WikiLeaks cable: NZ has conditions for US-India deal
August 20, 2008 New Zealand has conditions for US-India deal
date:2008-08-20T04:24:00 source:Embassy Wellington origin:08WELLINGTON257 destination:VZCZCXYZ0001 OO RUEHWEB DE RUEHWL
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I D E N T I A L WELLINGTON 000257
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STATE FOR EAP/ANP E.O. 12958: DECL: 08/19/2023 TAGS: PARM, PREL, ETTC, NZ SUBJECT:... ?C O N F I D E N T I A L
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STATE FOR EAP/ANP E.O. 12958: DECL: 08/19/2023 TAGS: PARM, PREL, ETTC, NZ SUBJECT: NEW ZEALAND HAS CONDITIONS FOR
US-INDIA DEAL REF: STATE 85948
Classified By: DCM David J. Keegan; Reason 1.4 (b) and (d)
1. (C) In an August 20 meeting between the Ambassador and Minister for Disarmament Phil Goff, the Ambassador pointed out
the strategic and historic importance of the US-India deal, and the very real possibility that the Indians could shelve
it if the NSG demands proved too politically difficult for the GOI.
2. (C) Goff responded that New Zealand strongly supports the objectives the U.S. had in negotiating the US-India
Civilian Nuclear Cooperation Initiative. It does not want to be "unnecessarily obstructive" in reviewing the deal in the
Nuclear Suppliers Group (NSG), but he said that the GNZ sees a downside to an India exemption. Other countries gave up
nuclear programs and signed the NPT; that raises the prospect of a double standard if India gets something without being
held to the same criteria, noted Goff. However, because New Zealand recognizes that this deal represents an opportunity
for the international community, the question is how to get an NSG agreement that does not negatively impact on the
global nonproliferation regime.
3. (C) Goff outlined five areas where New Zealand had concerns which it needed addressed before it could support the
proposed initiative and approve the exemption for India: -- The first area is nuclear testing; New Zealand wants to add
language that would extend to all NSG states the Hyde Act's sanctions in the event of a future Indian nuclear test. --
New Zealand would like to see the IAEA Additional Protocol established as a condition for supply of nuclear materials to
India. -- New Zealand wants measures in place to restrict the transfers of sensitive technology, such those related to
enrichment and reprocessing. The GNZ concern is the possibility of India engaging in nuclear proliferation activities
for military purposes. -- The GNZ believes a review and reporting mechanism should be in put into place, perhaps to
occur every two years. -- If India unilaterally terminates the safeguards agreement, the return of nuclear fuel and
supplies should apply to all NSG countries. Goff said that he thought the U.S. would share the same objectives that led
New Zealand to propose these conditions. However, New Zealand suspected that others -- he named France and Russia --
might allow commercial interests to outweigh non-proliferation concerns. These conditions would make that more
difficult.
4. (C) Goff explained that New Zealand does differentiate India from Pakistan on nonproliferation matters and accepts
that India has been a better nuclear citizen despite remaining outside the Non-Proliferation Treaty (NPT), although he
criticized India's nuclear testing record and military weapons program. And while New Zealand is "not a great fan of
nuclear energy," Goff allowed that New Zealand is blessed with other options. He noted that the GNZ understands that
other countries' energy security and GHG emission profiles are different and New Zealand does not want to stand in the
way of their pursuit of legitimate energy needs.
5. (C) Goff regretted that he was out of the country during Secretary Rice's July 26 visit to Auckland, and would have
liked to engage with her on the India deal. He said that New Zealand appreciates the USG desire for a clean exemption
and India's domestic political situation, but that New Zealand and like-minded countries such as Ireland, Sweden,
Norway, and the Netherlands want to ensure that this is the best deal possible. He said that an NSG discussion will be
focused on possible changes to the text to reflect the concerns of the like-minded group, and that a second meeting will
be likely. New Zealand, he continued, will go into the meeting with flexibility but must adhere to its bottom lines. If
there is no flexibility on addressing New Zealand's concerns, it would be very difficult for New Zealand to support the
deal, said Goff.
6. (C) Separately, Ministry of Foreign Affairs Deputy Secretary Caroline Forsyth (who heads the disarmament group at
MFAT) told us that Goff had outlined these five areas to the GOI delegation that visited New Zealand recently, and none
of them balked at the prospect of having to address these issues at the NSG meeting.
7. (C) Comment. Minister Goff clearly understood the emphasis the Ambassador placed on the strategic and historical
importance of the US-India deal, and the possibility of the Indians walking away if the NSG demands are politically
impossible for New Delhi. However, New Zealand is on the cusp on an election and Phil Goff's party (Labour) is seriously
lagging in the polls. It would be political suicide for Goff, who is touted as the next Labour Party leader should Helen
Clark lose this election, to appear soft on a core policy plank for Labour like nonproliferation. Goff emphasized at the
end of our meeting that he would be meeting later this week with the Prime Minister and the Cabinet to review this
issue. Another factor in Goff's assessment of the necessity to be tough with India in the NSG is his experience during
the WTO Doha negotiations as Trade Minister. Goff was clearly frustrated with India and its adamant refusal to
compromise during the recent WTO sessions. End Comment.
McCORMICK
ENDS