Well, of course. It gets rather dull just dropping in the occassional 20 in the collection basket, so I like to spice things up once in awhile.
And though I know the child is innocent I would like to think the priest realized that the admonishment to “bring the child up in the Catholic faith” pretty much is not going to happen here. And I think in this instance the cause is grave enough to decline to baptize the child. Since it is obviously a matter of cultural ceremony only and not of faith.