SPACE COOPERATION WITH INDIA

C O N F I D E N T I A L STATE 003809


E.O. 12958: DECL: 01/14/2019
TAGS: PREL TSPA AG CA IN

SUBJECT: SPACE COOPERATION WITH INDIA

REF: A. 08 OTTAWA 1303B. 08 ALGIERS 01068

Classified By: SCA Deputy Assistant Secretary Evan Feigenbaum
for reasons: 1.4
(B)(E).


1. This is an action request. See paragraph 6.


2. (SBU) SUMMARY: Through press reports and diplomatic
exchanges, the Department is aware of Indian satellite
launches tentatively scheduled for 2009 that will require a
signed and implemented Technology Safeguards Agreement.
Wishing to avoid misunderstanding or disruptions to that
schedule, the Department asks Embassy New Delhi to encourage
Indian officials to accept and implement the proposal given
to Foreign Secretary Menon by Under Secretary Burns on
December 2, and meet with Deputy Assistant U.S. Trade
Representative for South and Central Asia Claudio Lilienfeld
during his January 26 travel to India. END SUMMARY.


3. (SBU) BACKGROUND: As part of the Next Steps in Strategic
Partnership launched in January 2004, the U.S. and India
agreed to expand space cooperation and pave the way for U.S.
satellites and components to be launched from Indian launch
vehicles. The former has happened and there has been a
robust and productive exchange between the National
Aeronautics and Space Administration (NASA) and the Indian
Space Research Organization (ISRO). However, progress on
commercial activities in space has been slow and the full
cooperation envisioned in the Partnership still requires
implementation of a Technology Safeguards Agreement (TSA --
to ensure protection of US-origin technology launched by
India) and the negotiation of a Commercial Space Launch
Agreement (CSLA -- to ensure fair market principles are
applied in the commercial launch market).


4. (SBU) In a nonpaper delivered by Under Secretary Burns to
Foreign Secretary Menon on December 2, the U.S. outlined a
way forward on both agreements. The nonpaper noted that a
negotiated TSA is in place and both sides have indicated a
willingness to sign it -- and we suggested a December date
for signing. Also noted was the exchange of draft Commercial
Space Launch Agreements -- and our eagerness to proceed with
those negotiations. There have been no substantive
responses to the nonpaper and interlocutors at the MEA are
unsure of when ISRO will formulate a response. Delays in
implementing these agreements, especially the TSA, could
become a contentious issue as launches scheduled by ISRO
for the upcoming year depend on implementation of the TSA.


5. (C) Through a combination of ISRO,s press releases,
inquiries from other governments, and diplomatic reporting,
the Department is aware of at least one upcoming launch that
will require a signed and implemented TSA: the government of
Algeria,s ALSAT-2 satellite scheduled for launch by India in

2009. Also, the Government of Canada is considering
rescheduling launches originally intended for Russian launch
vehicles -- and is considering India as a provider with fewer
political liabilities. Both governments have reached out to
the U.S. for an update on our space cooperation with India
and how it might affect their plans. U.S. private sector
actors have also reached out to USTR and other USG agencies
with similar inquiries. The logistical and financial
commitments associated with launching satellites are
significant, and the Department wants to avoid
misunderstandings that might arise if licenses are denied and
launches are canceled or delayed. END BACKGROUND.


6. (SBU) ACTION REQUEST: The Department requests that
Embassy approach appropriate points of contact in the
Ministry of External Affairs and the Indian Space Research
Organization on to: 1) seek a response to the December 2 non
paper given to Menon; and 2) remind the government of India
that progress on the Agreements mentioned above is an
important part of our overall strategic partnership and
necessary for some of the activities they appear to have
planned in the coming year. Post may wish to draw from the
background points below.

-- The U.S. government seeks an affirmative response to the
space cooperation nonpaper delivered on December 2, 2008 by
Under Secretary Burns to Foreign Secretary Menon.

-- As Under Secretary Burns explained to the Foreign
Secretary, the United States has said "yes" to three of four
Indian proposals contained in India,s nonpaper of July 18,
and opened a clear pathway forward on the fourth. Papers
from both sides, if implemented, would allow us to sign and
implement the Technology Safeguards Agreement at the earliest
possible date and proceed to negotiate a Commercial Space Launch
Agreement, building on the recent exchange of texts.

-- Both these agreements are important elements of our
overall strategic partnership and would benefit both our
countries. We suggest moving forward quickly on the signing
of the Technology Safeguards Agreement and scheduling
negotiations on the Commercial Agreement.

-- The Technology Safeguards Agreement has already been
negotiated and could be signed and implemented immediately,
on the basis of the proposal the U.S. put forward.

-- Through the inquiries of other countries, we are aware of
satellite launches notionally scheduled for the coming year
that will require a Technology Safeguards Agreement to be in
place. We would like to be in a position to respond
positively to such applications, and to demonstrate the
concrete benefits of our improved cooperation, but to do so
we will need agreement on a way forward.

-- The U.S. would prefer to avoid any problems that might
arise if export licenses are denied and launches are canceled
or delayed. The best way to avoid these problems and move
forward with the cooperation envisioned in our Strategic
Partnership would be to make progress on these two agreements.

-- Deputy Assistant USTR for South and Central Asia
Lilienfeld will be in New Delhi during the week of January

26. We propose that a meeting be scheduled with ISRO during
his visit to help us reach a resolution on these issues.

END ACTION REQUEST
RICE


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