The Americas

United States of America

Relations with the United States during the year can be seen broadly in two phases. In the early part of the year, there was continuation of a broad based dialogue which both countries had agreed upon. In that context, US Permanent Representative to UN, Bill Richardson headed a delegation to India from April 14-15, 1998. The Indian and the US side had useful exchanges of views on a number of important international, bilateral and regional issues.

Following India’s nuclear tests, the US reaction was extremely critical and negative. The reaction was made up of several elements including what the United States saw as a challenge to the non-proliferation regime which the United States and other nuclear-weapon states have south to put in place to preserve their monopoly of nuclear weapons. It also contained elements of frustration at US inability to detect the tests in advance. India look every opportunity to respond to such statements wherever necessary.

The US also took the initiative in meetings of the P-5 and G-8 to orchestrate condemnation of the nuclear tests. Many of these countries, however, did not go along with attempts to multilateralise the imposition of restrictive economic measures against India.

Since then, the reaction has toned down and, to some extent, moderated, This has been reflected in more balanced coverage in the US media. There have been a number of articles and statements from eminent US political personalities and strategic analysts which reflect a better understanding of India’s security concerns. There has also been considerable debate in the United States regarding the effectiveness of the coercive economic measures called "sanctions".

Despite development of the strains in the bilateral relationship, the visits of prominent US political representative continued. US Senators Sam Brownback and Charles Robb, visited India from June 26-30. On their return to the US, these Senators introduced an Amendment to provide authority to the President to waive for up to one year some of the economic measures under Glenn Amendment. In July 1998, US Congress passed an amendment which was called "Agriculture Export Relief Act of 1998" which exempted finance and credit guarantees for agricultural commodities, medicine and fertilisers from the purview of 1994.

After the nuclear tests and the apprehensions expressed in several countries, it was decided to have a more intensive dialogue with the United States. Shri Jaswant Singh, then Deputy Chairman, Planning Commission and Mr Strobe Talbott, Deputy Secretary of State have been designated as Representatives to conduct this dialogue.

The talks are being conducted on the basis of the comprehensive proposals that India has put forward on disarmament and non-proliferation matters, our unilateral moratorium on explosive nuclear tests, willingness to discuss converting this moratorium into a de jure obligation, our offer to enter into constructive negotiations on the FMCT and reaffirming our policies on stringent control on export of sensitive technologies.

The talks have focussed on issues related to disarmament and non-proliferation. Both sides have agreed that these issues should be kept distinct from regional issues.

After six rounds of discussions the talks have narrowed down four issues. These are the CTBT, the FMCT, Export Controls and Defence Posture.

On Export Control Issues an expert level meeting was also held in New Delhi on 9-10 November, 1998. The meeting was deemed helpful by both India and the US to the prospects of continuing cooperation in this area.

Both sides have agreed to meet in 2nd half of January 1999 in New Delhi to carry forward this dialogue.

The US has recently announced a partial lifting of the restrictive measures imposed against India. These relate to EXIM, OPIC, TDA Financing and Military Training. The US has stated that these measures are being lifted in recognition of the progress made in the bilateral dialogue. It is however noted that non-basic human needs financing from multilateral financial institutions is still subject to US restrictions. India regards these coercive and restrictive measures as unjustified and counter-productive which should be lifted.

The US has also issued a list of Indian Government Organisations, Research Institutions, PSUs and Private Companies, which will be subject to export restrictions. This step is with clearly punitive intent. India has made it clear to the US that such measures will be regarded as adverse developments in our relations and will not be conducive to the ongoing dialogue. These aspects were reiterated strongly at the last round of discussions held on 19-20 November, 1998. So far there has been no change in the US position. India will continue to take up this matter in bilateral discussions and is also examining the feasibility of multilateral options, such as consistency with WTO provisions.

US Deputy Secretary of State, Strobe Talbott visited India from January 29 to February 1, 1999 with an 8-member delegation including the Vice-Chairman of the US Joint Chiefs of Staff General Joseph Ralston for the 8th round of Indo-US talks. Discussions between the Indian and US delegations were held on January 29, 30 and 31. The Indian side was led by Shri Jaswant Singh, External Affairs Minister.

During the talks, the security perspectives of the two sides were further elaborated and clarified and proposals for harmonising these perspectives were explored. Both delegations were satisfied with the outcome of these talks and believed that progress was made in some of the subjects under discussions.

Both sides are determined to create a positive atmosphere for advancing the bilateral relations. Indian and US expert level teams will meet in March for follow-up talks on export controls. The two sides have agreed to remain in close contact.

The next round of the dialogue is envisioned towards the middle of the year, the dates and the venue of the same would be determined in consultations between the two sides.

Canada

The Governor General of Canada, Romeo LeBlanc and Mrs LeBlanc, accompanied by Canadian Revenue Minister, Herb Dhaliwal, paid a State visit to India from March 26 to April 1, 1998. It was the first ever visit by a Governor General of Canada to India specifically undertaken in the context of the 50th Anniversary celebrations of India's independence.

Canada reacted very adversely to India’s nuclear tests in May 1998, and unilaterally restricted government contact. The Canadian position contained a number of elements which were totally unacceptable to India. Canada also placed restrictions on assistance under CIDA. Subsequently, Canada informed that all ongoing projects would continue to receive funding and that new projects of a basic needs nature could be taken up.

The Canadian Leader of the Opposition, Mr Preston Manning visited India in July-August, 1998. He observed that although Canada did not agree with India's nuclear tests, that was no reason for lack of dialogue, and that India and Canada should be able to talk over differences as friends. There is little change in the official Canadian position so far. Government of India will conduct its relations with Canada in a reciprocal basis. Finance Minister visited Canada in September 1998, for the Commonwealth Finance Minister's meeting.

Trade between India and Canada continued to flourish. Last year, Indian exports to Canada registered an increase of nearly 23% . This year, during the period January-July, the Indian exports have reached C$ 536.569 from 424.532 during the same period last year marking a growth of 26.38%. On the other hand, Indian imports from Canada during this period have declined to C$ 182.614 from 287.695 showing a decrease of 36.52%.

Mr Jonathan T Fried, Assistant Deputy Minister for Trade and Economic Policy of Canada visited India from January 25-27, 1999. He had meetings ill the Ministries of Commerce, External Affairs and Finance. The discussions related to international trade, WTO, foreign investment in India. India’s trade and economic relations with SAARC, ASEAN etc. The Speaker of Lok Sabha, Shri G M C Balayogi visited Canada from January 5-9 to participate in the meeting of the Standing Committee of Commonwealth Speakers held in Ottawa.

Latin America and the Caribbean

India's relations with the countries of the Caribbean, Central America and South America have been traditionally warm and friendly. Presently India maintains 13 Resident Missions and 1 post in the region. India’s interaction and collaboration with these countries is close both in the bilateral context and in multilateral fora. 11 countries from the region maintain Resident Diplomatic Missions in New Delhi, Uruguay being the latest to open their Mission in November 1998. Guyana is also considering opening of a Resident Mission in New Delhi.

Interaction with the countries of the region is conducted through bilateral consultative mechanisms. Presently we have such agreements with 9 countries. High level visits complemented by bilateral and official visits have further cemented our relations with the region. In the economic field, realising the potential of the region a concerted effort has been made to diversify and enhance bilateral cooperation. Similar economic reforms in most of the countries in the region have facilitated mutually beneficial cooperation. There have been an increased number of visits of official and private business delegations to and from the region. India has trade and economic agreements with 7 countries of the region and set up Joint Business Councils with some other countries. In continuation of the FOCUS LAC Programme, exclusive Indian exhibitions have helped the dissemination of information on the opportunities available for mutual beneficial economic interaction. Due to concerted efforts trade between India and the LAC region in 1997-98 has grown to over US $ 1.3 billion.

In the field of culture India enjoys considerable goodwill in the LAC region. Some of the countries like Guyana, Suriname and Trinidad & Tobago have a substantial percentage of people of Indian origin. The region also has also more than 500 institutions, schools, libraries and streets named after Indian leaders. At the institutional level there are cultural agreements and Cultural Exchange Programmes with governments that provide the framework for meaningful interactions between artistes, academicians and scholars. In addition, India gives technical assistance under the ITEC programme to several countries of the region.

India also has been able to establish institutional relations with the regional organisations like the Organisation of American States (OAS), Association of Caribbean States (ACS) and the Andean Community where we have Observer Status. India participated in the meetings of the regional organisations in our capacity as Observers. A mechanism for dialogue with the Rio Group and MERCOSUR has also been established.

After the nuclear tests on 11 & 13 May, 1998, Brazil cancelled the Agreement with India on Cooperation in Peaceful Uses of Nuclear Energy. The OAS General Assembly held in Caracas, 1-3 June, 1998 through a resolution condemned Indian and Pakistani nuclear tests and urged them to refrain from further testing, missile deployment and weaponisation.

The President of India Shri K R Narayanan paid a State visit to Peru from 29 April - 3 May, 1998 and held discussions with President Fujimori. Two bilateral documents - (i) MoU on Cooperation in Space Technology between ISRO of India and its counterpart Peruvian agency CONIDA and (ii) A Work Plan for Cooperation in the field of Agriculture - were signed during the visit. The President had wide ranging discussions with President Fujimori on issues of mutual interest. Peru is the first country in Latin America with which India has signed a MOU for cooperation in space.

President Shri K R Narayanan also paid a State visit to Brazil from 3-8 May, 1998. During the visit, President had fruitful discussions with President Cardoso of Brazil in the presence of the two delegations. The Brazilian delegation included the Ministers of Foreign Affairs, Health, Science & Technology and Agriculture. The President of India was assisted by the Minister of Civil Aviation. An Implementing Arrangement for cooperation in the field of Health and Medicine under the Agreement on Cooperation in Science & Technology was signed for cooperation in areas like biotechnology, epidemology, Public Health Systems, Traditional Medicine, Pharmacology and Pharmaceuticals, Infectious Diseases, Maternal and Child Health care and Tropical Medicine. A MoU on Cooperation between Foreign Service Institute of India and the Rio Branco Institute of Brazil was also signed during the visit. A Festival of India was held in Brazil on the occasion of the President's visit. The Festival was inaugurated in Brasilia by the two Presidents. Subsequent cultural events were held in Sao Paulo, Rio de Janeiro and other major cities in Brazil.

The Minister of State for External Affairs Smt Vasundhara Raje led the Indian delegation to the Ministerial Meeting of the NAM Coordinating Bureau in Cartagena, Colombia 18-20 May, 1998. During the visit, the Minister interacted with her counterparts and briefed them on our foreign policy priorities and the context in which India undertook the nuclear tests. The Minister also called on the President of Colombia.

Utilising the opportunity provided at the 53rd Session of the UNGA, Prime Minister had a meeting with the President of Honduras and Minister of State for External Affairs met the Foreign Minister of Uruguay.

During the XII NAM Summit at Durban, the Minister of State for External Affairs had bilateral meetings with the Foreign Ministers of Cuba, Grenada, Guyana, Jamaica and Suriname and discussed matters of bilateral and multilateral interest.

At the invitation of the Cuban Minister of Agriculture, Mr Alfredo Jordan Morales, the Minister of State for Agriculture Shri Som Pal visited Cuba 27-30 September, 1998. During the visit, areas of cooperation in agriculture and animal husbandry were identified.

The Minister of Power Shri R Kumarmanglam paid an official visit to Venezuela 17-20 September, 1998. He was accompanied by a group of select businessmen interested in the power sector. During his stay in Venezuela, the Minister called on President Caldera and held discussions with the Venezuelan Ministers for Energy and External Relations on matters of mutual interests. The visit was essentially to study and assess the commercial viability of the fuel ORIMULSION, a Venezuelan product which has been included by Government of India in the list of approved fuels for power generation.

Invited by the Rural Society of Argentina, the Minister of State for Agriculture, Shri Som Pal visited Buenos Aires 8-10 August, 1998 to attend the inauguration of Argentina's most important trade fair - 112th Agriculture Trade Fair.

Shri Nareshwar Dayal, Secretary in the Ministry of External Affairs visited Jamaica, Suriname and Venezuela for consultations in the context of the NAM Summit. Shri Kamlesh Sharma, India’s Permanent Representative to the United Nations, visited Havana from 13-16 August, 1998 for discussions with his counterparts in Cuba.

Shri K M Chandershekher, Joint Secretary, Ministry of Commerce visited Cuba from 9-14 August, 1998 and held discussions with Cuban authorities on the question of revival of trade between India and Cuba.

Shri Ramiah Rajagopalan presented his credentials on 9 September, 1998 as the Ambassador of India to Cuba to the Vice-President of the Council of State of Cuba Mr Juan Almeida Bosque, in the presence of the Cuban Foreign Minister.

The first ever exclusive India Products Fair was held in Mexico City from 3-9 March, 1998. Simultaneously with the Fair, an Indian Food Festival and Cultural Festival were also held which received tremendous response from the Mexican business community as well as general public.

India received a tremendous response and cooperation from the countries of the LAC region for the celebrations of the 50th Anniversary of India’s independence.

A 2-member Venezuelan Parliamentary delegation consisting of Deputy Julio Castillo, Vice Chairman of the Chamber of Deputies and Deputy Gustavo Tarre Briceno, Chairman of the Permanent Commission on Finance of the Chamber of Deputies visited India from 5 to 12 July, 1998, at the invitation of the Lok Sabha. They had useful interactions with Members of Parliament in India.

General elections were held in Belize on 27 August, 1998. The Opposition Peoples United Party (PUP) won a landslide victory capturing 26 out of total 29 seats. PUP leader Said Musa will be the next Prime Minister of Belize.

Mr Raul Cubas Grau was sworn in as President of Paraguay on 15 August, 1998.

Mr Jamil Mahuad witt was elected as the new President of Ecuador on 12 July, 1998 and was sworn in on 10 August, 1998.

Mr Andres Pastrana Arango, of the Conservative Party was declared President-elect of Colombia in the final round of elections on 21 June, 1998. He took over office on 8 August ,1998.

A new Government with H.E. Mrs Sussy Camelia Romer of National Party (PNP) as Prime Minister assumed office in Netherlands Antilles. Though the general elections took place in December 1997 till now there was only an interim Government in power due to lack of agreement between the various parties.

Sir James Fitz-Allen Mitchell was re-elected as the Prime Minister of St. Vincent & the Grenadines after his New Democratic Party won 8 of the 15 seats in Parliament in the general elections held on 15 June, 1998. This is his fourth consecutive term as PM of St. Vincent & the Grenadines.

H.E. Mr Miguel Angel Rodriguez E assumed charge as President of the Republic of Costa Rica on 8 May, 1998.

On 26 October, 1998 Peru and Ecuador signed a Peace Agreement at Brasilia ending a border dispute which started in 1942 and led to a number of border clashes, the last one in 1995. This was the last explosive border dispute in Latin America.

The impact of Asian currency crisis and the Russian crisis affected most of the Latin American economies, forcing the respective governments to adopt stringent austerity measures. Brazil was the worst affected. In view of the turbulent economic situation in the region, it is anticipated that trade between India and Latin America would receive a setback in the coming months.

In Guyana, where there is a significant presence of people of Indian origin, tension prevailed following violence between the Indo-Guyanese and Afro-Guyanese, especially after the disputed Presidential elections held in December 1997. All efforts, including that of a CARICOM Audit Committee, to find a solution have not succeeded.

Hurricane Georges hit Antigua & Barbuda, Dominican Republic, Haiti and St. Kitts & Nevis causing widespread damage to property and loss of life. The Government of India has sent token relief assistance in the form of medicines to these Caribbean countries affected by the hurricane.

Central America in general and Honduras and Nicaragua in particular were badly hit by Hurricane Mitch causing devastation and enormous loss of human life and property. Infrastructure and crops were destroyed due to the resultant floods and landslides. Token assistance of medicines is being sent to Honduras, Nicaragua, El Salvador and Costa Rica.

The new Ambassador of Argentina, H.E. Mr Gerardo Manuel Biritos presented his credentials to the President of India on 20 March, 1998.

H.E. Mr Vicente Enrique Anchordoqui Cannizzaro, Ambassador of Uruguay, presented his credentials to the President of India, on 12 November, 1998.

Mr Hugo Chavez, a retired army Colonel, was elected as the next President of Venezuela. The new Government under Mr Chavez will officially be sworn in on 2 February, 1999.

Prime Minister of India Shri Atal Behari Vajpayee paid an official visit to Trinidad & Tobago on 8-9 February, 1999 and held discussions with Prime Basdeo Panday on a wide range of topics of mutual interests. An Agreement on Avoidance of Double Taxation and a Memorandum of Understanding on Low Cost Housing were signed during the visit. Prime Minister laid the foundation stone for the Mahatma Gandhi Institute of Cultural Cooperation in Port of Spain and also inaugurated a Low Cost Housing Support Centre in Trinidad city.

Prime Minister led an Indian delegation to G-15 Summit held in Montego Bay, Jamaica 9-12 February 1999.

H.E. Mr Owen Arthur was re-elected as Prime Minister of Barbados in the election held on 20 January, 1999.

H.E. Mr Fernando Henrique Cardoso assumed office of the President of the Federative Republic of Brazil on 1 January, 1999 for a second term.

H.E. Mr Keith Mitchell who was re-elected in the general elections held in January 1999 was sworn in as the Prime Minister of Grenada.

H.E. Mr Hugo Chavez was officially sworn in as the President of Venezuela on 2 February, 1999.