INDIA: SARKOZY VISIT INCREASES BILATERAL

C O N F I D E N T I A L SECTION 01 OF 02 PARIS 000186 SIPDIS SIPDIS E.O. 12958: DECL: 01/29/2018 TAGS: PREL PGOV FR IN SUBJECT: INDIA: SARKOZY VISIT INCREASES BILATERAL COOPERATION REF: 08 NEW DELHI 277 Classified By: Pol M/C Josiah Rosenblatt for Reasons 1.4 (b) and (d) ¶1. (C) Summary. President Sarkozy's January 25-27 official visit to India was political rather than commercially focused, according to DAS-equivalent Didier Leroy January 29. Leroy highlighted that France initialed a civil nuclear agreement, increased environmental cooperation, signed bilateral accords on scientific and cultural exchanges, authorized two new French consulates, and drafted a memorandum to exchange classified information. Leroy emphasized the visit's political character while noting the growing Franco-Indian bilateral economic relationship that has seen trade double in the past three years. Sarkozy announced he would visit India annually and invited Prime Minister Singh to the 2008 EU-India Summit. COMMENT: The MFA downplayed the commercial aspects of Sarkozy's visit in deference to Indian sensitivities about being considered a vast bazaar for European mercantilists rather than a natural regional and global leader. Sixty business leaders accompanied Sarkozy, yet no contracts were publicly signed, in contrast to the high profile commercial aspects of Sarkozy's first few forays overseas as President. We expect the French will seek to cash in on this visit in the defense, aviation and nuclear sectors before Sarkozy's next promised visit. END COMMENT. End Summary. ¶2. (C) President Sarkozy's January 25-27 official visit to India was politically rather than commercially focused, according to DAS-equivalent Didier Leroy who briefed Political Counselor on January 29. Leroy added that the visit accomplished all French objectives, with the primary one being the initialing of a nuclear agreement. French President Nicolas Sarkozy, who was the guest of honor at India's December 26 Republic Day Parade, met with Indian President Pratibha Patil, Prime Minister Manmohan Singh, Foreign Minister Pranab Mukherjee, Vice-President Mohammad Hamid Ansari and President of the Congress Party Sonia Gandhi during his January 25-26 visit to India. Leroy described Sarkozy's visit as a fresh impetus for closer Franco-Indian relations. Aside from the many educational, cultural and scientific agreements that were signed, Sarkozy publicly supported India's inclusion as a permanent member of the UN Security Council and called for an expansion of the G8 to a G-13 that would include India. The two countries also agreed to the opening of new consulates in both countries. France will open consulates in Bangalore and Kolkata in 2008. NUCLEAR AGREEMENT and ENERGY -------------- ¶3. (C) Didier Leroy affirmed France fully respected U.S. concerns as it worked with India to initial a civil nuclear agreement. The text states that the French-Indian agreement will not be signed until the government of India has completed negotiations on safeguards with the IAEA and completed negotiations with the NSG. MFA contacts previously stressed that France would not do anything to undercut our agreed upon strategy vis-a-vis India's nuclear program (See Paris Points for January 25). Leroy added that both countries also signed an agreement to work jointly on the Jules Horowitz research reactor in France. ENVIRONMENTAL DECLARATIONS -------------- ¶4. (C) Sarkozy continued to pursue his environmental priorities in India. France and India issued a joint environmental declaration, in which they "committed themselves to strengthening cooperation on climate change and other environmental problems (biodiversity, water resources, desertification, natural calamities, forests, waste management, the fight against pollution),as well as to the promotion of technology research and development." Leroy noted the creation of a Franco-Indian working group on the environment and the signing of an agreement which establishes a French development agency (Agence Francaise de Developpement) in India. This agency will provide financing for and support to environmentally friendly technology transfer projects. SCIENTIFIC AND CULTURAL BILATERAL AGREEMENTS -------------- ¶5. (C) France and India signed a multitude of bilateral agreements during Sarkozy's two day visit. Leroy commented that there are few Indian students in France, but he expects PARIS 00000186 002 OF 002 that a bilateral agreement to create a Franco-India University and to build two joint research labs will increase the number of Indian students in France. In addition to these agreements, MFA press releases mention the establishment of an Indian cultural center in Paris and increased student exchange programs. CLASSIFIED INFORMATION, DEFENSE COOPERATION -------------- - ¶6. (C) Recognizing India as a key player for regional stability, Sarkozy publicly commended India for the improved dialogue with Pakistan and also publicly noted that India is an important ally in the fight against terrorism. To improve Franco-Indian defense cooperation, the governments agreed to protocols for the exchange of classified information, which Leroy characterized as a relatively low level information. Sarkozy reiterated his interest in supplying defense equipment to India while Prime Minister Singh downplayed the commercial defense relationship, telling reporters that France and India had agreed to go beyond the "buyer-seller relationship." The leaders discussed increased joint-operations and cooperation and initiated a "detailed discussion on the Status of Forces Agreement." ECONOMIC AGREEMENTS -------------- ¶7. (C) Leroy downplayed economic discussions, but noted that the bilateral economic relationship is growing tremendously. The two countries agreed to try and improve market access for small and medium sized industries. Leroy explained that both countries hope to remove barriers to entry. COMMENT: The MFA downplayed the commercial aspects of Sarkozy's visit in deference to Indian sensitivities about being considered a vast bazaar for European mercantilists rather than a natural regional and global leader. Sixty business leaders accompanied Sarkozy, yet no contracts were publicly signed, in contrast to the high profile commercial aspects of Sarkozy's first few forays overseas as President. We expect the French will seek to cash in on this visit in the defense, aviation and nuclear sectors before Sarkozy's next promised visit. END COMMENT. End Summary. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm PEKALA