POSITIVE BURNS-SHARMA FEBRUARY 24 MEETING FOCUSES

C O N F I D E N T I A L SECTION 01 OF 05 NEW DELHI 001396

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/23/2016
TAGS: PREL ENRG KNNP OVIP CVIS EINV ENLT KFLU TBIO
TRGY, TSPA, KDEM, KHIV, EAID, EAGR, IN
SUBJECT: POSITIVE BURNS-SHARMA FEBRUARY 24 MEETING FOCUSES
POTUS VISIT, CIVIL NUCLEAR, DEMOCRACY AND HEALTH

REF: A. NEW DELHI 1364

B. NEW DELHI 1273

Classified By: Ambassador David Mulford for Reasons 1.4 (B, D)


1. (C) Summary: The February 24 meeting between Under
Secretary for Political Affairs Burns and Indian Minister of

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State for External Affairs Anand Sharma reflected important
GOI political endorsement of the positive direction of our
bilateral relationship. Sharma, well-versed in the web of
July 18 initiatives, was supportive and in some cases
forward-leaning on topics including the civil nuclear
arrangement, democracy promotion, and HIV/AIDS and Avian
Influenza assistance. He was clearly appreciative of past
USG assistance to India, and he will be a useful and
necessary ally in winning over what he terms "ill-informed
and not-informed" Indian critics. He candidly acknowledged
the challenges of "old mindsets" among the GOI's nuclear
establishment. End Summary.

Looking Forward to Presidential Visit
--------------


2. (C) Sharma opened by underlining the symbolic importance
of the upcoming POTUS visit as a demonstration of deepening
US-India engagement. Both the GOI and the Congress Party
want a successful visit that will carry forward in a tangible
way the July 18 agreement and further consolidate bilateral
relations across a spectrum of issues, including (but not
exclusively) nuclear energy, he said. U/S Burns recalled his
conversation with PM Singh the previous night, in which the
PM called the POTUS visit the culmination of an "historic
reconciliation and concord"; U/S Burns added that the path is
being cleared for US-India relations to finally reach their
full potential. Sharma took note of the intense bilateral
interaction leading up to the visit that would "cover all the
topics we could not achieve before." "It will be an
opportunity for India to show our sincerity," he concluded.


3. (C) Ambassador Mulford drew Sharma's attention to the
February 22 POTUS speech to the Asia Society to underscore
the very detailed attention the President attaches to
economic issues in his explanation of why US-India relations
are so critical. Sharma responded that POTUS and the PM
focused on "tha right issues," including the Agricultural
Knowledge Initiative (which he called a major
accomplishment),the S&T Commission, and space launch
cooperation. He added that India greatly appreciates the
invitation to participate in FutureGen to help address
India's growing need for clean energy.

Outreach to India's Nuclear/Scientific Community
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4. (C) Sharma turned to domestic criticism of the civil
nuclear deal lodged by Indian scientists. Indian nuclear
scientists (and those in related fields) have been shunned by
their international colleagues for 35 years and have been
living in "their own zone, isolated," and they need
"reassurances," he said. U/S Burns remarked that he and
Foreign Secretary Saran had spent hundreds of hours to get
just beyond 90% of the way to concluding the civil nuclear
arrangement, but as with many things, the last little bit is
the most difficult. The USG needs further clarity on India's
separation plan, inter alia, how power and breeder reactors
will be treated. Once we have an agreement, the isolation of
India's scientists will be firmly in the past, and they will
be welcomed into the international mainstream. U/S Burns
reminded Sharma of India's potential role in the Global
Nuclear Energy Partnership, and encouraged India to be part
of that project at the ground floor. To be eligible,
however, India's breeder reactors should be safeguarded.
Otherwise it would be difficult for Delhi's nuclear
establishment to collaborate with scientists from GNEP
participants on advanced reactor technology.


5. (C) Sharma told U/S Burns the scientists are a proud
group given the hurdles they overcame to build India's
nuclear deterrent, and the Indian people are proud of them.
Once they are integrated into the global scientific
community, they will be in a position to share their
knowledge and expertise in a larger partnership, which will
help reduce the criticism some of their number voice about
the proposed nuclear deal. "Both sides need to break down
the old mindsets," Sharma offered. He suggested both Delhi
and Washington need to keep pushing to inform their citizens
of the realities behind the nuclear arrangement, to avoid the
message being crowded out by the criticism of "the
ill-informed and the not-informed."


6. (C) Elaborating on this sense of pride among the Indian
scientific community, Sharma raised the much-publicized cases
of three scientists whose visas to visit the US were delayed
by the Mantis requirement, calling this "unnecessary bad
publicity." (NOTE: The two Ref B scientists have
subsequently had their visa applications approved, the third
case is pending. End Note.)

Sharma Aware of Necessary Congressional, NSG Action
-------------- --------------


7. (C) Sharma, mindful that the nuclear arrangement would
require Congressional approval by amending US proliferation
legislation, expressed his hope that a successful US-India
nuclear deal would lead to swift easing of Indian access to
technology from other NSG states after the next NSG meeting
in May. U/S Burns replied that the USG is willing to go to
Congress, but Members understandably will not commit to

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supporting the separation plan until they see it for
themselves. A plan that placed only the bare minimum of
facilities under safeguards would face a harder time
garnering support than a plan that included more facilities
in the civil sector, both with Congress and the NSG.

The Broader Agenda
--------------


8. (C) Sharma complained that the Indian press is hyping the
nuclear discussions to the exclusion of the host of other
bilateral interactions on the table. "We need to cool the
media a bit," he suggested. U/S Burns responded that the
broad outlines of the July 28 agreement -- encompassing
energy, S&T, space launch cooperation, education,
agriculture, health, and more -- demonstrate the USG's
commitment of time, resources, and priority to the US-India
relationship. Ambassador Mulford pointed out that India's
80,000 students attending US schools outpaces even China's
62,000.


9. (C) Ambassador Mulford told Sharma the proposal for a US
Consulate in Hyderabad had been cleared within the USG, which
Sharma called "a very good message." Sharma was also
encouraged to hear that new regulations allowed student visas
to be processed faster and issued with greater lead-time for
Indian students to settle in to US campuses before their
academics begin.

Brainstorming on Democracy Promotion
--------------


10. (C) U/S Burns reminded Sharma that Washington and New
Delhi were the first two contributors to the UN Democracy
Fund, but the Fund still lacked a well identified, central
unifying theme. Democracy promotion should be a central
theme for the POTUS visit, he continued, asking if the GOI
would consider starting its own project, possibly under the
auspices of the Rajiv Gandhi Foundation or a similarly
well-regarded NGO with appropriate experience. Another
option is participating in another multilateral effort such
as the BMENA Fund for the Future. Sharma thoughtfully
responded that he would consider the suggestion and discuss
the possibility with Congress Party President Sonia Gandhi.
He nodded in agreement as U/S Burns recommended that an
Indian NGO could operate in places a US NGO could not, for
example, monitoring elections or helping democratic groups
grow in Iran. U/S Burns then shared with Sharma the
non-paper entitled "US India Global Democracy Initiative,"
which Sharma said he would review and consider.


11. (C) Sharma replied that the two largest democracies
could do "good work" if we combined and coordinated efforts.
Ambassador Mulford underlined the symbolic value of such

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cooperation would be more impressive than our individual
democracy promotion endeavors taken alone. U/S Burns
emphasized the depth of the President's commitment to
democracy promotion.

Need for FDI for Infrastructure
--------------


12. (C) Sharma underlined India's need for foreign
investment to upgrade and expand the country's
infrastructure. He pointed to a Federation of Indian
Chambers of Commerce and Industry/Confederation of Indian
Industry (FICCI/CII) study that predicted a full revamp of
the nation's infrastructure would be a 10-year, $1 trillion
undertaking. This massive expansion is necessary to ensure
10% annual economic growth, the extension of essential
infrastructure to India's villages and underdeveloped areas,
and building mass transit systems in India's major metro
areas, Sharma explained.

HIV/AIDS and Avian Influenza
--------------


13. (C) Sharma thanked U/S Burns for USG assistance with
HIV/AIDS programs in India, and remarked that the GOI does
not know yet what it needs with regard to the recent outbreak
in India of Avian Influenza (Ref A and subsequent).
Ambassador Mulford told Sharma an initial shipment of Avian
Influenza test kits (courtesy of CDC) that reduce the
turnaround time for testing from three days to three hours
would arrive in Delhi on February 26 and be transferred to
the GOI the following day. This would reduce the
uncertainty, anxiety, and speculation fostered by tests that
take longer to yield results, the Ambassador continued.
Sharma suggested the Embassy publicize this assistance;
Ambassador Mulford deferred any decision to publicize to the
GOI.


14. (C) Senior NSC Director John Rood noted that Avian
Influenza is a significant opportunity for bilateral
cooperation, including safeguards and disease surveillance.
Ambassador Mulford underscored that combating this outbreak
requires close cooperation between the Health and Agriculture
Ministries, and that tourism bookings are already dropping
off because of the uncertainty surrounding the outbreak,
including an inaccurate Indian press report that human-human
transmission had already occurred. U/S Burns also noted that
India would host two conferences on Avian Influenza, which
would also help.

Comment: Good Vibes from a Necessary Ally
--------------


15. (C) The breadth of this discussion was matched only by

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Sharma's enthusiasm; his vigorous support is good news for
us. With the PM retaining the Foreign Affairs portfolio in
the current Cabinet, Sharma is the senior political actor in
the MEA, and his advocacy will be key to driving the stiffer
and less yielding bureaucracy. The optomistic and
forward-leaning conversation reflects the positive
atmospherics surrounding the POTUS visit, the nuclear
agreement, and expanding US-India relations writ large, at
the political level. End Comment.


16. (U) GOI Delegation
Minister of State for External Affairs Anand Sharma
MEA Director (Americas) Gaitri Kumar (notetaker)


17. (U) USG Delegation
U/S Burns
Ambassador Mulford
NSC Senior Director John Rood
P Senior Adviser Ashley Tellis
PolCouns Geoff Pyatt
SA/RA Director John Schlosser
Poloff Howard Madnick (notetaker)


18. (U) This cable was cleared by U/S Burns.
MULFORD