Andaman and Nicobar Islands India’s Untapped Strategic Assets Andaman and Nicobar Islands India’s Untapped Strategic Assets Sanat Kaul INSTITUTE FOR DEFENCE STUDIES & ANALYSES NEW DELHI Pentagon PRess Andaman and Nicobar Islands: India’s Untapped Strategic Assets By Sanat Kaul First Published in 2015 Copyright © Institute for Defence Studies and Analyses, New Delhi ISBN 978-81-8274-774-6 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without first obtaining written permission of the copyright owner. Disclaimer: The views expressed in this book are those of the author and do not necessarily reflect those of the Institute for Defence Studies and Analyses, or the Government of India. Published by PENTAGON PRESS 206, Peacock Lane, Shahpur Jat, New Delhi-110049 Phones: 011-64706243, 26491568 Telefax: 011-26490600 email: [email protected] website: www.pentagonpress.in Branch: Prime Arcade Office #11 1154 Saifee Street Opp. M.G. Road, Camp Pune-411001 Email: [email protected] In association with Institute for Defence Studies and Analyses No. 1, Development Enclave, New Delhi-110010 Phone: +91-11-26717983 Website: www.idsa.in Printed at Avantika Printers Private Limited. Contents Preface ix Abbreviations xi List of Maps, Photographs and Table xiii 1. Introduction 1 2. Background of Andaman & Nicobar Archipelagos 18 Maps and Distances 18 Background of Andaman Islands 21 Some Features of Port Blair 24 The Andaman Story 25 History of Nicobar Islands 28 The Credibility of R. Akoojee Jadwet & Company 41 1947: India becomes Independent 42 2004 Tsunami and the Nicobar Islands: Role of Ellon Henongo 51 Conclusion 53 3. Importance of Straits of Malacca 55 Why Straits of Malacca is the Preferred Option? 55 Piracy and its Implications for Andaman & Nicobar Islands and Straits of Malacca 57 China’s Malacca Dilemma 62 Malacca Dilemma: Finding alternatives to Straits of Malacca 65 Alternative 1 The Myanmar Alternative 66 Alternative 2 KRA Canal 69 Alternative 3 Gwadar Port 71 Alternative 4 Malaysian Alternative 73 Alternative 5 74 4. The International Law of the Sea and India’s Maritime Legislative History 77 Developments Till 1965 77 vi Andaman and Nicobar Islands Post-Independence India 77 UNCLOS I—1958 79 UNCLOS II—1960 80 Developments After 1965 80 Maritime Act, 1976 81 UNCLOS III—1973-82 82 The outcome of UNCLOS III—The 1982 Convention on the Law of the Sea 83 Maritime Boundaries 85 Agreements with Littoral Neighbours 87 Tri-junction Agreements 87 5. South China Sea 90 Chinese Policy of Declaring Core Interest and the Camouflage of Peaceful Rise 90 Basis of Chinese Claims over South China Sea 90 China’s Status under UNCLOS III and Disputes with its Maritime Neighbours 94 6. Rise of Regional Groupings in Indo-Pacific Region: Civil Initiative 108 Introduction 108 ASEAN—A True Indo-Pacific Regional Group 108 BIMSTEC 112 Indian Ocean Rim – Association for Regional Cooperation (IOR-ARC) 113 Mekong Ganga Project 116 Conclusion 116 7. Indian Naval Diplomacy and Defence Initiatives 118 Milan Exercise 118 Indian Ocean Naval Symposium (IONS) 120 Malabar Exercise 121 SIMBEX with Singapore 121 JIMEX with Japan 122 8. A Strategic Shift in India’s Defence Policy Post-LEP 1991 and Andaman & Nicobar Islands 126 US Tilt Towards India 126 India and Japan: Convergence of Views 127 India and Australia 128 China in Indian Ocean Region 129 Chinese Apprehension 131 The ASEAN Conundrum 132 China-India Conflict in South China Sea 133 Contents vii Post-26/11 Developments and the Andaman & Nicobar Islands 133 Mumbai Attack: Lessons 137 History of Defence Establishment in Andaman & Nicobar Islands 140 The Forward Policy in the Indo-Pacific 144 9. Leveraging Soft Power: A Tourism Policy for Andaman & Nicobar Islands that Compliments the Forward Policy 146 Complementarity between Tourism and Security 146 Complementarity between Environment and Security 147 Trade-off between Security and Environment 148 Present Civil Policy—Environmental Issues Dominate 148 Supreme Court of India and Environment of Andaman & Nicobar Islands 148 Environmental Concerns and Development 150 Island Development Authority (IDA) 151 Environment and Tourism: The Soft Option 153 Why Tourism? 153 Draft Tourism Policy 163 The Final Version of Tourism Policy 170 Comparative Tourism Policies of Select Countries 171 10. Andaman & Nicobar Islands—Strategic Challenges: A Proposed Policy Prescription 179 Integrating Andaman & Nicobar Islands with LEP 180 Soft Power Option 180 National Security and Uninhabited Islands 182 Scuba Diving a Source of Surveillance and Environmental Protection 183 Policy Towards Nicobar Islands 185 Mass Tourism Versus High Value Tourism 186 Locating Tourism Sites with Strategic Value 187 Issues of Connectivity to Andaman & Nicobar Islands 187 Domestic Air Connectivity: Government of India Policy on Connecting Remote Locations 188 Direct International Connectivity 189 MoU with Phuket: Sister Cities 191 Telecom Connectivity 192 The Indo-Pacific and the Nicobar Islands—Strategic Angle 193 Appendices 1. The Boundary Agreement Between China and Pakistan, March 1963 198 viii Andaman and Nicobar Islands 2. Memorandum of Understanding Between Phuket Chamber of Commerce and Andaman Chamber of Commerce and Industry, November 2003 202 3. Agreement of Friendship/Cooperation Between City of Port Blair and Phuket Province, June 2005 204 Bibliography 207 Index 209 Contents ix Preface My writing this book was more by accident than design. It all began with a seminar which I attended at the Institute of Defence Studies and Analysis (IDSA) on Andaman & Nicobar Islands. At the seminar during the Q&A session I asked quite a few questions, which is not my normal habit. Thereafter, I was invited by the Director to his office and during this informal discussion an offer was made to write a book on the strategic challenges of Andaman and Nicobar Islands. I accepted the offer readily. Although, I was given 18 months to write this book I took a considerable time more for which my apologies to IDSA. I have spent four years of my life in these islands. From 1975 to 1977 I was posted in Car Nicobar as Deputy Commissioner. This out of the way remote island had hardly any communications in those days. There was no TV, no telephone except for a 25 line PBX for the island, no air connection and a very poor inter-island ship service connecting the Nicobar Group with Port Blair. With all the isolation I had a wonderful time in the company of the Nicobarese and the Officers of the Indian Air Force (IAF). I spent another two years from 1991 to 1993 in Port Blair when things had changed completely and the lifestyle was very different. We had good telephone connectivity to the entire country as well as abroad. Air services connecting Port Blair to mainland India had improved. However, it still felt like a remote outpost of India with no strategic planning. The reason I took up the challenge to write this book was not out of nostalgia but more out of dissatisfaction. I am dissatisfied with the system in which we function and we should not blame it on the democratic process only. There appears to be no strategic planning in our system even at the official level. It had no vision and it produced nothing of any consequence. We miscalculated our one way friendship with China, and even after the 1962 defeat, we learnt nothing. The Island Development Authority (IDA) set up by Prime Minister Rajiv Gandhi and service by the Planning Commission has been a total disappointment in spite of having all the major cabinet ministers on it. It had no vision and it produced nothing of any consequence. The Look East Policy of Prime Minister Narsimha Rao in 1991 was a step in the right direction but it overlooked the importance of these islands. This book is one such attempt at looking into our strategic depth to see where we can leverage some advantage. The Andaman & Nicobar Islands offer a strategic advantage to checkmate our reverses on our northern and western borders. I have mentioned in this book x Andaman and Nicobar Islands that if a proper policy is drawn and implemented we could, perhaps, turn the tables on the Chinese. This will happen only if we carefully leverage the potential that these islands offer. With Great Nicobar Island near the western entrance of the Malacca Strait and India’s relationship with its eastern neighbours in good health, we have potential to increase our strategic depth in Indo-Pacific. The book describes the Chinese Malacca Dilemma which could be our advantage. Finally, I have tried to show what India achieved in the North East in the 1950s by a policy driven initiative by creating the North East Frontier Agency (NEFA) with the mandate to have effective jurisdiction up to the McMahon line. This finally led to successful creation of Arunachal Pradesh. By pursuing another policy driven initiative for these islands we could leverage the latent potential. This can be achieved by creating a new administrative setup. I am grateful to Lt. General Bhopinder Singh, Lt. Governor of these islands during my visit in 2012 for his frank discussion. I am also grateful to Lt. General Marwah Commander-in-Chief of the Unified Command (CINCAN), Vice Admiral Murlidharan DG Coast Guards, Mr. Anand, the current Chief Secretary, Mr. Vivek Rae and Mr. Shakti Sinha, the former Chief Secretaries of Andaman and Nicobar Islands. Admiral Arun Prakash, the Former Chief of Naval Staff, Admiral Premvir Das, former Fortress Commander and the current Deputy Chief of Naval Staff. I am also thankful to Mr. Sanjay Singh, former Secretary Ministry of External Affairs (MEA), Ms. Navreka Sharma, India’s former Ambassador to Indonesia, and Ms.