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Vajpayee pleased with progress of Indo-US talks

The Indo-US strategic dialogue is proceeding in a "positive" direction, Prime Minister Atal Bihari Vajpayee told a breakfast meeting arranged in his honour today by former American secretary of state Henry Kissinger.

Vajpayee's personal envoy, Jaswant Singh, is holding the talks with senior officials of the Clinton administration. Singh, who was present at the meeting, also gave a broad assessment of the dialogue.

Dr Kissinger, while welcoming the prime minister, noted that relations between India and the United States had a tendency to fluctuate. It was necessary, he said, to get out of this pattern.

In the context of India's growing role in South Asia and the world, and the importance of close relations between the US and India, Dr Kissinger said every effort must be made to overcome the kind of differences that had pushed the countries apart in the past.

Responding to questions on the nuclear tests in the subcontinent this year, Vajpayee explained the Indian position, emphasising the points he had made at the United Nations General Assembly about the moratorium on future tests and India's pledge not to be the first to use nuclear weapons.

He also informed the participants of his talks last week with Pakistani Prime Minister Nawaz Sharief. Vajpayee said both countries had reached certain conclusions that had improved the climate for future dialogue.

He emphasised the desirability of discussing improvement of relations on a broad front and not itemising or confining them to any one area. Both sides appreciated this, which was why agreement was possible, he said.

During exchanges on the role of sanctions, Vajpayee expressed the view that they were counter-productive. He noted that even in the US there has been some rethinking in this regard.

The Indian economy, he emphasised, is strong and resilient, and though sanctions had had an effect, they did not do too much harm.

Maurice Greenberg, chairman, American International Group, raised the issue of foreign investment in insurance and said Americans were awaiting the signal that would welcome investors in this area.

Vajpayee said insurance had been opened up to the private sector and a national debate is on to determine the policy to be followed with respect to foreign companies. It was important, he said, to get a broad consensus on this issue.

On the question of governance and stability, Vajpayee said it was true the country needed stability for economic progress and social harmony. But it had to be recognised that the era of one-party rule had given way to an era of coalitions.

He said the arrival of regional parties on the national scene was a healthy development because too much concentration of power at the Centre had distorted the polity. But a sense of responsibility needs to be exercised at the national level by regional parties and this is evolving. A coalition has its own culture and various parties have to imbibe it.

The prime minister said the biggest economic issue before his government is unemployment. To employ more and more people, employment needs to be productive. Hence his government is putting its emphasis on the services sector, agriculture-based industry, and housing.

He pointed out the pressure on resources that stood in the way. He also emphasised the keenness of his government for investments, particularly in infrastructure.

The economy on the whole is doing well, deficit financing is under control, but prices are rising because of a number of seasonal factors, he said. But the economy is moving towards rapid growth and has withstood the worst period of seasonal imbalance, he claimed.

Dr Kissinger later told Kamlesh Sharma, India's ambassador to the UN, that the session with the prime minister was "outstanding".

Among more than 20 guests at the breakfast meeting were bankers, prominent media representatives, including the editors of the New York Times, Wall Street Journal and Newsweek Rupert Murdoch, columnist Abe Rosenthal, and Frank Wisner, former US ambassador to India.

UNI

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