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 NEW DELHI 00000699 002.2 OF 002 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