Chairman Gilman: I want to thank Dean O' Hare, the Chairman of the US India Business Council and Chairman and CEO of Chubb, for inviting me here today to share my thoughts with you. I also want to thank Ambassador Frank Wisner, Vice Chairman of the American International Group for his presence her today. We are also joined by a very distinguished group of Indian dignitaries; Shri Sikander Bakht, the Minister of Industry: Sudhir Jalan the President of FICCI; Shashi Ruia, Chairperson of the Indo/US Business Council; and, many other important policy makers and leaders of industry. We also must not forget Michael Clark, the Executive Director of USIBC, and of course our very own Diane McMahon, Associate Director of USIBC, my constituent from Dobbs Ferry New York, who is really the person who has done all the heavy lifting to bring us all together today.

One year ago, India and Pakistan tested nuclear weapons, Severe sanction were swiftly imposed by US law. Since then we have seen a slow but steady effort by Washington and New Delhi to resolve our differences. Unfortunately, the effort has not gone as fast as some of us would like. To a large degree it has been slowed down by a misperception by the State Department of India's motivation for the testing. While I am a strong supporter of nuclear non proliferation, I find it curious that Foggy Bottom has difficulty understanding India's concerns about China's regional intentions. China has given nuclear and ballistic weapon support to Pakistan on India's Western border. China has a close relationship with Burma's narco-dictatorship on India's eastern border having shipped over $ 1.4 billion in arms to Rangoon. And of course China brutally occupies Tibet on India's northern border… the Tibetan/Indian border is bristling with PLA troops.

Even more puzzling, has been the Administration's failure to acknowledge how State Department policy has helped to bring about India's sense of insecurity by inadequately responding to China's violation of the Nuclear Non Proliferation Treaty. We must not forget that China sold the transferred nuclear weapon's technology to Pakistan.

If India, or any other nation, is expected to refrain from building a nuclear deterrent, then the US and other nuclear powers must ensure that these non nuclear nations are not bullied by their nuclear neighbors.

In addition to its problems with China, India for many years has been suffering from Moslem extremist attacks originating from Afghanistan and Pakistan which are supported by the Pakistani government. Last year Americans received a bitter taste of what India experiences on a regular basis in Kashmir when those same terrorist groups killed our diplomats in two of our embassies in Africa.

Last week, the Senate adopted legislation that has many provisions regarding current sanctions against India and Pakistan. One provision would suspend sanctions against India and Pakistan for a period of five years. While I strongly favor this, I very much oppose a provision in the bill that unconditionally repeals the Pressler amendment. As you will recall, the Pressler amendment requires that the President certify to the Congress that Pakistan is not developing nuclear weapons.

Pakistan is the backbone behind the Taliban fundamentalist group in Afghanistan. The Pakistani government gives critical military, logistical and political support for the Taliban's military effort against legitimate representative political alternatives. The Taliban, as a matter of policy, produce heroin and purposely export it to the West. The Taliban give refuge to Osama bin Laden, the Saudi terrorist, who is responsible for the deaths of American diplomats. And the Taliban's policy of systematic repression of woman is barbaric and unacceptable to both Western, Eastern, Islamic, Christian, Hindu, Buddhist or Jewish cultures.

In addition to Pakistan's current support for the Taliban was also have to take into consideration the current heightened level of fighting in Kashmir. According to many sources, including the State Department, the serious military conflict currently happening in Kashmir is due to the infiltration of forces from Pakistan across the line-of-control. Pakistan forces are laying down artillery support for these infiltrators and are in clear control of them.

It also should be noted that Pakistan has provided China with assistance that is detrimental to our national security.

The Lahore Summit established a framework for bilateral cooperation and reconciliation between India and Pakistan. Lahore gives hope for the new Indian government that will be elected in September to carry the process forward with Pakistan. Pakistan should withdraw its forces and get on with it commendable efforts begun in Lahore.

Our own bilateral relationship with India should not be dominated by security issues. The relationship should remain as broad as what we enjoy with other democracies.

India's economic growth, and US investment to help spur that growth, should be at the top of our mutual agenda. India's vast pool of highly trained English speaking professionals offers our nation critical resources in our efforts to stay competitive and to remain the world's leader in high tech industry. We need to offer India a security and economic partnership.

In conclusion, India's testing must be understood in terms of its verifiable, objective security concerns and how the world's nuclear powers have responded to those concerns. Any changes to the Pressler amendment should be considered in terms of US national interests in relation to Pakistan's behavior.

India's role in this world, its unwavering commitment to freedom of expression, political pluralism and democracy makes it an irreplaceable friend and business partner now and especially at the dawning of the 21^st century. India is in a tough neighborhood. And in tough neighborhoods one needs good friends. We will do all that we can to ensure that India and our government works closely together to bring peace and prosperity to Asia and the rest of the world.

Thank you.