US embassy cable - 05CALCUTTA330

UNCLAS SECTION 01 OF 03 CALCUTTA 000330 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR SA/INS 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, PINR, ECON, EINV, IN, BG, NP, Indian Domestic Politics 
SUBJECT: WEST BENGAL COMMUNIST PARTY LEADER EXPRESSES PRO-CAPITALIST 
POLICY 
 
1. (SBU) Summary: On September 6, CG met State Secretary of the 
Communist Party of India - Marxist (CPM) and Politburo and 
Central Committee member Anil Biswas.  While focusing on the 
need for industrialization in West Bengal, Biswas said that 
foreign direct investment (FDI) is welcome from any country. 
Land primarily from urban areas and belonging to closed 
industries would be allotted for new industry, keeping in mind 
the interests of peasants.  Biswas characterized the labor 
situation as much improved with disputes being solved quickly. 
He also noted Maoists and Bangladeshis are a cause for concern 
in the state.  Although the Left supports the Congress at the 
Center, it will seriously contest the 2006 state Assembly 
elections and is confident of retaining power.  The CPM supports 
the emerging India-US relationship, but has reservations on the 
strategic alliance. End Summary. 
 
2. (SBU) On September 6, CG had his first meeting with West 
Bengal's CPM State Secretary Anil Biswas and State Committee 
member and Assistant Editor of party daily "Ganashakti," Avik 
Dutta.  Biswas, a CPM Politburo and Central Committee member, is 
known to be West Bengal Chief Minister (CM) Buddhadeb 
Bhattacharya's closest confidante and a driving force behind the 
State's economic reform program.  Young and dynamic, Dutta is 
being groomed as a future CPM leader and is a close aide of 
Biswas.  Both Biswas and Dutta were very open and frank in 
discussing a full range of issues. 
 
----------- 
Bid for FDI 
----------- 
 
3. (SBU) In a fascinating break from its traditional Marxist 
ideology, Biswas categorically stated that the CPM welcomes 
capitalism and investment, "be it from Indonesia or the US," as 
long as it is consistent with State laws.  He emphasized that 
the Central Committee has accepted the "spirit" of CM 
Bhattacharya's market driven economic planning, saying that it 
is no departure from the party's resolution and policy 
statements.  Biswas explained that according to these party 
policies, CPM has no objection to foreign direct investment 
(FDI), provided investors abide by regulations and generate 
employment.  He said that the CPM is a democratic party in which 
self-criticism is present, but a consensus has been reached in 
favor of industrialization since the goal for West Bengal is to 
regain its "pre-independence position" as an economically 
advanced State.  Biswas clarified that knowledge-based 
industries such as IT, biotechnology as well as chemical 
industries are especially welcome.  He maintained that new 
industries are to be established without destroying traditional 
ones. 
 
----------------- 
The Land Question 
----------------- 
 
4. (SBU) On the contentious issue of allotment of land for 
industrial purposes, Biswas said that only land around cities 
would be utilized for industrialization and not in remote rural 
areas.  The peasants' interests are to be protected through the 
maximum utilization of wasteland. 40,000 acres of land belonging 
to closed industrial units are to be distributed for industry, 
commercial complexes and real estate business.  The focus is 
currently on land surrounding Calcutta in South 24-Parganas, 
Howrah, Burdwan and West Midnapore.  Some areas have already 
been allotted to Indian business groups. (Comment: Use of 
agricultural land for industrialization is a highly sensitive 
issue in West Bengal and for the CPM.  The CPM's political base 
is in the rural areas where the party had great success in 
establishing its dominance through distribution of land to poor 
farmers as part of a program of land reform in the late 1970's. 
The CPM is especially sensitive to charges from allies like the 
Forward Bloc and the opposition that the CPM is now abandoning 
the farmers for industry. End  Comment.) 
 
5. (SBU) However in South 24-Parganas, some agricultural land 
would be taken from local farmers for industrial purposes and 
the dispossessed would be compensated.  Biswas admitted that 
details on the much-publicized Indonesian Salem Group's 
investment in West Bengal may be exaggerated - instead of the 
projected Rs. 40,000 crores (approximately $ 9 billion), the 
actual investment over a period of 15 years may not exceed half 
the amount.  The project would include the establishment of a 
township and a factory for scooters/motorcycles. 
 
 
----------------------- 
Improved Labor Scenario 
----------------------- 
 
6. (SBU) When asked about the labor scenario in the State, 
Biswas offered a striking change from the past as he explained 
that although the party does not restrict the democratic rights 
of workers, the CPM now accepts that industry cannot survive 
without improvements in productivity.  The government and party 
are active in settling labor disputes through negotiation and 
the last few years have seen an improvement in the situation. 
He cited recent examples of disputes involving the tea and coal 
sectors that were peacefully and speedily resolved with input 
from industry. 
 
------------------------------- 
Tackling Maoists & Bangladeshis 
------------------------------- 
 
7. (SBU) Biswas and Dutta candidly admitted their party's 
concern on two problematic issues: Maoist activity and 
Bangladeshi migration into the state.  Biswas said that Maoists 
are active in Purulia, Bankura and Midnapore where landless 
peasants and tribals are common. The party is fighting the 
extremists ideologically and politically with the assistance of 
its cadres.  (Note: A website of the ultra-left extremist 
Communist Party of India - Maoist has charged CM Bhattacharya's 
government of attacking "comrades" and claimed to have given a 
fitting reply by killing three CPM leaders in July. End Note.) 
While acknowledging that Bangladeshis are entering the state in 
numbers, Biswas maintained that the CPM, unlike the BJP, does 
not believe in labeling Hindu Bangladeshi migrants as refugees 
and the Muslims as illegal entrants.  He said that the problem 
is humanitarian in nature and should be settled amicably between 
India and Bangladesh. (Comment: For decades Bangladeshis 
constituted a part of the CPM's vote bank. Recently, CM 
Bhattacharya has voiced his concerns on possible security 
threats if the influx continues unabated. End Comment.) 
 
----------------------------- 
Friend in Delhi, Foe in State 
----------------------------- 
 
8. (SBU) The leaders clarified that the Left supports the 
Congress-United Progressive Alliance (UPA) in Delhi on the basis 
of the Common Minimum Program (CMP).  However, relations between 
the Congress and the CPM are "sweet and sour," and in the state 
Assembly elections scheduled for 2006, the Left will seriously 
contest the Congress.  At the Center, the CPM supports the 
Congress not because they share common principles but only to 
keep out the BJP.  A Congress-Trinamul Congress alliance in the 
State is possible, but the CPM is not worried since its enhanced 
support base was evident when it won the May-June municipal 
elections.  Biswas asserted that the Left would continue to 
support the Congress at the Center despite the approaching state 
elections and sounded confident that the Left would return to 
power in West Bengal since the Congress can provide no 
alternative.  He predicted that the CPM would win at least 170 
of the 294 Assembly constituencies. 
 
------------------------------------------ 
No Support for Strategic Alliance With U.S. 
------------------------------------------- 
 
9. (SBU) When asked by CG what he thought of the Indian Prime 
Minister Manmohan Singh's recent visit to Washington, D.C., the 
Left leaders responded that his visit was a positive development 
and all emerging ties between India and the U.S. are welcome, 
barring those on military and strategic issues.  Biswas 
explained that close defense cooperation could lead to further 
complications by exacerbating the growing plague of secessionist 
forces in the Indian subcontinent.  Strategic affairs being very 
sensitive and the U.S. already being a strategic ally of 
Pakistan, the CPM would not want India to be in a similar 
relationship with the U.S. 
 
10. (SBU) Comment: The meeting with the CPM State Secretary and 
Assistant Editor of its mouthpiece newspaper "Ganashakti" was 
striking in its friendly and frank tone, especially given the 
CPM's past virulent anti-capitalist and anti-American views. CG 
was struck by the dissonance of Biswas saying the CPM desired 
private investment and a market economy while a red hammer and 
sickle flag was prominently displayed behind him.  The CPM in 
West Bengal has clearly changed its views on capitalism and the 
party fully supports CM Bhattacharya's efforts to attract FDI. 
Though their presence is limited, Maoist insurgents are a major 
concern for the CPM as they have been executing CPM 
functionaries in what both groups recognize as the CPM's 
historic political base.  The Maoist threat in West Bengal has 
resonance for the CPM as it constitutes not only a security 
challenge but also an ideological one, just as the CPM is 
attempting to move its economic policy to the center. 
 
 
 
JARDINE