SECRETARY RICE MEETS INDIAN NATIONAL

S E C R E T SECTION 01 OF 02 STATE 103230

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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

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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

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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