SHASTRI'S FIRST YEAR AS INDIA'S PRIME MINISTER

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ease 2006/11/06: CIA _R '092'7A00 28 May 1965 SHASTRI'S FIRST YEAR AS INDIA'S PRIME MINISTER MORI review(s) completed. f340R1fCDF Pages 1, 3-1 SECRET GROUP I Excluded ?r'um au$amatic Approved For Release 2006/11/06: CIA-RDP79-00927A00 900040004-3 CONTAINS INFORMATION A'F`EC?T- EANING OF THE ESPIONAGE LAWS, R CTIONS 793 AND 794, THE TRANSMIS- REVELATI.ON OF WHICH IN ANY MANNER TO ST NOT BE RELEASED TO FOREIGN AENTS. If marked with specific dissemination ance with the provisions at ;CID 1/7, i moosed Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 SECRET A year after Nehru's fatal stroke, the style of the Indian Government and the ruling Congress Party has changed rather markedly. Most striking is the transformation of the office of the prime minister, which used to embody Nehru's imperious, cosmopolitan personality but now reflects the colorless, homespun, consensus-minded character of his successor as leader of 470 million Indians, Lal Bahadur Shastri. Despite moments when it seemed that Shastri might be overwhelmed by the demands and complexities of the office, his posi- tion now is at least as strong and possibly a bit stronger than when the party caucus assembled by Congress Party president Kamara.j chose him to be prime minister last June. Yet in the absence of Nehru's commanding personality, the tempo of crises growing out of India's perennial problems--popula.- tion growth, unemployment, underdevelopment, and disunity--ha.s seemed to quicken. Nehru's Legacy The smoothness of the trans- fer of power during the past year owes much to Nehru's legacy. He left a strong and function- ing central government dedicated to popular suffrage, the rule of law, civil supremacy, and the British parliamentary format. He also left a commitment to a. secular and to a. socialist pattern of society, a, system of five-year development plans to- gether with schemes for local self-government and initia.tive aimed at achieving these ends, and a nonaligned foreign policy intended to allow India. to ac- complish its urgent domestic labors without the distractions which, he felt, formal ties with one or the other of the world power blocs would bring. The Nehru legacy was not unalloyed, however. Nehru had done his basic economic and so- cial thinking decades earlier, and he seemed in his later years to be increasingly incapable of adjusting to new situations. His dedication to industrializa- tion slighted progress in the agricultural field, and his preoccupation with grandiose de- velopment plans often clouded his vision on more concrete mat- ters of implementation. He was notorious for avoiding diffi- cult decisions but insisted nonetheless on being at the heart of the decision-making process on all matters, large or small. He prized stability in dif- ficult local situations like the Punjab and Kashmir, while SECRET Page 1 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 SECRET ANDHRA PRADESH SECRET -TR3PORA 1 WEST 4GN14N ERR.) BENGAL ? Calcutta V Northeast J Frontier Agency Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 v v SECRET frequently closing his eyes to the rank corruption and bully- ing which made that stability possible. At the same time, he prevented the development of strong leaders at the national level out of exaggerated con- cern for potential rivals. Most damning of all, especially to the group which has succeeded him, he avoided use of the con- sultative aspects of the politi- cal processes he had himself created, preferring to rule through the unchallenged strength of his personal prestige rather than indulge in the give-and- take of democratic politics. Thus most of the difficul- ties Shastri has faced were Nehru's birds coming home to roost after their warden had left the job. The biggest and most pro- longed of these was the food- price crisis. This was well under way as Shastri assumed the reins of power and became progressively worse through last summer and fall. Although weather and a defense-oriented increase in the supply of money played a. big part, the main in- gredient appears to have been the Nehru government's failure to come to grips with the basic problems of.faltering agricul- tural production during the two years previous and prolonged mismanagement both of economic planning and food distribution. Good harvests during the last six months, coupled with increased imports of foodgrains and stopgap measures to improve distribution, have brought con- siderable relief on the food front. Prices remain relatively Shastri huddles (left to right) with Defense Minister Chavan, Home Minister Nanda, and External Affairs Minister Swaran Singh during the recent Rann of Kutch crisis. SE CRE T Page 3 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 -MEW, N"We SECRET high, however, and many of the basic flaws growing out of the Nehru legacy remain to be rem- edied. Another major crisis which the Sha.stri government weathered only with considerable diffi- culty was the controversy over the spread of the Hindi language. The vagueness of Nehru's prom- ises aimed at protecting regional languages and the people who speak them contributed mightily to 3hastri's problem. The lan- guage controversy hurt nearly everyone in a position of power, including both Shastri and Con- gress Party president Kamaraj. India's touchy relations with Pakistan, most recently brought to the edge of war over the Rann of Kutch dispute, had been aggravated by Nehru's im- plac?ble hostility to Pakistan's existence and his obduracy on the question of a settlement of the long-festering Kashmir prob- lem. Relations with Pakistan are now more bitter and more volatile than at any time since 1947, and there are few indica- tors of any improvement in the near future. In some areas where Nehru's success was considerable, his heirs have encountered new dif- ficulties. No one in India to- day enjoys the status Nehru ha.d; Shastri's promises lack Nehru's ring of authority and thus serve less well to reassure the nation during difficult times. This is especially evident on the emotion-charged issues which will for many years threaten the viability of the Indian Union, i.e.,Hindu-Muslim rela- tions, the north-south rivalry, and questions of language. Nehru's successors find them- selves under great pressure to produce deeds where Nehru was often able to get by with words, a point to which Kamaraj al- luded even before Nehru's fu- neral pyre had cooled. Shastri's Style What then is the style that Shastri has brought to Indian politics? It has been characterized by many critics and some sympathizers as weak, devoid of leadership as that word is commonly understood, and hobbled by indecision. Its main ingredients are a. plodding slowness, a propensity to "mud- dle through," a subtle reversal of the 17-year trend to consoli- date power at the center, an at- tempt to find new forums for achieving consensus, and often an appearance of a lack of co- ordination. Shastri is sensitive to these charges and occasionally goes out of his way to cite examples to the contrary. "I do take may own decisions," he told a recent interviewer. "However, it is true that I want to have as much consulta- tion as possible with all shades of opinion before coming to a decision." If others' views are "right," he continued, "I don't hesitate to accept them." This consultative practice takes time, but time seems to count for very little with the present group of Indian leaders. Compromise and accommoda- tion, the development of a SECRET Page 4 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 %W011 %we SECRET consensus, and a desire to please everyone have long been Sha.stri's forte, his hallmark, and indeed the traditional obli- gation of members of his small subcaste. He has made very few enemies in a 40-year career in politics. Indeed, his diminu- tive structure--reportedly the subject of audience giggling at Indian newsreels--comple- ments his manner. He quipped once at a ceremonial occasion, "How can a small man like me dare to make enemies?" The es- sential simplicities about his life and person remain untouched by the office he holds. The Kamaraj Caucus Shastri leans heavily for his support on the so-called "syndicate" which party presi- dent Kamaraj put together in Nehru's final months and which brought Shastri to power. This ca.ucus--"syndicate" suggests a more formal association than a.etually exists--is composed of several key figures within the party's all-powerful working committee. In its essentials the cau- cus represents an alliance be- tween southern and eastern India, with scattered but influential support from other areas. It is based on a bond between two long-time party wheel horses, Kamaraj, the undisputed party strong man in the south for more than 15 years, and Atulya Ghosh, the tough member of Parliament who bosses Calcutta, and dominates the party in the east. The group also includes Sanjiva Reddy, the relatively young strong man of the north- south "border" state of Andhra and a member of Shastri's cabi- net, and, at somewhat greater distance, both geographically and politically, S. K. Patil, blunt-talking boss of Bombay city who is a top fund raiser for the party and Shastri's minister for railways, the na.- tion's largest single employer. Foremost among those out- side the caucus who nonetheless support both the group and Shas- tri is his excellent defense minister, Y. B. Chavan. He con- trols Maharashtra State in west- ern India and is a rival of Patil. However, he has higher ambitions of his own a.nd,at 51, finds it prudent to play along. The key to the success of the caucus in staying together and in working with Shastri is the relationship between Shastri and Kamaraj. They might have engaged in continuous jockeying and infighting. At the state level, the existence of one figure at the top of the minis- terial ladder and another head- ing up the party's organizational apparatus has brought such a result. In Shastri's home state, such infighting between minis- terial and organizational wings has virtually immobilized the conduct of state business for more than two years. SE CRE T Page 5 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 SECRET On the other hand, Kamaraj a. threat to the other; each might have tried to run the coun-1 needs the other. try through a weak Shastri in the prime ministry. Shastri runs the government under a system of collective Neither development has cabinet responsibility, and occurred. During the early weeks cabinet decisions are noticeably of Shastri's ministry, the fre- more the result of free debate quency with which their names and consensus within the group were paired suggested a duumvi- than they ever were under Nehru. rate. During Shastri's incapac- Matters of national security itation following a heart attack are handled by an Emergency only a month after assuming of- Committee of the cabinet, com- fice, this was particularly posed of Sha.stri and his minis- noticeable. Present evidence, ters for defense, finance, ex- however, suggests that the two terna.l, and home affairs. The men have each carved out their cabinet has been noticeably own spheres, Kamaraj in the free of interference by the party organization and Shastri party organization per se. Shas- in the government and in Pa.rlia- tri has thus named new cabinet ment, and that while there is ministers and reshuffled port- some inevitable overlap and oc- folios without specific recourse casional strain, there is no to Kamaraj or other members of basic conflict. Neither poses the inner party caucus. The Congress Party President Kamaroj with Shastri on the occasion of the prime minister's 60th birthday last fall. decision to repatriate some 500,000 Tamil-speaking Ma.drasis from Ceylon was reportedly taken at the cabinet level with- out recourse to Kamara.j or his home state of Madras, despite their interest. 3o it was also with regard to the government's sweeping roundup of more than 1,000 pro-Peiping Communists, who,six months later, remain in jail. Within the party, Kamaraj, whose luster has dimmed only a little, reigns supreme. He rarely concerns himself with the substance of policy, except in terms of "keeping the party close to the people" and thus making possible the winning of elections. His concerns are mainly on organizational mat- ters, touring the states, organ- izing for elections, both pub- lic and party, and resolving, SE CRE T Page 6 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 %awl *400, SECRET or at least attempting to re- solve the bitter intraparty fights that are virtually endemic to the Congress Party at the state level. A lifelong bachelor, Kamaraj has made the party his whole life. His approach-- shared with Atulya Ghosh--is simple: the party counts for all; fight within it for what you believe but never against it for any reason. He never tolerated open dissidence in his own party organization in Madras, and he has shown little patience with it since he be- came national party president. It was for this reason that he refused to deal with dissident Congress politicians prior to the recent state elections in Kerala. The refusal probably cost the Congress a chance to form a government in the state and put a few dents in Ka.maraj's national prestige. The action made his message unmistakably clear, however, to potential dissidents in other Indian states with deeply divided cabinets. The roles of Kamaraj and Shastri tend to overlap in top- level factional questions in the states, especially when the is- sues reverberate on the floor of the Parliament. In the lead- ership crisis which arose in Punjab, Shastri and Kama-raj worked closely to find a solu- tion. The compromise reached --the appointment of an inoffen- sive but clean nonentity as chief minister--appears to be intended as no more than a hold- ing action. So also in Orissa State, where Shastri's Central Bureau of Investigation proved corruption charges against a Congress Party chief minister. Subsequently the agonizing re- moval of the minister and the problems of replacement were matters on which Kamara.j, Shas- tri, and a cabinet subcommit- tee worked together for many months, albeit with occasional signs of lack of coordination. Shastri as Parliamentary Leader Shastri has made no basic changes in the political composi- tion of the cabinet which he inherited from Nehru. He has shuffled positions, and added Patil, Reddy, and Nehru's daugh- ter, Indira Gandhi. No substan- tial cleavages on ideological grounds have appeared. Shastri appears to give his ministers wide leeway in managing the affairs of their respective ministries and al- lows them, to a greater degree than Nehru did, to carry the ball for their portfolios un- assisted on the floor of Parlia- ment. Apart from Defense Minis- ter Chavan, Shastri's key min- isters are: Finance Minister T. T. Krishnamachari, a. Ma.drasi Brahman with excellent creden- tials for his job but no politi- cal base outside of Kamaraj's pocket; Home Minister Nanda., a left-leaning labor organizer who has had considerable diffi- culties with Parliament and with the Kama.raj caucus and is totally dependent on Shastri; and Foreign Minister Swaran Singh, a. long-time cabinet SECRET Page 7 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 %ow SECRET INDIAN CABINET May 1965 Prime Minister, and Minister of Atomic Energy Minister of Information and Broadcasting Security Minister of Defense Minister of Food and Agriculture Minister of Petroleum and Chemicals Minister of Communications and Parliamentary Affairs Minister of Industry and Supply Minister of Education Minister of Labor and Employment Minister of Rehabilitation *Member'of the Congress Working Committee Indira Gandhi (Nehru's daughter Sardar Swaran Singh S. K. Patii * A. K. Sen Nehru Appointee but in a new Portfolio Nehru Appointee retaining previous Portfolio Appointed by Shastri (S.K. Patil had been a me SECRET Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 SECRET member new to foreign affairs, a lawyer, and a Sikh who works doggedly at his portfolio but who has his eyes on the chief ministership of Punjab State. With the Parliament at large, Shastri has had few real difficulties. He has, of course, a dependable 3-to-1 majority, and those who oppose him within his own party as well as the other parties are fragmented. While not a commanding figure, his skills are considerable, and he has emerged from his year as leader of Parliament with more pluses than minuses to his credit. His toughness in deal- ing with the Communists, his de- fense of "deviation" from Nehru's policies, and his handling of the stormy debates on the sub- ject of corruption in Orissa, as well as during the height of the recent border crisis with Pakistan have been quite notable, and not a little surprising to many observers. Nevertheless, Shastri has tended occasionally to be embar- rassed by ministerial freewheel- ing. He also has allowed him- self to be goaded into intemper- ate replies to intemperate ques- tions, such as in the parlia- mentary discussion of cease-fire terms in. the Rann of Kutch which caused Pakistan to withdraw an early bid for talks. He has also lost touch occasionally with currents among the member- ship in Parliament. He thus was not aware until relatively late of a considerable build-up in feeling and pressure among his colleagues on the recent language agitation in south India and in the case of an abortive signature campaign against at least one of his cabinet members. He has often had a difficult time with the executive committee of the Con- gress parliamentary group, which flexed its muscles for the first time in 1962 when it contributed heavily to Krishna. Menon's ouster from the cabinet. Shastri the Policy Maker By and large, Shastri has kept close to the main guide- lines of policy laid down by the Congress Party under Nehru. He is far more pragmatic than Nehru, the London School social- ist. Shastri certainly finds Congress policies as written and as implemented a comfortable frame of reference, and his modifications are mainly matters of emphasis; he is a tinkerer, not an innovator. He is common-man oriented, quotes heavily from Gandhi, and is infinitely more Indian than Nehru. He has shown a strong preference for quick-yield de- velopment projects. He is mak- ing a major effort to come to grips with India's food problem even at the sacrifice of the pace of industrialization. He seems intent on compiling a record of his own on which to seek a mandate in the general elections due a year and a half hence. He and Kamaraj can al- ready take some measures of satisfaction from the party's by-election record since last June. While experiencing some difficulties among urban voters, the Congress Party has added two seats to its parliamentary majority and eight seats to its SECRET Page 9 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Mo., Ifto, SECRET majorities in the state assem- blies, all from rural voters upon whom the Congress has tra- ditionally relied. On foreign matters, Sha.s- tri's policies are virtually indistinguishable from Nehru's, at least the post-1962, post - Chinese invasion Nehru. Al- though not sharing Nehru's pre- occupation with foreign affairs, he has sought quite successfully to improve India's relations with some of its neighbors-- Burma, Ceylon, Nepal, and Afghan- istan. He is aware that with Nehru's death and with India's closer association with the US, its influence in Asian-African cir- cles has progressively eroded. Presumably he is concerned that this leaves the field wide open for Pakistan, the radical gov- ernments, and the Chinese, and might in time make India's causes somewhat less attractive to Moscow. He will be looking for opportunities to recoup on such occasions as the forthcom- ing Afro-Asian conference in Algiers. Toward China, Shastri's pol- icies have remained tough and un- yielding, but not militarily provocative. He has continued programs to improve India's de- fense posture vis-a-vis the Chi- nese, and new efforts have been made in both the bloc and in the West to obtain additional modern military equipment. Relations with the United States have been friendly, de- spite the occasional emotional outbursts of his foreign minis- ter and Shastri's unhappiness with some aspects of US policy in Southeast Asia. New strains have appeared, however. These have resulted from Washington's postponement of his proposed visit to the United States, his reaction in canceling out alto- gether, and India's unhappiness with Pakistan's use of American military aid equipment in the recent Rann of Kutch episode. Moscow was quick to capital- ize on these strains, during Shastri's recent visit to the Soviet Union. The visit had long been billed as one in which a. new Soviet aid commitment would be made to India's next five-year development plan. For himself, Shastri was able to re- coup his pride from the blow suffered by postponement of the Washington visit, while working to ensure that Soviet support, both economic and in the form of military aid, would continue, and perhaps even increase. The Quality of Leadership In a sense, India in the post-Nehru period is undergoing its second Indianization since independence was achieved. The first occurred when the British sahibs left, turning over their jobs to the brown sahibs they had trained. A second so-called Indianization refers not only to the replacement of Nehru by a thoroughly home-grown product but also to the stepped-up re- tirement of the old brown sahibs in the Indian civil service and in the Parliament and their re- placement by the Indian-trained element. SECRET Page 10 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 SECRET Shastri's form of leader- have to be Indianized during ship is not dynamic and will this generation while the cul- certainly not produce dramatic tural bridges still exist and breakthroughs in the many prob- before the generation which lem areas he inherited. Lack- never had any contact with the ing a large reservoir of pres- British raj comes to power. tige to fall back on, moreover, Shastri's position will retain for some time to come a certain element of fragility in the heat of crisis. The style of his leadership is still evolving. It is the product of the man and of the Indianizing context in which he operates and of which he is a part. Inherited British forms will continue to be modified or abandoned. The decorum of In- dia.n public life and of the Parliament may decline a bit more in Western eyes, and the latent pent-up violence of In- dian society may become a bit more evident. But if the solid accomplishments of the British period in India, as consolidated and redefined by Nehru, are to leave any permanent imprint on twentieth century India, they Shastri, as the product of British India, British jails, Indian poverty, and the inde- pendence movement, embodies India's mood and the mood of its ruling party in the immedi- ate post-Nehru period. He is doing a reasonably good job of giving the country the type of leadership it seems to want and the only type of leader- ship its ruling party would permit at this time, only one year after Nehru. The condi- tion which led to his choice last June--the absence of an alternative candidate accept- able to the party as a whole-- remains, and Sha.stri gives every indication of intending to be more than a mere caretaker prime minister. (CONFIDENTIAL) SE CRE T Page 11 SPECIAL REPORT 28 May 1965 Approved For Release 2006/11/06: CIA-RDP79-00927A004900040004-3 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3 Nwilf Now SECRET SECRET Approved For Release 2006/11/06: CIA-RDP79-00927AO04900040004-3