Identifier
Created
Classification
Origin
07NEWDELHI4766
2007-10-29 01:07:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy New Delhi
Cable title:  

ANGELA MERKEL TO FOCUS ON CLIMATE CHANGE,

Tags:  PGOV PREL ECIN ECON EFIN ETRD ETTC KGHG SENV 
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FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9017
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
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UNCLAS SECTION 01 OF 02 NEW DELHI 004766 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECIN ECON EFIN ETRD ETTC KGHG SENV
ENRG, GM, IN
SUBJECT: ANGELA MERKEL TO FOCUS ON CLIMATE CHANGE,
BUSINESS, AND SCIENCE IN INDIA

NEW DELHI 00004766 001.2 OF 002


UNCLAS SECTION 01 OF 02 NEW DELHI 004766

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECIN ECON EFIN ETRD ETTC KGHG SENV
ENRG, GM, IN
SUBJECT: ANGELA MERKEL TO FOCUS ON CLIMATE CHANGE,
BUSINESS, AND SCIENCE IN INDIA

NEW DELHI 00004766 001.2 OF 002



1. (U) SUMMARY: German Chancellor Angela Merkel will be
accompanied by a large private business delegation when she
visits New Delhi October 29, and her visit will focus on
Indo-German bilateral ties rather than EU and multilateral
issues such as the NSG. German and Indian officials are
expected to discuss climate change and to sign several
agreements on science and technology cooperation during her
four-day stay in New Delhi and Mumbai. END SUMMARY.


2. (SBU) German PolCouns Karin Stoll confirmed to Poloff
October 24 that German Chancellor Merkel will be accompanied
by a 30-member private business delegation when she visits
New Delhi October 29. The German business delegation will
include top officials from companies like EADS, Lufthansa,
Volkswagen and SAP. During her two day sojourn in New Delhi
Merkel will attempt to focus on Indo-German bilateral ties
rather than EU and multilateral issues such as the Nuclear
Supplier's Group. "Our side won't be the one to bring up the
nuclear deal," commented Stoll. German Ambassador Bernd
Mutzelburg told PolCouns that Merkel will use her audience
with Prime Minister Singh to discuss climate change.

-- Germany Increasingly Wants to do Business with India --


3. (U) Germany and India have markedly improved their
economic ties in the recent past. Indo-German trade jumped
22 percent to Euro 6.22 billion in 2004, the same year that
Chancellor Gerhard Schroeder and Prime Minister Singh
announced a concerted effort to increase two-way trade to
Euro 10 billion by 2010. Both sides surpassed this goal when
they increased bilateral trade by 39 percent in 2006.
Germany is now India's largest trading partner in Europe with
total trade of Euro 10.55 billion in 2006 and Euro 5.37

billion in the first six months of 2007, according to the
MEA's Berlin website. By way of comparison, Indo-U.S. trade
for 2006 was over USD 31 billion.


4. (U) According to Indian media, Volkswagen has plans to
open an automobile plant in Maharashtra, and the German IT
firm SAP plans to increase its existing investment in India
by USD one billion and to use India as an outsourcing hub for
one quarter of its global R&D. Munich Re, a large German
insurance company, will reportedly take advantage of Merkel's
visit to explore a foray into non-life, non-health insurance
sectors in India. The GOI limits Foreign Direct Investment
(FDI) in the insurance sector to 26 percent. Foreign
insurance companies, including New York Life, have entered
into the Indian market as junior joint venture partners.
Christoph Heugsen, Merkel's Foreign Policy and Security
Advisor, commented to media October 24 that "The visit to
India is among the most important for Merkel," and "she will
be spending more time there than she has in any other
country."

-- Germany Keen to Share Science and Tech Experience --


5. (SBU) German Science and Technology Counselor Heinz Wirth
confirmed that Merkel will be accompanied by high level
science representatives, including at least one minister.
Stoll and Wirth affirmed that Merkel's German delegation will
emphasize increased science and technology cooperation
between the two countries, introducing an MOU to open an
Indo-German Science Center in India to identify potential
areas of joint research. Indian media reported that 10
scientific agreements will be signed between the two
countries during Merkel's visit, including one between the
Helmholtz Association and the National Institute of
Oceanography in Goa for a research project on ecosystems.
Wirth confirmed that several MOUs between research institutes
are expected to be signed and will be primarily focused on
health, marine science, and energy issues. A proposal
outlining scientific research and student exchanges is also
expected. Climate change may be actively discussed, but an
agreement specific to the topic is unlikely. Merkel and

NEW DELHI 00004766 002.2 OF 002


Prime Minister Singh will jointly flag off "the Science
Express," a train containing various scientific educational
exhibits in 13 cars. The train will travel through 54 Indian
cities to raise scientific awareness and was designed with
help from German scientific institutes such as the Max Planck
Society and the Helmholtz Association of German research
centers.


6. (SBU) Stoll confirmed that Merkel will arrive in New Delhi
Monday October 29 and fly to Mumbai on October 31, where she
will remain for one day before returning to Germany.
MULFORD