AUSTRALIA WORKING TO UPGRADE RELATIONS WITH INDIA

C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 000972 NOFORN SIPDIS DEPARTMENT FOR EAP, SCA, EAP/ANP E.O. 12958: DECL: 10/29/2019 TAGS: PREL IN CH AS SUBJECT: AUSTRALIA WORKING TO UPGRADE RELATIONS WITH INDIA Classified By: Political/Economic Counselor Edgard D. Kagan, for reason s 1.4 (b),(d) ¶1. (C/NF) Summary: Foreign Minister Stephen Smith visited India on October 19-23 in a continuing effort to upgrade bilateral relations and manage the fallout from violence against Indian students in Australia. Smith met with the Indian Foreign Minister, Finance Minister, Home Minister and National Security Advisor ahead of Prime Minister Rudd's November 12 visit. Though he did not meet the Indian Defense Minister, Smith inquired about Australian participation in the 2010 Malabar naval exercise. Smith secured several lower level agreements including new Australian diplomatic and law enforcement liaison positions in India and policy dialogues on climate change and energy policy. In addition, Australia hopes Rudd will be able to announce the beginning of free trade agreement negotiations. Smith's visit constitutes part of a broad, concerted Australian effort to build up the relationship with India (uranium remains off the table). While Australian contacts believe they want to move further and faster than India to move the relationship forward, they believe that India , both countries are delicately balancing security cooperation in light of Chinese reaction. End Summary. Back to Malabar? -------------- ¶2. (C/NF) In his meeting with the Indian Foreign Minister, Smith inquired about Australian participation in the 2010 naval exercise in the Malabar islands hosted by the Indian navy. Australia last joined the annual multilateral exercise in 2007, but India did not invite Australia in 2008 and 2009. The Australian media immediately viewed the inquiry in the "balancing China" context. Department of Foreign Affairs and Trade (DFAT) Defense Liaison Director Cameron Archer denied any link between participation in Malabar and China policy. According to Archer, Malabar represents only a small part of the broader strategy to strengthen ties with India. Foreign Minister Smith also invited India to participate in two Australian Defense Force hosted events. ¶3. (C/NF) Deputy National Security Advisor Angus Campbell has raised Australia's interest in improving mil-to-mil cooperation with India in several recent conversations with us, as well as expressing great curiousity about the evolution of U.S.-India mil-to-mil relations. Campbell told Pol/Econcouns in mid-October that he and National Security Advisor Duncan Lewis are convinced that Australia should find ways to take military cooperation with India to the next level. Bilateral Nuts and Bolts -------------- ¶4. (C/NF) Gary Cowan, DFAT's India desk director said India finally agreed to a three year request to increase the Australian diplomatic presence in India. India agreed to additional economic officers as well as a full time Australian Federal Police attache in New Delhi. Final details will be announced when Rudd visits India this November. Smith toured 2010 Commonwealth Games sites and Cowan noted that Australia is looking to leverage the preparation for the games to increase cooperation between the two countries on several fronts including economic, intelligence, security and law enforcement. Free Trade Agreement: Begin to Begin -------------- Q -------------- ¶5. (C/NF) According to Cowan, Smith pressed India for completion of the Free Trade Agreement feasibility survey. He noted that Australia has completed its portion and is just waiting on India. Cowan acknowledged a final agreement will take "years" to complete and admitted that it was unclear how "liberalizing" the terms would be given India's protectionist mindset. Struggling to Escape the China Context -------------- ¶6. (C/NF) Comment: Australia wants a strategic relationship CANBERRA 00000972 002 OF 002 with India - Smith spent over four days in India and his visit was the ninth by an Australian Minister in the last two years. However, India appears to be more comfortable moving at a slower pace. Australian contacts believe New Delhi remains deeply frustrated by the Rudd Government's reversal of former PM Howard's decision to authorize sale of uranium to India. Rudd, in turn, is frustrated with India's stance on Doha and climate change, both issues he plans to raise in his upcoming visit. The relationship has progressed but a true strategic partnership seems far off as both countries are still working to build trust. Our Australian contacts stress their desire for improved security cooperation but appear sensitive to China's response, a concern they believe is felt even more strongly by India. End Comment. CLUNE