Identifier
Created
Classification
Origin
06NEWDELHI512
2006-01-25 05:44:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

UNDERSECRETARY BURNS AND FS SARAN DISCUSS NEXT

Tags:  PREL EAGR PGOV PINR ENRG PHUM PTER SCOI IN 
pdf how-to read a cable
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C O N F I D E N T I A L SECTION 01 OF 09 NEW DELHI 000512 

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E.O. 12958: DECL: 01/25/2016
TAGS: PREL EAGR PGOV PINR ENRG PHUM PTER SCOI IN
SUBJECT: UNDERSECRETARY BURNS AND FS SARAN DISCUSS NEXT
STEPS ON POTUS DELIVERABLES

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

C O N F I D E N T I A L SECTION 01 OF 09 NEW DELHI 000512

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SIPDIS

E.O. 12958: DECL: 01/25/2016
TAGS: PREL EAGR PGOV PINR ENRG PHUM PTER SCOI IN
SUBJECT: UNDERSECRETARY BURNS AND FS SARAN DISCUSS NEXT
STEPS ON POTUS DELIVERABLES

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


1. (C) Summary: Undersecretary Burns and Indian Foreign
Secretary Saran reviewed ten potential deliverables for the

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President's visit during a January 20 working lunch. In a
meeting later that day, U/S Burns stressed to Planning
Commission Deputy Chairman Montek Singh Ahluwalia that India
will be one of the President's most important visits this
year. FS Saran is particularly enthusiastic about
agriculture, science and technology and energy initiatives,
describing the Agricultural Knowledge Initiative one of the
GOI's top priorities for the visit. Given the breadth of
proposals, it is important that we prioritize our ideas,
particularly on our agriculture, democracy and energy
initiatives. End Summary.

POTUS Visit Should Highlight Agriculture Cooperation
-------------- --------------


2. (C) FS Saran emphasized the importance of the US-India
Knowledge Initiative on Agriculture contributing to the
development of rural areas, a high GOI priority, and promised
to send an Indian Workplan to the Embassy by Monday, January

23. In another January 20 meeting, U/S Burns told Planning
Commission Deputy Chairman Montek Singh Ahluwalia that the
Administration hoped to make agriculture a centerpiece of the
President's upcoming visit to India. Ahluwalia said
agriculture is of prime importance to the UPA Government,
since the rural population voted out the NDA regime for
neglecting this sector. Therefore, this Government is
prioritizing agriculture and the US association with "a new
green revolution." Ahluwalia noted that the bilateral board
reviewing the US India Agricultural Knowledge Initiative will
meet on February 12 to hopefully finalize a program for the
Initiative. He added that, if the two sides could close on a
program by February 12, the US and India could announce the

launch of the Initiative during the President's visit.
Ahluwalia said that the Indian paper will reflect something
new in the bilateral relationship, i.e., a genuine sharing of
technology without attendant aid requests. (Post comment:
The promised Agricultural Initiative paper was forwarded to
SA/INS on January 20. End comment).


3. (C) Dick Christenson, noting that no Indian private
sector representatives joined the inaugural Agricultural
Board meeting in December, suggested it would be useful if
they participate in the next board meeting on February 12.
MEA Director (Americas) Gaitri Kumar commented that the board
does have two private sector members who might attend on
February 12, but that the GOI was considering adding
representatives from irrigation companies. She hoped the
board can sign onto the Workplan at the February 12 meeting.
Christenson also suggested that the Workplan cover the four
key areas under the Knowledge Initiative on Agriculture,
including education, food processing, biotechnology and
water, and asked for a GOI estimate of the funding
requirement from the US side. MEA's Kumar predicted that the
GOI will be committing between USD 80-95 million over the
three year life of the Workplan. Until the Workplan was

NEW DELHI 00000512 002 OF 009


approved, Kumar was hesitant to give any final monetary
figure. MEA indicated that they would not require a similar
amount from the US side, and agreed to get back to us with a
minimum ballpark figure.


4. (C) Stressing the potential for growth in the food
processing sector, the Foreign Secretary noted that Indian
businesses want to learn about opportunities in this area.
Because so much food goes to waste in India, there is great
potential for greater efficiency and investment in food
processing. Christenson added that biotechnology is also an
area for growth. Kumar explained that the Workplan was an
Indian "wish list" of items, and requested that the US
provide feedback on how to make these ideas work.


5. (C) Saran raised the idea of hosting a public agriculture
project with a "farmer's rally" or "village fair" during the
POTUS visit to make the link between the new initiative and
assistance the US gave to India's Green Revolution in the
1960s. Noting that there is already a "foundation of public
memory" about the US role in India's agricultural sector,
Saran stated that some sort of "colorful event" would go over
very well with the Indian public.


6. (C) Given our history of involvement with Punjab
Agricultural University (launched 50 years ago with US
funding and technical support) Ahluwalia said he is
personally lobbying PM Singh to invite the President to lunch
at the College of Agriculture. The two Governments should
move away from the model of grand state dinners to a more
informal setting where the PM and President could engage much
more freely and give the President a better sense of India,
Ahluwalia argued. A visit to Punjab would be the perfect fit
to focus on agriculture: it is the PM's home state, it is
one of the most advanced and important agricultural states in
India, and it has a long history of American support and
commercial presence. Burns noted that the issue then is
whether to do two events in Hyderabad that focus on the new
US consulate and agriculture or a separate agricultural event
in Punjab. This issue will be decided by the White House.


India Pushing for Science and Technology Programs
-------------- --------------


7. (C) Foreign Secretary Saran told Undersecretary Burns
that India also views agreements for a Science and Technology
Binational Commission and the opening of an external office
of the National Science Foundation in India as priorities for
President Bush's upcoming visit. The Indian Ministry of
Science and Technology is currently working on a draft to
create a commission to award joint R&D grants to
public/private partnerships for basic science research.
Responding to PolCouns' comment that the US-Israel Binational
Industrial Research and Development (BIRD) Foundation is not
an appropriate model for this project, Saran agreed that it
was only a reference, and the Binational Commission would
involve more transparency and a broader range of scientific
projects with greater demonstrable value to local

NEW DELHI 00000512 003 OF 009


communities. Industrial research would be one component, and
our four ongoing S&T projects could be added to the
commission. FS Saran noted that the GOI is very interested
in exploring joint nanotechnology projects under the
Binational Commission or HTCG and views favorably the idea of
adding public and private sector partnerships to this
project.


8. (C) Dick Christenson described a funding proposal to
combine USD five million from an existing rupee fund, USD
three million from a jointly owned fund and another USD five
million from an Indian source. Saran indicated that if our
governments can work out a structure and find good projects,
then the GOI is committed to funding this commission. He
suggested that an Indian Cabinet Note on this project is
expected at the end of February. Christenson noted that the
Science and Technology Binational Commission and the proposed
Agricultural Knowledge Initiative would be competing for a
finite pool of USG resources.


9. (C) MEA Joint Secretary (Americas) S. Jaishankar raised
the possibility of opening up an external office of the
National Science Foundation (NSF) in India. The NSF
currently has offices in Paris and Tokyo, and approved an
office in Beijing as part of the President's recent visit to
China. The breadth of and potential for Indo-US cooperation
in science, Jaishankar emphasized, makes Delhi a natural
candidate for another field office. The Foreign Secretary
added that this deliverable would have a very positive impact
in India.

Saran: Energy Projects Will Have a Positive Impact
-------------- --------------


10. (C) Aside from the Civil Nuclear Agreement, FS Saran
expressed his hope that during the POTUS visit we could make
two additional energy announcements on the FutureGen Zero
Emission Project and the Integrated Ocean Drilling Program.
India is dependent upon fossil fuels, he continued, but is
worried about the negative environmental aspects. Therefore,
the GOI is working on clean coal technology, and would be
excited to join in the development of a FutureGen
zero-emissions coal fired power generation plan. He
predicted that a deliverable for a "US-India Zero-Emissions
Project in India" would have a big impact within the country.
He also requested Indian participation in the joint
US-China-EU-Japan Integrated Ocean Drilling Program to study
India's recent discovery of gas hydrates.


11. (C) Ahluwalia said India hoped that some of the topics
in the energy working groups would ripen in time to highlight
during the visit. India expects the energy dialogue will
lead to robust cooperation between US and Indian companies,
including the introduction of leading technologies. He added
that it would be helpful if the US could be responsive to
India,s trade concerns, such as the import ban on US imports
of Indian mangos, so that the dialogue on lifting trade
barriers would be seen by the Indian public as a two way
street and not just India responding to US requests to lift

NEW DELHI 00000512 004 OF 009


trade restrictions.

GOI Slow to Respond to Democracy Initiatives
--------------


12. (C) Undersecretary Burns raised the notion of
highlighting American and Indian shared values by creating an
Indian equivalent to the National Endowment for Democracy
(NED). Burns reported that NED's Carl Gershman is willing to
come to New Delhi to discuss this proposal. Saran observed
that it would be difficult to set up a new institution and
asked how this would link to NED. He added that it would be
"easier to do if it were done as an NGO," (presumably
avoiding a GOI role) but agreed to look into the idea. He
suggested this could be fleshed out during the February visit
of U/S Paula Dobriansky.


13. (C) Christenson asked for Saran's views on establishing
a training program to educate Iraq's civil servants on
federalism and decentralization issues. Saran responded that
New Delhi was interested in training Iraqis in India, where
the country had expertise in training for civil servants and
Iraq diplomats on everything from accountant skills to
parliamentary procedures. Reflecting on his experience
during the kidnapping of several Indian truck drivers ("when
my whole life was Iraq"),Saran commented that it would be
very difficult to send Indian trainers to Iraq. The hostage
situation had created a national sensitivity about deployment
to these hot spots. However, he agreed "in principle" to
look into Christenson's idea of a hybrid program to host the
first half of the training in India and the second half in
Iraq.


14. (C) Christenson also requested feedback on our concept
paper on "The 21st Century Leadership Alliance, a joint
project, possibly to include Japan, to build the capacity of
Afghan government officials and civil servants. MEA's Kumar
stated that the GOI is discussing this paper with its embassy
in Kabul, and will get back to us with a response.

Weaving Together Defense Cooperation Ideas
--------------


15. (C) FS Saran raised the issues of cooperation on
disaster relief and anti-piracy initiatives, and asked when
New Delhi might hear from the US on the sale of a Landing
Platform Dock (LPD) ship and possible participation in the
Multirole Maritime Aircraft (MMA) program. OSD's Claudio
Lilienfeld described a proposal for a Maritime Security
Statement of Principles or joint statement on maritime
security cooperation that would guide a wide range of
activities, including: a US-India anti-piracy initiative,
disaster relief cooperation, maritime interdiction
operations, naval exercises, and military exchanges. A broad
maritime security initiative could also provide the context
for transactions such as the LPD and maritime patrol
aircraft. If India is ready to sign on to the Proliferation
Security Initiative (PSI),this decision could also be
reflected in the joint statement. Responding to a question

NEW DELHI 00000512 005 OF 009


for U/S Burns, Saran stated that the GOI is "discussing PSI
seriously" and that he is "hopeful."


16. (C) Undersecretary Burns emphasized that we are "willing
to move on the military relationship." On military hardware,
he added that the US will need to make exceptions to national
disclosure policy to be able to grant India access to MMA
development technologies and the AESA radar, but that we were
speeding along decisions on these.


17. (C) On LPD, Lilienfeld commented that we are currently
awaiting Congressional notification for the LPD transfer,
something that the State Department was working on with the
hill. Although the LPD could not be delivered until the end
of 2006, we hoped to have enough process to enable some
announcement on LPD to be made during the POTUS visit. He
also relayed that the US Embassy's Office of Defense
Cooperation had heard from the Indian Navy Staff that the GOI
had decided not to lease the P-3C Orions and asked for
clarification on this issue.


18. (C) FS Saran commented that progress on the disaster
relief initiative should build off of the "good development"
of US-Indian post-tsunami cooperation. Saran asked that the
US and India agree to at least one near term (e.g. Spring
2006) disaster relief-related mil-mil exercise that could be
announced during the President's visit. He also stated that
the GOI is planning to create a Disaster Management Cell,
which he described as the counterpart of the US Federal
Management Emergency Agency (FEMA),but with a defense
component. Jaishankar added the possibility of creating
linkages between this new Indian agency with the US Pacific
Command (PACOM)'s Center of Excellence in Disaster Management
and Humanitarian Assistance in Hawaii. He suggested that we
weave together several connections and combine these
initiatives into a package for the POTUS visit.


19. (C) Lilienfeld brought up three additional defense
issues which the USG hoped could be concluded before the
President's visit, including a Logistics Support Agreement, a
Communication Interoperability and Secrity Memorandum of
Agreement (CISMOA) and a post-NSSP agreement for cooperation
in missile defense. He added that Washington and PACOM were
currently reviewing the recently-submitted GOI draft for a
Logistics Support Agreement, and waiting for the MOD's next
response to the draft CISMOA which had previously been
provided to the GOI, both of which would facilitate joint
military initiatives such as MMA. On missile defense,
Lilienfeld cited the conclusions of the November 2005
US-India Defense Policy Group in which there was general
agreement on the need for a new mechanism for continued
missile defense cooperation now that the NSSP is concluded.
He suggested a statement of principles that could create a
framework for regularized dialogue on missile defense and
pave the way for continued cooperation. The two delegations
agreed that DoD drafts of a maritime security/anti-piracy
statement and a Post-NSSP Missile Defense Cooperation
statement of principles would be provided soon in the hope
that they could be finalized by the time of the President's

NEW DELHI 00000512 006 OF 009


trip.

CLSA and Indian Astronaut Still Up in the Air
-------------- --


20. (C) MEA Joint Secretary Jaishankar expressed
satisfaction at the US-India agreement for a space launch
technology safeguards agreement (TSA),but said that the GOI
had serious concerns about the US draft of the Commercial
Space Launch Agreement (CSLA). Noting that the US Trade
Representative (USTR) is the US lead negotiating agency on
this agreement, Jaishankar observed that trade in satellite
services provisions, which are extraneous to commercial
satellite launches, have been included in the US draft even
though they have never been part of US CSLAs with any other
countries, including non-market economies such as Russia. As
a market economy, India is entitled to an unencumbered CSLA
with the US. He offered two solutions. The Indian side can
return the American draft with a counter draft or paper
proposing a pared down launch agreement, excluding satellite
services, and the two sides can negotiate a final text on
this basis in time for the visit. The second solution was to
scrap a CSLA altogether. Since India already has access to
the US launch market through the just concluded TSA and India
is a market economy, Jaishankar questioned whether a CSLA
agreement was even technically necessary. Jaishankar said
that he would talk with the Indian space agencies and get
back to the American side with an answer. (Post comment: On
the margins Jaishankar agreed that a DVC in the coming week
between the negotiating teams might be the best course to map
out an action plan for CSLA. End comment.) MEA Deputy
Secretary (Americas) Santosh Jha later commented that the GOI

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hopes to convene another Space Cooperation Working Group
Meeting before the President's visit.


21. Underlining the importance of the President's offer to
include an Indian astronaut on a US space lunch,
Undersecretary Burns asked whether the GOI had made any
decision. Jaishankar explained that just when the GOI had
begun to engage on funding issues, NASA representatives told
their Indian counterparts at a meeting in Japan that because
the US had cut back on shuttle flights, the offer was no
longer valid. Upon hearing that the offer, which was part of
the July 18 Joint Statement, had not been withdrawn,
Jaishankar asked how much GOI funding will be required.
Undersecretary Burns estimated that India will need to commit
about USD one million per year, and told Jaishankar that he
would ask NASA to reengage and get back to the GOI with a
paper on this issue.

CEO Forum a GOI Priority for POTUS
--------------


22. (C) The Foreign Secretary emphasized that the focus of
the investment and trade deliverable should be on the work of
the CEO Forum, and requested that we help ensure that the US
participants in the forum are all available to join the
President on his visit to India. Ahluwalia also argued that
the forum should play an important role in the economic

NEW DELHI 00000512 007 OF 009


elements of the President,s visit to India. Christenson put
out an idea from the Trade Policy Forum to create a training
initiative to help Indian law enforcement detect IPR
violations. Saran confessed that he did not know much about
this idea, and asked for a paper describing the program.
Noting US appreciation that the Dhabol case had been
resolved, Christenson said it would further improve the
business climate if we could resolve the remaining "legacy"
commercial issues such as the DiAmmonium Phosphate (DAP)
fertilizer issue. Kumar invited us to present a list of
legacy issues to work on before the POTUS visit.

Public Health: Common Interest but Different Ideas
-------------- --------------


23. (C) Christenson offered a US initiative to address
India's interest in building Schools of Public Health (SPH),
but Saran was more interested in a program to link health
care institutions to build on the medical outsourcing trends.
The Foreign Secretary described the large increase in the
number of Americans who are coming to India to receive
high-quality, low cost health care. MEA's Kumar commented
that the Indian Ministry of Health is working on a proposal
for a "health package," but it may not be ready in time for
the President's visit. (Post Comment: Mission staff is aware
of Indian Ministry of Health's interest in making SPH a topic
for the President's visit. It is likely that the Indian MOH
may not have communicated their views to counterparts in the
MEA. Mission recommends U/S Dobriansky meet with the
Minister or Secretary of Health to discuss SPH issues. End
Comment.)


24. (C) Stressing the President's commitment to fighting
Avian Flu, Christenson raised the notion of a cooperation
program to sharpen surveillance and detection of the disease.
He raised the example of compensation to farmers for
reporting incidents of the flu, noting that farmers were
otherwise reluctant to flag concerns that would destroy their
livelihood. Saran said this might be a productive area for
cooperation, and suggested that Under Secretary Dobriansky
bring an avian influenza expert and a pharmacy industry
representative with her when she visits India in February.
NSC Senior Director Rood emphasized that President Bush is
personally committed to a vigorous effort to combat avian
influenza. The Foreign Secretary asked that we arrange a
meeting on this topic during U/S Dobriansky's visit to India.


No Decision on Education Initiatives
--------------


25. (C) Christenson suggested that it might be the right
time for India to revise the 1950 Fulbright Agreement and
look towards contributing parity in funding. Saran, who
first asked whether India had a Fulbright Program, requested
more information about this topic. (Note: Ambassador
Mulford previously sent a letter to Saran pressing India to
make these changes, even indicating that lack of progress
could result in "funding cutbacks." It was clear that Saran

NEW DELHI 00000512 008 OF 009


had not previously focused on this idea as a Presidential
deliverable. End Note.) Christenson reported that the US
currently contributes USD 1.6 million annually to the
Fulbright program, which over the years has supported the
research of over 15,000 American and Indian scholars. He
asked the Foreign Secretary to consider revising the 1950
agreement to include GOI "parity funding," which would bring
India in line with the standard practice throughout the
world. P Advisor Ashley Tellis underlined USG priority in
this Fulbright idea. MEA Deputy Secretary (Americas) Santosh
Jha noted that this proposal was currently awaiting approval
from the Ministry of Human Resources Development.


26. (C) Saran raised the possibility of opening science and
technology branches of US universities in India. MEA later
commented that they expect the debate on educational market
openings to be very sensitive, particularly for schools
competing to teach social sciences. Therefore, they
suggested that we first work to allow less threatening
"technology" universities to offer courses in India, and
invited us to present a paper with our ideas on educational
market openings.

New Ideas for Wildlife Conservation
--------------


27. (C) Christenson suggested the GOI consider joining the
recently announced Coalition Against Wildlife Trafficking
(CAWT) to focus attention on wildlife trafficking and improve
cooperation on law enforcement, particularly for endangered
animals. He acknowledged that the GOI had not fully embraced
the earlier US proposal on tigers, and said we hoped the new
proposal would win full GOI support. FS Saran requested that
U/S Dobriansky bring a paper on this idea when she visits in
February.

Comment: Next Steps for Successful POTUS Deliverables
-------------- --------------


28. (C) We are waiting for a formal GOI response on the S&T
Binational Commission, Commercial Space Agreement, CISMOA,
establishment of an Indian National Endowment for Democracy
counterpart, Iraqi training programs, The 21st Century
Leadership Alliance and parity in funding for the Fulbright
Program. The GOI delivered a paper on January 21 on the
Agricultural Initiative Workplan and has promised sometime
soon a package of health care linkages. We agreed to get
back to the GOI on a paper for Indian astronaut participation
on the International Space Station, a maritime
security/anti-piracy statement, a Post-NSSP Missile Defense
statement of principles, an IPR law enforcement training
program, a list of commercial legacy issues (delivered by
EconCouns on January 23),and details on the US-India
Partnership on Wildlife Trafficking. The GOI is willing to
work with us to set up a series of expert meetings on Avian
Flu, which could figure prominently on the agenda of Under
Secretary Dobriansky when she visits India in February. We

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are waiting for a decision on an exception for Indian access
to MMA development technologies and a decision on the LPD.

NEW DELHI 00000512 009 OF 009


The ball is in our court to finish reviewing Indian papers on
the Logistic Support Agreement, and check on the possibility
of opening an office of the National Science Foundation in
India, and Indian participation in the FutureGen Zero
Emission Project and the Integrated Ocean Drilling Program.


29. (SBU) List of Participants:

India
--------------

Foreign Secretary Shyam Saran
MEA Joint Secretary (Americas) S. Jaishankar
MEA Director (Americas) Gaitri Kumar
Foreign Secretary's Office Director Rahul Chhabra
MEA Deputy Secretary (Americas) Santosh Jha
Department of Atomic Energy Director Dr. R. B. Grover
Atomic Energy Commision Head of International Division Dr. K.
Raghuraman

USA
--------------

Undersecretary for Political Affairs R. Nicholas Burns
Ambassador Mulford
NSC Senior Director John Rood
Senior Advisor to P Ashley Tellis
SA Dick Christenson
OSD Claudio Lilienfeld
Senior Advisor to T Jason Tellis
P Special Assistant Tobin Bradley
Political Counselor Geo Q?U) Visit New Delhi's Classified Website:
(http://www.state.sgov.gov/p/sa/newdelhi/)
MULFORD