VZCZCXYZ1512
RR RUEHWEB

DE RUEHCG #0086 0670952
ZNR UUUUU ZZH
R 070952Z MAR 08
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 1528
INFO RUEHNE/AMEMBASSY NEW DELHI 3015
RUEHCG/ALL SOUTH AND CENTRAL ASIA COLLECTIVE

UNCLAS CHENNAI 000086 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ENRG IN
 
SUBJECT:  DMK INSIDER SAYS CIV-NUKE WILL GO FORWARD; EXPECTS 
ELECTIONS IN THE FALL 
 
REF:  2007 CHENNAI 605 
 
¶1.  (SBU) SUMMARY:  Tamil Nadu Minister for Electricity and Rural 
Industry Arcot Veerasamy told post that he expects the ruling United 
Progressive Alliance (UPA) to move forward on the U.S.-India Civil 
Nuclear Cooperation Agreement.  Veerasamy's comments merit attention 
because he is DMK leader M. Karunanidhi's right-hand man and is 
privy to inside information on the DMK's communications with the 
UPA.  Veerasamy said Congress leader Sonia Gandhi and Prime Minister 
Manmohan Singh are "fully committed" to completing the initiative. 
He added that he expects parliamentary elections in September or 
October.  Veerasamy also confirmed that the DMK plans to allocate 
two of five potential Rajya Sabha seats to the Congress party, 
indicating a closing of the ranks between the DMK and Congress.  END 
SUMMARY. 
 
VEERASAMY SEES NUKE DEAL GOING THROUGH 
--------- 
 
¶2.  (SBU) Visiting to apply for a visa in order to travel to the 
United States to look into solar power technology, Veerasamy 
discussed the state's energy situation and future plans.  Veerasamy 
told us that India needs nuclear energy to meet its growing demand 
for power.  When asked about the prospects of the U.S.-India Civil 
Nuclear Cooperation Agreement, Veerasamy said he expects it to go 
through because Congress party leader Sonia Gandhi and Prime 
Minister Manmohan Singh are "fully committed" to completing the 
initiative.  Veerasamy acknowledged that the Left parties are 
opposed to the agreement, but said the DMK supports it fully. 
Pointing to the December 2007 speech by DMK Rajya Sabha Member K. 
Kanimozhi (who is also DMK leader Karunanidhi's daughter) on the 
floor of India's Parliament, Veerasamy said "our leader's daughter" 
expressed the DMK's strong support of the initiative.  Veerasamy 
added that he expects parliamentary elections in September or 
October. 
 
CONGRESS AND DMK CLOSING RANKS 
--------- 
 
¶3.  (SBU) Veerasamy also confirmed reports that the DMK has agreed 
to allot two of five seats that the DMK-led ruling coalition is 
expected to win in the upcoming Rajya Sabha elections to Congress 
candidates.  Veerasamy told us "Sonia-ji asked our leader for two 
seats and he agreed."  Congress leader M. Veerappa Moily confirmed 
to post that Sonia Gandhi had requested two seats.  Moily denied 
recent rumors that the Congress-DMK relationship was on the rocks; 
he said the alliance will only grow stronger in the coming days. 
Moily took pains to note that Congress would not allow the 
controversy over the Sethusamudram project (reftel) to damage its 
relationship with the DMK but he declined to offer specifics as to 
how the Congress planned to handle the matter. 
 
¶4.  (U) Veerasamy and Moily's comments come against the backdrop of 
a brewing controversy over Rajya Sabha seat allocation among the 
DMK-led ruling coalition in Tamil Nadu.  The coalition is expected 
to win five seats.  Under the proposed seat allocation announced 
this week, the DMK gets two seats, Cogress two, and the Communist 
Party of India (Marist) (CPI-M) gets one.  The proposal has angeredPMK leader S. Ramadoss, who argued that his PMK shuld get at least 
one seat on account of the factthat it holds more seats in the 
Tamil Nadu legislture than the CPI-M.  Karunanidhi's responded that 
the DMK rewarded the PMK in 2004 by supporting Ramadoss's son Dr. 
Ambumani Ramadoss's election to the Rajya Sabha and that it is now 
the CPI-M's turn to take a seat in the upper body of Parliament. 
The elder Ramadoss was not mollified, saying Karunanidhi had "hurt 
the PMK deeply."  According to media reports, the PMK is considering 
the possibility of contesting for a Rajya Sabha seat in defiance of 
the DMK's seat allocation decision. 
 
¶5.  (SBU) COMMENT:  Because of Veerasamy's close relationship to the 
Chief Minister, his comments on the civil nuclear initiative are as 
good as having heard them from Karunanidhi himself.  The DMK appears 
to have gotten its previous reluctance to face early elections. 
They are fully behind the deal and, more importantly, believe that 
Congress plans to move forward on it.  The alliance between the two 
parties also seems to be getting closer, despite rumors in Tamil 
Nadu that both were exploring other options for upcoming elections. 
Karunanidhi's willingness to alienate the PMK -- a small, but 
influential party that frequently casts the deciding vote in Tamil 
Nadu's state elections -- on the question of Rajya Sabha seat 
allocation is strong evidence that he is casting his lot with the 
Congress.  END COMMENT. 
 
¶6.  (U) This message was coordinated with Embassy New Delhi. 
 
HOPPER