June 13, 1998 - Evening Transmission
The Finance Minister has said that the unilateral action of the G-8 industrial powers to block all future loans and aid will not affect India's economy in the short run. Mr. Yashwant Sinha told a private TV network in New Delhi last night that the Finance Ministry will study its implications. The group of eight richest nations at their meeting in London yesterday decided that all loans and aid barring those for humanitarian purposes to India and Pakistan be blocked because of their nuclear tests last month.
They were anxious not to isolate both the countries and exempted loans for humanitarian purposes. The G-8 measures have only a symbolic significance since new International Monetary Fund and World Bank credit has effectively been frozen since the US imposed sweeping economic sanctions on both the countries.
The UN Secretary General, Mr.Kofi Annan has urged India and Pakistan to enter into a dialogue to sort out serious issues dividing them. Earlier, he discussed the nuclear situation in South Asia with five permanent members of the Security Council.
India will respond to rejection of its offer to Pakistan for resumption of the stalled Foreign Secretary level talks after studying Islamabad's statement. The Minister of State for External Affairs, Mrs. Vasundhara Raje said last night that New Delhi has made an offer and we stand by the offer to talk about all bilateral issues including Kashmir.
The Prime Minister's special envoy and Deputy Chairman of the Planning Commission, Mr. Jaswant Singh said, the talks with Pakistan would go ahead despite the failure to agree on a time and place. In an interview to CNN, he said, it is just a question of fixing the date and venue. It may be recalled that India invited Pakistan for talks in New Delhi on June 22nd but Islamabad made a counter offer setting its own terms for a dialogue on June 20th.
Earlier, Mr. Jaswant Singh held a two-and-half hour meeting with Deputy Secretary of State, Strobe Talbott and explained India's stand on nuclear tests.
In a significant initiative India today invited Pakistan for bilateral discussions on all outstanding issues. It has suggested that the talks at the Foreign Secretary level be held on the 22nd of this month in New Delhi.
Pakistan however has rejected India's offer and instead invited Indian Foreign Secretary to Islamabad on the 20th of this month. A Foreign Office Statement in Islamabad described the Indian offer as unrealistic and said it is not acceptable as a working basis for resumption of talks.
The Finance Minister tried to take the battle into the opposition ranks today. He had been forced on the defensive by criticism that the budget fell quite short of what the economy needed . He conceded the opposition on urea issue.
The Government today ruled out exemption of dearness allowance, city compensatory allowance and house rent allowance of Government employees from income tax. The Minister of State for Finance Mr. Kadambur Janardhanan told the Lok Sabha that these are personal expenses and therefore covered under the term salary. He was responding to demands from almost every section of the House that allowances of salaried employees who are hard hit by inflation and should be exempted from income tax to help these honest tax-payers.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
