Identifier
Created
Classification
Origin
08KOLKATA114
2008-04-09 12:09:00
UNCLASSIFIED
Consulate Kolkata
Cable title:  

DAS FEIGENBAUM HEARS PITCH FOR INVESTMENT IN WEST BENGAL,

Tags:  ECON ETRD PREL EFIN EINV PGOV IN PHUM 
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VZCZCXRO7427
PP RUEHAST RUEHBI RUEHLH RUEHPW
DE RUEHCI #0114/01 1001209
ZNR UUUUU ZZH
P 091209Z APR 08
FM AMCONSUL KOLKATA
TO RUEHC/SECSTATE WASHDC PRIORITY 1953
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHCI/AMCONSUL KOLKATA 2386
UNCLAS SECTION 01 OF 02 KOLKATA 000114 

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DEPT FOR SCA/INS
DEPT PLS PASS USTR AND TREASURY

E.O. 12958: N/A
TAGS: ECON ETRD PREL EFIN EINV PGOV IN PHUM
SUBJECT: DAS FEIGENBAUM HEARS PITCH FOR INVESTMENT IN WEST BENGAL,
HIGHLIGHTS DEEP U.S.-INDIA RELATIONSHIP

KOLKATA 00000114 001.2 OF 002


UNCLAS SECTION 01 OF 02 KOLKATA 000114

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DEPT FOR SCA/INS
DEPT PLS PASS USTR AND TREASURY

E.O. 12958: N/A
TAGS: ECON ETRD PREL EFIN EINV PGOV IN PHUM
SUBJECT: DAS FEIGENBAUM HEARS PITCH FOR INVESTMENT IN WEST BENGAL,
HIGHLIGHTS DEEP U.S.-INDIA RELATIONSHIP

KOLKATA 00000114 001.2 OF 002



1. (U) During his April 2 visit to Kolkata, Deputy Assistant
Secretary of State for South and Central Asia Evan Feigenbaum

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met with the Government of West Bengal (GOWB) Commerce Secretary
and industry representatives, discussing investment
opportunities in West Bengal, the business climate in Eastern
India, and various other issues of bilateral interest. He was
also briefed on trafficking in persons (TIP) efforts in the
region while visiting the NGO Apne Aap. DAS Feigenbaum
highlighted the depth and breadth of the U.S.-India relationship
while inaugurating the Consulate's new American Citizen Services
office and our Health Fair. The visit received significant
media coverage, and West Bengal interlocutors showed that they
are interested in further exchanges on the bilateral
relationship. End Summary.


2. (U) In a meeting with Deputy Assistant Secretary of State
for South and Central Asia Evan Feigenbaum on April 2, GOWB
Secretary for Commerce and Industry Sabyasachi Sen pitched West

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Bengal and Eastern India as a destination for investment. He
highlighted the market of nearly 400 million people in the
region, the proximity to Southeast Asian nations, large mineral
resources in states like Jharkhand and Bihar, and West Bengal's
fertile soil and climate variation. Sen was realistic about the
challenges faced by West Bengal, too, noting that that poor
management had led to the decline of the jute industry and tea
estates, and that the Communists had "come to the game a little
late." He added that strikes had to be "discouraged," and when
asked about a threatened strike at the Haldia Petrochemical
complex confidently said the planned strikes would be called off
(the next day the strikes were deferred, according to local
newspaper reports). DAS Feigenbaum inquired about key sectors

for investment in West Bengal. Sen identified petroleum,
textiles (for domestic consumption) and "any manufacturing" as
promising areas, saying the GOWB wanted to rectify low FDI and
bring in U.S. investment. A key challenge in this regard, said
Sen with a smile, was "getting the U.S. Government to believe
it."


3. (U) ConGen asked about the possibility of senior GOWB
officials visiting the U.S. in the near future. Sen remarked
frankly that a June trip for GOWB Commerce Minister Nirupam Sen
was being planned, but that "the nuclear issue was getting in
the way." He explained that the GOWB wanted a U.S. visit to be
seen as a GOWB Minister seeking investment in West Bengal rather
than as the visit of a CPM leader opposed to the nuclear deal.
(Note: Nirupam Sen was just elected to the CPM's Politburo
during the party's meeting in Coimbatore. End note.) In
addition, the GOWB is looking for an "iconic" U.S. investment in
West Bengal that could serve as a clear-cut symbol that West
Bengal is a place to do business. Sen said that the GOWB will
soon be inviting bids for a deep water port, but that the tender
would be tricky as each proposal would have to include a
suitable location for the port and be evaluated accordingly.


4. (U) DAS Feigenbaum observed that the language coming out of
the recent CPM Party meeting in Coimbatore was disturbing,
particularly in its acerbity. Sen downplayed the CPM rhetoric,
saying that CPM leaders know they can't be so extreme, and
adding that India and the U.S. were naturally bound to each
other. Nuclear energy was necessary, he pointed out, but it was
"muddled up" in other strategic issues. Sen said that
regardless of the diverse political objectives the nuclear deal
would get through.


5. (U) Kolkata's business community was eager to discuss with
DAS Feigenbaum U.S. views on investing in West Bengal. During a
private interaction with the local AmCham and a public session,
open to media, with the Indian Chamber of Commerce, DAS
Feigenbaum expounded on the three-tiered U.S.-India relationship
-- global, regional, and bilateral. He fielded questions about
the global impact of the sub-prime mortgage crisis in the U.S.,
whether and how the upcoming U.S. Presidential election would
affect the U.S.-India relationship, and the civil-nuclear deal.
Some businessmen worried about the non-inclusiveness of India's
growth process negatively impacting India's food security and
were concerned about India taking decoupling measures such as
limiting its dollar purchases.


6. (U) DAS Feigenbaum also spoke about the depth of the
U.S.-India relationship while inaugurating the Consulate's
health fair and speaking with students at the Indian Institute
of Social Welfare and Management. His message that the India
and the U.S. relationship was solidly based on a foundation of
people-to-people and business-to-business relationships
resonated positively with the different audiences. Cutting the
ribbon at the Consulate's new American Citizen Services

KOLKATA 00000114 002.2 OF 002


facility, DAS Feigenbaum highlighted, including to the media,
Mission India's visa successes and the increasing percentage of
Indian students, visitors, and immigrants in the U.S.


7. (U) A visit to a shelter and training home run by Apne Aap,
a national NGO that combats Trafficking in Persons, provided DAS
Feigenbaum a glimpse into one of India's most serious social
problems. Apne Aap is concentrating their latest police
training and awareness efforts in Bihar's districts bordering
Nepal, as they have found a significant incidence of
cross-border sex trafficking in the region due in part to
current instability in Nepal and the porosity of the Indo-Nepal
border.


8. (U) DAS Feigenbaum cleared this cable.
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