NOBEL PRIZE WINNER DR. MUHAMMAD YUNUS CONSIDERS ENTERING

UNCLAS SECTION 01 OF 02 KOLKATA 000050

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM SOCI IN BG
SUBJECT: NOBEL PRIZE WINNER DR. MUHAMMAD YUNUS CONSIDERS ENTERING
BANGLADESH POLITICS



1. (SBU) Summary. On February 12, ConGen spoke with Nobel
Prize winner Dr. Muhammad Yunus about his plans to enter
Bangladesh politics. Yunus, on a two-day visit to Kolkata,
expressed a strong interest to enter the political fray and said
that he was reviewing his options. He expressed support of the
present Caretaker Government and its decision to declare a
"State of Emergency," saying it had averted a possible civil
war. Yunus felt that Muslim fundamentalists represented a
fringe and that while the dominant parties had developed ties
with fundamentalists for political gain, most Bangladeshis did
not favor the extremism. Yunus was also receptive to closer
commercial and trade relations with India. Yunus recognized the
risk of entering politics and its potential to tarnish his
exemplary image. However, even as he professed that he was
still considering his options, he indicated a strong intent to
plunge into the maelstrom of Bangladesh politics. End Summary.




2. (SBU) As a fellow Bengali, Prof. Muhammad Yunus, received a
hero's welcome while participating in two days of programs in
Kolkata, West Bengal, from Feb. 11-12. During a lunch hosted by
the Calcutta Chamber of Commerce (CCC) for its 175 th
anniversary, ConGen spoke with Dr. Yunus about the present
political situation in Bangladesh. On February 11, Yunus had
issued an open letter saying that he was seeking support from
Bangladeshis to launch a political party to reform the violence
and corruption in Bangladesh. In the letter, Yunus asked people
to send him their opinions on forming a political party focusing
on good governance. ConGen asked Yunus was he was intent on
entering politics as recently reported. Yunus confirmed that he
was interested, having supposedly been asked by many people to
step-in and overcome the political impasse between the two
strongest political leaders, Sheikh Hasina and Khaleda Zia.
Yunus added, though, that he was still discussing the merits of
becoming a political figure. CCC President Manoj Mohanka
questioned the advisability of Yunus joining the messy world of
Bangladesh politics and noted the likelihood of Yunus'
reputation being tarnished. Yunus quickly responded that he
understood the dangers of entering politics but felt that
responsible people had to step into the political field to make
a real change in Bangladesh, which was wracked by corruption and
poor governance.




3. (SBU) ConGen asked Yunus for his views on a recent
"Economist" magazine article that described the present
Bangladesh Caretaker Government's state of emergency and its
support by the Bangladesh military as "The Coup That Dare Not
Say Its Name." Yunus was supportive of the imposition of the
state of emergency, saying that it had averted a possible civil
war. He did not believe that the military's support was
significant and added that the Caretaker Government's role was
clearly defined under the constitution.




4. (SBU) When asked about the perception in India of the rising
fundamentalism in Bangladesh, Yunus said that he saw the Muslim
fundamentalists as a fringe not accepted by the Bangladeshi
mainstream. ConGen noted, however, that even the Awami League
(AL),which had been the primary advocate of a socialist,
secular nation, in December had signed an agreement with
fundamentalist group Bangladesh Khelafat Majlish (BKM). The
agreement with BKM would recognize fatwas issued by Imams and
block the introduction of laws contrary to sharia law. Yunus
responded that the agreement was a reflection of the AL's moral
bankruptcy and was based on pure political calculus to garner a
few additional votes and another example of the need for a new
political party.




5. (SBU) ConGen asked Yunus about his views on India and
whether better trade relations could be developed. Yunus was
positive about expanding economic ties with India and within the
South Asian Association for Regional Cooperation (SAARC). He
felt that Bangladesh would be receptive to better relations with

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India but that often it became a divisive political issue, with
Bangladeshi politicians stoking resentment against India for
political gain. However, he recognized that the GOI maintained
significant non-tariff barriers restricting Bangladeshi goods
from India's markets. He was favorable to opening Chittagong
Port to regional trade with India, Burma, Bhutan and China; but
said that the port was presently too small and at full capacity.
He added Grameen Bank was considering the possibility of
financing a new "mega-port" project in Chittagong to meet the
regional demand.




6. (SBU) Comment: Although Dr. Yunus limited himself to
saying he was still considering his options, the tenor of his
comments indicated a strong to desire to jump into the maelstrom
of Bangladeshi politics. He recognized that he would face a
potentially bruising response from the "two ladies" and other
established political figures, but he felt that the situation in
Bangladesh had reached a critical juncture as "civil war" had
only just been averted. As a person of great moral stature and
strong organizational skills, Yunus' candidacy could offer a
possible out from the present Hasina-Zia zero-sum game that
cripples Bangladesh's democratic process.




7. (U) This message was cleared with AmEmbassy Dhaka.
JARDINE