SECRETARY RICE MEETS INDIAN NATIONAL

S E C R E T SECTION 01 OF 02 STATE 103230 SIPDIS SIPDIS E.O. 12958: DECL: 07/18/2017 TAGS: OVIP RICE CONDOLEEZZA PGOV PREL IN SUBJECT: SECRETARY RICE MEETS INDIAN NATIONAL SECURITY ADVISOR NARAYANAN ON JULY 18, 2007 TO DISCUSS 123 AGREEMENT Classified By: ACTING A/S MANN 1.4 (REASONS B AND D) ¶1. (U) July 17, 2007, 9:45 a.m. in Washington. ¶2. (U) Participants: U.S. The Secretary Under Secretary Burns Assistant Secretary Boucher Ambassador David Mulford P Staff Alyssa Ayres Michael Newbill (Notetaker) India National Security Advisor Narayanan Foreign Secretary Shivshankar Menon Ambassador Ronen Sen DCM Raminder Jassal Joint Secretary Gaitri Kumar Political Counselor Gautam Bambawale ¶3. (S) SUMMARY: Secretary Rice and Indian National Security Advisor Narayanan agreed at their July 18 meeting on the need to finalize the 123 Agreement for civil nuclear cooperation. The Secretary explained that the U.S. had shown additional flexibility to meet Indian government concerns, but emphasized that the 123 Agreement could not exceed the parameters established by the Congress. Narayanan expressed his view that the civil nuclear initiative was only one part of our expanding strategic partnership, but urged her to intervene to finalize the negotiations. The Secretary previewed a possible trip to the region later this year in connection with new U.S.-India initiatives, and expressed her wish that the current negotiating teams would conclude the final details of the Agreement in Washington. END SUMMARY. ¶4. (C) Narayanan warmly greeted the Secretary, advising that we are on the "last lap on 123 Agreement negotiations," to which the Secretary responded that we "need to run it smartly." The Secretary said that we have an opportunity to close SIPDIS the deal, advising that we must take advantage of it now. The Secretary told Narayanan that the U.S. has made as many concessions as were possible on reprocessing, under limits set by U.S. legislation. We will do everything we can to address Indian concerns, the Secretary said, but we cannot violate the law. The U.S. has made forward leaning proposals, the Secretary counseled, adding that we will have to take the final agreement to Congress for approval. ¶5. (C) Narayanan agreed that India and the U.S. have made progress in the 123 Agreement negotiations, but asked the Secretary for "a push from your side" to get it finished. Foreign Secretary Menon added that we are "in touching distance." Narayanan interjected that we may not be "quite in touching distance," but that they had good meetings on July 17, and he was looking forward to his meeting with National Security Advisor Steven Hadley, where he hoped they could bridge the gaps. ¶6. (C) Under Secretary Burns noted that today (July 18) is the second anniversary of the initial joint statement between President Bush and Prime Minister Singh. The Secretary welcomed the "good symmetry," and expressed hope that the agreement would be completed today or tomorrow. The Secretary again reminded that the U.S. must meet the legal requirements and standards set by the Congress. Congress gave us slightly more flexibility a few weeks ago in order to close the deal, the Secretary said, but indicated we could not go further than that. ¶7. (C) Narayanan replied that India "also had a STATE 00103230 002 OF 002 SUBJECT: SECRETARY RICE MEETS INDIAN NATIONAL SECURITY ADVISOR NARAYANAN ON JULY 18, 2007 TO DISCUSS 123 AGREEME Parliament," and hoped that we could "see where the three sides can meet [sic]." The stakes are high, he said, not only on the nuclear issue, but on a range of issues where we are both on the same side. On terrorism, we are joined together by a common threat, but it goes beyond terrorism; radicalization is an even greater threat. Other areas, such as defense cooperation open the doors for more cooperation. He called Under Secretary Burns a "tough interlocutor," but said that he had learned from him. ¶8. (C) The Secretary emphasized that we want to close this deal. She said that she wants to travel to the region, but cannot do so before this is done. When she travels, she would like to be able to announce new initiatives for the President's final months. Narayanan said he looked forward to Rice's visit, and wants to close the deal this week. Before departing, he again asked for "a push from your side." Gesturing towards the negotiators in the room, the Secretary responded: "I think you can close it today. I hope to hear good news when I come back this evening." RICE