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DE RUEHBJ #1773/01 0270850
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FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6694
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHIL/AMEMBASSY ISLAMABAD 6285
RUEHKT/AMEMBASSY KATHMANDU 3688
RUEHNE/AMEMBASSY NEW DELHI 4003
RUEHUNV/USMISSION UNVIE VIENNA 0772

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 001773 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/26/2016 
TAGS: PREL CH IN NP IR
SUBJECT: CHINA/INDIA: INDIAN EMBASSY READOUT ON FOREIGN 
SECRETARY SARAN'S VISIT FOCUSES ON DIFFERENCES ON IRAN AND 
 
 
SIPDIS 
NEPAL 
 
Classified By: Acting Political Minister Counselor 
Robert Griffiths. Reasons 1.4 (b/d). 
 
Summary 
------- 
 
¶1. (C) India and China maintain different positions on 
Iran and Nepal, according to Indian Embassy Deputy 
Chief of Mission Vinay Kwatra.  Providing a readout on 
Indian Foreign Secretary Shyam Saran's January 9-11 
visit to Beijing and in follow-on discussion, Kwatra 
noted India's continued opposition to Iranian uranium 
enrichment and contrasted this with "Beijing's 
preference for indefinite negotiations."  China cited 
nonintervention when discussing Nepal, while Saran 
highlighted India's support for the revival of Nepal's 
political parties alongside the monarchy.  India will 
host the next phase of border demarcation talks in the 
first quarter of 2006.   India views its civilian 
nuclear power accord with the United States as a 
strictly bilateral issue.  India, China and Russia are 
developing a trilateral mechanism for consultations 
among their foreign ministers.  End Summary. 
 
India and China: Strategic Dialogue Partners 
-------------------------------------------- 
 
¶2.  (C) Indian Embassy Deputy Chief of Mission Vinay 
Kwatra briefed Acting Polmincouns and Poloff January 
25 on the visit of Indian Foreign Secretary Shyam 
Saran to Beijing, January 9-11.  In this second annual 
China-India Strategic Dialogue, Saran held meetings 
with State Councilor Tang Jiaxuan, Foreign Minister Li 
Zhaoxing, Executive Vice Foreign Minister Dai Bingguo 
and Vice Foreign Minister for Asia Wu Dawei.  The two 
sides discussed the full range of bilateral, regional 
and global issues facing the two countries.  The first 
India-China strategic dialogue in New Delhi in January 
2005, Kwatra noted, was dominated by planning for 
Chinese Premier Wen Jiabao's April 2005 visit.  This 
year's talks focused on substantive issues. 
 
China-India Differences on Iran 
------------------------------- 
 
¶3.  (C) Indian and Chinese positions on Iran are "not 
the same," Kwatra stated.  India has made clear its 
position against continued uranium enrichment research 
by Iran.  The Chinese emphasized the importance of 
seeking a diplomatic solution, he said. 
 
¶4.  (C) Kwatra said he previously served as Deputy 
Director General for Iran and Afghanistan and is 
familiar with the Iranian situation.  India and Iran 
have several consultative mechanisms, including annual 
Foreign Minister-level talks.  Kwatra said that he is 
unsure whether bilateral National Security Advisor 
talks that were held in the past continue, commenting 
that though India explained the impracticality of 
Iran's approach, these meetings were essentially an 
exchange of positions. 
 
Differences on Nepal's Internal Situation 
----------------------------------------- 
 
¶5.  (C) The situation in Nepal was discussed at great 
length in the dialogue, according to Kwatra.  China 
emphasized its principle of "noninterference in 
internal affairs" with respect to the King's 
monopolization of power.  India and Nepal have a 
special relatinship and their border is India's only 
completely open border, Kwatra noted.  India strongly 
supports the restoration ofthe traditional three 
pillars of Nepali politics: the constitutional 
monarchy, the parliament/political parties, and the 
people.  The King should allow the revival of 
independent political parties. 
 
Sino-Indian Border Talks Set For Early 2006 
------------------------------------------- 
 
¶6.  (C) India expects to host the second phase of 
Sino-Indian border talks in the first quarter of this 
year.  The issue was discussed only briefly during the 
Saran's meeting with Dai Bingguo.  For the border 
talks, India's National Security Advisor Narayanan and 
China's EVFM Dai meet on a separate track as Special 
 
BEIJING 00001773  002 OF 002 
 
 
Representatives of their respective Prime Ministers. 
The first phase of talks, concluded late in 2005, 
reached consensus on the principles and parameters of 
the talks.  India seeks a "comprehensive packet" 
solution to border demarcation.  The second phase will 
be tougher than the first, Kwatra stated, because it 
needs to resolve "nitty-gritty" issues along the 
border. 
 
U.S.-India Civilian Nuclear Cooperation 
--------------------------------------- 
 
¶7.  (C) Both sides raised India's civilian nuclear 
cooperation accord with the United States during the 
talks, Kwatra said.  India's position is that the 
agreement should be seen in a strictly bilateral 
context.  Furthermore, India's record under the 
Missile Technology Control Regime (MCTR) is "second to 
none."  The Chinese did not voice dissatisfaction with 
the U.S.-India arrangement, according to Kwatra. 
 
Russia-India-China Trilateral Mechanism 
--------------------------------------- 
 
¶8.  (C) India is developing a trilateral consultation 
mechanism with Russia and China at the Foreign 
Minister level, Kwatra said.  The initial meeting was 
held earlier in 2005.  The next meeting is planned for 
July 2006.  The discussions focus on energy and 
economic issues. 
 
UNSC Reform 
----------- 
 
¶9.  (C) Regarding India's interest in UN Security 
Council reform, Kwatra reported that the Chinese said 
they support India's participation, but cannot support 
the G-4 because of the inclusion of "a certain 
country." 
 
Overall Direction of Cooperation 
-------------------------------- 
 
¶10.  (C) India and China have expanded contacts and 
institutional cooperation mechanisms since 2000, 
Kwatra summarized, expanding from economic issues to 
agriculture, health, and educational exchanges.  The 
two sides have established dialogues on 
counterterrorism, energy, trade and hydrocarbon 
emissions.  China has become India's second-largest 
trade partner, after the United States, with total 
annual trade volume of USD 18.5 billion.  Joint 
projects have diversified to include tuberculosis 
research, WTO positions and global issues. The two 
countries' similar levels of population, economy and 
development drive their common interests, according to 
Kwatra. 
Sedney