WEST BENGAL CHIEF MINISTER: PARTY MUST "CHANGE OR PERISH",

C O N F I D E N T I A L KOLKATA 000286

SIPDIS

DEPT FOR SCA/INSB

E.O. 12958: DECL: 10/27/2019
TAGS: PGOV PREL ECON EINV IN
SUBJECT: WEST BENGAL CHIEF MINISTER: PARTY MUST "CHANGE OR PERISH",
U.S. INVESTMENT WELCOME, MAOIST THREAT MUST BE ADDRESSED

CLASSIFIED BY: Beth A. Payne, Consul General, Kolkata, State.
REASON: 1.4 (b),(d)

1. (C) SUMMARY: West Bengal Chief Minister Buddhadeb
Bhattacharjee said that his Communist Party of India-Marxist
must "either change or perish" and he lamented the lack of
technocratic expertise within party leadership in a meeting with
the Ambassador in Kolkata on October 13. Bhattacharjee
reiterated his interest in attracting U.S. investment and
eliminating the Maoist threat. While the Ambassador's inaugural
meeting with Bhattacharjee was cordial, it is unclear how much
political dividend can be gained from the man whose time as head
of government in West Bengal appears to be limited.



Communists: "Change or Perish"

--------------


2. (C) In a 75 minute courtesy call with the Ambassador on
October 13, an up-beat West Bengal Chief Minister Buddhadeb
Bhattacharjee was friendly and showered praise on President
Obama. He was also frank in his criticism of the Communist
Party of India-Marxist (CPI-M). Bhattacharjee, a member of
CPI-M's Politburo, argued that communist ideology needs to
"either change or perish." He lamented the fact that long-term
politicians and outdated ideology continue to overwhelmingly
dominate the Left in India. He contrasted this with the
technocrats and other experts that now have power within China's
communist party.



Pro-U.S. Investment and Education

--------------


3. (C) Bhattacharjee told the Ambassador that he continues to
welcome U.S. investment in West Bengal and noted the benefits
that Pepsico's Frito Lay factory has brought to potato farmers
in this state. Unlike his party colleagues, he supports U.S.
educational institutions establishing independent branches in
India without local partners. He specifically asked if the
Ambassador might help with encouraging American businesses to
invest in West Bengal and help connect community college
expertise to local mining needs. He pointed out that several of
his top advisers and allies within CPI-M have U.S. educations,
including the West Bengal Finance Minister, Asim Dasgupta, who
has a PhD from MIT.



Anti-Maoist: Carrots and Sticks

--------------


4. (C) Bhattacharjee said that he, the Prime Minister and the
Home Minister agreed in recent meetings in New Delhi that the
national and state governments need to improve coordination of
efforts to eliminate the Maoist (aka Naxalite) threat. They
agreed on the application of force when necessary with the
caveat that it be accompanied by development. According to
Bhattacharjee, national and state government leaders have
informal contact with Maoist leaders, but he ruled out an
official political dialogue until the Maoists agree to lay down
their arms. He asserted that the Maoists are not receiving any
foreign support, opining that they obtain arms locally and by
purchasing arms from corrupt Indian Army personnel.



Comment

--------------


5. (C) Despite Bhattacharjee's pro-investment, pro-U.S.
attitude, West Bengal has had more hiccups than success in
attracting sizable foreign or domestic investment. One of the
chief factors is the lack of a bi-partisan political consensus
on development and land acquisition. There is also no political
consensus on tackling the Maoist threat in West Bengal, with
each party trying to use the conflict to its advantage. With
CPI-M's weakened political position and opposition party All
India Trinamool Congress's rise, there will not likely be
political consensus on either issue before state assembly
elections in 2011. Despite being personally pro-American,
Bhattacharjee will follow the dictates of the CPI-M leadership
and we will likely still see anti-American imperialism rhetoric
in the run-up to the state assembly elections.

PAYNE