INDIAN DEFENSE SECRETARY TO GC HAYNES: TIES

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 005327

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/14/2022
TAGS: PREL PGOV MARR IN
SUBJECT: INDIAN DEFENSE SECRETARY TO GC HAYNES: TIES
IMPROVED, NEED TO SEE AGREEMENTS FINALIZED


Classified By: Charge d'Affaires a.i. Steven White for Reasons 1.4 (B,
D)


1. (C) Summary. In a December 14 meeting among Department of
Defense General Counsel William J. Haynes, Indian Defense
Secretary Vijay Singh, and Integrated Defense Staff Chief

SIPDIS
General Hardev Singh Lidder, Singh and Lidder:

-- Accepted responsibility on India for failure to complete
thus far CISMOA, LSA and End-Use Monitoring agreements,
citing domestic politics and inaction by the Cabinet, and
adding that he hoped at least one of the agreements could be
concluded by the DPG in January;

-- Reported China's action into Bhutan to destroy a bunker,
noting that such an incident, along with China's advanced
development of infrastructure along the border compared to
India, necessitated India to move some troops to the area;

-- Cited defense cooperation as an area for growth in the
bilateral relationship, emphasizing the transparency of
India's procurement system today and the potential for a
greater American role in India's defense purchases; and

-- Described India's relations with Iran as important for
India's interests in energy security, access to Central Asia
and Islam, but said that "militarily, we're not that close."

End Summary.

India Needs To Move On CISMOA, LSA, EUM
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2. (C) After describing the "distinct revival" in U.S.-India
defense relations over the past 3-4 years as leading the way
to closer overall U.S.-India ties, Secretary Singh said that
he viewed the completion of the Communications and
Information Security Memorandum of Agreement (CISMOA),the
Logistics Support Agreement (LSA) and End-Use Monitoring
(EUM) as keys to advancing the relationship further. Noting
he was going off-the-record, Singh said CISMOA, LSA and EUM
had been caught up in domestic political wrangling,
particularly as victims of rhetoric from the government's
Left party partners, who are critical of the government for
becoming "too close" to the USA. "Those are the real
reasons," he said, adding that Prime Minister Singh had
recognized the necessity of completing these deals. When
asked by GC Haynes when we could expect a conclusion to these
agreements, Singh said that while he cannot control what
happens in the Cabinet, he hoped at least one, if not all
three, of the agreements could be approved prior to the
Defense Policy Group meetings in January. When GC Haynes
asked if the U.S. should do anything to move the agreements
forward, Singh replied "I think you've done all you can. Now
we need to take it forward." Singh surmised that once these
agreements were concluded, military cooperation will grow "in
so many directions."

Defense Cooperation Set To Take Off
--------------


3. (C) With Integrated Defense Staff Chief General Lidder at
his side, Singh offered his view that the already-improving
defense relationship was poised to move to new levels. "The
Defense Minister and Foreign Minister have been very clear,"
he stated, "this relationship has to progress." Pointing to
India's upcoming participation in Red Flag, Singh lauded the
increase in interactions between our two militaries, adding
that public sentiment in India toward the United States is
"extremely positive." General Lidder echoed Singh's
confidence in the direction of the relationship, saying "For
a half century our relationship was good intentions and
nothing more. Now there has been a distinct change. Both
sides are looking for opportunities."


4. (C) Among those opportunities was the potential for
greater defense sales by the U.S. to India, Singh and Lidder

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agreed. Singh boasted of the more transparent procurement
system India had put into place with the Defense Procurement
Policy of 2006, adding that while Russia remained India's
largest defense trade partner, times have changed and now
India's market is open to all comers. Singh added his
personal feeling that doing business with Russia was "not
easy," speculating that despite the newness of doing business
with America and perceived incompatibility of our two
procurement systems, dealing with long-time partner Russia
was still more difficult.


5. (C) GC Haynes pressed the transparency and reliability of
American business practices, along with the innovation and
value over the product life cycle inherent in the competitive
American system. Lidder replied that India has looked to the
West in its effort to develop a modern industrial base for
its defense programs. Lidder cited the Multi-Role Combat
Aircraft (MRCA) competition as an example of the new, open
market India offers, with Singh adding "I think it will be an
absolutely fair contest. One or two countries think they can
sway it, but I don't think that's true." As evidence of the
current probity, Singh referred to the recently canceled
tender for the Army helicopter, in which the American
competitor, Bell Helicopter, had been disqualified for being
non-compliant under shady circumstances. "We felt the
procedure has to be absolutely fair or redone," Singh said.
Singh added rumors were reported that they reopened the
tender under pressure from the USG but stated that was
absolutely untrue. He also added that India prefers direct
government-to-government sales, but felt that the Foreign
Military Sales program was slow and unreliable, citing a
special forces order of around 28 items he had been involved
in which dragged out, in his view, needlessly for several
years.

China Boundary A Benchmark Of Relations
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6. (C) Turning to regional issues, Singh described India's
relations with China as "good," but said the border issue
remained unsettled. China's posture was aggressive at times,
he stated, and reported that China had recently destroyed a
bunker along the border with Bhutan. In addition to this
most recent bunker incident, China has also been actively
building infrastructure along the border, giving it an
advantage which India has "taken note." Lidder said India is
taking action to close the gap on China's advantage, and is
factoring in the border issues as it structures and places
its forces. Singh was more explicit, saying "We'll have to
commit some troops." In response to GC Haynes question of
whether India improving infrastructure along the border would
add to tensions, Singh downplayed the notion, saying "No.
They have secured themselves as they see fit. We must do the
same." Lidder said efforts to resolve the boundary issue
will be a signal of how Sino-India relations are progressing,
adding that China seems content to put off earnest efforts to
resolve the issue.

Iran Engagement Necessary, But "Not That Close"
--------------


7. (C) Singh admitted to not having much expertise on Iran,
but justified India's ongoing engagement with Tehran by
citing energy, Islam (given that their population includes
the second largest Muslim population in the world) and a
route to Central Asia as key factors. Lidder added
"Militarily, we're not that close," and added that India
would not be comfortable with a nuclear armed Iran.


8. (U) This message has been cleared by DOD/OGC.
WHITE