MINISTER OF STATE SHARMA: 123 AGREEMENT

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 000139

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/10/2017
TAGS: PREL PGOV ETRD ECON KNNP EAGR SOCI IN
SUBJECT: MINISTER OF STATE SHARMA: 123 AGREEMENT
"IMPERATIVE;" SEEK EDUCATION PARTNERSHIPS; AND MORE
AMERICANS AT SATYAGRAHA, PLEASE

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


1. (C) Summary. In a January 9 meeting, Minister of State
for External Affairs Anand Sharma told the Ambassador:

- India has "too much political capital invested" in the
civil-nuclear agreement to allow for 123 Agreement talks to
languish, adding a successful 123 conclusion is "imperative;"

- India is committed to concluding a safeguards agreement
with the NSG and additional protocols with the IAEA;

- the U.S. and India should seek partnerships to promote
educational exchanges;

- rural economic development is a priority for the government;

- he hoped the GOI would be able to find more significant
American attendance at the January 29-30 Satyagraha 100th
anniversary commemoration, and he welcomed the Ambassadors
offer to suggest other potential American invitees; and

- he is considering our invitation to visit the American
pavilion at Aero India '07 and perhaps fly on an American
plane.

End Summary.

123 Conclusion "Imperative"
--------------


2. (C) Ambassador called on Minister of State for External
Affairs Anand Sharma on January 9 to press for Indian
progress on our civil nuclear cooperation initiative
negotiations, as well as to seek Sharma's views on next steps
in developing a comprehensive bilateral relationship. Sharma
agreed that in the wake of Congress' passage of civil-nuclear
legislation, while the related 123 Agreement legislation
still needs to be finalized, now is the time to turn
attention to the broader relationship.


3. (C) Sharma stated that he hoped the U.S. would push
forward on negotiating a 123 Agreement within the next few
months. The Ambassador noted that the U.S. was awaiting
India's counterproposal and urged the GOI to engage
immediately and meaningfully. Sharma described India's
presentation to the Nuclear Suppliers Group in October, which
he characterized as having gone well, and said India is
involved in discussions with the IAEA on Additional
Protocols. The Prime Minister and the government are "fully
committed," he stressed, adding "Too much political capital
has been invested. It's imperative to have a successful
conclusion."

Education: Partnerships Best Way Forward
--------------


4. (C) Regarding next steps in building the bilateral

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relationship, the Ambassador pointed to the growing interest
from American universities to be involved in India through
programs or exchanges, noting the lack of balance between
76,000 Indian students studying in the U.S. this year,
compared to 1500 Americans in India. He cited the small
percentage of Americans studying abroad who choose to study
in India as an opportunity for future growth. Sharma
suggested that best way to begin would be to identify two or
three universities on each side and form partnerships for the
exchange of students, faculty and research. Partnerships
would be a way to avoid Indian anxieties that its
universities would have to compete with richer American
institutions for faculty and students. The Ambassador
referred to the planned visit of Undersecretary Hughes
perhaps in March, saying several U.S. university presidents
were expected to accompany her to explore possibilities.


5. (C) The Ambassador expressed hope that the U.S. would be
able to assist India in developing its primary education
system, which Sharma admitted was an area of concern for the
GOI, linking it to India's overall economic progress,
particularly in rural areas. The Ambassador urged India to
consider liberalizing its micro-credit and rural banking
system as a method of accelerating economic growth, which
Sharma agreed was desirable, although efforts to do so in the
past had been problematic due to scandals and defaults.
Rural development had the attention of India's top
policymakers, Sharma asserted, who see such growth as a way
to relieve pressure over the long run on urban migration.

Satyagraha: More Americans, Please
--------------


6. (C) Saying that he had heard few Americans had accepted
invitations to the Satyagraha 100th anniversary ceremony, the
Ambassador offered assistance in helping to identify other
potential American invitees. (Note: Satyagraha, or "truth
struggle," is the name of the non-violent resistance movement
started by Mohandas Gandhi in South Africa in 1906, which Dr.
Martin Luther King, Jr., often cited as an inspiration for
his civil rights campaign. The 100th anniversary
commemoration is headed by India's Congress Party, with Sonia
Gandhi personally heading the committee organizing the event,
and Sharma as the committee's convener. It will take place
January 29-30, with a guest list that includes Nobel
laureates Desmond Tutu, Lech Walesa, Mohammed Younis, and
other eminent persons from 82 countries. End note.) Sharma
confirmed that only two Americans have accepted invitations,
one of them being Gene Sharp. He welcomed suggestions for
other U.S. guests; post provided a short list following the
meeting. Sharma said he hoped more Americans would attend,
adding that an absence of appropriate American presence would
be unfortunate given the political attention that the GOI is
paying to the Satyagraha anniversary.

Sharma Considering Attending Aero India
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7. (C) The Ambassador described the commitment the USG and
U.S. industry have put into making this year's Aero India
event the largest ever U.S. presence for the air show. The
Ambassador reconfirmed the invitation to Sharma to ride on a
U.S. plane at the show. Sharma said he was considering
attending.
MULFORD