Identifier
Created
Classification
Origin
08CHENNAI32
2008-01-29 09:13:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Chennai
Cable title:  

KERALA COMMUNISTS LEAVE U.S. COMPANY'S DONATED BOATS HIGH

Tags:  PGOV ECON EAID PREL IN 
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RR RUEHWEB

DE RUEHCG #0032/01 0290913
ZNR UUUUU ZZH
R 290913Z JAN 08
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 1439
INFO RUEHNE/AMEMBASSY NEW DELHI 2936
RUEHCG/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
UNCLAS CHENNAI 000032 

SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PGOV ECON EAID PREL IN
SUBJECT: KERALA COMMUNISTS LEAVE U.S. COMPANY'S DONATED BOATS HIGH
AND DRY

UNCLAS CHENNAI 000032

SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PGOV ECON EAID PREL IN
SUBJECT: KERALA COMMUNISTS LEAVE U.S. COMPANY'S DONATED BOATS HIGH
AND DRY


1. (SBU) SUMMARY: Twenty fishing boats lie unused sixteen months
after they were donated by an American company to help rehabilitate
a tsunami-affected coastal fishing community in the South Indian
state of Kerala. Even though a tsunami-affected fishing community
is standing by in need of boats, bureaucratic incompetence mixed
with distrust of all things American -- even a purely philanthropic
gesture -- has left the 240 families high and dry. The episode
illustrates Kerala's governance problems, which have only increased
since the Communist-led Left Democratic Front took power in 2006.
END SUMMARY.

GOVERNMENT BUREAUCRACY BEACHES DONATED BOATS
--------------


2. (SBU) In January 2005, Brunswick Corporation, an Illinois-based
manufacturer of marine boats, offered to donate 20 motorized,
11-meter FRP (Fiber Reinforced Plastic) boats to assist in tsunami
rehabilitation in India. USAID initially expressed reservations
about the donation as the boats were of a different type than those
lost by the fishermen in the tsunami and because Brunswick had not
identified potential beneficiaries. There were also concerns on the
part of the fisheries sector that use of the boats could have a
negative impact on fish stocks. After some time the private charity
C.J. Development Corporation was identified to help facilitate the
donation. The boats, which arrived in Kerala in November 2006, are
valued at approximately one million dollars.


3. (SBU) Brunswick donated the boats through Esmario Export
Enterprises, its India dealer. Esmario, in turn, gave the boats to
C.J. Development Corporation, which was to distribute them to needy
fishing families. The charity group then asked the government for
assistance in identifying a fishing community in need. The state
decided to set up a committee in the Fisheries and Revenue
Departments with the sole purpose of identifying beneficiaries, a
process that took several months. When frustrated Esmario
representatives inquired about the delay in identifying
beneficiaries, they were told that the delay was due to the change
in government and the required "procedural formalities." (NOTE:

The Communist Party of India (Marxist)-led Left Democratic Front
took power in May 2006, more than three months before Brunswick
donated the boats. END NOTE.)


4. (SBU) A contact at the C.J. Development Corporation told us that
the government committee, which was set up in early 2007, has not
yet been able to finalize the beneficiaries. He said that the
committee met on January 16 to consider a draft list, but doubts
about the proposed list arose because it included proposed
beneficiaries from outside the tsunami-hit districts. The C.J.
Development contact told us he believes the root cause is an ongoing
cold war between the Revenues and Fisheries departments. The
Revenue Minister is from the Communist Party of India (CPI) (a
junior partner in the LDF); the Fisheries Minister is from the LDF's
dominant Communist Party of India (Marxist) (CPI(M)). The contact

added that the CPI(M) Fisheries Minister has taken control of the
process. Our Kerala media and business contacts have repeatedly
mentioned that infighting between the CPI and CPI(M) has resulted in
additional inefficiency in a historically sclerotic bureaucracy.


CPI: THANKS FOR THE BOATS
BUT NO THANKS TO USG ATTENDANCE
--------------


5. (SBU) The government committee, which still had not decided on
beneficiaries, was nonetheless planning a formal event -- to be
hosted by the government of Kerala -- to commemorate the boat
donation. In light of the fact that Brunswick is an American
company, C.J. Foundation had previously proposed inviting a senior
official from the U.S. Embassy to participate. Seeking more details
about the proposed event to help us identify the appropriate Mission
officer to attend the event, we contacted Kerala government
officials. Thereafter, government contacts informed us that at the
January 16 committee meeting the CPI Revenue Minister decided
against extending an invitation to an American official, saying that
"due to political reasons it should be avoided."


6. (SBU) COMMENT: Sadly, this episode is all too illustrative of
the challenges to getting anything done in Kerala, especially under
the current CPI(M)-led government. Faced with a generous donation
from private industry and with fishermen in need of boats,
bureaucratic indecision has left the donated boats sitting idle for
more than a year. The Kerala left's reflexive anti-Americanism also
seems to be at work: the boat donation event was going full-steam
ahead until we inquired about the invitation for a USG official. In
this regard, Kerala stands in contrast to neighboring Tamil Nadu,
where participation in tsunami relief events by Mission staff has
been warmly received. With a government unable to even accomplish
the simple task of giving free boats away, it is no surprise that
Kerala lags behind its neighbors in South India in attracting
business and investment. END COMMENT.


7. (U) This message was coordinated with USAID New Delhi.

HOPPER