JUDY WOODRUFF, CNN ANCHOR: Tensions remain high in South Asia, after newly declared nuclear powers, India and Pakistan, failed Friday to agree on high-level talks. India initially said the two would meet earlier this month, but Pakistan denied that an agreement had been reached. Joining me now for more on the nuclear crisis in south Asia is Jaswant Singh. He is a senior member of India's ruling BJP party.  Mr. Singh, thank you for being with us. 

JASWANT SINGH, SENIOR MEMBER OF INDIA'S BJP PARTY: Yes, thank you for asking. 

WOODRUFF: You met today with the number two man at the United Stat States Department, Strobe Talbot. How would you characterize India's relationship with the U.S. after this meeting? 

SINGH: After the meeting, oh, we had a very good meeting. It lasted for over two-and-a-half hours, and we discussed in the most cordial manner, frankly, the entire range of issues covering U.S.- Indian relations; as well as international affairs. 

WOODRUFF: Are India and Pakistan closer to some sort of nuclear exchange, as a result of these tests? 

SINGH: Entirely not; not at all. If by nuclear exchange, you mean, any kind of nuclear conflict, certainly not. 

WOODRUFF: And yet, many people fear this, obviously -- seeing these tests? 

SINGH: Oh, I understand that the fear is there, but it appears to me it's much more of an induced fear than a reality. 

WOODRUFF: What do you mean by that? 

SINGH: Well, I mean, the fear is much more here than in south Asia. 

WOODRUFF: When you say "here," do you mean in the United States? Do you mean -- where? 

SINGH: Yes, indeed. I mean really much more the West, the United States of America, or Europe. The reality of south Asia is not at all the transference of your anxieties to that part of the world. 

WOODRUFF: If the situation is not as anxious as the rest of the world fears, Mr. Minister, then why are Pakistan and India having such a hard time agreeing on having talks -- sitting down and talking with each other? 

SINGH: I don't think it's been hard at all. Two dates have already been talked about. India proposed 22nd of June, and Pakistan said, "No, that might not be convenient"; and said, "Let's meet on the 20th of June in Islamabad." It's not hard time; it's the convenience of diaries. 

WOODRUFF: But you have Pakistani officials saying today, and I'm quoting what he said: "India is trying to pull a fast one," he said. And that your offer to hold talks was a gimmick? 

SINGH: No, entirely; this is not -- I dispute that assertion. The -- I have just this morning, after reaching Washington, spoken to the foreign secretary, Tri (ph), in Delhi, and he confirmed to me that against the proposal of a meeting on 22nd of June, in Delhi, Pakistan suggested that we meet on the 20th of June in Islamabad. It's really a convenience of diaries. 

WOODRUFF: So the talks are definitely on? 

SINGH: Oh, yes, of course. 

WOODRUFF: They're going to take place on what date? 

SINGH: Oh, yes, without doubt. It's a question of fixing the date and the venue. 

WOODRUFF: The G-8 nations -- we've just mentioned this -- have said no loans to your country, or to Pakistan, of a non-humanitarian nature. Is this is a problem for India? 

SINGH: Well, it's really a decision that the G-8 have taken, and that is a right and function. I'm not really -- going to comment on the decision-proper. As to whether it is a problem for India or not, I don't think the G-8, in any case, was advancing far too many loans to India. When it comes to their approach and attitude to loans that India is negotiating with the World Bank, then we shall tackle that problem when we come to it. 

WOODRUFF: So it's not even a slap on the wrist? 

SINGH: Well, India is too great a country to be slapped on the wrists. But if the G-8 feel that this is something that they need to do, and that -- and by so doing -- they are advancing the -- nonproliferation -- then it's best really that they address disarmament, which is really not advance -- which is  a commitment that is made to the world in Article 6 of the Non-Proliferation Treaty. 

WOODRUFF: Just finally, the U.S. Secretary of State said today -- Madeleine Albright -- that India is less secure now because of the tests you've done. Do you agree with that? 

SINGH: But that is her perception. I do think that India, as a sovereign state, has a right to determine the state of its security on its own. 

WOODRUFF: Well, Mr. Minister, Jaswant Singh, we thank you very much. 

SINGH: You're very kind. Thank you very much. Indeed.