UNCLAS SECTION 01 OF 02 NEW DELHI 002692

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E.O. 12958:N/A
TAGS: KMDR KPAO PGOV PREL IN
SUBJECT: MEDIA REACTION: U.S.-INDIA NUCLEAR DEAL, U.S.
ECONOMY, INDIA-PAKISTAN RELATIONS, KASHMIR; NEW DELHI.

This cable reports on relevant media reaction from
India's large non-English press. Embassy New Delhi
reports on English-language media via email in the daily
"Early Edition". USG customers please write to Geeta
Krishali (KrishaliG@state.gov) to subscribe to the "Early
Edition."

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U.S.-INDIA NUCLEAR DEAL
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1. "ONE-SIDED LAW," op-ed in the October 9 right-of-
center DAINIK JAGRAN Hindi daily by strategic affairs
specialist Brahma Chellaney: "The U.S.-India civil
nuclear agreement lacks even the basic elements. India
has no assured fuel-supply guarantee. It is certain that
if the U.S. disrupts its nuclear cooperation with India,
the latter will not find alternative suppliers. India
does not have the right to reprocess... The Senate's
confirmation of bringing the bilateral agreement
completely under the U.S. law has dissolved its
transparency. In a nutshell India will be under the
strict U.S. control. Meanwhile, investment in the Indian
nuclear energy sector will be discouraged due to three
factors -- unclear conditions of the deal, India's
political instability and delay in finalising the
commercial agreement. Actually, India will have to make
changes in its Atomic Energy Act for the private sector
to enter the nuclear trade. In that case, the nuclear
deal will at least go through a slight parliamentary
examination."

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U.S. ECONOMY
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2. "HELMSMEN OF U.S. FINANCIAL SYSTEM," editorial in the
October 8 centrist DAINIK BHASKAR Hindi daily: "The U.S.
financial crisis is affecting the whole world. It has
created a tumultuous situation in the share markets
globally. The Indian share market has also registered a
heavy fall. The Bush Administration announced a $US 700
billion bailout package to rescue its financial system
and selected an official Neel Kashkari of Indian origin
to handle the bailout program, but economic experts doubt

his ability. Although, he has successfully
accomplished responsibilities given to him in the past,
this time the whole world will have an eye on him. This
dramatic episode puts a question mark on U.S. capitalism.
A lobby in India, who are followers of the U.S. economy,
does not seem to be learning a lesson from this U.S.
economic catastrophe."

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INDIA-PAKISTAN RELATIONS
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3. "ZARDARI'S POSTURE" editorial in the October 10, 2008,
Mumbai edition of left-of-center Marathi daily LOKSATTA.
"Pakistan President Asif Zardari's pro-India stance,
reflected in his recent interview given to WALL STREET
JOURNAL, means a lot to India. Not a single Pakistani

NEW DELHI 00002692 002 OF 002


head-of-the-state has made such remarks in the last 61
years. At this juncture it is not pertinent to examine
whether Zardari means what he says or whether his
statements are part of a diplomatic design. The point to
be noted is that Zardari holds the Pakistan's terrorist
outfits and extremist elements responsible for Pakistan's
explosive situation. His remarks against such Jehadi
elements are positive enough to bring India and Pakistan
closer than ever before. Moreover, Zardari can bring
changes in Paksitan if he really wants to...."


4. "ZARDARI'S U - TURN", editorial in the October 8
right-of-center Urdu daily "MUNSIF", Hyderabad: "A couple
of days back, the Pakistani President Asif Ali Zardari,
while talking to an international journal, had said that
the militant elements in Kashmir are terrorists, in a
stark contrast to the erstwhile line toed by the
Pakistani foreign ministry so long, while all other
leaders of Pakistan had time and again referred to these
elements in Kashmir as Mujahideen. The Indian Media had
widely appreciated this observation by Zardari, calling
it a step taken in the right direction to improve ties
between the two countries. The government of Pakistan
contradicted the statements of Zardari soon after,
refusing to sway from its previous policy. It was
expected that this statement shall be contradicted from
all quarters because it has been a favorite wont with the
leadership of the People's Party to issue sensational
statements for publicity sake. The present government,
however, has not shown much interest in improving
relations with Pakistan, the way the previous Vajpayee
government was hesitant. We are now supposed to deal with
the likes of Zardari, for whom there is a huge mismatch
between words and deeds."

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KASHMIR
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5. "KASHMIR BURNING" editorial in the October 10, 2008
multi-edition right-of-center Gujarati daily GUJARAT
SAMACHAR. "The separatists are always looking for some
excuse or the other to create disturbances in the Kashmir
Valley. Be it the Amarnath land row or conducting anti-
India rallies, the separatist leaders continue to hold
the Valley to ransom through their inflammatory
statements.... The scheduled Lal chowk rally in Srinagar
points to the fact that these separatists are using
pressure tactics on the government to accept their
demands. Wavering of Pakistani flags and anti-India
sloganeering have become common in these rallies.... Even
the local political parties there are providing their
tacit support to these elements. The need of the hour
for the federal Congress government is to be vigilant
against such organized protests that might endanger
national security."
WHITE