INFORMATION MINISTER JAIPAL REDDY UPBEAT ON MEDIA

C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 004312

SIPDIS

FOR SA/PPD LSCHWARTZ, G/TIP MARK TAYLOR

E.O. 12958: DECL: 06/08/2015
TAGS: KPAO PGOV PINR IN
SUBJECT: INFORMATION MINISTER JAIPAL REDDY UPBEAT ON MEDIA

REFORM

REF: NEW DELHI 4232

Classified By: Charge Bob Blake, for Reasons 1.4 (B, D)


1. (C) Summary: Meeting with the Charge and the PA Minister
Counselor in New Delhi on June 7, Minister for Information
and Broadcasting Jaipal Reddy was upbeat and optimistic about
the prospects for further liberalization of the media sector.
The purpose of the Charge's call was to get the Minister's
views on several pending and controversial media policy
issues. Reddy pointed out that he had "brought the Left
along" and opened up India for foreign publications, foreign
broadcasters and FDI in Indian media. At the same time, he
added a note of caution, pointing out that the Indian
political environment does not permit rapid change,
especially on issues such as permitting private FM stations
to broadcast news. Reddy also emphasized the power of
India's public sector broadcast media in influencing public
opinion on crucial issues such as HIV/AIDS and trafficking in
persons, and welcomed any assistance the US can provide to
produce further spots. He all but confirmed that he would
soon be leaving the Ministry and returning to Congress Party
headquarters duties in support of party President Sonia
Gandhi. End Summary.

The Indian Film Industry
--------------


2. (C) Having just returned from the Cannes Film Festival,
Reddy began the conversation with the observation that he was
disappointed that "Indian films were not appreciated," noting
that not one Indian film was selected by the jury for
competition. He further noted that Bollywood actress
Ashwarya Rai attended the festival, but was there to endorse
a product rather than promote Indian cinema. Reddy and the
Prime Minister had just seen the Indian film "Bose," about
the Indian independence leader, saying it was "historically
accurate," and handled the "controversial aspects very
delicately," such as pointing out the Bose had embarked on a
"great venture," when he formed the Indian National Army
(INA),but was "intellectually bankrupt."

The Big Media Issues
--------------


3. (C) The Charge asked the Minister whether foreign
publications, such as "the International Herald Tribune" will
be allowed to publish in India. Reddy replied that
"facsimile editions" of any foreign publication will be
allowed in India, even when they are "100 percent foreign
owned" and have no Indian partner, although they will not be
allowed to contain Indian content or advertising. He said
this meant the "International Herald Tribune," which is being
printed by a Hyderabad publisher, will be allowed to continue
to operate. Indian editions of foreign publications will
also be allowed, but must change their masthead to reflect
they are being published in India. The foreign investment
restrictions on such publications have also been increased
from 7.5 percent to 20 percent, while allowable "syndication
content" has been increased from 7.5 percent to 20 percent.
If news agency material is counted, foreign content would
actually go as high as 40 percent. Such editions will be
allowed to accept Indian advertising and publish local
content.


4. (C) Reddy cited the example of the pending request from
the "Wall Street Journal" to publish in India. Under the new
regulations, the WSJ could publish an Indian edition under a
changed masthead such as "The Indian Wall Street Journal," as
long as 51 percent of the equity was held by Indians.
Foreign content in such publications will be restricted to 40
percent of the total. Reddy assured the Charge that both
"Business Week" and "Fortune" -- two other US news
publications which have shown interest in entering the Indian
market -- could publish in India without problems, provided
they met the soon-to-be revised more liberal regulations.


5. (C) Reddy was proud that he had "brought the left along,"
and convinced them to accept these foreign news publication
changes. He had pointed out to Communist leaders that
foreign publications have never been "banned" in India, and
they accepted his argument. The Left leaders were also
concerned that foreign publications could pose a threat to
Indian publications and possibly drive them out of business.
Reddy was emphatic that "reforms are more genuine when the
Left is carried along."


6. (C) Reddy noted that the same restrictions would apply to
US magazines, although hundreds of foreign journals deemed to
be "scientific, technical and specialty" publications are
published in India without restriction. It was noted that
the "India Today" group has just launched an Indian edition
of "Scientific America."

Radio and Television
--------------


7. (C) The Minister was very upbeat about the future of
commercial FM radio in India, saying that in the next several
weeks approximately 330 new FM stations would be licensed to
start broadcasting in the private sector (there are about 20
now). He was much less sanguine about private radio stations
being allowed to air their own news, however, saying that
there is genuine concern across India's political spectrum
regarding "cross media restrictions." In this regard, he
pointed out, radio is much more sensitive than television, as
the common man relies more on radio. India's leaders are
reluctant to see the emergence of powerful media
conglomerates, such as the "Times of India" and "India Today"
groups, that would incorporate radio, newspapers, and TV
stations.


8. (C) Reddy pointed out that the reach of Indian private
media is "phenomenal," but implied that many in the media
could be irresponsible. During the 2004 Parliamentary
election campaign the media was "raucous," predicting that
the BJP-led NDA would sweep the nation and establish a one
party rule and even concocting partisan polls and surveys to
back up their assessment of a Congress defeat. The NDA's
defeat was therefore the media's defeat. This has resulted
in opposition to news reporting on FM radio that is supported
by parties from across the political spectrum. Reddy was
able to lift the FDI in FM radio to 20 percent with the
assent of the Communists, however.


9. (C) The Charge pointed out that there has been a rapid
expansion in the number of television channels on cable in
India, and that foreign broadcasters, including Rupert
Murdoch, wanted to begin commercial broadcasting on free to
air, which is currently controlled by Doordarshan (DD),the
government's national television network.


10. (C) Reddy replied that every country must take its
"media sensitivities" into account when making such
decisions, so as to avoid charges of "cultural imperialism,"
such as those leveled by France and other countries against
the US. He noted that the US had required Murdoch to become
a US citizen in order to comply with its media ownership
regulations. Reddy insisted that progress is being made on
this front in that there are now Direct-to-Home (DTH)
licenses for three private and one public station, (DD). The
latter was offering a mix of channels through decoders and
hoped to wire 5 million homes within the next several months.
He noted that BBC broadcasts were now available free of
charge to Indians on DD.

Indian FCC
--------------


11. (C) In response to a question from the Charge, Reddy
said he would introduce a bill in the next session of
Parliament to establish an Indian version of the FCC to
regulate technical issues and content in television
broadcasting. He was confident that the measure would pass
easily as "there is no opposition." Reddy plans to establish
a "truly autonomous" Commission patterned after the Press
Council of India and headed by a retired Supreme Court Judge.
Reddy maintained that many in India do not believe that
autonomous institutions are possible and have criticized him
for being overly optimistic. The Charge offered to assist
Indian experts interested in the FCC once the Commission is
up and running.

HIV and TIP
--------------


12. (C) The Charge thanked Reddy for the great strides made
in broadcasting public service announcements regarding HIV
and Trafficking in Persons. The Minister replied that the PM
was fully supportive of these efforts and that his backing
had made the difference. He also praised the private sector
for its interest in these issues. The problem, Reddy noted,
is not finding air time for such messages, but producing
messages of sufficient quality. He opined that "there is
great hypocrisy in India regarding sex," and that hypocrisy
is the real problem. Reddy hopes to produce spots with
well-respected world leaders like Kenneth Kaunda, Kofi Annan,
and Bill Clinton, and welcomed any technical assistance the
USG or US companies could provide to help produce quality
public service announcements on trafficking in persons.

Public Broadcasting
--------------


13. (C) The Minister pointed out that the influence of
public broadcasting has been "underestimated" in India, where
only 45 percent of televisions have access to cable. Saying
"we have a captive audience" which does not have the
purchasing power of those watching the cable channels, but is
the group most affected by HIV and trafficking. Only
Doordarshan can reach these audiences, but quality remains
the problem, as the messages have to be appealing to have a
positive impact. The Charge pointed out that the USG has
worked on such messages with other countries and has come up
with some good spots, and that he was confident that we could
do the same thing in India. The Minister singled-out
American actor Richard Gere for his work in India on HIV/AIDS
awareness.

Advani and the BJP
--------------


14. (C) Reddy opined that Advani's fate is not so much a
matter of Indian public debate as a matter of debate within
the Sangh Parivar (the Hindu family of organizations). In
Reddy's view, Advani was already becoming marginalized and
his remarks in Pakistan (Reftel) had only accelerated his
ongoing marginalization. Noting that the BJP has no strong
contender to replace Advani, Reddy predicted that the next
President would not emerge from the ranks of the current BJP
leadership but would be a "dark horse." Reddy maintained
that the BJP will not be able to compete politically as long
as it embraces Hindutva (Hindu nationalism),and must adopt
the "neo-secularism" being advocated by Advani, or it will
continue to suffer at the polls. He suggested that the NDA
could "break up," if it fails to find a "face saving device"
such as that provided by former PM Vajpayee that allows
secular parties to cooperate with the Sangh Parivar. He
concluded that Congress was "comfortable" about current
developments.

The Cabinet Shake-up
--------------


15. (C) While he would not discuss the future make-up of the
Cabinet after what most assume will be a shuffling of
portfolios in the next few months, Reddy confirmed that he
was not happy with his current portfolio, as he does not have
sufficient flexibility to take substantive steps. However,
since there are no other portfolios available for him, Reddy
implied that he would be returning to his old job as Sonia
Gandhi's personal spokesman.
Comment
--------------


16. (C) Although his days as a Cabinet Minister are
apparently numbered, Reddy forcefully reassured us that the
UPA government was interested in further slow, but steady
liberalization of Indian media and was receptive to more
foreign investment in publications and broadcasting. He also
tried to put a note of realism into the debate, however, by
pointing out that the GOI's intentions are correct but it is
constrained by India's political environment and the constant
need for compromise. His message was that change will come,
but it will not be quick or dramatic. Reddy seemed excited
by the prospect of returning to the Sonia Gandhi inner circle
and was upbeat about the current political situation. Like
many within Congress, he is happy to sit on the sidelines and
watch the BJP consume itself in internal conflict.
BLAKE