VZCZCXRO0067
PP RUEHBI RUEHCI
DE RUEHCI #0386/01 2430956
ZNR UUUUU ZZH
P 310956Z AUG 06
FM AMCONSUL CALCUTTA
TO RUEHC/SECSTATE WASHDC PRIORITY 1123
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1005
RUEHBI/AMCONSUL MUMBAI PRIORITY 0389
RUEHCG/AMCONSUL CHENNAI PRIORITY 0389
RUEHKA/AMEMBASSY DHAKA 0232
RUEHGO/AMEMBASSY RANGOON 0159
RUEHKT/AMEMBASSY KATHMANDU 0232
RUEHIL/AMEMBASSY ISLAMABAD 0181
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/CDR USPACOM HONOLULU HI
RUEAIIA/CIA WASHINGTON DC
RUEHCI/AMCONSUL CALCUTTA 1372

UNCLAS SECTION 01 OF 02 CALCUTTA 000386 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLS PASS USTR 
 
E.O. 12958: N/A 
TAGS: EINV ETRD IN PREL EAGR EIND ECON
SUBJECT: CHARGE PYATT MEETS W. BENGAL COMMERCE AND INDUSTRY MINISTER 
 
REF: CALCUTTA 00369 
 
¶1.  (SBU) Summary.  On August 29, Charge met with Government of 
West Bengal (GOWB) Minister for Commerce and Industry Nirupama 
Sen to discuss Communist Party of India - Marxist's (CPM) views 
on economic development in the state and CPM policy perspectives 
at the state and national level.  Sen was emphatic in expressing 
the GOWB's desire for U.S. investment, saying "We are for U.S. 
investment."  Sen also was very appreciative of the impending 
Department of Commerce-led business delegation to Calcutta in 
early December.  He stressed that the CPM seeks investments in 
¶W. Bengal and asked that "political statements about USG policy 
positions" not be seen as indicators of CPM's lack of support 
for U.S. investment.  Commenting on the perceived differences 
between national and state-level CPM policies, Sen said the 
CPM's position was consistent with the "Common Minimum Program" 
agreed to with the national-ruling United Progressive Alliance 
(UPA).  Charge also conveyed USG concerns about GOWB 
restrictions on Frito-Lay's potato cultivation in the state. 
Sen assured that the GOWB would not impede Frito-Lay's 
operations in W. Bengal.   The consistent theme in Sen's 
interaction with Charge was the GOWB's strong interest in 
promoting investment and industrial development in W. Bengal:  a 
message all the more striking coming from Sen, who rose to 
prominence in the state CPM hierarchy as a noted Marxist 
intellectual.  End Summary. 
 
¶2.  (SBU) The Charge, accompanied by Calcutta CG, Poloff, and 
FCS Officer, met with Minister Sen to discuss the CPM's 
perspective on economic development in W. Bengal.  Sen explained 
that while land reform, tenant's rights and decentralization of 
power were the goals of the CPM in the 1970's, modern W. Bengal 
now needed industrial development.  This development, because of 
the finances needed, would depend heavily on private sector 
investment.  Sen cited examples of current foreign investment 
projects from Japan and Indonesia as showing that the CPM had 
the confidence of the people and was gaining support for 
industrialization.  He said that the GOWB sought investments 
that:  1) create jobs; 2) expand the State's production 
base/capacity; and 3) bring in new technology.   Sen highlighted 
priority areas for investment: 
-- knowledge-based industries, such as pharmaceuticals and 
petrochemicals; 
-- IT, hardware as well as software; 
-- automotive; 
-- manufacturing, including iron, food processing, textiles, 
leather, and gems/jewelry. 
 
¶3.   (SBU) Sen was aware that an FCS-organized business 
delegation would be traveling to India in early December and 
expressed great satisfaction that Calcutta was included in the 
itinerary.  He said that GOWB officials were looking forward to 
meeting with U.S. business representatives.  He added that while 
the GOWB Commerce Secretary and Chief Secretary traveled to the 
U.S. earlier in June to develop potential U.S. business interest 
in the state, Chief Minister Buddhadeb Bhattacharjee was not now 
planning to travel to the United States.  The Commerce Secretary 
had previously contacted ConGen to facilitate a CM visit to the 
U.S. in October. 
 
¶4.  (SBU) When asked about apparent policy differences between 
the CPM at the national level and in W. Bengal, Sen dismissed 
the notion.  He said that there was agreement in his party based 
on the "Common Minimum Program (the Program)."  The Program, he 
said, allowed for a discussion of differences without permitting 
departure from its principles.  When pressed that it appeared 
the CPM was consistently issuing negative statements, Sen 
explained that the CPM opposed any policies that were outside 
the Program, such as disinvestment of profitable, public sector 
enterprises.  Similarly, while not opposed to joint ventures, 
the retail sector and the financial sectors shouldn't be opened 
to foreign investment, as they weren't sufficiently "ripe." 
(Note: Sen also answered the question of why the CPM supported 
the United Progressive Alliance from the outside and not as part 
of the coalition.  He indicated that fundamentalist forces, both 
Muslim and Hindu, were dangers to democracy.  By remaining 
outside the majority, the CPM could protect minority rights, 
while remaining committed to secularism, democracy and the 
Indian Constitution.  End Note.)   Charge stressed that given 
the CPM's history, it was especially important that the CPM be 
 
CALCUTTA 00000386  002 OF 002 
 
 
clear and transparent in its policy statements to attract and 
assuage concerns of potential U.S. investors. 
 
¶5.  (SBU) Charge also expressed concern about recent claims by 
officials of the W. Bengal Agriculture Department that the 
Atlantic variety potato seed introduced by Frito-Lay in the 
state may be susceptible to fungal disease such as "wart" 
(REFTEL).  Charge noted that technical evidence clearly showed 
that the seeds were free of disease and undue restrictions on 
Frito-Lay would send a bad signal to other U.S. investors.  Sen 
assured that the Frito-Lay's operations would not be affected by 
restrictions on its operations.  Sen added that India needed to 
identify and accept strict standards for analysis in these types 
of cases, and suggested that U.S. Food and Drug Administration 
standards should become the global standard.  (Note:  CG met 
with Frito-Lay Operations Director Samiran Das, who said that an 
understanding has been reached with the GOWB that would not 
permit planting of Atlantic variety seed in the state's hill 
districts.  Das said that the restriction was a face-saving 
measure for the Department of Agriculture as Frito-Lay was not 
planning to plant in hill districts in any case.) 
 
¶6.  (SBU) Comment.  Sen projected a positive tone in the 
meeting, indicating his confidence that the CPM was seeing 
success in its efforts to encourage investment.  Aware, however, 
that the CPM could not tone down it's often anti-U.S. positions 
too quickly, he asked the Charge to separate the political 
posturing from the fact that W. Bengal and the CPM were strong 
supporters of economic engagement with the U.S.  Sen's personal 
transformation from noted Marxist intellectual in the state CPM 
hierarchy to proponent of private sector-driven development is 
strikingly emblematic of the transformation presently occurring 
within the West Bengal CPM. End Comment. 
JARDINE