Identifier
Created
Classification
Origin
07NEWDELHI2246
2007-05-10 11:24:00
CONFIDENTIAL
Embassy New Delhi
Cable title:
BILDT IN INDIA: REBUILDING TRADE TIES AND MORE
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C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002246
SIPDIS
SIPDIS
E.O. 12958: DECL: 01/11/2012
TAGS: PREL PGOV ETRD MARR KNNP IN
SUBJECT: BILDT IN INDIA: REBUILDING TRADE TIES AND MORE
THAN A HINT OF SUPPORT IN NSG FOR NUCLEAR DEAL
Classified By: Charge d'Affaires Geoffrey Pyatt for Reasons 1.4 (B, D)
C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002246
SIPDIS
SIPDIS
E.O. 12958: DECL: 01/11/2012
TAGS: PREL PGOV ETRD MARR KNNP IN
SUBJECT: BILDT IN INDIA: REBUILDING TRADE TIES AND MORE
THAN A HINT OF SUPPORT IN NSG FOR NUCLEAR DEAL
Classified By: Charge d'Affaires Geoffrey Pyatt for Reasons 1.4 (B, D)
1. (C) Summary. In his May 2-4 visit to India, Swedish
Foreign Minister Bildt, accompanied by an impressive business
delegation, brought a message that Sweden will aggressively
pursue its share of India's bulging consumer market. Also
aiming for a stake in the lucrative Indian defense market,
Bildt declared the 1986 Bofors scandal a thing of the past
and urged the two countries to move ahead in their trade
relationship. In a private conversation with the Charge,
Bildt signaled that Sweden will not stand in the way of India
getting NSG approval for nuclear cooperation. End Summary.
Aggressively Pursuing Indian Market
--------------
2. (U) Swedish Foreign Minister Carl Bildt visited India May
2-4, accompanied by a business delegation made up primarily
from representatives in the IT, bio-technology and telecom
sectors, and including high-profile Swedish companies such as
Volvo, Ericsson and Electrolux. Bildt and his delegation,
also accompanied by the head of Sweden's civil aviation
authority, first traveled to Bangalore for talks with
aerospace and IT industries, then continued on to New Delhi
for talks with Indian government officials, including Prime
Minister Singh, External Affairs Minister Mukherjee, and
Defense Minister Antony. According to MEA, this was the
first visit to India by a Swedish foreign minister since
1993, although PM Persson came here in May 2004. Media
reports of the visit highlighted Bildt's comments that
Sweden's trade with India is growing, and Stockholm is
looking to increase its marketing and manufacturing
activities. In particular, Bildt said Sweden would be
aggressively pursuing India's bulging defense market --
estimated at $15 billion over the next 10 years -- to include
Gripen's bid for 126 multi-role combat aircraft (MRCA) which
the Indian Air Force is seeking, and an Indian army tender
for the sale of 400 upgraded 155 mm .52 calibre guns. Trying
to erase lingering controversy over the 1986 Bofors scandal,
in which the Swedish company allegedly paid kickbacks on a
$700 million defense deal, a scandal which brought down the
BJP government at the time, Bildt conspicuously announced
that "the ghost has disappeared" from that affair, and urged
that India and Sweden move ahead in their trade relationship.
(Note: A briefing by the MEA spokesperson on the visit can
be found at meaindia.nic.in. End Note.)
Support in NSG for Civ-Nuke Deal
--------------
3. (C) Bildt also discussed the U.S.-India civil-nuclear
cooperation agreement. He was cautious in his public
statements -- he was quoted by Times of India columnist
Indrani Bagchi as saying "We are concerned about
proliferation. But we have a deeper understanding of India's
need for civil nuclear energy. That's important for energy
security and from climate change point of view." However,
privately, Bildt was more straightforward. In a conversation
with the Charge on the margins of a reception prior to
Bildt's meeting with PM Singh, Bildt indicated he had been in
touch with Washington on the nuclear deal, adding he sees
Nuclear Supplier's Group approval for India's exception as a
foregone conclusion. Charge explained some of the
difficulties the U.S. is having vis-a-vis finalizing a 123
Agreement and with India's nuclear establishment; Bildt
reiterated his sense that Sweden, notwithstanding historic
policies, would not wish to be perceived as an obstacle in
this effort.
Antony to Visit Stockholm
--------------
4. (C) Ministry of Defense Acting Joint Secretary
(International Cooperation) Kiran Chadha told Charge that
DefMin Antony promised Bildt he would visit Stockholm in the
NEW DELHI 00002246 002 OF 002
near future. Chadha, one of the key people in India's
defense procurement chain, assessed Bildt's visit as a strong
signal that Gripen/Sweden intend to aggressively compete for
the (roughly $6-10 billion) MRCA deal.
PYATT
SIPDIS
SIPDIS
E.O. 12958: DECL: 01/11/2012
TAGS: PREL PGOV ETRD MARR KNNP IN
SUBJECT: BILDT IN INDIA: REBUILDING TRADE TIES AND MORE
THAN A HINT OF SUPPORT IN NSG FOR NUCLEAR DEAL
Classified By: Charge d'Affaires Geoffrey Pyatt for Reasons 1.4 (B, D)
1. (C) Summary. In his May 2-4 visit to India, Swedish
Foreign Minister Bildt, accompanied by an impressive business
delegation, brought a message that Sweden will aggressively
pursue its share of India's bulging consumer market. Also
aiming for a stake in the lucrative Indian defense market,
Bildt declared the 1986 Bofors scandal a thing of the past
and urged the two countries to move ahead in their trade
relationship. In a private conversation with the Charge,
Bildt signaled that Sweden will not stand in the way of India
getting NSG approval for nuclear cooperation. End Summary.
Aggressively Pursuing Indian Market
--------------
2. (U) Swedish Foreign Minister Carl Bildt visited India May
2-4, accompanied by a business delegation made up primarily
from representatives in the IT, bio-technology and telecom
sectors, and including high-profile Swedish companies such as
Volvo, Ericsson and Electrolux. Bildt and his delegation,
also accompanied by the head of Sweden's civil aviation
authority, first traveled to Bangalore for talks with
aerospace and IT industries, then continued on to New Delhi
for talks with Indian government officials, including Prime
Minister Singh, External Affairs Minister Mukherjee, and
Defense Minister Antony. According to MEA, this was the
first visit to India by a Swedish foreign minister since
1993, although PM Persson came here in May 2004. Media
reports of the visit highlighted Bildt's comments that
Sweden's trade with India is growing, and Stockholm is
looking to increase its marketing and manufacturing
activities. In particular, Bildt said Sweden would be
aggressively pursuing India's bulging defense market --
estimated at $15 billion over the next 10 years -- to include
Gripen's bid for 126 multi-role combat aircraft (MRCA) which
the Indian Air Force is seeking, and an Indian army tender
for the sale of 400 upgraded 155 mm .52 calibre guns. Trying
to erase lingering controversy over the 1986 Bofors scandal,
in which the Swedish company allegedly paid kickbacks on a
$700 million defense deal, a scandal which brought down the
BJP government at the time, Bildt conspicuously announced
that "the ghost has disappeared" from that affair, and urged
that India and Sweden move ahead in their trade relationship.
(Note: A briefing by the MEA spokesperson on the visit can
be found at meaindia.nic.in. End Note.)
Support in NSG for Civ-Nuke Deal
--------------
3. (C) Bildt also discussed the U.S.-India civil-nuclear
cooperation agreement. He was cautious in his public
statements -- he was quoted by Times of India columnist
Indrani Bagchi as saying "We are concerned about
proliferation. But we have a deeper understanding of India's
need for civil nuclear energy. That's important for energy
security and from climate change point of view." However,
privately, Bildt was more straightforward. In a conversation
with the Charge on the margins of a reception prior to
Bildt's meeting with PM Singh, Bildt indicated he had been in
touch with Washington on the nuclear deal, adding he sees
Nuclear Supplier's Group approval for India's exception as a
foregone conclusion. Charge explained some of the
difficulties the U.S. is having vis-a-vis finalizing a 123
Agreement and with India's nuclear establishment; Bildt
reiterated his sense that Sweden, notwithstanding historic
policies, would not wish to be perceived as an obstacle in
this effort.
Antony to Visit Stockholm
--------------
4. (C) Ministry of Defense Acting Joint Secretary
(International Cooperation) Kiran Chadha told Charge that
DefMin Antony promised Bildt he would visit Stockholm in the
NEW DELHI 00002246 002 OF 002
near future. Chadha, one of the key people in India's
defense procurement chain, assessed Bildt's visit as a strong
signal that Gripen/Sweden intend to aggressively compete for
the (roughly $6-10 billion) MRCA deal.
PYATT