an expensive route resulting in
heavy demurrage and state transport charges.

RELIGIOUS COLLABORATION


9. (C) Karzai also went out of his way to include
six well-known mullahs as part of his delegation.
National Security Advisor Rassoul told PolCouns that
this helps to broaden the perspectives of the Afghan
clergy. The Afghan religious leaders met with their
Indian counterparts to discuss how democracy and Islam
coexist in India, which has the second largest Muslim
population in the world.

NO ATTEMPT TO PLAY INDIA CARD AGAINST PAKISTAN


10. (C) During Karzai's visit, the Afghan President
carefully avoided public statements that might worsen
relations with Pakistan. Throughout the visit Karzai
was careful to refer to the Pakistani President as "my
brother Musharaf". According to NSA Rassoul
(protect),although Afghan Defense Minister Wardak was
a member of the delegation, his Indian counterpart,s
involvement with an election campaign precluded a
bilateral meeting. Although Afghanistan is
considering Indian equipment (or light weaponry) to
fill some of its needs, the issue of GOI military
assistance could not be raised. Rassoul emphasized
that "anything" the GOA did in this area would be
carefully coordinated with the USG. Rassoul also noted
that the issue of terrorism was discussed. Here again,
Karzai was careful not to ruffle Pakistan's feathers,
commenting to the press that "We talk with our
brothers in Pakistan regularly on all questions.
Terrorism as it is affecting us and them and India as
well as the rest of the region is something we talk
about regularly and I am sure as we continue this
dialogue and effort we will eventually find a more
effective way in fighting this menace across the
region."

COMMENT


11. (C) Karzai had planned to spend six days in India,
including three days of vacation, but parliamentary
confirmation of is cabinet drove him to cut the visit
in half. If there was more to the security discussion
of the trip (which we do not rule out) both the
Indians and Afghans appear to be keeping it well below
the surface.
NEUMANN