Military

DATE=09/09/03

TYPE=CORRESPONDENT REPORT

NUMBER=2-307286

TITLE=INDIA/ISRAEL (L-ONLY)

BYLINE=ANJANA PASRICHA

DATELINE=

CONTENT=

VOICED AT:

/// WILL BE UPDATED AFTER TALKS WITH PRIME MINISTER AND SIGNING OF AGREEMENTS AT APPROX. 1430 HRS GMT ///

INTRO: Israeli Prime Minister Ariel Sharon has begun a three-day visit to India by promising to build a closer relationship. The first visit by an Israeli prime minister to India is an important step in strengthening their growing ties. But as Anjana Pasricha reports from New Delhi, the visit has raised concerns in Pakistan and among India's leftists and Muslim groups.

TEXT: After a ceremonial reception at New Delhi's red sandstone presidential palace, Mr. Sharon expressed hope his visit will help strengthen ties with India.

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We regard India to be one of the most important countries in the world. Democracy is really democracy - we can share our belief in democracy. We are very much interested to develop our relations.

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Indian Prime Minister Atal Behari Vajpayee called Mr. Sharon's trip a "historic visit" that will give a new shape to relations between the two countries.

Mr. Sharon is holding talks with senior Indian officials, focusing on expanding military and economic cooperation, and on issues such as terrorism, Kashmir and the Middle East peace process. He and Mr. Vajpayee also will sign several agreements.

Common security concerns and the India's increasing purchases of Israeli defense equipment form the core of the two countries' growing ties. Both countries want to cooperate closely on countering the threat of terrorism by Islamic militants.

Israel is the second largest defense supplier to India after Russia - and Mr. Sharon's huge delegation includes the heads of major Israeli arms makers.

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India is in the final stages of signing a deal to buy a sophisticated Israeli airborne early warning radar system, for one billion dollars.

India also is seeking other defense equipment, including an anti-ballistic Arrow missile system.

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But the blossoming relationship has angered India's Muslims and left-wing groups, who are holding street demonstrations to protest the visit.

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At a demonstration in downtown New Delhi, leftist activists shout "Killer Sharon to return," and "Long live Palestine." Leftist parties say Indian leaders should ask Mr. Sharon to give up territories demanded by the Palestinians.

The protests are being held despite assurances by India's government that it supports the Palestinian cause.

Neighboring Pakistan is watching Mr. Sharon's visit closely. On Monday, Islamabad expressed concern about growing India-Israeli links, saying increasing defense cooperation between the two governments could destabilize South Asia. (signed)

NEB/HK/AP/KPD