AN INTRODUCTORY MEETING WITH COMMUNIST LEADER

C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 007762

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/13/2016
TAGS: ECON ELAB PGOV PINR PREL IN BG NP SL
SUBJECT: AN INTRODUCTORY MEETING WITH COMMUNIST LEADER
SITARAM YECHURY

REF: KATHMANDU 3024

Classified By: Political Counselor Ted Osius for reasons 1.4 (B,D)


1. (C) Summary: In a November 13 meeting with PolCouns,
CPI(M) leader and ideologue Sitaram Yechury expressed a
desire to maintain regular relations with the Embassy. With
a straight face, Yechury was adamant that good relations
benefited both India and the US and had moved beyond the
stage of partisan politics. He then listed a number of
issues where the US and the CPI(M) were in agreement,
including: the Civil Nuclear Agreement, and the need for
peaceful settlements in Sri Lanka and Nepal. He also implied
that the CPI(M) may be willing to accept investment by
WalMart in India, if the company accepted unionization of its
Indian outlets. Yechury sees a domestic political situation
in which both Congress and the BJP are in decline, with the
formation of a Left-dominated "third front" government all
but inevitable. Citing events in Latin America, Yechury
expressed his belief that the Left was ascendant everywhere
and that his party was part of a world-wide process that
would rein in the excesses of "neo-liberalism" and address
deep-rooted poverty. He apparently feels that his party
needs to cultivate cordial ties with the USG to keep the
process moving. Yechury is the most flexible of the senior
Communists in the CPI(M) in Delhi, and this conversation
revealed he is someone with whom we can have a sustained
dialogue. End Summary.

An Amiable Meeting
--------------


2. (SBU) On November 13, PolCouns and Poloff made a courtesy
call on CPI(M) leader and ideologue Sitaram Yechury in his
New Delhi office. For over an hour, Yechury reviewed foreign
policy, political and economic issues, and concluded by
expressing his willingness to meet with Embassy
representatives on a regular basis.

Relations With the Big Powers
--------------


3. (C) Stating repeatedly that "relations with the big
powers are a foregone conclusion," Yechury was gratified that
India enjoys good relations with China, Russia and the U.S.,
even though his party remains deeply suspicious of
Washington. He opined that the recent US midterm elections
would not affect the growing ties between India and the US,
stating that there is a "continuum" in the relationship that
transcends partisan politics both in India and the US.
Relations with these big powers are "fixed" in any case and
do not pose serious problems for New Delhi. Yechury's big
concern is that India is "surrounded by failed states,"
making regional relations much more problematic.

Positive on the Nuke Deal
--------------


4. (C) Calling the US/India civil nuclear deal "settled,"
Yechury emphasized that it is "in the interests of everyone,"
both India and the U.S., and hoped that it could be passed
quickly by the U.S. senate in its upcoming "lame duck"

NEW DELHI 00007762 002 OF 004


session. He said the Prime Minister had addressed all of the
CPI(M)'s concerns with his August 17 address to the
Parliament.

Consensus on Nepal
--------------


5. (C) Yechury insisted that India and the U.S. were reading
from the same sheet of music on Nepal. He welcomed PolCouns'
assertions that the USG wanted to support the recent
agreement between Maoists and the government. Confirming
that he would be traveling to Nepal on November 15, Yechury
revealed that the CPI(M) had pressed the Maoists to accept UN
mediation and come to an agreement with the GON. He asserted
that the CPI(M) wants the UN to oversee the process, as it
would lend it "legitimacy and credibility." PolCouns replied
that effective arms management may require a high-level UN
mandate, adding that entry into the political process
requires the Maoists to put aside their arms. Yechury
suggested that the Maoists remain fearful that their enemies
will exact revenge if they disarm while leaving the Nepalese
Army and police fully armed. Yechury claimed that he
recently assured Nepalese Maoist leader Prachanda that UN
oversight will provide the necessary protection. While in
Nepal, Yechury plans to urge the Maoists to convert their
military forces into a GON paramilitary force. He suggested
that they could provide much needed "forest protection" that
would prevent Nepalese forest mafias from destroying the
environment. Yechury pointed out that it has taken the
CPI(M) over two years to convince the Maoists to lay down
their weapons and accept a negotiated settlement, and the
party now hopes to craft a coalition between the Maoists and
Communists that will grant it a sizable number of
parliamentary seats to balance an expected Center/Left
coalition.

As Well as Sri Lanka
--------------


6. (C) Yechury noted that the CPI(M) agrees with the USG
that a peaceful settlement is required in Sri Lanka and that
there is no military solution to the conflict. He pointed
out that his party has long called for a solution that would
provide "maximum autonomy within a united framework."
Yechury said this was far different from the position of the
two leading Sri Lankan political parties that called for a
"unitary state," which he said was nothing less than an
expression of "Sinhala Chauvinism." He further emphasized
that the CPI(M) has called on the GOI to stop all deliveries
of lethal materials to Colombo, as they only prolong the
bloodshed.

Implied Willingness to Accept Walmart
--------------


7. (C) During a discussion of retail trade, Yechury
acknowledged that both Indian and foreign retailers were
planning to make large investments in India. He appeared
intrigued when he learned that WalMart is currently
purchasing over USD one billion from Indian suppliers,
primarily textiles for sale in stores around the world.
Stating that the CPI(M) did not differentiate between foreign

NEW DELHI 00007762 003 OF 004


and domestic firms when it came to large retail operations,
Yechury pointed out that WalMart recently agreed to allow
unionization of its many Chinese employees, and that he hoped
this would set a precedent for the rest of the world.

Unhappy with Uttar Pradesh
--------------


8. (C) Conceding that the opposition in Uttar Pradesh had a
point that the law and order situation there is bad and
deteriorating, Yechury opposed the pending proposal to
dismiss the Samajwadi (Socialist) Party (SP) government and
declare President's rule, stating that it is now too close to
the March, 2007 elections. Any move by New Delhi to dismiss
the UP government, he said, would be widely interpreted as
undue interference in the election process. Yechury felt
that the GOI was likely to dismiss the government, as it
would benefit Congress, but would not do so until after the
next session of Parliament, which is set to begin on November

22. He pointed out that the Indian Constitution requires
Parliament to approve the imposition of President's rule
within "six months," but by the time it comes up for a vote,
the election will have already taken place with the SP
government likely voted out of office. Although the SP and
CPI(M) have an electoral agreement in UP, Yechury was quick
to dismiss the party as having "long deviated" from its
"socialist principles," while granting that it has suborned
the police and interfered with free elections.

History is on Our Side
--------------


9. (C) Domestically, Yechury was confident that India was
heading for a future "third front" government and that the
CPI(M) would likely be a key player. He opined that Congress
would have difficulty maintaining its current level of
support over the medium to long term, and would likely lose
seats in the future. Under such a scenario, Congress would
have no choice but to support a third front government
dominated by the Left. He dismissed the prospect of a return
of the declining (and dreaded) BJP to power as "highly
unlikely."

In Latin America and Around the World
--------------


10. (C) Yechury depicted the recent round of leftist
electoral victories in Latin America as the harbinger of big
changes to come, not just in Latin America, but in Asia and
around the world. He pointed out that Latin America had
swung left because of its bad experience with
"neo-liberalism" and its discovery that economic
liberalization would have to be done in a humane way that
truly benefited the poor and did not lead to concentration of
wealth. Warming to his subject, Yechury maintained that the
end-result would be a new "social order" that addressed the
issue of poverty and ensured economic benefits to everyone,
and that it did not matter which party was responsible.
Stating that the issue had gone beyond parties, it no longer
matter what a party was called as long as it delivered the
goods.


NEW DELHI 00007762 004 OF 004


Comment: A Pragmatist in an Ideological Party
--------------


11. (C) Yechury represents the "pragmatic" wing of the
CPI(M) and is less doctrinaire than Party General Secretary
Prakash Karat. He demonstrated his pragmatic streak
throughout the meeting, maintaining an amiable and friendly
countenance and stressing areas of agreement between his
party and the USG. Starting with the civil nuclear
agreement, Yechury made it clear that the CPI(M) wants
cordial relations with the US and that the Agreement is one
of several issues where it will not persist in challenging
the UPA government. Yechury tried to make it clear that the
CPI(M) is working hard to rein in the Maoists (both in India
and Nepal) and ensure that they renounce violence and adopt a
parliamentary/democratic approach. He also wanted to
demonstrate the amount of leverage the CPI(M) enjoys over GOI
foreign and economic policy, claiming credit for the GOI
approach on Nepal and Sri Lanka. Yechury implied that his
party will demand unionization as the price for the entry of
WalMart and other US retailers into India's retail market.
Yechury and other Communist leaders are historic determinists
who see the march of history on their side, see vindication
in the sweep of Left electoral victories in Latin America and
foresee similar developments in South Asia. They believe
that things are only going to get better for them and that it
is "inevitable" that they come to power in the future. As
such, they have decided to cultivate the USG and open a clear
line of communication with the Embassy. We will keep talking
to Yechury.


12. (U) Visit New Delhi's Classified Website:
(http://www.state.sgov.gov/p/sa/newdelhi/)
MULFORD