MEETING WITH INDIA'S CHIEF OF NAVAL STAFF

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000889 SIPDIS SIPDIS E.O. 12958: DECL: 02/06/2016 TAGS: PREL KNNP ENRG MNNC ETTC IN IR SUBJECT: MEETING WITH INDIA'S CHIEF OF NAVAL STAFF Classified By: Ambassador David C. Mulford for Reasons 1.4 (B, D) ¶1. (C) Summary: On February 3, the Ambassador, US Naval Attach, and the Navy Programs Officer from the Office of Defense Cooperation (ODC) met with Admiral Prakash, India's Chief of Naval Staff. The primary purpose of the meeting was to inform ADM Prakash that the Multi-Mission Maritime Aircraft (MMA) briefing that was scheduled for the week of February 6, had been postponed. Additionally, other US-India navy issues were also covered. ADM Prakash was receptive to the postponement of the MMA briefing and noted that the cost of joining the MMA project would play a key role in any decision to proceed. ADM Prakash's only major concern expressed during this meeting was regarding the schedule for sale and transfer of the USS TRENTON. End Summary. Navy-to-Navy Engagement Issues -------------- ¶2. (C) Ambassador Mulford began the meeting by noting his pleasure that the US Navy was able to provide standby submarine rescue services for the President of India,s planned ride and dive onboard an Indian submarine during the Presidential Fleet Review February 11-13. Prakash said he was very impressed with the speed of the response from the US Navy and grateful for the support. Ambassador Mulford then noted that the Joint Chiefs of Staff had approved an adjustment to the schedule of the USS RONALD REAGAN that will allow the REAGAN and the Indian aircraft carrier INS VIRAAT to conduct a PASSEX in mid-February. Multi-role Maritime Aircraft (MMA) and P-3 -------------- ¶3. (C) Ambassador Mulford and ADM Prakash discussed the postponement of the MMA brief and the future of the program. The planned briefing on MMA was postponed because the U.S. was not in a position to move this project forward with India at this time, and as a detailed classified briefing could not be given, there was no point in doing a briefing that was not the type requested by the Indian Navy. ADM Prakash stated that he had been looking forward to a thorough, classified briefing, perhaps leading to an announcement that we would be working together on the MMA during the President,s visit. Ambassador Mulford stated that was not possible at this time. ¶4. (SBU) ADM Prakash stated that the P3C lease/sale had been a disappointment, but that "we need to put that behind us and there will be these speed bumps in our growing relationship." He continued saying that Indian Navy is looking ahead 15-20 years and sees the MMA as the next generation of Maritime Patrol Aircraft (MPA). ADM Prakash commented that the Indian Navy is cautious about the MMA program because they have never participated in a project such as the MMA where a large up front investment is required. A major consideration will be cost. The other key concerns are: How much access will GOI have to technical information? What will India,s status be as a partner? How many partners will be involved? What will be the ultimate cost of the aircraft? USS TRENTON SALE -------------- ¶5. (SBU) Ambassador Mulford and ADM Prakash next discussed the Congressional notification procedures for the pending sale of USS TRENTON. The Indian Navy is concerned about whether there is enough time to ensure that a "hot" transfer NEW DELHI 00000889 002 OF 002 of the ship will be complete by December 2006. Currently, the Letter of Offer and Acceptance (LOA) will be delivered to the Indian Navy in April 2006, however the Indian Navy believes that this will not allow enough time for the GOI approval process for signing the LOA and the full process involved in the transfer of the USS TRENTON. Indian officers on ADM Prakash's staff stated that the Government of India would require four months to process the LOA. Comment: For the Indian Navy to take possession of the USS TRENTON in December 2006, Indian sailors need to begin training by May. END COMMENT. ¶6. (SBU) Additionally, ADM Prakash was informed that the impact of missing the hot transfer date of December 2006 would likely result in an additional $7 million USD to the transfer case. They seemed very concerned about deterioration of the ship in the months during which it would be de-commissiioned and effectively stored. Comment: The Indian Navy is considering sending a letter to LtGen Kohler, Director Defense Security Cooperation Agency, requesting assistance in getting the LOA earlier. Conclusion -------------- ¶7. (SBU) The meeting ended with ADM Prakash returning to MMA topic stating that the India Navy would like to participate in this project. He stated that the spin-offs, both political and economic, could be good for India. ADM Prakash commented that India is growing to understand the U.S. view on lifecycle costs and in reality India should consider long-term (lifecycle) costs rather than just the purchase price. MULFORD