Identifier
Created
Classification
Origin
08NEWDELHI1044
2008-04-11 11:19:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy New Delhi
Cable title:  

INDIA DOUBLES ITS ANTE IN AFRICA

Tags:  PREL PGOV ECON EAID ECIN ETRD KECF IN 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 02 NEW DELHI 001044 

SIPDIS

SENSITIVE
SIPDIS

REFTEL 0984

E.O. 12958: N/A
TAGS: PREL PGOV ECON EAID ECIN ETRD KECF IN
SUBJECT: INDIA DOUBLES ITS ANTE IN AFRICA

UNCLAS SECTION 01 OF 02 NEW DELHI 001044

SIPDIS

SENSITIVE
SIPDIS

REFTEL 0984

E.O. 12958: N/A
TAGS: PREL PGOV ECON EAID ECIN ETRD KECF IN
SUBJECT: INDIA DOUBLES ITS ANTE IN AFRICA


1. (SBU) SUMMARY: Amid positive press reporting and official press
statements, Indian and African leaders concluded the two-day New
Delhi based India-Africa Summit by unanimously accepting drafts of
the Delhi Declaration and the India-Africa Framework for
Cooperation. Nations agreed in principle to double India-Africa
trade over the next five years, while India announced several
unilateral incentive-laden economic offers to African nations.
These incentives are efforts to strengthen Indo-African relations,
while counter-balancing China's strategic gains in Africa. It is
now incumbent on the nations to transform the agreements into
substantive progress. END SUMMARY.

TWO NEW PROPOSALS
--------------


2. (SBU) Heads of State from India, fourteen Africa nations, and
African Regional Economic Communities (RECs) (REFTEL) agreed upon
two draft documents, The Delhi Declaration and the India-Africa
Framework for Cooperation. These proposals along with the Summit
framework were first proposed by India to the African Union (AU) in
December 2006. According to Indian Prime Minister (PM) Manmohan
Singh, these agreements "...will provide the blueprint for
India-Africa dialogue and engagement in the 21st century,
strengthening a long and special relationship which is based on
equality and mutual respect." Information on the summit and copies
of the proposals are provided by the Indian Ministry of External
Affairs website at
(http://meaindia.nic.in/indiaafricasummit/mys tart.htm).


3. (SBU) The Delhi Declaration and Framework for Cooperation aim to
enhance the "true partnership" between India and Africa in order to
achieve Millennium Development Goals. A political document, the
Delhi Declaration covers issues of bilateral, regional, and
international interest to India and Africa, including their common
positions on UN reforms, climate change, international organizations
(IMF, WB, WTO),and anti-terrorism. In multiple speeches, leaders

trumpeted the needs of 'developing' nations as related to climate
change and their representation (or lack of) in the governing bodies
of international organizations. Additionally, leaders pledged to
work together in supporting each others' positions on UN reform and
permanent seats on the UN Security Council, stressing that modern
day multilateral organizations need representation that reflects
global contemporary realities.


4. (SBU) The Framework for Cooperation includes areas of cooperation
in education, science and technology, agricultural productivity,
food security, industrial growth, infrastructure, and health sector
development. Tanzanian President Jakaya Mrisho Kikwete (also
current president of the AU) emphasized the need to address African
food security, with India promising to help Africa achieve an
African 'Green Revolution' with transfers of Indian technology and
knowledge in food production, storage, transportation, and water
management. It was also agreed that a joint plan of action for
implementing the Framework will be drafted, and that an India-Africa
summit will be held every three years with the next Summit in Africa
in 2011.
INDIA SWEETENS THE DEAL
--------------


5. (SBU) Beyond the two agreements, India made more headline offers,
announcing several unilateral, incentive laden economic proposals
designed to double Indian-African trade over the next five years
from its current level of USD 30 billion in 2007. The largest
incentive announced was the Duty Free Tariff Preference Scheme for
Least Developed Countries (LDCs). The 'Scheme' provides
preferential market access for exports from all 50 LDCs (as
determined by the United Nations),34 of which are in Africa. It
will cover 94 percent of India's total tariff lines and 92.5 percent
of global exports of all LDCs. Products of immediate interest to
Africa, and not coincidently to India, include cotton, aluminum ore,
copper ore, food products, and non-industrial diamonds. Oil and
natural gas are absent from official statements, but are detailed in
press reporting from the Times of India, The Hindu, Hindustan Times,
and Financial Times.


6. (SBU) In addition, India pledged to increase its stake in Africa
on several other fronts. It will double existing line of credit
offers to Africa from USD 2.5 billion to USD 5.4 billion over the
next five years; increase scholarships to Indian universities for
African students from 1200 to 1600 per year under Indian Technical
and Economic Cooperation (ITEC),and provide additional grants

NEW DELHI 00001044 002 OF 002


totaling USD 500 million over the next five years under the Indian
Aid to Africa program for human skills development. Specific
projects in building capacity and capability include development of
African railway, IT, telecom, and power generation sectors.

INDIA IS NOT IN A RACE WITH CHINA
--------------


7. (SBU) In press statements throughout the summit, Indian officials
continued to differentiate and distance India's relations with
Africa from those of China. MEA Minister of State for External
Relations Anand Sharma explained India's approach towards Africa as
a partnership based on equality and mutual respect spanning 60
years. He detailed Indian-African ties thru the Indian Technical
And Economic Cooperation (ITEC) program (REFTEL) and underlined that
80% of the workers at Indian operations in Africa are African, a
soft-handed swipe at Chinese labor practices that import Chinese
workers for Chinese projects in Africa. In addition, Sharma
referenced successful programs such as the Indian funded Pan-African
E-Network Project with its own dedicated satellite. The network
enables Africa to bridge the digital divide and links African
institutions to Indian counterparts, including universities,
specialty hospitals, and research institutions. Sharma emphasized
that India and Africa are not just engaged in an exchange of
resources, they are engaged in an exchange of ideas and knowledge.
Again swiping at China, he reiterated that the relationship was not
based on resource extraction. PM Singh's closing remarks, echoed
the sentiment that, "India is not in any race or competition with
China or any other country. We wish to be partners in Africa's
resurgence."

NOW HERDING THE CATS
--------------


8. (SBU) COMMENT: At first blush, this summit seemed to play
against U.S. interests. Consistent with India's recent foreign
policy of keeping one foot squarely in the camp of its old G77
friends while vigorously trying to get its foot in the G8 door, the
Delhi Declaration and Framework for Cooperation contain a lot of
what appears to be new manifestations of Non-Aligned Movement
principles cloaked in economic jargon. Also, the developing nations
vs. developed nations divide is delineated on issues such as climate
change, WTO Doha Round negotiations, and a commitment to south-south
dialogue. Furthermore, in the days leading up to the summit,
contacts told us that India does not immediately favor close
coordination with the U.S. on Africa, as it sees the U.S. carrying
colonial and imperialist baggage. However many of the goals set at
this summit coincide with U.S. goals for Africa, such as the
promotion of foreign direct investment, development of small and
medium enterprises, Africa's regional integration, training for
peacekeeping operations, cooperation in drug and human trafficking,
and strengthening cooperation for the implementation of Millennium
Development Goals. On these issues, India hopes to make an
immediate impact, and, should it be willing to forego its go-alone
strategy to pursue actual results, provides the U.S. with an
opportunity to leverage our relationship.

9. (SBU) COMMENT (continued): Post believes now is the time for
more thorough dialogue with India on Africa. Post supports DAS
Feigenbaum's proposal to engage in cross-bureau dialogue with India,
both in Delhi and Washington. Another opportunity would be through
AFRICOM, particularly in the area of peacekeeping training, where
India is a world leader and has just opened up to cooperation with
the U.S. on the Global Peacekeeping Operations Initiative (GPOI).
As India grows into an assistance donor, something along the lines
of the Strategic Assistance Dialogue we have with Japan could also
be beneficial. We must recognize that India does not want us
side-by-side in Africa, but through enhanced dialogue, Post believes
India will come to realize it - along with Africa - stands to
benefit from better coordination with the U.S.

WHITE