US embassy cable - 04NEWDELHI7091

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007091 
 
SIPDIS 
 
E.O. 12958: DECL: 11/04/2014 
TAGS: PREL, PGOV, ECON, ENRG, IZ, IN, Indo-US, Indian Domestic Politics, GOI 
SUBJECT: INDIAN LEFT NEGATIVE OVER BUSH RE-ELECTION, 
WORRIED ABOUT ENERGY HIKE 
 
REF: A. NEW DELHI 7001 
 
     B. NEW DELHI 5569 
     C. NEW DELHI 7090 
 
Classified By: DCM Robert O. Blake, Jr., Reasons 1.4 (B,D). 
 
1.  (C) Summary: Indian Communist Party leaders have 
criticized PM Manmohan Singh's warm welcome of President 
Bush's re-election, calling this "an attempt to please 
American imperialism."  Interestingly, however, party 
spokesperson D. Raja welcomed the PM's commitment to train 
Iraqi election officials in India enunciated in the same 
letter.  Other Left parties refused to comment on the US 
election outcome, saying they are more concerned about Indian 
domestic issues such as the November 4 petrol price hike and 
foreign direct investment.  End Summary. 
 
Reaction to US Election 
----------------------- 
 
2.  (C) In contrast to the ruling United Progressive 
Alliance, India's Communists have reacted ambivalently to 
negatively to the re-election of President Bush.  On November 
4 Communist Party of India-Marxist (CPM) Politburo member MK 
Pandhe dismissed the congratulatory letter of PM Manmohan 
Singh to President Bush as "an attempt to please American 
imperialism."  CPI spokesman D. Raja stated to Laboff on 
November 5 that "Bush was not positive for India in the 
past," and he "could not comment on how Bush will behave in 
his second term." 
 
Concerns over Petrol Hike 
------------------------- 
 
3.  (C) Rather than focusing on the US election results, our 
Left contacts emphasized domestic issues, asserting that they 
will continue to oppose UPA economic liberalization 
proposals, arguing that these overshadow foreign policy 
concerns for Indians.  They pointed out that the UPA and the 
Left have been discussing a petrol price hike for months, and 
finally reached a reluctant agreement.  Raja expressed 
concern about the increase, claiming it would further 
exacerbate inflation and worsen conditions for the poor. 
Revolutionary Socialist Party (RSP) MP Abani Roy reiterated 
to Laboff that the Left parties will keep close tabs on price 
increases of petroleum, diesel fuel, kerosene, and LPG 
(liquefied natural gas), and speak out if they become too 
egregious. 
 
FDI 
--- 
 
4.  (SBU) The Left Front leaders also repeated that they 
remain adamantly opposed to FDI hikes in the insurance and 
telecom sectors.  They pointed out that they agreed to an 
increase in civil aviation FDI from 40- 49% only because they 
believe it will benefit domestic airlines, and exclude 
foreign carriers. 
 
Iraq 
---- 
 
5.  (C) D. Raja emphasized that the GOI should send no 
Indians whatsoever to Iraq, even for election monitoring. 
However, the CPI welcomed the Prime Minister's proposal to 
train Iraqi election officials in India (ref C).  RSP MP Roy 
stated that a democratic Iraq is better for the world, adding 
that they would embrace training Iraqi election officials 
only under the auspices of the United Nations.  (Comment: the 
GOI has not publicized the specifics of its proposal yet as 
explained in ref C.)  Left Front leaders refused to comment 
on other aspects of the Bush administration's Iraq policy. 
 
Comment 
------- 
 
6.  (C) The Left Front's discontent with the UPA's pro-US and 
pro-economic liberalization policies continues to grow, and 
its dissent from the GOI's warm welcome of another Bush 
Presidency comes as no surprise.  As BJP leader Arun Jaitley 
recently pointed out, the Left increasingly behaves more like 
an opposition, than a supporter of the government.  But, as 
the Prime Minister's effusive letter to President Bush 
demonstrates, the government is willing to ignore the Left on 
many issues of importance to us. 
MULFORD