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India, US trade words over lifting of sanctions

The Clinton administration has challenged India's accusation that the United States is out to favour Pakistan over New Delhi even in the relaxation of its five-month-old nuclear-related economic sanctions.

''There is no discrimination. Nor, is there any differentiation,'' assistant secretary of state for South Asian affairs Karl Inderfurth said over the weekend, in an obvious reference to the external affairs ministry's statement, alleging a ''selective and discriminatory approach,'' on the part of the United States.

Inderfurth, however, said the decision, taken by the group of eight industrial nations (G-8) in June with respect to International Financial Institutions' lending in case of India and Pakistan, would remain in force.

Inderfurth said the US would support humanitarian lending by the IFIs for both India and Pakistan. It would continue to oppose IFI lending for non-basic human needs for both countries with one exception, relating to addressing the economic crisis in Pakistan which had been brought about, in part by its government's mismanagement, he added.

He said the International Monetary Fund had expressed real concern about the economic and financial situation in Pakistan and it was working actively with Islamabad to develop a macro-economic programme to forestall a default by Pakistan on its debt.

"To address this issue, the US and its partners agreed in July to allow the IMF to negotiate a support programme to strengthen the Pakistani economy. That IMF programme is still under negotiation. In light of our continuing grave concerns about the Pakistani economy, the president (Clinton) has decided that the US will consult and work closely with our allies to permit lending from multilateral development banks that would be necessary to support an agreement negotiated between IMF and Pakistan,'' he added.

He, however said this policy decision did not release any additional development lending for India, including from the World Bank. ''The Indian economy is far stronger than Pakistan's and is not at risk. India has not sought nor does it need IMF balance of payments support, as is the case with Pakistan,'' he added.

''Once this IMF programme and supporting lending from multi-lateral lending institutions has been completed, we do not envision further non-basic human needs lending for Pakistan under this emergency response,'' he added.

On Saturday, India had criticised the US for adopting a ''selective approach'' in lifting sanctions imposed by the Clinton administration after the May 11 nuclear tests at Pokhran.

An official spokesman had said India had always maintained that ''such unilateral and coercive measures were unjustified and counterproductive and should be lifted.''

The spokesman said, ''We are of the firm view that all such measures, particularly those relating to lending by multi-lateral financial institutions should go.''

''The multi-lateral institutions in particular are economic and development-oriented organisation and should not be misused for political purposes to suit the whims and preferences of particular countries.''

''The remarks attributed to US officials, however, reveal a selective and discriminatory approach which we find hard to understand and reconcile with.''

India was engaged in an intensive dialogue on a range of issues relating to disarmament and non-proliferation with the US and the discussions had led to the ''narrowing of gaps of perception'', it said.

''We note that according to press reports, it is in recognition of this that the US has lifted some of the measures,'' it added.

UNI

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