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Viewing cable 10NEWDELHI330, INDIA "WARY" OF NEW SANCTIONS ON IRAN

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Reference ID Created Released Classification Origin
10NEWDELHI330 2010-02-23 08:21 2011-08-30 01:44 CONFIDENTIAL Embassy New Delhi
VZCZCXRO0651
OO RUEHBC RUEHBI RUEHCI RUEHDBU RUEHKUK RUEHLH RUEHNEH RUEHPW RUEHTRO
DE RUEHNE #0330 0540821
ZNY CCCCC ZZH
O 230821Z FEB 10
FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9562
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 1552
RUEHLO/AMEMBASSY LONDON 7304
RUEHMO/AMEMBASSY MOSCOW 3948
RUEHFR/AMEMBASSY PARIS 2157
RUEHKO/AMEMBASSY TOKYO 6698
RHEFDIA/DIA WASHDC
RHMCSUU/HQ USCENTCOM MACDILL AFB FL
RHHMUNA/HQ USPACOM HONOLULU HI
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUCNDT/USMISSION USUN NEW YORK 8910
RUEHUNV/USMISSION UNVIE VIENNA 1859
C O N F I D E N T I A L NEW DELHI 000330 
 
SIPDIS 
 
E.O. 12958: DECL: 10/01/2020 
TAGS: PREL IN IR
SUBJECT: INDIA "WARY" OF NEW SANCTIONS ON IRAN 
 
REF: A. STATE 9124 
     B. NEW DELHI 274 
     C. 09 NEW DELHI 2043 
     D. NEW DELHI 213 
 
Classified By: Political Counselor Uzra Zeya for Reasons 1.4 (b) and (d 
). 
 
1. (C) Summary: In a February 22 meeting, YK Sinha -- India's 
functional equivalent of Assistant Secretary for Iran, 
Pakistan, and Afghanistan -- repeated the GOI mantra that 
India does not favor new sanctions on Iran because they 
adversely affect Indian interests.  He denied that Indian 
entities are moving forward with investment in Iranian oil 
fields, an act that could trigger sanctions under U.S. law. 
Sinha, who accompanied Indian Foreign Secretary Nirupama Rao 
on a February 2-4 trip to Tehran, reported that Iranian FM 
Mottaki, NSC Secretary Saeed Jalili, and other interlocutors 
had left the Indian side with the impression that resolution 
of the nuclear issue was imminent, an impression dispelled by 
subsequent Iranian words and actions.  He opined that the 
nuclear issue is closely tied to internal Iranian politics, 
thus adding to the complexity of resolution.  On Afghanistan, 
he said Iran shares India's skepticism over reintegration and 
reconciliation efforts.  End Summary. 
 
Sanctions Are Not the Solution 
------------------------------ 
 
2. (C) Following up on our previous presentation of Ref A 
demarche (read-out reported in Ref B), PolCouns emphasized 
that Iran has not responded to our good faith efforts to 
resolve outstanding issues through dialogue and has resisted 
P5 1 attempts to resolve the nuclear impasse.  She stressed 
that international community unity is needed as we consider 
future measures such as additional sanctions.  Echoing the 
standard GOI mantra intoned by Foreign Secretary Rao and 
other senior Indian officials (Refs C and D), Sinha conceded 
that Iran has not been cooperative but noted the GOI is 
"wary" of new sanctions because they adversely affect Indian 
interests.  Regarding U.S. sanctions, Sinha said that Indian 
corporation Reliance is already scaling back its dealings 
with Iran in anticipation of legislation now pending before 
the U.S. Congress.  He denied press reports that Indian 
corporation Hinduja and state-owned ONGC are moving forward 
with investment in Iranian oil fields, an act that could 
trigger sanctions under existing U.S. law, by stating that 
"nothing is happening" with the deal. 
 
Isolated Iranians Grateful for Visit 
------------------------------------ 
 
3. (C) Sinha accompanied Indian Foreign Secretary Nirupama 
Rao on a February 2-4 trip to Tehran, which he characterized 
as a routine annual visit.  He recounted that meetings with 
interlocutors such as Iranian FM Mottaki and Supreme National 
Security Council Secretary Saeed Jalili had left the Indian 
side with the impression that resolution of the nuclear issue 
was imminent, an impression dispelled by subsequent 
statements by President Ahhmadinejad and other Iranian 
actions.  He opined that the nuclear issue is closely tied to 
internal Iranian politics, thus adding to the complexity and 
difficulty of resolution.  Sinha confided that the Indians 
"expected a tongue-lashing over our IAEA vote last November" 
and were surprised that the Iranians never raised the matter. 
 Sinha ascribed the Iranian reticence to their feeling of 
international isolation and their gratitude for the visit. 
He said the Indian side rebuffed Iranian attempts to set a 
date for a visit to Tehran by Indian PM Singh. 
 
4. (C) Sinha reported that the two sides discussed 
Afghanistan, noting that Iran shares India's skepticism over 
reintegration and reconciliation efforts.  He said that 
Iranian officials told him they skipped the January London 
Conference on Afghanistan because they suspected in advance 
they would be "disappointed" by the outcome. 
 
ROEMER