INDIANS SEEK FRENCH CIVIL NUCLEAR DEAL, BUT THE

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000699

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/31/2016
TAGS: PREL KNNP MNUC ENRG MASS FR IN
SUBJECT: INDIANS SEEK FRENCH CIVIL NUCLEAR DEAL, BUT THE
GOING IS TOUGH

REF: 05 NEWDELHI 06598

NEW DELHI 00000699 001.2 OF 002


Classified By: PolCouns Geoff Pyatt for Reasons 1.4 (B, D)


1. (C) Summary: As part of the preparations for Jacques
Chirac's February 19-20 trip to India, Special Representative
of the President Maurice Gourdault-Montagne visited New Delhi
on January 27 for the fifteenth round of strategic dialogue
focused on fleshing out the details of a France-India Civil
Nuclear Cooperation Agreement. Despite intentions on both
sides to wrap this up before Chirac's visit, the French
Embassy in Delhi indicated that Gourdault-Montagne's meetings
with Indian NSA Narayanan were "frustrating" and far from
complete. Gourdault-Montagne stressed that India cannot play
the US and France against each other on the issue of civil
nuclear cooperation, and urged the GOI to issue a credible
separation plan to pave the way for collaboration with the
international community. France has historically been a
strong supporter of civil nuclear cooperation with India
(replacing the US as a supplier of fuel for Tarapur),and
French companies are eyeing the Indian market and hoping for
early relaxation of international restrictions. New Delhi is
eager to secure some type of commitment during the Chirac
visit, as a deal with France would give the GOI proof to show
critics that the US-India Civil Nuclear understanding is only
the first of many such arrangement with major international
players. End Summary.

Not So Fast There
--------------


2. (C) French NSA Gourdault-Montagne visited New Delhi on
January 27 to discuss the parameters of a French-Indian Civil
Nuclear Agreement to be announced during President Chirac's
February 19-20 trip to India. Francois Richard, the French
non-proliferation specialist who is leading on Iran, and
three Asia experts accompanied Gourdault-Montagne at the
discussions. In a January 30 meeting, French Second
Counselor Gilles Bourbao described Gourdault-Montagne's
discussions as "frustrating," primarily because the Indian
side was pushing for cooperation to begin before
international restrictions are relaxed. Bourbao explained
that the GOI suggested two deletions to the French proposal:
language that civil nuclear cooperation with France would
occur "as soon as international laws were changed" as well as
any reference to IAEA rules. Gourdault-Montagne replied that
these deletions were unacceptable, and Narayanan appeared to
understand their position. The French will submit another
draft agreement with this language included.


3. (C) Throughout meetings with PM Manmohan Singh, NSA MK
Narayanan, and FS Shyam Saran, Gourdault-Montagne stressed
that the GOI should not try to play the US and France against
each other to speed up civil nuclear cooperation and
encouraged the Indians to issue a credible separation plan,
Bourbao commented. Joining Narayanan in the meetings were
Atomic Energy Commission Chairman Anil Kakodkar, regional MEA
officials and officials from the intelligence agencies.
Bourbao observed that throughout these meetings it was

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apparent that the Prime Minister's Office and the Ministry of
External Affairs were still working out their own positions.

Civil Nuclear Cooperation Top Priority
--------------


4. (C) Despite these complications, both sides are hoping to
wrap up negotiations in time to announce some sort of civil
nuclear cooperation "agreement" during Chirac's visit. A
January 31 article in the Asian Age predicts that the final
draft will showcase a "common declaration on the peaceful
uses of nuclear energy or nuclear cooperation." Following PM
Singh's visit to Paris in September (Reftel),French support
for international civil nuclear cooperation has been a top
priority in the bilateral relationship. The Asian Age
article also points out that India wants civil nuclear
cooperation with France "as a showcase for critics of the
US-India nuclear deal" and to prove that the agreement "has
in fact been a precursor to more such tie-ups with key
countries in the world." Once restrictions are relaxed,
French companies are hoping for a piece of the Indian civil
nuclear market. The French DCM called us on January 31 to
knock down this and other articles suggesting that Paris was
prepared to adopt a more flexible attitude than Washington on
the issue of separation.

Comment: France Helping US
--------------


5. (C) As we saw when PM Singh visited Moscow in December,
France is also telling India that there will be no progress
on civil nuclear cooperation until the GOI comes up with a
credible separation plan and the NSG decides to relax its
restrictions. The visit appears to have refuted speculation
in some circles that India could cut a deal with France that
is less demanding than the Indo-US Civil Nuclear
understanding. That both Russia and France have been telling
India that there is no shortcut to international nuclear
cooperation helps our own negotiations and gives the GOI a
greater incentive to produce a credible separation plan.


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