US govt lobbied hard for Union Carbide to extend footprints in India: WikiLeaks
Source: Times of India
The new set of WikiLeaks cables have revealed how in the 70s the US government had pushed the case for Union Carbide Corporation (UCC) to set up the operations of Union Carbide India Limited (UCIL) in India. The US government followed the Union Carbide's case with the Indian government seeking exceptional terms to help the company set up a factory in Bhopal, the Kissinger cables reveal.
A series of cables show that UCIL managers in India were in touch with US diplomatic officials, seeking their intervention to secure terms for UCC's investment in India. Both US officials and UCIL had lobbied hard to ease norms for the company under Foreign Exchange Regulation Act (Fera) that limited equity participation of foreign firms.
This dates back to 1973, when the a cable shows the then head of UCIL had approached US ambassador Daniel Patrick Moynihan asking the visiting US deputy secretary of state to lobby with the Indian finance minister on behalf of the company.
Other documents show that the same year UCC decided to install the unproven MIC technology in the Bhopal plant while noting that they were not agreeable to any condition that would reduce their equity in the Indian unit below 51%.
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Read more: http://timesofindia.indiatimes.com/india/US-govt-lobbied-hard-for-Union-Carbide-to-extend-footprints-in-India-WikiLeaks/articleshow/19522599.cms
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