PM ASKS SEN HAGEL FOR HELP PASSING CIVIL NUKE

C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 002536

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/26/2015
TAGS: PREL PARM TSPL KNNP ETTC ENRG TRGY BEXP EFIN
EINV, KTIA, IAEA, MOPS, KHIV, EAGR, EPET, IN, PK, CH, KN,
IR
SUBJECT: PM ASKS SEN HAGEL FOR HELP PASSING CIVIL NUKE
AMENDMENTS

REF: NEW DELHI 2090

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


1. (C) Summary: Prime Minister Manmohan Singh in an April 10
meeting in Delhi with Senator Chuck Hagel asked for
"Congressional blessings" for the US-India civil nuclear
deal. He outlined to the Senator the importance of the deal
to India's burgeoning economy, and made the case that India
is a responsible nuclear power, a more confident player in
international trade, a reliable partner with the US on a host
of bilateral and international issues, and a good neighbor,
specifically citing its relations with Pakistan, Afghanistan,
and Iran, all of which hew closely to US policy. Senator
Hagel expressed his support for the nuclear deal, which he
said would benefit both countries, the region, and the world;
he predicted it would be passed through the Senate, though he
noted that timing was uncertain as the US legislature (as its
Indian counterpart) would, and should, scrutinize all details
of the arrangement to ensure both sides are fully satisfied.
End Summary.

PM Seeks Congressional Blessing Over Nuclear Deal
-------------- --------------


2. (C) The PM welcomed Senator Hagel by referring to the
state of play of bilateral affairs as "Springtime in US-India
relations." He credited the President and Secretary Rice
with having ushered in a "new climate of confidence and
trust" between the US and India and asked for "Congressional
blessings" for the US-India civil nuclear deal. The PM also
reminisced about his meetings with the President in September
2004 (New York) and July 2005 (Gleneagles G-8 Summit).

Nuclear Deal: It's About The Economy
--------------


3. (C) The PM said the nuclear deal would help accelerate
India's socio-economic development. He cited India's current
economic growth of 7-8% and its high rates of domestic
savings (29% of GDP) and investment (31% of GDP) as reasons
why India needs more efficient energy sources than it
currently possesses. India's labor force demographics are
favorable but the country cannot build on that strength
without employing the youth, which means finding adequate
energy sources to power the economy, the PM outlined. He
added that "the strain on India's development is imported
hydrocarbons," and he sought to diminish that reliance. The
nuclear deal is not, the PM underlined, about India's
strategic program.

A Good Partner ...
--------------


4. (C) The PM continued that India needs only a modest
strategic program. Delhi has "an impeccable NPT record on
unauthorized proliferation of sensitive WMD technology," he
added, while pointing out that "in the region ... there has
been clandestine proliferation in our neighborhood." The PM

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said that he, and by extension the GOI, is "committed to
utmost restraint and believes in utmost responsibility." He
also pointed to India's democratic traditions, its checks and
balances, its firm civilian control over nuclear weapons
"unlike North Korea...and some other countries," and its
population's pro-US outlook (i.e. the 70% approval rating the
US enjoys among the Indian public).

... With a Good History ....
--------------


5. (C) The PM turned to the history of US-India relations,
noting the years the two countries spent as "partners in
development" followed by a "cooling period." After the 1974
nuclear test, "our scientists, rightly or wrongly, felt the
US imposed restrictive regimes to prevent India's
socio-economic leapfrogging." The PM contrasted this history
with the nuclear deal, which he said would "remove the final
irritant" in bilateral relations and usher in a "new,
exciting era of partnerships."

... and a Bright Future
--------------


6. (C) Vowing that India is ready to "accept the risks and
responsibilities" of globalization, the PM summarized off the
other recent breakthroughs in US-India relations: the
Agricultural Knowledge Initiative, jointly promoting the UN
Democracy Fund, the S&T Commission, the Defense Framework
Agreement, and cooperation on infectious diseases including
HIV/AIDS. He concluded that the time is right to "widen and
deepen" relations.

Senator Hagel Expresses His Support
--------------


7. (C) Senator Hagel responded that he had met with
Secretary Rice recently and had also been briefed by

SIPDIS
Undersecretary Burns, and that he hopes the Senate would move
as swiftly as possible on the civil nuclear deal. He added
that this agreement would be in the interests of both
countries, the region, and the world. Senator Hagel added
that he still has come questions, and that both the Indian
Parliament and the US Congress must both be satisfied and
must ask tough questions. He predicted the deal would be
finished in the Congress within the current session, but
cautioned he could not promise or commit to that timeframe.


8. (C) Senator Hagel explained that, as a smaller body used
to dealing with international issues because of its
Constitutional role in ratifying treaties, the deal may move
through the Senate faster than it does through the House of
Representatives. He added that, in his view, President
Musharraf and the GOP would eventually see tQ US-India deal
as being in their interests, and that it would not affect
US-Pakistan relations.

India is a Good Neighbor
--------------

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9. (C) The PM seized on Senator Hagel's mention of Pakistan
to underline that he hopes to resolve all outstanding issues
between India and Pakistan, "including Jammu and Kashmir."
Relations have never been as good, he insisted, pointing to
India's earthquake relief aid to Pakistan (and Pakistan's
acceptance of same),the bus and rail links, and his vision
outlined in his Amritsarspeech of a positive future between
India and a "stable, prosperous, democratic, moderate
Pakistan (Reftel)." "Pakistan has hitherto been the
epicenter of terrorism against India ... our concern is with
terror attacks on our key assets, including Parliament, State
Assemblies, and the Indian Institute of Science," he
illustrated. Becoming more upbeat, the PM continued, "I have
been assured President Musharraf will take all measures
against terrorism, then enormous possibilities will open up,
we can be a factor in stabilizing South Asia, the Middle East
and East Asia. As far as I'm concerned, we will do all we
can to normalize relations."


10. (C) PM Singh then noted that "Although India is a poor
country, we contributed $650 million in assistance to
Afghanistan." "A democratic, prosperous, and moderate
Islamic Afghanistan is in all our interests," he added.

What About Iran?
--------------


11. (C) Senator Hagel drew the PM's attention to questions
he had been asked about India's relations with Iran. The PM
responded by noting that the GOI voted twice with the USG in
the IAEA. He pointed to India's 4 million expatriates
working in the Gulf countries, its 150 million Muslims --
particularly its 25 million Shias, and its reliance on Middle
East oil supplies, and stated that "rightly or wrongly,
India-Iran relations do influence a section of our
population." That said, he concluded, "We have no doubt, we
want no more nuclear weapon states in our
neighborhood...Iran's nuclear ambitions should be curbed."


12. (C) The PM told Senator Hagel that he had twice asked
Iranian President Ahmadinajad by phone to "show more
flexibility." "Our advice has not been to encourage Iran in
any way," he avowed.

Embassy Comment: PM a Smooth Lobbyist for Nuke Deal
-------------- --------------


13. (C) PM Singh's meeting with Senator Hagel demonstrates
his refined understanding of US politics and government, and
also illustrates his effectiveness in lobbying for the
nuclear deal. At the close of the meeting, the PM asked
Senator Hagel which state he represents; upon hearing the
Senator's response, the PM waxed eloquently about a
University of Nebraska professor he had known years ago.

List of Participants
--------------


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14. (U) GOI Delegation
Prime Minister Manmohan Singh
National Security Advisor MK Narayanan
Joint Secretary (Americas) S Jaishankar
Joint Secretary (Prime Minister's Office) Sujata Mehta
Director (Prime Minister's Office) DB Venkatesh Verma
(notetaker)


15. (U) USG Delegation
Senator Hagel
Ambassador Mulford
Poloff Howard Madnick (notetaker)


16. (U) Senator Hagel cleared this cable.


17. (U) Visit New Delhi's Classified Website:
(http://www.state.sgov.gov/p/sa/newdelhi/)
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