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DATE=6/3/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-233271
TITLE=INDIA NUKE (L-O'NITER)
BYLINE=JIM TEEPLE
DATELINE=NEW DELHI
CONTENT=
VOICED AT: 
INTRO:  IRAN'S FOREIGN MINISTER CALLED WEDNESDAY FOR THE CREATION
OF A NUCLEAR FREE-ZONE IN SOUTH ASIA.  HIS COMMENTS FOLLOWED A 
MEETING WITH INDIA'S PRIME MINISTER IN NEW DELHI.  CORRESPONDENT 
JIM TEEPLE REPORTS INDIA REJECTED A JAPANESE PROPOSAL FOR 
THIRD-PARTY TALKS ON THE FUTURE OF THE DISPUTED KASHMIR REGION. 
TEXT:  FOLLOWING HIS TALKS WITH INDIA'S PRIME MINISTER, IRAN'S 
FOREIGN MINISTER KAMAL KHARRAZI CALLED FOR THE CREATION OF A 
NUCLEAR FREE-ZONE IN SOUTH ASIA.  HE ALSO SAYS INDIA AND PAKISTAN
SHOULD BEGIN BILATERAL NEGOTIATIONS TO REDUCE TENSIONS IN THE 
REGION AS SOON AS POSSIBLE.  
INDIAN FOREIGN SECRETARY K. RAGHUNATH SAYS INDIA IS WILLING TO 
TALK TO PAKISTAN.  
                // INSERT RAGHUNATH ACTUALITY //
         THE PRIME MINISTER MADE IT CLEAR AND WE HAVE BEEN SAYING
         THIS ON MANY OCCASIONS -- WE HAVE ALWAYS BEEN IN FAVOR 
         OF A DIALOGUE WITH OUR NEIGHBORING COUNTRIES AND AS YOU 
         KNOW A DIALOGUE WAS RENEWED WITH OUR INITIATIVE LAST 
         YEAR, AND WE ARE INTERESTED IN CONTINUING THIS PROCESS. 
                       // END ACTUALITY //
INDIA IS MAKING CLEAR IT IS NOT INTERESTED IN OUTSIDE MEDIATION 
FOR THE DISPUTED KASHMIR REGION.  
WEDNESDAY, THE FOREIGN MINISTRY REJECTED A JAPANESE OFFER TO 
MEDIATE TALKS ABOUT KASHMIR.  PAKISTAN ACCEPTED THE JAPANESE 
INITIATIVE.  IN THEIR REJECTION, INDIAN OFFICIALS SAID KASHMIR IS
AN INTEGRAL PART OF INDIA.  
INDIA CONTROLS TWO-THIRDS OF KASHMIR AND PAKISTAN ONE-THIRD.  TWO
OF THE THREE WARS INDIA AND PAKISTAN HAVE FOUGHT DURING THE PAST 
50-YEARS HAVE BEEN OVER KASHMIR.
MEANWHILE, THE WORLD BANK IS DELAYING MORE THAN 200-MILLION 
DOLLARS IN LOANS TO INDIA, BRINGING TO MORE THAN ONE-BILLION 
DOLLARS THE AMOUNT IT HAS FROZEN SINCE INDIA CONDUCTED ITS 
NUCLEAR TESTS LAST MONTH.
INDIAN OFFICIALS SAY THEY REGRET THE BANK'S DECISION, BUT SAY SO 
FAR THE SANCTIONS HAVE HAD NO EFFECT ON DIRECT FOREIGN INVESTMENT
IN THEIR COUNTRY.   (SIGNED) 
NEB/JLT/LTD/RAE
03-Jun-98 10:28 AM EDT (1428 UTC)
NNNN
Source: Voice of America
.