C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007091

SIPDIS

E.O. 12958: DECL: 11/04/2014
TAGS: PREL PGOV ECON ENRG IZ IN US GOI
SUBJECT: INDIAN LEFT NEGATIVE OVER BUSH RE-ELECTION,
WORRIED ABOUT ENERGY HIKE

REF: A. NEW DELHI 7001


B. NEW DELHI 5569

C. NEW DELHI 7090

Classified By: DCM Robert O. Blake, Jr., Reasons 1.4 (B,D).


1. (C) Summary: Indian Communist Party leaders have
criticized PM Manmohan Singh's warm welcome of President
Bush's re-election, calling this "an attempt to please
American imperialism." Interestingly, however, party
spokesperson D. Raja welcomed the PM's commitment to train
Iraqi election officials in India enunciated in the same
letter. Other Left parties refused to comment on the US
election outcome, saying they are more concerned about Indian
domestic issues such as the November 4 petrol price hike and
foreign direct investment. End Summary.

Reaction to US Election
--------------


2. (C) In contrast to the ruling United Progressive
Alliance, India's Communists have reacted ambivalently to
negatively to the re-election of President Bush. On November
4 Communist Party of India-Marxist (CPM) Politburo member MK
Pandhe dismissed the congratulatory letter of PM Manmohan
Singh to President Bush as "an attempt to please American
imperialism." CPI spokesman D. Raja stated to Laboff on
November 5 that "Bush was not positive for India in the
past," and he "could not comment on how Bush will behave in
his second term."

Concerns over Petrol Hike
--------------


3. (C) Rather than focusing on the US election results, our
Left contacts emphasized domestic issues, asserting that they
will continue to oppose UPA economic liberalization
proposals, arguing that these overshadow foreign policy
concerns for Indians. They pointed out that the UPA and the
Left have been discussing a petrol price hike for months, and
finally reached a reluctant agreement. Raja expressed
concern about the increase, claiming it would further
exacerbate inflation and worsen conditions for the poor.
Revolutionary Socialist Party (RSP) MP Abani Roy reiterated
to Laboff that the Left parties will keep close tabs on price
increases of petroleum, diesel fuel, kerosene, and LPG
(liquefied natural gas), and speak out if they become too
egregious.

FDI
---


4. (SBU) The Left Front leaders also repeated that they
remain adamantly opposed to FDI hikes in the insurance and
telecom sectors. They pointed out that they agreed to an
increase in civil aviation FDI from 40- 49% only because they
believe it will benefit domestic airlines, and exclude
foreign carriers.

Iraq
--------------


5. (C) D. Raja emphasized that the GOI should send no
Indians whatsoever to Iraq, even for election monitoring.
However, the CPI welcomed the Prime Minister's proposal to
train Iraqi election officials in India (ref C). RSP MP Roy
stated that a democratic Iraq is better for the world, adding
that they would embrace training Iraqi election officials
only under the auspices of the United Nations. (Comment: the
GOI has not publicized the specifics of its proposal yet as
explained in ref C.) Left Front leaders refused to comment
on other aspects of the Bush administration's Iraq policy.

Comment
--------------


6. (C) The Left Front's discontent with the UPA's pro-US and
pro-economic liberalization policies continues to grow, and
its dissent from the GOI's warm welcome of another Bush
Presidency comes as no surprise. As BJP leader Arun Jaitley
recently pointed out, the Left increasingly behaves more like
an opposition, than a supporter of the government. But, as
the Prime Minister's effusive letter to President Bush
demonstrates, the government is willing to ignore the Left on
many issues of importance to us.
MULFORD