NSG: CANADA SUPPORTS EXCEPTION FOR INDIA, SEEKS

C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 001075

SIPDIS

STATE PASS ISN/RA TKOKA

E.O. 12958: DECL: 08/13/2018
TAGS: PARM PREL ETTC IN CA
SUBJECT: NSG: CANADA SUPPORTS EXCEPTION FOR INDIA, SEEKS
CHANGES TO DRAFT TEXT

REF: A. STATE 85948

B. OTTAWA 965

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Classified By: A/PolMinCouns Kurt van der Walde, reasons 1.4 (b) and (d
).


1. (C) Summary: Canadian officials responded to ref A
demarche by noting that Canada and the U.S. share similar
views on how to secure an exception for India from the
Nuclear Suppliers Group. Senior Canadian Embassy officials
in Washington will seek a meeting with Acting Under Secretary
John Rood by August 14 to deliver a demarche outlining
Canada's support for an exception, as well as suggested
changes to the draft text. Ottawa seeks edits to the
exception text that would require the inclusion of a review
mechanism, a provision for termination in case of a nuclear
test, and the assurance of a level playing field for
industry. End summary.


2. (C) Embassy Ottawa delivered ref A demarche to the
Department of Foreign Affairs and International Trade (DFAIT)
on August 11 and at a follow up meeting with Acting Deputy
Director for Nuclear Non-Proliferation Che van Haastrecht on
August 12. Van Haastrecht characterized the U.S. position as
"understandable and reasonable" and added that Canada and the
U.S. share similar views on the way to secure a positive
outcome in the Nuclear Suppliers Group (NSG) in Vienna on
August 21-22.


3. (C) Van Haastrecht said that he had forwarded a draft
response to the U.S. demarche, which contained suggested
edits to the draft NSG exception, to DFAIT Political Director
and Assistant Deputy Minister Colleen Swords to seek her
approval to deliver it to U.S. officials in Washington.
(Note: PolDir Swords subsequently approved the response and
instructed Canadian officials in Washington to deliver it
directly to Acting Under Secretary for Arms Control and
International Security John Rood and ISN/NESS Director Dick
Stratford by August 14. End note).


4. (C) Van Haastrecht then previewed Canada's draft formal
response to ref A demarche, which calls for (1) the inclusion
of a review mechanism, (2) a provision for termination of the
exception, and (3) assurances of a level playing field for
Canadian industry. He emphasized that Canada had
"deliberately avoided proposing improvements that would
require the Indians to do things" in order to keep the matter
on track towards a successful outcome.

-- Review Mechanism: Ottawa wants the exception to require
the creation of a mechanism that would allow the NSG to
review Indian adherence to its commitments against specific
benchmarks. The reviews would occur annually at first, with
longer intervals down the road after the members agree that
India is meeting its commitments.

-- Termination Provision: The Canadians want language that
would require the NSG to call an extraordinary plenary if
India tests a nuclear weapon. Ottawa's suggested language
would permit the NSG to arrive at a consensus decision to
suspend the exception if India were to test, but it would not
make suspension automatic.

-- Level Playing Field: To "defend its interests" Canada
will call for the NSG to delay implementation of the
Qwill call for the NSG to delay implementation of the
exception until countries agreeing to it "do what they need
to do to meet domestic requirements" or when the NSG plenary
meets in 2010, whichever comes first. For its part, Canada
would have to negotiate a bilateral nuclear cooperation
agreement with India before its industry could take advantage
of the opportunities that will arise from the granting of the
exception.


5. (C) Van Haastrecht said that Canada had not shared its
suggested edits with other NSG members or India, and would
only do so after having discussed them with U.S. officials in
Washington.


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