US waives sanctions against India, Pak

[Guest guest]

US waives sanctions against India, Pak

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NDTV Correspondent

 

Sunday, September 23, 2001 (Washington DC):

 

 

US President George W Bush has waived sanctions imposed by the US

Congress against India and Pakistan in the wake of the nuclear tests

conducted by the two countries in 1998.

 

In a memorandum to Secretary of State Colin Powell, Bush said, "The

application to India and Pakistan of the sanctions and prohibitions

would not be in the national security interests of the United States."

 

The decision came less than two weeks after terrorist attacks on the

World Trade Centre in New York and the Pentagon building outside

Washington, believed to be orchestrated by a network led by

Afghanistan-based Islamic militant Osama bin Laden.

 

Presidential waiver

 

Though the Ministry of External Affairs in India is yet give an

official reaction, officials sources have said that India has always

maintained that these sanctions or restrictive economic measures have

been counter-productive and lifting of sanctions vindicates India's

stand.

 

NDTV spoke to the Indian ambassador to the United States Lalit

Mansingh about the implications of this waiver.

 

NDTV: What does the removal of sanctions by the United States mean

for India and Pakistan?

 

Mansingh: Separate sanctions for India and Pakistan. Common sanctions

were the ones imposed after nuclear tests in 1998. These have been

removed under a presidential waiver. Actually the President had been

given authorisation earlier to remove sanctions, but not all

sanctions had been lifted. Now the President has exercised his

authority and removed the remaining sanctions. What it means for

Pakistan is not very clear. But my understanding is that there are

other sanctions relating to democracy. I am not very clear what the

implications are.

 

NDTV: How does India stand to gain?

 

Mansingh: The sanctions imposed in 1998 -- economic, military and

restrictions on dual use technology -- some restrictions had been

removed by President Clinton. However, some remained like

restrictions on lending by international financial institutions or

foreign military sales or transfer of dual use technology. We take it

that these have now been removed as a result of the presidential

waiver.

 

 

India's gain

 

For India, the removal of sanctions could have a significant impact

for technology heavy industries like BHEL and Larsen and Toubro,

against which there were sanctions for importing some technology the

US labelled as dual use.

 

Amit Mitra, the Secretary General of the Federation of Indian

Chambers of Commerce and Industry, said India had managed to secure

its foreign financial assistance despite the US sanctions. "We were

very lucky in having got through humanitarian processes $2 billion

last year in project loans, including power sector loans from World

Bank for Andhra Pradesh. This year we have got $1.9 billion. So we

were in reasonably good shape," Mitra said.

 

Mitra said 39 Indian companies, which were under the Entities list,

would benefit from the lifting of sanctions. Entities list includes

companies, which faced a ban on import of dual use technology --

technology which can be used for commercial production and suspected

use in nuclear weapons.

 

"The biggest thing for India is that these 39 companies which

included BHEL, Kirloskar Bros, Godrej and Boyce, Larsen and Toubro,

will now be free to import any technologies they chose without any

suspicion in their systems. So our gain is one in dual use

technology," Mitra added.

 

Sanctions for going nuclear

 

These sanctions were imposed under the Glenn Amendment after both

India and Pakistan went nuclear in 1998. The Glenn Amendment

prohibited foreign assistance for military projects and the sale

of "dual use" technology.

 

The Indian missile programme, dependent as it is on the import of

important components, was hit hard by this.

 

But in economic terms at least, India has very little to gain from

the lifting of sanctions. India has already received almost $4

billion worth of loans from the World Bank in the last two years.

These loans were frozen after the nuclear tests in 1998.

 

The import of high-end technology like super computers may also be

allowed but some restrictions were already eased after Bill Clinton's

visit.

 

An area where India will benefit is from the companies, which are

removed from the Entities list, which will allow joint scientific

research. Easing of visa restrictions for Indian scientists and

collaborative research may now resume.

 

Pak has lot to gain

 

Pakistan on the other hand stands to gains significantly. It is

already in deep financial trouble and is looking out for the

rescheduling of loans worth $600 million.

 

Pakistan will also benefit through loans from IMF and the World Bank.

Last year, it received only $154 million.

 

It can also start buying military equipment and spare parts from the

US on which it is heavily dependent. But the sanctions imposed on it

after the 1999 military coup still remain and these can only be

removed by the US Congress.

 

Pentagon activates troops

 

The Pentagon has activated more than 5,000 additional National Guard

and reserve troops in preparation for the first military strikes in

the new US campaign against terrorism. With Saturday's call-up, now

more than 10,000 Air National Guard Air Force Reserve troops have

been called to active duty since Thursday.

 

Among the latest call-ups are units to provide air refueling and

joint communications. The commander of the US Central Command's air

component has shifted operations to Prince Sultan Air Base in Saudi

Arabia, where he can plan and direct air attacks. It is widely

expected that a US campaign in retaliation against the terrorist

attacks on September 11 would be led by special operations forces,

such as helicopter-borne Army Rangers.