DAS FEIGENBAUM HEARS PITCH FOR INVESTMENT IN WEST BENGAL,

UNCLAS SECTION 01 OF 02 KOLKATA 000114 SIPDIS SIPDIS 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 SIPDIS 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 SIPDIS 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 �00A;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. SURAMPUDI