IRAN ENCOURAGES INDIAN ELITE TO GET BACK TO

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002192 SIPDIS SIPDIS STATE FOR SCA/FO RDEUTSCH STATE FOR EEB DAS PSIMONS, JEIGHMIE, SGALLOGLY DEPT OF ENERGY FOR A/S KHARBERT, TCUTLER, CGILLESPIE E.O. 12958: DECL: 05/08/2017 TAGS: PREL PGOV PINR ENRG EPET MNUC IR IN SUBJECT: IRAN ENCOURAGES INDIAN ELITE TO GET BACK TO BUSINESS REF: NEW DELHI 2142 Classified By: PolCouns Ted Osius for Reasons 1.4 (B,D) ¶1. (C) SUMMARY: Left-wing think-tanker Professor S.D. Muni told PolCouns May 7 about his trip to Iran, fully paid for and sponsored by the Government of Iran, in which he and 13 Indian academics, former diplomats, journalists and scientists visited the Arak heavy water complex and met the Minister of Energy and two deputy foreign ministers. Muni said Iran was angry at India for its growing relationship with the U.S., but said he thought Iran had "a genuine desire to make up" with the U.S. The proposed Iran-Pakistan-India (IPI) natural gas pipeline was a frequent topic of conversation during the trip, Muni said, suggesting that the Americans should consider how India would meet its energy needs if not through Iranian gas. Congressman Lantos' letter to Prime Minister Singh criticizing Indo-Iranian relations had been counterproductive, opined Muni, who felt it boxed in the United Progressive Alliance government. END SUMMARY. Visit to Arak Heavy Water Facility Highlights Trip -------------- ¶2. (C) Professor S.D. Muni, prominent left-wing strategist and former Ambassador to Laos, was one of fourteen Indians, including academics, former diplomats, two journalists and a scientist, invited by the Iranian government to visit Iran's heavy water complex in Arak and meet with government officials April 28-May 4 (see reftel). As guests of Iran's Minister of Energy, Parviz Fatah, the group also met two deputy foreign ministers, one of whom was a former Ambassador to India, Muni told PolCouns May 7. Using Tehran as a base, the group visited the Nar natural gas field, the city of Esfahan and the island of Kish, said Muni, where they viewed a desalinization plant which supplied water to the island. Muni described the visit to the Arak facility as the highlight of the trip, claiming that it was the first time foreigners had visited the complex. (Note: Journalists on the trip wrote high profile articles in "The Hindu" and the "Asian Age." End note.) Iran's Motivation - India Needs to Get Back to Business with Iran -------------- ¶3. (C) Describing the Iranians as confident, Muni suggested Iran's motivation for hosting the delegation was to convey a message to India that "the two nations should get back to business." Iran was angry with India over its votes in the International Atomic Energy Agency, Muni said, but added that he felt Iran had "a genuine desire to make up" with the United States. The Iranians didn't care about UN Security Council Resolution sanctions, according to Muni, contending that the Iranians "knew the European Union was not 100% behind" the sanctions. Don't Mention the IPI -------------- ¶4. (C) Muni said the subject of the IPI natural gas pipeline had "come up everywhere," and suggested that progress in the negotiations was seen by the Iranians as indicating the status of its relationship with India, calling it part of Iran's "look East policy," just as, he said, becoming an observer in the South Asian Association for Regional Cooperation (SAARC) had been. Referring to Congressman Tom Lantos' recent letter to Prime Minister Singh objecting to Indo-Iranian defense and economic ties, Muni asserted that the U.S. should not bring up the subject of the IPI. "If you NEW DELHI 00002192 002 OF 002 speak less about it, it can be quarantined as an issue," argued Muni, adding that discussions were more productive when they were quiet. Muni challenged that the Chinese and Pakistanis were allowed to do business with Iran freely, "and no one writes to President Musharraf." ¶5. (C) PolCouns countered that India, as a democracy and world power, should recognize the negative signal engagement with Iran sends when the international community is insisting on compliance with UN Security Council resolutions 1737 and ¶1747. Muni maintained that India's energy requirement was both a serious and sensitive domestic issue, contending that the Iranian nuclear program would not benefit from India buying Iranian natural gas. Muni further argued that the U.S. did not stop Japan from investing in China, although China's military buildup would eventually benefit from Japan's investment. If India did not get gas to meet its energy needs from Iran, where did the U.S. propose India get energy, Muni wondered, noting that the civilian nuclear deal would only meet 7% of India's energy needs, and that not until the year 2020 or later. Muni: "Lantos Letter Was Counterproductive" -------------- ¶6. (C) Turning back to the Lantos letter, Muni complained that the letter had been counterproductive, and had "given a handle" to both the rightist Bharatiya Janata Party (BJP) and the Left Front. "It leads the Government of India to the exact opposite of what (the U.S.) wants," underlined Muni, adding that the letter had made it harder to negotiate, compromise and be flexible. The linkage the letter made to the 123 Agreement had been unfortunate, noting that the average Indian newspaper reader did not understand the nuances of the civil nuclear agreement. PYATT