More Troubles for Indira

"An elephant trapped in quicksand" is the way Indira Gandhi sometimes describes her ruling Congress Party. During the past few years, the party's dismal performance makes that description seem particularly apt. Indian voters have turned against the once all-powerful Congress Party. In the 1967 state elections, for example, the party lost control of four key states--Uttar Pradesh, Bihar, West Bengal and the Punjab. In last February's midterm elections in those states, Congress failed to regain its old supremacy. Last week the party developed new troubles: an open power struggle in the leadership.

The fight pits Prime Minister Indira Gandhi against the party's so-called "Syndicate," a closely knit group of conservative big-city bosses. The issue is the political direction of the party. Ever since she took over three years ago, Indira has attempted to push Congress toward the socialist goals ordained by earlier leaders, including her father Jawaharlal Nehru. But she has run into opposition from disapproving party right-wingers, led by Deputy Prime Minister and Finance Minister Morarji Desai, her sole rival in the 1966 and 1967 party elections for the premiership. The right-wingers feel that Indira's all-out socialist policies will severely damage private industry and hurt the national economy; most public-sector industries have proved less efficient and profitable than privately owned ones.

Torpedoed at Bangalore. A showdown began to develop two weeks ago at the Bangalore session of the All-India Congress Committee, the party's policy-setting group. In principle, the members of the Syndicate endorsed Indira's efforts to speed India's swing to the left, but in practice they dragged their sandals. Supported by Desai, her chief opponents were Bombay Leader S. K. Patil, Congress Party President S. Nijalingappa, former President Kumaraswami Kamaraj and West Bengal Chieftain Atuyla Ghosh. After first challenging Indira in closed meetings, her opponents tried to sidestep such proposals as nationalizing Indian banks by paying them mere lip service in the vague closing resolution. But their real success came in defeating Indira on the party's choice of a candidate for the presidency, vacant since the death of Dr. Zakin Husain last May. (Elections are scheduled for mid-August.)

Mrs. Gandhi had thrown her prestige behind Acting President V. V. Giri, but the Syndicate vetoed his nomination. Then Indira switched her support to Food and Agriculture Minister Jagjivan Ram. The Syndicate, however, forced through the approval of Sanjiva Reddy, Speaker of the Lok Sabha (lower house of parliament) and a loyal Syndicate member. Indira was furious and decided to strike back directly at Finance Minister Desai, who had opposed her plan to nationalize the banks.

After a day of plotting tactics, she issued a curt announcement from the President's House stating that "Mrs. Indira Gandhi, Prime Minister, shall be Minister of Finance in addition to her present charges." Stripped of the powerful Finance portfolio, the angry and embarrassed Desai quit as Deputy Prime Minister. "How can I continue?" he asked. After frantic efforts by their Cabinet colleagues and Congress Party President Nijalingappa to bring about a reconciliation, Mrs. Gandhi and Desai were coaxed to meet for an hour at week's end.

Their icy confrontation served only to deepen the Congress split. Desai demanded reinstatement to the Finance Ministry. Mrs. Gandhi refused. Then she proceeded to carry out her proposals herself. At week's end India's 14 largest private banks were nationalized. Stunned by the speed and force of Indira's ambush, the Syndicate made no immediate response. The party bosses may decide not to challenge her on the leadership issue since the party has already twice rejected the austere and inflexible Desai in Indira's favor because he has little voter appeal. But in the event they do, the outcome of a no-confidence motion against Indira might well tear Congress apart. By any odds, the party seemed more firmly stuck in India's political quicksand than ever.

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