ENERGY AND TRADE DOMINATE CODEL GILLMOR'S MEETING

UNCLAS SECTION 01 OF 03 NEW DELHI 000396

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SUBJECT: ENERGY AND TRADE DOMINATE CODEL GILLMOR'S MEETING
WITH INDIAN PARLIAMENTARIANS


1. (SBU) Summary: A congressional delegation led by
Congressman Gillmor (R-OH) held a wide-ranging discussion
with Indian Members of Parliament at a meeting convened by
the Indo-US Parliamentary Forum on January 13. Energy and
trade dominated the session, with the Indian Parliamentarians
stressing the importance of the July 18 Agreement within the
broader context of India's future energy needs. Nuclear
power, the Indian Parliamentarians stressed, would lessen
India's current dependence on countries like Iran for energy,
while also reducing pollution inside India. The Ambassador
stressed the role the GOI can play in shaping an agreement
palatable to the US Congress. The two delegations also
discussed the shared benefits of increased trade and the
common threat of terrorism. End summary.

MORE NUCLEAR ENERGY EQUALS LESS TIES WITH IRAN, CLEANER AIR
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2. (SBU) The Indian Parliamentarians were unanimous in
saying that approval of the July 18 Agreement was critical to
US-Indian relations, and several forecast a worsening of
relations should the deal not come to fruition. MP Anand
Sharma, chief spokesman for the Congress Party, stated that
there now existed the prospect for a "dimensional change" in
US-India relations. In the context of the July 18 agreement
he emphasized India's "impeccable" record on
non-proliferation, and drew a contrast between India's record
and those of China and Pakistan. He emphasized that India is
a responsible democratic state and that any commitment India
made would be a firm one. MP Raashid Alvi explained that the
July 18 agreement was of paramount importance, and cautioned
that any failure to reach a deal could negatively affect
US-Indian relations.


3. (SBU) Several MPs suggested that passage of the July 18
agreement would enable the GOI to lessen its links to Iran by
allowing India to focus on the domestic production of energy
through nuclear power. MP B. J. Panda noted that India
currently meets only 3% of its power needs through nuclear
power, and that this shortfall forced India to turn to Iran,
a country that India "would rather not deal with." Deepinder
Hooda said that the civil nuclear agreement was "very
important" to India given that most oil and gas reserves were
located in unstable parts of the world. MP Chandran Mitra,
editor of the Pioneer, distinguished between India's short
and long-term energy needs, stating that he did not believe
that the United States fully appreciated India's energy
requirements. He noted that the India-Iran gas pipeline was
the most palatable option to India from a security standpoint
as other pipeline options passed through too many "disturbed
areas" such as Afghanistan.


4. (SBU) Several Indian Parliamentarians underlined the
virtues of shifting from older, dirtier energy resources such
as coal to the cleaner energy provided by nuclear power.
They suggested that the long-term solution to India's energy
needs was clean nuclear power, pointing out that Indian coal
has a high ash content.

CONGRESSIONAL DELEGATION: DEAL NOT DONE YET
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5. (SBU) Congressman Gillmor stated that Congress needs to

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be further convinced of the merits of the nuclear
understanding, especially given the "dramatic changes"
contemplated by the July 18 agreement. However, he said that
he remained optimistic that a deal could be done.


6. (SBU) The Ambassador stressed India's role in making
agreement possible, noting that the President had made the
July 18 Agreement the centerpiece of the Prime Minister's
visit to the US, and that India now needed to take actions
that would allow the US Congress to approve the new
framework. He also expressed concern that India did not
understand the central role of the US Congress in approving
the understanding, and hoped that India would do more to
engage with the Congress. The Ambassador said that he
believed a deal was achievable, but that India needed to put
forward a sufficient separation proposal as there is "no
point in proposing legislation that would fail."

TRADE A WIN-WIN SITUATION SAY DELEGATES
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7. (SBU) Both delegations recognized the benefits of
increased trade between India and the US. The Indian
Parliamentarians listed the ways in which US companies
benefited from offshoring high technology research and
development to India. MP Deepinder Hooda noted that low cost
technology centers in India not only help US companies remain
globally competitive but also create a growing middle class
in India, many of whom are consumers of American products.
The Congressional delegation agreed, with Congresswoman
Granger noting the increased ties made possible by the Open
Skies agreement and the prospect for further cooperation in
defense co-production. Congressman Walden expressed hope
that trade barriers could be lowered, noting the high Indian
tariffs on US agricultural products.

GETTING TO MARKET - THE IMPORTANCE OF INFRASTRUCTURE
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8. (SBU) The Indian Parliamentarians cited impressive
projected central spending on infrastructure upgrades such as
the golden quadrilateral road project, while acknowledging
the need for much more foreign investment in roads, rails,
and airports. Several MPs stated that constraints on
infrastructure development included a parliamentary budget
system that made long-term planning difficult, particularly
given the need to reallocate money for projects on an annual
basis. Panda also noted the difficulties inherent in
building Parliamentary consensus for large-scale projects,
citing as an example the three years it took to craft one
large electricity law.

TERRORISM A SHARED CONCERN
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9. (SBU) Members of both delegations highlighted terrorism
as a shared concern between India and the US. The Indian
Parliamentarians emphasized the number of terrorist attacks
aimed at India, with one MP stating that India was the
largest victim of terror in the world. The Indian MPs also
placed the blame for terrorist attacks in India squarely on
Pakistan, with several commenting that Pakistan was the sole
cause of terrorism within India. Many drew distinctions

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between India and Pakistan's respective political systems and
respect for minority rights. Several MPs noted that US
support for Pakistan was difficult to explain to the Indian
public given the oft-stated US emphasis on democratic values.



10. (SBU) Meeting participants included:
United States -
The Ambassador
Congressman Paul E. Gillmor
Congressman Jerry Costello
Congressman Sam Johnson
Congresswoman Kay Granger
Congressman Dennis J. Kucinich
Congressman Greg Walden
Congressman Bobby Jindal
Mr. Chris Walker
Rev. Daniel P. Coughlin
Mr. Steve Rusnak
Mr. Eric Stocky
PolOff David Snider
PolOff Courtney Kramer
PolOff Adam Packer

India -
MP N.P. Durga
MP P K. Sambasiva Rao
MP Santosh Bagrodia
MP P.K. Maheshwari
MP Anand Sharma
MP Murali Deora
MP B.J. Panda
MP Tarlochan Singh
MP Deepinder S. Hooda
MP Chandran Mitra
MP Raashid Alvi
MP Ashwani Kumar


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