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OO RUEHAST RUEHBI RUEHCI RUEHLH RUEHPW
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O 211237Z AUG 08
FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3075
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 6988
RUEHLO/AMEMBASSY LONDON 5190
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RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEIDN/DNI WASHINGTON DC
RHHMUNA/HQ USPACOM HONOLULU HI
RUCNDT/USMISSION USUN NEW YORK 6797
RUEHGV/USMISSION GENEVA 7855
RUEKJCS/JOINT STAFF WASHDC
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL

UNCLAS SECTION 01 OF 03 NEW DELHI 002264 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/INS, DRL 
 
E.O. 12958: N/A 
TAGS: PGOV PTER PREL PINR KDEM KNNP ETTC ENRG TRGY
IN 
SUBJECT: PM'S INDEPENDENCE DAY ADDRESS:  INDIA'S MOMENT TO 
SHINE 
 
REF: A. NEW DELHI 2146 
     ¶B. NEW DELHI 2109 
 
¶1. (SBU)  Summary:  While giving prominent attention to 
issues that most directly involve U.S. interests -- 
U.S.-India Civil Nuclear initiative, Jammu and Kashmir, 
terrorism and regional security -- Prime Minister Manmohan 
Singh's traditional Independence Day address on August 15 
focused primarily on domestic issues.  He underscored United 
Progressive Alliance (UPA) policies that have had the 
greatest impact, including debt waiver for farmers, rural job 
creation and infrastructural development.  Singh's remarks 
highlighted the UPA's role in shaping the "New India," 
pointing to the unprecedented economic growth which he argued 
has laid the foundations for a promising future for India in 
this century.  The speech provides a hint of what the 
Congress Party's election strategy will be going into the 
elections: preemptively deflect anticipated criticism on 
certain issues -- inflation, the Jammu and Kashmir unrest, 
and terrorism in the aftermath of serial bombings in Indian 
regional centers -- while trying to shift the focus to 
popular UPA initiatives and overlay a vision of India 
marching to reclaim its "rightful" place on the international 
stage.  End Summary. 
 
Pakistan Relationship Strained by Kabul Attack 
--- 
 
¶2.  (U)  During the traditional Independence Day address on 
August 15 from atop the Red Fort ramparts, Prime Minister 
Manmohan Singh observed that the bombing of India's embassy 
in Kabul last month cast a dark shadow on efforts to 
normalize relations with Islamabad.  His comments were the 
latest in the rachetting up of rhetoric by Indian government 
officials alleging ISI complicity in the July 7 Kabul attack 
in which two Indians were among the 58 people killed.  Singh 
said he had personally conveyed his "concern and 
disappointment" to his Pakistani counterpart Yousaf Raza 
Gilani when they met on August 2 on the margins of the South 
Asia Association for Regional Cooperation Summit in Colombo. 
 
¶3.  (U)  Singh further observed that terrorist resurgence in 
Indian cities and Jammu and Kashmir was contributing to the 
fractured bilateral relationship.  He condemned the recent 
terror attacks in Bangalore, Ahmedabad and Jaipur as acts of 
"barbarism" and vowed to strengthen the intelligence agencies 
and police forces.  He pointed to escalating violence in 
Jammu and Kashmir following weeks of reported firing across 
the line of control in violation of the 2006 cease fire 
agreement.  If the issue of terrorism is not addressed, Singh 
warned, bilateral efforts to promote peace and security 
"would be negated." (Comment: Singh took care to distinguish 
between the Pakistan government and the ISI, which New Delhi 
has implicated in terrorist attacks targeting Indians.) 
 
Singh Appeals for Peace in Jammu and Kashmir 
--- 
 
¶4.  (U)  The PM appealed for peace in Jammu and Kashmir 
following weeks of violent protests over the Amaranath land 
transfer issue that has bitterly divided the country's only 
Muslim-majority state along communal lines.  The Kashmir 
valley has seen its worst protests since separatist revolt 
broke out 20 years ago (reftels).  In a dig at the opposition 
Bharatiya Janata Party, the PM criticized short-sighted 
politicians for stoking communal sentiments and warned that 
"divisive politics will lead us nowhere."  All political 
parties should keep Jammu and Kashmir's long-term interests 
in mind and resolve issues by engaging in peaceful dialogue, 
he added. 
 
Nuclear Deal Will End India's Isolation 
 
NEW DELHI 00002264  002 OF 003 
 
 
--- 
 
¶5.  (U)  Less than one week before the August 21-22 meeting 
of the Nuclear Suppliers Group (NSG) considers an 
India-specific exception, Singh pitched for nuclear energy as 
an alternative that would enable India to meet the twin 
challenges of energy security and climate change, while 
ending India's global nuclear isolation.  With one eye on NSG 
members that have reservations on aspects of the civil 
nuclear initiative, he emphasized nuclear power was a "clean, 
environmental friendly and renewable source of energy." 
 
¶6.  (U)  The PM sought to highlight the benefits of the civil 
nuclear deal in a manner that would be easily understood by 
the broad electorate by noting that it would "enable us to 
provide electricity to meet the needs of our farmers, our 
artisans, our traders and our industry.  "Linking the nuclear 
agreement with national development, Singh contended that the 
Nuclear Initiative would end India's nuclear isolation by 
opening up new trade opportunities in dual-use high 
technology and nuclear materials and equipment, providing 
"new pathways to industrialization of our country."  He 
argued that the Nuclear Initiative would restore and develop 
the nation's nuclear energy capabilities after nearly three 
decades of isolation from the international community.  "Many 
countries have imposed sanctions on trade with India in 
nuclear materials, nuclear equipment and nuclear technology. 
As a result, our nuclear energy program has suffered," Singh 
lamented. 
 
Singh Points to UPA Achievements 
--- 
 
¶7.  (U)  Singh underscored UPA government's achievements 
while projecting a promising global future for India.  India 
today is viewed as one of the world's fastest growing 
economies, he observed, noting the diverse talents and 
achievements of the Indian diaspora throughout the world. 
"The world expects India to regain its due place in the 
comity of nations.  This is our moment," Singh said to cheers 
from the audience, which included an estimated 3,000 
enthusiastic schoolchildren dressed in the colors of the 
Indian tricolor flag.  Singh went on to list major 
achievements of the UPA government -- debt waiver for 
farmers, job creations schemes, credit programs for farmers, 
and infrastructure development -- that have directly 
contributed to India's historic annual growth rate of nearly 
nine-percent. 
 
¶8.  (SBU) The PM conceded that inflation, which stands at a 
14-year high of 12.44 percent, poses a serious risk.  The 
challenge for his government, he said, is to control 
inflation while ensuring that India's high economic growth 
rates are not compromised.  Singh lauded UPA policies that 
contributed to historic growth rates for four consecutive 
years but admitted that inflation poses a serious challenge. 
He sought to shift the blame by describing spiraling food and 
commodity prices as an "imported" problem but noting that the 
government has taken steps to ease pressures on the average 
citizen. 
 
¶9.  (SBU) At the start of what will be an intense election 
season, he sought to project a bolder and bigger vision. 
Referring to upcoming state elections in November 2008 and 
national elections that must be held by May 2009, he said 
that Indian political parties had an obligation to think in 
the national interest, not according to election cycles.  "We 
have to think about the welfare, well-being of our children, 
grandchildren, their grandchildren and future generations." 
 
Comment:  India Looks Towards the Future 
--- 
 
NEW DELHI 00002264  003 OF 003 
 
 
 
¶10.  (SBU)  The Prime Minister's Independence Day speech was 
in fact a campaign checklist, touching on every major issue 
that is likely to shape the coming state and national 
elections.  The remarks also provide hints of what the 
Congress Party's election strategy will be going into the 
elections:  preemptively deflect anticipated criticism on 
certain issues -- inflation, the Jammu and Kashmir unrest, 
and fear of resurging terrorism in the aftermath of serial 
bombings in Indian regional centers -- while trying to shift 
the focus to popular UPA initiatives such as farm debt 
write-off, job guarantee schemes, and infrastructure 
development.  Overlaying all this will be an effort to 
generate a positive sense of wellbeing by pointing to the 
unprecedented run of high growth rates and projecting a 
vision of a bright future where India reclaims its rightful 
place as a global power.  End Comment. 
WHITE