VZCZCXRO2414
OO RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHNE #5054/01 3251250
ZNR UUUUU ZZH
O 211250Z NOV 07
FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9368
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 6665
RUEHMO/AMEMBASSY MOSCOW 2464
RUEHKO/AMEMBASSY TOKYO 5417
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEIDN/DNI WASHINGTON DC
RHHMUNA/CDR USPACOM HONOLULU HI
RUCNDT/USMISSION USUN NEW YORK 5671
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RUEHGV/USMISSION GENEVA 7387
RHHMUNA/HQ USPACOM HONOLULU HI
RHMFISS/HQ USSOCOM MACDILL AFB FL
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 03 NEW DELHI 005054 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/INS, DRL 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREL PINR PARM ENRG IN
SUBJECT: RAHUL PROVIDES STAR POWER, CONGRESS REAFFIRMS 
NUCLEAR POWER 
 
REF: A. NEW DELHI 5047 
     ¶B. NEW DELHI 4700 
     ¶C. KOLKATA 0351 
     ¶D. KOLKATA 0345 
     ¶E. KOLKATA 0340 
 
¶1. (SBU) Summary: Rahul Gandhi generated the buzz and 
excitement for party faithful at his official coming out 
party at the All India Congress Committee (AICC) meeting on 
November 17.  Beside the celebration of Rahul (Refs A,B), the 
party strongly supported Congress President Sonia Gandhi,s 
and Prime Minister Manmohan Singh,s commitment to the 
U.S.-India civil nuclear agreement.  With the Left 
acquiescing to International Atomic Energy Agency (IAEA) 
talks, both Congress leaders ducked mentioning the Nandigram 
violence (Refs C,D,E).  And, signaling a shift in Congress 
Party ambitions, Mrs. Gandhi urged party members to restore 
Congress to its former dominance while accepting the 
necessity of coalition politics in the short term.  End 
Summary. 
 
Clear Message on Civil Nuclear Agreement 
---------------------------------------- 
 
¶2. (U) Ahead of the Parliamentary debate on the U.S.-India 
civil nuclear agreement and continuing UPA-Left sparring on 
the issue, the Congress Party strengthened Prime Minister 
Manmohan Singh,s hand by providing him an unambiguous party 
position in support of the agreement.  The omnibus resolution 
adopted by the AICC at its general body meeting on November 
17 noted the agreement &would end India,s nuclear isolation 
in the international nuclear community and will enable it to 
access technology more easily so as to significantly increase 
the contribution of nuclear energy to our electricity supply 
over the next two decades.  The AICC has no doubt that the 
nuclear agreement protects India,s fundamental strategic 
interests in every way.8 
 
¶3. (U) Congress Party President Sonia Gandhi and PM Singh 
strongly defended the U.S.-India civil nuclear agreement in 
front of the party faithful at the AICC meeting.  Mrs. Gandhi 
argued that the deal would provide India raw material and new 
technology and not affect the country,s strategic nuclear 
program.  She acknowledged differences of opinion within the 
ruling United Progressive Alliance (UPA) but said she hoped 
consensus would be reached.  PM Singh reiterated that the 
agreement in no way subjugates India's foreign policy and 
labeled such allegations "totally false." The Nehru-Gandhi 
legacy, he stated, was "in itself a guarantee that no one can 
bend India in any direction."  To demonstrate the party,s 
independence, the AICC resolution spoke of Mrs. Gandhi,s 
recent trip to China and the Prime Minister,s visit to 
Russia, as well as recent agreements with Muslim countries. 
 
Steered Clear of Nandigram 
-------------------------- 
 
¶4. (SBU) Notably absent from the remarks of both PM Singh and 
Mrs. Gandhi was the recent violence in Nandigram.  The 
violence was deplored by lower level functionaries and 
officially censured by the omnibus AICC resolution passed at 
the session.  However, the resolution refrained from naming 
the Communist Party of India - Marxist (CPM) outright, 
instead condemning "the culture of violence and the cult of 
armed cadres."  Observers agreed, Congress is loathe to 
offend CPM, especially now that a little daylight has opened 
on the nuclear agreement with the Left parties allowing the 
GOI to approach the IAEA.  Besides, the Congress is content 
to let others, including the opposition Bharatiya Janata 
Party (BJP) and Indian civil society, fiercely take on the 
CPM on Nandigram. 
 
Coalition Politics: Recapturing Political Space 
--------------------------------------------- -- 
 
NEW DELHI 00005054  002 OF 003 
 
 
 
¶5. (SBU) On domestic politics, the highlights of the AICC 
were Sonia Gandhi,s remarks on coalition politics, where she 
walked a tightrope.  She acknowledged the difficulty of 
running a coalition but reaffirmed the party,s commitment to 
working within the present coalition structure.  That said, 
she looked ahead to a coalition-free future when she urged 
her party to work to return Congress to its former glory.  In 
calling for a rejuvenation of the party she stated, "working 
in coalition does not mean that we lose our political space 
forever."  She singled out three states where coalition 
partners hold sway and the Congress Party in almost 
non-existent -- West Bengal, Bihar and Tamil Nadu -- as the 
most difficult challenges and exhorted the party to resolve 
their internal problems and rebuild itself in these states. 
UPA coalition members seemed to take the comments in stride 
noting that at a party session, "party leaderships have to 
play to the gallery." 
 
¶6. (U) The Congress Party also lashed out at the BJP, 
accusing the opposition of obstructionist tactics and 
claiming that Gandhian values are under attack in Gujarat and 
other BJP-ruled states.  On the civil nuclear agreement, the 
AICC resolution noted that the party &needed no lessons from 
anyone in pursuing India,s independent foreign policy.8 
The BJP immediately hit back, accusing the Congress Party of 
attempting to divert the country,s attention from a litany 
of UPA failures.  The BJP spokesman ridiculed the Congress 
for its silence on Nandigram and accused it of being soft on 
terrorism.  He also complained that public television,s 
broadcast of Sonia Gandhi,s address to the AICC was improper 
and could pose an electoral code violation prior to polls in 
Gujarat and Himachal Pradesh. 
 
Highlighted Economic Achievements 
--------------------------------- 
 
¶7. (SBU) In a departure from previous tactics, Congress did 
not shy away from showcasing economic progress achieved 
during its current run.  It drew a distinction between its 
record of 8.6% average growth with the 5.8% average growth of 
the previous BJP-led NDA government.  In its resolution, the 
party reaffirmed its commitment to entrepreneurship and the 
private sector.  Fears of party strategists that any talk of 
&India Shining8 would not play well appear to have been 
allayed, at least for the moment.  Recognizing that price 
levels of essential commodities will always remain a critical 
electoral issue, the Congress party called on the UPA 
government to &exhaust all options8 before passing on 
international price increases to consumers.  The Prime 
Minister responded: &The Congress President has told me time 
and again that we should control inflation.  I can assure you 
that the government will do its best.8 
 
Comment: Rahul Headlines, Sonia Provides the Substance 
--------------------------------------- 
 
¶8. (SBU) As a coming out party for Rahul Gandhi, the AICC 
meeting on November 17 was yet one more step in his 
continuing coronation (ref A).  While feting Rahul Gandhi, 
the Congress party also accomplished some tough political 
work.  In particular, it successfully walked the fine line 
between coalition politics and party cheerleading.  At the 
2003 AICC meeting in Shimla, Sonia Gandhi had signaled the 
Congress Party,s readiness to work within coalitions, a 
major departure and a humbling come-down for a party 
accustomed to governing with a free hand.  At the 2007 AICC 
meeting, Sonia Gandhi, while not junking the coalition 
mantra, laid down a marker when she announced her intent to 
rebuild the party to its old glory and not to concede even 
places like West Bengal, Bihar and Tamil Nadu.  On the 
Parliamentary stage, Nanidgram has given the UPA room to 
maneuver and Congress did not fail to claim the space.  The 
reins aren't quite Rahul's yet and the nuclear agreement 
 
NEW DELHI 00005054  003 OF 003 
 
 
isn't quite complete yet, but both are one step closer.  End 
Comment 
MULFORD