DATE=6/19/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-234192
TITLE=INDIA / SANCTIONS REACT / L
BYLINE=JIM TEEPLE
DATELINE=NEW DELHI
CONTENT=
VOICED AT:
INTRO: INDIAN OFFICIALS SAY U-S SANCTIONS IMPOSED FOR LAST
MONTH'S NUCLEAR TESTS ARE REGRETTABLE AND UNJUSTIFIED, BUT THEY
WILL NOT HURT THE INDIAN ECONOMY. THE SANCTIONS IMPOSED ON BOTH
INDIA AND PAKISTAN END U-S FOREIGN ASSISTANCE TO BOTH COUNTRIES,
EXCEPT FOR HUMANITARIAN AID. THEY ALSO PROHIBIT AMERICAN BANKS
FROM LOANING MONEY OR EXTENDING CREDIT TO THE INDIAN AND
PAKISTANI GOVERNMENTS. V-O-A'S JIM TEEPLE HAS MORE FROM OUR NEW
DELHI BUREAU.
TEXT: A STATEMENT RELEASED BY INDIA'S FOREIGN MINISTRY CALLS THE
SANCTIONS "COERCIVE UNJUSTIFIED AND COUNTER-PRODUCTIVE." THE
STATEMENT SAYS THE SANCTIONS WERE EXPECTED BUT THEY ARE STILL
REGRETTABLE.
FRIDAY, INDIAN FINANCE MINISTER YASHWANT SINHA CALLED THE
SANCTIONS A MINOR ROADBLOCK IN THE PURSUIT OF DEEPENING INDO /
U-S RELATIONS. MR. SINHA ALSO TOLD REPORTERS IT IS TOO EARLY TO
ASSESS HOW MUCH MONEY INDIA IS GOING TO LOSE FROM SANCTIONS.
// SINHA ACTUALITY //
IT IS VERY DIFFICULT TO JUDGE AT THIS POINT OF TIME, YOU
SEE, BECAUSE THEY HAVE NOT SPECIFIED THE SUM AND IN
RESPECT TO THE APPLICATION OF SANCTIONS TO COMMERCIAL
BANKS THEY STILL HAVE TO ISSUE THE ORDERS WE ARE WAITING
FOR THAT. SO WE WILL MAKE OUR OWN ASSESSMENT AFTER A
WHILE WHEN THE FULL IMPLICATIONS OF THE SANCTIONS BECOME
CLEARER.
// END ACTUALITY //
UNDER THE SANCTIONS, THE U-S GOVERNMENT WILL CONTINUE TO BLOCK
LOANS BY THE WORLD BANK AND OTHER MULTILATERAL LENDING AGENCIES
TO BOTH INDIA AND PAKISTAN. U-S OFFICIALS SAY THAT COULD COST
INDIA MORE THAN TWO BILLION DOLLARS AND PAKISTAN MORE THAN ONE
BILLION DOLLARS. THE POLICY WAS STARTED LAST MONTH AFTER BOTH
COUNTRIES CONDUCTED NUCLEAR TESTS.
VISHVANATH PAI PANINDIKER IS THE PRESIDENT OF THE CENTER FOR
POLICY RESEARCH IN NEW DELHI, AN INDEPENDENT THINK TANK. HE SAYS
EVEN THOUGH INDIA'S ECONOMY IS FAIRLY SELF-SUFFICIENT, THE
SANCTIONS COULD HAVE AN IMPACT OVER TIME AND THAT COULD LEAD TO A
BACKLASH AGAINST U-S FIRMS DOING BUSINESS IN INDIA.
// PANINDIKER ACTUALITY //
I SUSPECT THAT IF THIS THING GOES ON, THEN COUNTER
SANCTIONS AGAINST ALL AMERICAN TRADE AND OTHER IMPORTS
WILL ALSO START. THERE ARE OPTIONS, FOR EXAMPLE IF
BOEING IS NOT AVAILABLE, AIRBUS IS AVAILABLE. WHY NOT
GO FOR AIRBUS? THESE ARE THE KINDS OF THINGS WHICH
MIGHT HAPPEN.
// END ACTUALITY //
MR. PANINDIKER SAYS THE LAST TIME THE UNITED STATES IMPOSED
SANCTIONS ON INDIA IN 1971, FOR INTERVENING IN EAST PAKISTAN --
WHICH SOON BECAME THE INDEPENDENT NATION OF BANGLADESH --
RELATIONS BETWEEN INDIA AND THE UNITED REMAINED TENSE FOR MORE
THAN A DECADE. SOME U-S COMPANIES HE SAYS WHO HONORED THOSE
SANCTIONS WERE NEVER ALLOWED TO DO BUSINESS IN INDIA AGAIN.
(SIGNED)
NEB / JLT / WD / WD
19-Jun-98 6:23 AM EDT (1023 UTC)
NNNN
Source: Voice of America
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