Identifier
Created
Classification
Origin
08CHENNAI299
2008-09-05 10:20:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Chennai
Cable title:  

KERALA'S COMMUNIST CHIEF MINISTER CALLS FOR FOREIGN

Tags:  PGOV PREL ECON EINV IN 
pdf how-to read a cable
VZCZCXRO6156
RR RUEHAST RUEHBI RUEHCI RUEHLH RUEHPW
DE RUEHCG #0299 2491020
ZNR UUUUU ZZH
R 051020Z SEP 08
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 1837
INFO RUEHNE/AMEMBASSY NEW DELHI 3267
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
UNCLAS CHENNAI 000299 

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECON EINV IN
SUBJECT: KERALA'S COMMUNIST CHIEF MINISTER CALLS FOR FOREIGN
INVESTMENT

REF: CHENNAI 272

UNCLAS CHENNAI 000299

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECON EINV IN
SUBJECT: KERALA'S COMMUNIST CHIEF MINISTER CALLS FOR FOREIGN
INVESTMENT

REF: CHENNAI 272


1. (U) Principal Officer Andrew Simkin traveled to Trivandrum
(Thiruvananthapuram),the capital of the South Indian state Kerala,
on August 29-30 where he held introductory meetings with senior
government officials and other key contacts. During his trip he met
with Chief Minister V.S. Achuthanandan of the Communist Party of
India (Marxist) (CPM),Governor R.S. Gavai, Chief Secretary P.J.
Thomas, state Finance Minister Thomas Isaac, the Director General of
Police, and members from the opposition Congress Party.

2. (SBU) During their August 29 meeting, Chief Minister
Achuthanandan mentioned the CPM's interest in attracting U.S.
investment to Kerala. The Chief Minister was particularly adamant
about stressing that the CPM was specifically focusing on promoting
the growth of three sectors: information technology, biotechnology
and tourism. He had invited a large crowd of reporters and
photographers to his office at the opening of the meeting, and
invited them back after the conversation. In that closing press
opportunity he stressed to the media that the CPM wanted to promote
foreign investment in the three sectors he identified.


3. (SBU) Comment: These comments are significant because they
demonstrate that the orthodox Communist Chief Minister is coming
around to the need to welcome foreign direct investment in the
state. Since coming to office in 2006 the Chief Minister has fought
a losing battle against the Kerala CPM's more investment-friendly
faction, which is led by the CPM State Secretary Pinarayi Vijayan.
In early August Vijayan took the unprecedented step of openly
seeking our assistance in drawing U.S. investment to Kerala
(reftel). To have Achuthanandan, who has long opposed such a move,
affirm this policy shift is a clear sign that Kerala is moving in a
new direction. End comment.

Simkin