Date:11/10/2005 URL: http://www.thehindubusinessline.com/2005/10/11/stories/2005101102820600.htm

Back Insurance unions cry fowl over US envoy's remarks

Our Bureau

Chennai , Oct. 10

INSURANCE unions have criticised the American Ambassador, Mr David Mulford's statement that the "delay in raising the cap on foreign investment from 26 per cent was being viewed by investors as a "breach of faith".

Mr N.M. Sundaram, President, All India Insurance Employees Association, said, "The Ambassador has committed a diplomatic impropriety by raising the issue like this. I am surprised that the Government of India has also kept silent and not expressed their displeasure."

Expressing surprise at the terminology used, Mr Sundaram said that only a sovereign body such as Parliament could give any kind of undertaking.

As the law stands, there was no scope for further increase, he said.

Mr J. Gurumurthy, Secretary, (General Insurance), All India Insurance Employees' Association, described the ambassador's tone as "threatening".

He said, "The Government should not buckle down to any threats. The statement by the American Ambassador is tantamount to interference in the internal policy matters of the country."