(The following requires significant knowledge of telecomm networking. PG Rating: Geek Alert!)

Since Amazon can delete books without your consent, then it can connect to your kindle without your action. So it is likely that the Kindle is always beaconing its location, registering with each cellular cell as it roams. Hence it provides tracking data. (Well, it provides tracking data every time it connects, or downloads, but my concern in this post is its doing so while roaming.)

Alternatively, the deletion may have taken place on the next occasion when the reader/user activates a link to amazon (to purchase something). But I did not read anything about this anywhere.

… Sure enough, a quick search (via the all-seeing, all-knowing Google! ;-) ) verifies this. From the mighty Electronic Frontier Foundation:

In other words, your Kindle will periodically send information about you to Amazon.

Some security researchers have indicated that the Kindle may even be tracking its users’ GPS locations.

Technically, the first sentence does not necessitate the second sentence. But, never the less, this is a cause for alarm.