VZCZCXRO8136
PP RUEHCN RUEHGH RUEHVC
DE RUEHCI #0098/01 0781412
ZNR UUUUU ZZH
P 181412Z MAR 08
FM AMCONSUL KOLKATA
TO RUEHC/SECSTATE WASHDC PRIORITY 1930
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1811
RUEHCG/AMCONSUL CHENNAI 0835
RUEHBI/AMCONSUL MUMBAI 0840
RUEHKA/AMEMBASSY DHAKA 0567
RUEHKT/AMEMBASSY KATHMANDU 0555
RUEHGO/AMEMBASSY RANGOON 0415
RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RUEIDN/DNI WASHINGTON DC
RHMFIUU/CDR USPACOM HONOLULU HI
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAEPA/EPA WASHINGTON DC
RUEHCI/AMCONSUL KOLKATA 2358

UNCLAS SECTION 01 OF 04 KOLKATA 000098 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLEASE PASS USAID 
 
E.O. 12958: N/A 
TAGS: PHUM PREF PREL EAGR EAID SENV SNAR CH IN
SUBJECT: DEVELOPMENT IN INDIA'S NORTHEAST STATE OF ARUNACHAL PRADESH 
TO COUNTER CHINA THREATENS LOCAL CULTURE AND ENVIRONMENT 
 
REF: KOLKATA 0050 
 
KOLKATA 00000098  001.2 OF 004 
 
 
¶1. (SBU) March 4-11, ConGen visited the remote northeastern 
Indian state of Arunachal Pradesh (AP) to assess the area's 
regional security, social and economic development issues. India 
continues to dispute China's claims to AP and is now seeking to 
develop the state's infrastructure to integrate it with the rest 
of India.  However, the GOI's development efforts threaten the 
many indigenous tribes' distinct cultures and communities.  In 
addition, little consideration has been given by the GOI and 
state planners as to preserving the environment in this unique 
bio-diversity hotspot of the eastern Himalayan foothills. 
Rather, development plans reflect the GOI's broader strategic 
interest and the corrupt local politicians' aspirations for more 
graft.  The GOI's large infrastructure development plans will 
likely accelerate the erosion of local tribal cultures and the 
environmental degradation, with only marginal improvements in 
the overall quality of life for the local people of Arunachal 
Pradesh.  Post will seek to leverage its limited resources to 
support initiatives in preserving local culture and the 
environment.  End Summary. 
----------- 
Background 
---------- 
¶2. (U) AP is located at the easternmost corner of India and 
shares borders with China's Tibet Autonomous Region (TAR), 
Bhutan and Burma.  The state stretches from the Himalayan ranges 
in the north to the plains of the Brahmaputra river valley in 
the south, and has five major rivers - Kameng, Subansiri, Siang, 
Lohit and Tirap.  With an area of 83,743 square km and a 
population of 1.1 million, it has the lowest population density 
in India. The state's 26 tribes, all with distinct cultural 
traditions, range in characteristics from the more Tibetan 
Monpas in the west to the Burmese-influenced Nagas in the east. 
The tribes constitute about 70 percent of the population and a 
steady influx of outsiders, many from Assam and Bangladesh, make 
up the remaining approximately 30 percent. 
------------------- 
Conflict With China 
------------------- 
¶3. (U) China neither formally recognizes AP's status as an 
Indian state nor accepts the "McMahon Line" set by the British 
with the Tibetans in 1914 as the 1,030 km. international border 
between India and Tibet.  Chinese troops crossed the McMahon 
Line on August 1959, and captured an Indian outpost at Longju, a 
few miles south of the line. They abandoned it in 1961 but in 
October 1962 attacked again in the Indo-Chinese War and seized 
much of the state.  The Chinese later agreed to withdraw 
approximately to the McMahon Line and in 1963 returned Indian 
prisoners of war.  In 1986, tension again flared up with Indian 
and Chinese forces clashing in the Sumdorong Chu valley over the 
Chinese construction of a helipad in the valley. 
 
¶4. (U) In 2003, Beijing gave up its territorial claim over the 
Himalayan Indian state of Sikkim, but continues to assert that a 
vast stretch of Arunachal Pradesh - 90,000 sq.kms. - belongs to 
China.  The AP government has from time to time warned the GOI 
about Chinese troops making regular forays across the highly 
sensitive international borders. 
------------------------------ 
Development, Not Just a Buffer 
------------------------------ 
¶5. (U) Until recently, the GOI maintained a policy of keeping 
the state undeveloped to create a buffer with China and to 
preserve to some extent the indigenous cultures. India's first 
Prime Minister Jawaharlal Nehru on the advice of noted British 
anthropologist Dr. Verrier Elwin opposed "over-administering" 
the area to limit outside influences on the tribal communities. 
As a result, basic social indicators, such as literacy, health 
and life expectancy are very low.  Infrastructure was not 
developed because of the anxiety over possible Chinese intrusion 
into the state and so it is impossible to travel by road from 
east to west in the state.  All east-west travel by road must go 
through neighboring Assam. 
 
¶6.  (U) AP legislators have noted in Parliament that lack of 
infrastructure has in fact made access to the Chinese border 
 
KOLKATA 00000098  002.2 OF 004 
 
 
very difficult from the Indian side, while the Chinese have 
built infrastructure to facilitate movement for their military 
and people.  Marking a significant change in policy in January, 
Prime Minister Manmohan Singh went to AP for the first Prime 
Ministerial tour of the state in a decade and announced series 
of development plans valued at around USD 2.5 billion (reftel). 
The trip was notable, coming just two weeks after Singh's visit 
to Beijing, possibly reflecting difficult border negotiations 
with the Chinese.  Singh announced plans for a 1,840-kilometer, 
four-lane trans-Arunachal highway connecting the district 
headquarters in the state; a new airport for the state capital 
Itanagar; the reopening of four non-operational airports at 
Tezu, Pasighat, Daporijo and Along; and the connecting of 
Itanagar to the nearest railhead at Harmuti in Assam.  Singh 
also laid the foundation stone of the National Hydro-Electric 
Power Corporation's 3,000 megawatt Dibang Multipurpose Project 
and the North Eastern Electric Power Corporation's 110 megawatt 
Pare Hydroelectric project.  (Note: Arunachal has five major 
rivers with the potential to generate 50,000 megawatts of power. 
 End Note.)  For social development, he outlined an 
"electricity-for-every-home" scheme and flood relief initiatives. 
 
¶7. (SBU) Former Chief of Army Staff and newly-appointed AP 
Governor J.J. Singh told ConGen that his priority was to ensure 
progress on the proposed infrastructure and development 
projects.  Singh also observed that what is generally termed as 
"incursions" by the Chinese into Indian territory is a result of 
"difference in perception."  He said that there was no clear 
demarcated border and sometimes, for example, India may regard 
one side of a mountain ridge as the border while the Chinese may 
think the other side of the ridge is the dividing line.  On the 
issue of Chinese claims over AP, Singh felt that perhaps 
eventually Aksai Chin on India's western border might go to 
China but not Tawang, the area close to Tibet that China most 
desires in AP. 
------------------------- 
Corrosive Social Problems 
------------------------- 
¶8. (SBU) The GOI's development plans have raised concerns about 
the broader social and environmental implications.  Because the 
tribal communities are primarily agrarian and unwilling to do 
the manual labor on the road and hydro-power projects, much of 
the labor has been brought in from other parts of India, 
primarily Assam and according to locals, the Assamese are in 
fact often Bangladeshis with false documents.  The influx of 
outsiders has resulted in a demographic shift and they now 
constitute a third of the state population and appear to be 
growing.  Resentment against the outsiders has increased among 
the tribal groups.  The tribal Nyishi student group has posted 
signs throughout Itanagar, including in front of the state 
Secretariat, calling for "Bangladeshis" to leave the state. 
 
SIPDIS 
 
¶9.  (U) According to the Executive Director of the Center for 
Cultural Research and Documentation (CCRD) Moji Riba, tribal 
communities are seeing a steady erosion of their traditions due 
to outside influences.  ConGen saw this while participating in a 
local animist Donyi Polo (Sun and Moon worship) ceremony, which 
had adopted many Christian aspects, with new prayer books and a 
temple modeled on some of the Baptist and evangelical churches 
that have made inroads into the local communities.  Christian 
missionaries from Nagaland and Mizoram have been especially 
active in AP. 
 
¶10. (U) In the eastern districts of Lohit, Changlang, and Tirap, 
bordering Nagaland, traditional use of opium has given way to 
expanded cultivation of poppy for production of illicit opium. 
According to Speaker Setong Sena and former Home Minister L. 
Wanglat, who come from AP's eastern region, the opium is 
produced extensively throughout those districts and is sold to 
Assamese middle-men, who then move the product to New Delhi and 
beyond.  Secretary of the National Alliance of Women Jarjum Ete 
told ConGen that opium addiction among young men in the Lohit 
district has increased to alarming levels. 
 
¶11.  (SBU) Violence from Naga separatists has also become a 
problem in the eastern districts.  Wanglat noted that in 
 
KOLKATA 00000098  003.2 OF 004 
 
 
December 2007 his cousin, former Member of Parliament Wangsha 
Rajkumar was shot dead while he was playing badminton.  Wanglat 
said he believed that the National Socialist Council of Nagaland 
- Isak Muivah (NSCN-IM) killed his cousin for his opposition to 
their activities.  Wanglat and others said that NSCN-IM operates 
extensively in the Naga-dominated eastern districts, extorting 
money, killing opposition, kidnapping and recruiting youth. 
NSCN-IM hopes to include the Naga AP districts into a greater 
independent Nagaland. 
 
¶12. (U) Another persistent issue is the presence of about 50,000 
Buddhist Chakma refugees, who settled in the state over three 
decades ago after being displaced from Bangladesh due to the 
flooding of their land by the Kaptai Dam reservoir in the 
Chittagong Hill Tracts.  Arunachalees, particulary student 
unions, demand that the refugees be relocated elsewhere to 
preserve the ethnic identity of local people, but the refugees 
are demanding citizenship rights.  Jarjum Ete and other local 
NGO representatives blame USAID's assistance in financing the 
Kaptai Dam project in 1964 for the exodus of the Chakmas to 
Arunachal Pradesh.  The Supreme Court of India has ruled against 
relocating the Chakmas elsewhere, but Arunachalese leaders and 
agitators insist that their sometimes violent anti-Chakma 
campaign will continue.  The GOI has appointed a committee to 
review the situation but facing local opposition to granting any 
resident status, the Chakmas will likely remain indefinitely in 
legal limbo as refugees. 
-------------------- 
Environmental Impact 
-------------------- 
 
¶13.  (U) Executive Director of the sustainable development NGO 
Future Generations Dr. Tage Kanno commented to ConGen that 
announced plans for new roads and large hydro-power project will 
also have a significant impact on the state's unique 
biodiversity.  AP is home to over 5,000 plant species, 85 
terrestrial mammals and over 500 birds.  It has four major cats, 
including the tiger, leopard, clouded leopard and the snow 
leopard as well as the lesser cats such as the golden, leopard 
and marbled cats.  Forests include five broad forest types and a 
sixth secondary forest.  The state's biodiversity results from 
it being at the junction of the Paloearctic, Indo-Chinese and 
Indo-Malayan bio-geographic regions. 80 percent of the state, 
according to the state government is forested. 
 
¶14. (SBU) Kanno related problems with the one completed 
hydro-power project in the state, 405 Megawatt (MW) Ranganadi 
Hydro Electric Project State I, commissioned in 2002.  According 
to Kanno and others, water flows from the dam have been erratic 
with periods of dry spells, killing the fish stocks, and sudden 
floods, which have washed away downstream farm fields and 
animals.  ConGen saw the dam site and extensive staff housing 
and cleared areas.  Local NGO's have been concerned that no 
environmental impact has been done for the planned 3,000 MW 
Dibang multi-purpose project for which PM laid the foundation 
stone on January 31.  Kanno and Asia Development Bank Consultant 
Geoff Mills commented in separate conversations that rather than 
large mega-hydro power projects, the GOI should fund numerous 
smaller hydro-power projects.  The smaller projects collectively 
could generate the same levels of power as the large projects, 
but would have less environmental impact, be easier to maintain 
and have wider benefit.  However, they and even local Members of 
the Legislative Assembly (MLAs) said that the state government 
officials were keen to have the larger projects as they 
represented greater opportunities for graft and corruption. 
------------------ 
Rampant Corruption 
------------------ 
¶15. (SBU) Rampant corruption is a significant impediment to 
effectively managing the state's development.  ConGen visited 
the home of several local state assembly MLAs, which were 
palatial in comparison to the rustic homes of most villagers. 
MLA Kipababu (protect) openly related to ConGen how the Chief 
Ministers have maintained support and party loyalty by using 
public project funds to distribute to MLA's for their votes.  He 
said that the CM "might get a 40 crore (USD 10 million) project; 
 
KOLKATA 00000098  004.2 OF 004 
 
 
he'll take some of it and then give about 2 crore each to the 
MLA's and have them sign a paper saying that they support his 
government."  Deputy Commissioner Sadhana Deori (protect) 
commented that the authorities of the Public Distribution System 
(PDS) for basic food staples intended for the state's poor have 
made millions of dollars along with state Youth Congress 
President Likha Saya, a contractor appointed to distribute food 
in remote areas.  Rations were diverted and sold on the black 
market.  Flaunting his new found wealth, Saya has been seen 
driving around Itanagar's narrow and potholed streets in a 
convertible Jaguar sports car. 
------------------- 
Consulate's Efforts 
------------------- 
¶16. (U) To help in efforts for cultural and environmental 
preservation, the Consulate has used its limited resources to 
promote local initiatives.  For instance, it has recommended key 
local contacts for the International Visitor Program (IVP) to 
look at Native American communities in the United States to see 
approaches that they have taken for retaining their culture and 
creating economic opportunity.  IVs from AP include Chairman 
NEFA Indigenous Human Rights Organization Tado Karlo, President 
of Northeast Students' Organization Gumjum Haider, Congress MLA 
(former Union Minister) Omak Apang, Secretary of National 
Women's Alliance Jarjun Ete and Editor of Dawnlit Post Gabriel 
Wangtsu.  In addition, Post's Foreign Commercial Service (FCS) 
office hosted a delegation of renewable power companies to 
Kolkata in January and arranged for hydro-power business 
representatives to talk to AP officials about U.S. hydro-power 
technologies that could help the state's environment.  Post is 
also now in contact with community colleges in the U.S. to 
identify institutions serving tribal communities which could 
cooperate with educational institutions in AP and share efforts 
at providing culturally sensitive curriculum.  Post will also 
seek possible proposals in the state to nominate for the 
Ambassador's Fund for Cultural Preservation. 
------- 
COMMENT 
------- 
¶17.  (SBU) Arunachal Pradesh is a region in transition.  Long a 
quiet corner of India, the country's general economic and 
geo-political rise is bringing greater attention to the state. 
As India seeks to better mark its turf in the face of China 
consolidating its hold in TAR, more money and people will be 
funneled into Arunachal Pradesh to develop its infrastructure 
and to integrate it with the rest of India.  However, the GOI 
and local officials' apparent failure to consider the social and 
environmental impact of their development plans will likely 
undermine the unique local tribal cultures and the state's 
biodiversity. 
JARDINE