Europe

Eastern Europe

Section 1

India’s traditionally warm, friendly and cooperative relations with the Russian Federation and the countries of East and Central Europe continued to develop steadily during the year. There is a consensus on maintaining good relations with most of these countries in India, where there is considerable goodwill for these countries, and vice versa. With the consolidation of democracy and democratic institutions in East and Central Europe, our friendship with the countries in this region has acquired an added dimension, based on shared values and aspirations. India’s multi-faceted cooperation with them in all spheres including trade and commerce, science and technology, culture, etc. has been progressing satisfactorily.

The tradition of high level bilateral exchanges with these countries continued during the year and contributed to strengthening our bilateral cooperation. Sustained efforts were made to further strengthen our political understanding with them. Exchanges of visits by Parliamentary delegations helped to revitalise contacts with the legislatures of these countries. We also sought to build upon our existing business and institutional linkages with them, so as to benefit from the parallel processes of economic change and development in India and East/Central Europe. Efforts were made to consolidate and expand our cultural ties. In turn, these countries acknowledged the importance of their traditional ties with India.

Section 2

Close and friendly ties between India and Russia, based on continuity, trust and mutual understanding, constitute an important foreign policy priority for both countries. Our multi-faceted relations have been developing apace in different areas of cooperation. The tradition of high level bilateral exchanges with Russia, which has contributed to strenghthening our bilateral cooperation in a wide range of areas, was maintained during the year, culminating in the visit of Prime Minister Mr Y M Primakov to India in December, 1998. There is a consensus in both countries on maintenance of good bilateral relations. Recognition of the strategic dimension to Indo-Russian relations has grown. India and Russia share similar perceptions on many international issues.

Prime Minister inaugurated the 7 RCR-Kremlin Hot-line with a telephonic conversation with President Yeltsin on 13 April 1998, the 51st anniversary of the establishment of diplomatic relations between India and Russia.

Defence Secretary visited Russia from 15-19 June 1998 and held discussions with First Deputy Defence Minister Mr N V Mikhailov, and met Defence Minister Mr Igor Sergeev, Economy Minister Mr Yakov Urinson and other Russian dignitaries. During the visit, an Inter-Governmental Agreement on the Long-Term Programme of Military and Technical Cooperation for the period upto the year 2010 was initialed.

Russian Minister for Atomic Energy Mr Yevgeny Adamov visited India from 19-22 June, 1998. He signed with Dr R Chidambaram, Secretary, Department of Atomic Energy, a Supplement to the 1988 Indo-Soviet Inter-Governmental Agreement on the construction of a 2x1000 MW Nuclear Power Station in Kudankulam, Tamil Nadu.

Governor of the Voronezh region of the Russian Federation, Mr I M Shabanov visited India from 9-11 July, 1998. During his stay in India, he met the Chief Minister of Delhi Shri Sahib Singh and Secretary (West), MEA, and visited Calcutta.

Chief Minister of Delhi Shri Sahib Singh visited Russia from 13-15 July, 1998 to attend the International Youth Games. During his stay in Russia, he met the Mayor of Moscow Mr Yuri Luzhkov, and visited the Voronezh region of the Russian Federation.

A contract on the preparation of the Detailed Project Report for the construction of a 2x1000 MW Nuclear Power Station in Kudankulam was signed in Moscow on 20 July, 1998.

Chief of Naval Staff Admiral Vishnu Bhagwat visited Russia from 24-31 July, 1998. During the visit, he called on the Russian Defence Minister Mr Igor Sergeev and had talks with the Commander-in-Chief of the Russian Navy Admiral Vladimir Kuroyedov. He also visited St. Petersburg and Severomorsk.

Deputy Chairman of the Planning Commission Shri Jaswant Singh met the Russian Foreign Minister Mr Yevgeny Primakov in Manila on 28 July, 1998, during the 5th meeting of the ASEAN Regional Forum.

Mr Yevgeny Primakov, Russian Foreign Minister, met Prime Minister Shri Atal Bihari Vajpayee during the 53rd Session of the UN General Assembly UNGA in September 1998 in New York.

Lok Sabha Speaker, Shri G M C Balayogi, led a multi-party Indian Parliamentary delegation to the IPU Conference in Moscow from 6-13 September, 1998. An Agreement on Indo-Russia Inter-Parliamentary Commission was also signed during that visit.

The Chairman of the Russian State Duma Committee for International Relations, Mr V P Lukin, accompanied by a multi-party Russian Parliamentary delegation visited India from 13-16 September, 1998, during which he held detailed discussions with the Parliamentary Standing Committee on External Affairs. He also called on PM, Vice President and other Indian dignitaries.

Foreign Secretary visited Moscow on 11 September, 1998 for Foreign Office Consultations.

Vice Mayor and First Deputy Prime Minister of the Moscow Government, Mr Valeri P Shantsev, visited India from 23-26 September, 1998 and on 23 September, 1998, inaugurated the "Days of Moscow in Delhi" jointly with Home Minister.

Petroleum Minister, Shri V K Ramamurthy, visited Russia from 21-23 October, 1998, during which a meeting of the Indo-Russian Joint Working Group on Oil was also convened.

Russian Deputy Foreign Minister Mr G B Karasin visited India from 1-3 November, 1998. He held discussions with Foreign Secretary and called on Home Minister and Principal Secretary to PM.

Defence Secretary visited Russia from 10-12 November, 1998 for the Joint Working Group meeting on military-technical cooperation.

Lok Sabha Speaker led a multi-party Indian parliamentary delegation to Russia from 12-17 November, 1998. In addition to having discussions with his Russian counterpart, he addressed the Russian State Duma and called on Prime Minister Mr Y Primakov.

President Mr M S Shaimiev of the Republic of Tatarstan (Russian Federation) visited India from 22-26 November, 1998 at the invitation of Commerce Minister. During the visit, he also called on Vice President.

Finance Minister led an Indian delegation to Moscow from 26-28 November 1, 1998 for the 5th session of Indo-Russian Inter-Governmental Commission as its co-chairman. Besides meeting his counterpart and Russia’s First Deputy Prime Minister Mr Yuri Maslyukov, Finance Minister called on Russian Prime Minister Mr Y Primakov, Finance Minister Mr M M Zadornov and Deputy PM Mrs V I Matvienko.

Russian Prime Minister Mr Yevgeny Primakov paid an official visit to India from 20-22 December, 1998. During the visit, he called on President, Vice President and PM, and met Lok Sabha Speaker and EAM besides other high Indian dignitaries. Discussions took place in the warm and friendly atmosphere traditional to Indo-Russian interaction. There was a coincidence of views on practically all issues discussed, and both sides expressed satisfaction that bilateral cooperation was proceeding well. Both sides reiterated their commitment to close and stable relations in a long-term perspective. During the visit seven bilateral documents were signed in the presence of the two Prime Ministers. Mr Primakov also attended a business seminar organised by CII.

Chairman of the Federation Council of the Federal Assembly of the Russian Federation, Mr Y S Stroev, accompanied a high-level parliamentary delegation including eight regional governors visited India from 8-10 February, 1999. During the visit Mr Stroev and the delegation called on the President, Vice-President, Lok Sabha Speaker and Home Minister.

Russian Defence Minister Mr Sergeev is expected to visit India from 11-15 March, 1999.

India’s relations with other countries of the CIS - Armenia, Belarus, Georgia, Moldova, Ukraine – continued to develop satisfactorily.

Smt Vasundhara Raje, Minister of State for External Affairs met Mr Ivan Antonovich, the Foreign Minister of Belarus in New York on September 29, 1998 during the 53rd Session of UNGA.

Belarusian Foreign Minister, Mr Ivan Antonovich, paid an official visit to India from 13-17 October, 1998, during which he held talks with MOS for External Affairs. He also called on Prime Minister, the Vice President, and Industry Minister. An Indo-Belarus ITEC Agreement was signed during the visit.

Industry Minister, Shri Sikander Bakht, led the Indian delegation to Minsk from 25-28 October, 1998 at the 1st session of the Indo-Belarus Inter-Governmental Commission. He co-chaired the session with the Belarusian Industry Minister. During the visit, he called on the Belarusian President, Prime Minister and Minister of Foreign Economic Relations.

Minister of State for Coal, Shri Dilip Ray, accompanied by officials from Coal India Ltd. visited Minsk from 10-12 January, 1999. During the visit CoalMinister called on the Prime Minister Mr Sergei Ling and also held discussions with the Belarus Minister for Industry, Mr A D Kharlap.

India’s relations with the countries of Central/East Europe and the three baltic Republics, i.e., Lithunia, Latvia and Estonia– continued to be close and productive. High level visits were exchanged with several of these countries during the course of the year, which confirmed the importance and priority that these countries attach to their relations with India.

Bosnia and Herzegovina opened its resident Mission in New Delhi in 1998.

Bulgarian Deputy Minister of Trade and Tourism, Mr Hristo Mihailovski visited India from 27-30 April, 1998, accompanied by a group of officials and businessmen. He called on the Commerce Minister, MOS for Agriculture and Commerce Secretary.

The 12th Session of Indo-Bulgarian Joint Commission was held in Sofia from 22-25 September, 1998. MOS for Agriculture, Shri Sompal, led the Indian side and met Bulgarian PM Kostov, Speaker Sokolov, and the Ministers of Trade, Transport and Agriculture.

President Petar Stoyanov paid a state visit to India from 25-28 October, 1998 accompanied by his wife and a high-level official delegation. He had separate meetings with the President, the Vice-President and the Prime Minister. The Indo-Bulgarian BIPA, an Agreement on Mutual Cooperation between ITPO and the International Fair Inc. Plovdiv, an MOU between the National Centre for Trade Information (NCTI) and the Bulgarian Export Promotion Centre, and an MOU between the CII and the Bulgarian Industrial Association were signed. President Stoyanov visited Agra, Udaipur and Mumbai. The 10th meeting of the Indo-Bulgarian Joint Business Council was convened in New Delhi on 27 October, 1998 coinciding with the visit to India of the Bulgarian President.

Bulgurian Deputy Minister of Transport, Mr IIko Miloushev, visited India from 8-10 December, 1998 to take part in a seminar organised by the Ministry of Railways. He met Railway Minister Shri Nitish Kumar, Minister for Surface Transport Shri Thambi Durai, MOS for Agriculture Shri Som Pal and senior officials of the Ministry of Civil Aviation, RITES, Cimmco Birla and Konkan Railways.

Mr George Ganchev, MP and Chairman of the Bulgarian Parliamentary Group for "Friendship with India" visited India from 21-26 February, 1999. He called on Shri Krishna Kant, Vice President of India and Shri G M C Balayogi, Lok Sabha Speaker. He also met Shri P R Kumaramangalam, Parliamentary Affairs Minister, Shri R K Hegde, Commerce Minister, Smt Vasundhara Raje, MOS (External Affairs), and Shri Som Pal, MOS for Agriculture, and attended a lunch hosted by FICCI in his honour.

Croatian Minister for Economy Mr Nenad Porges led the Croatian delegation to the Fourth session of the Indo-Croatian Joint Committee on Trade and Economic Cooperation which took place on 16-18 November, 1998 in New Delhi. He met Minister of Commerce Shri R K Hegde, Minister of Surface Transport, Shri M Thambidurai, Minister of Petroleum and Natural Gas Shri K Ramamurthy.

Croatian Minister for Culture Mr Bozo Bispkupic is expected to visit India on 4-6 March, 1999.

The President of Croatian Parliament Dr Vlatko Pavletic will be leading a Parliamentary delegation to India from 28 March to 4 April, 1999.

Minister of State for Coal, Shri Dilip Ray, visited Prague in May 1998, and held detailed discussions with the Czech Trade and Industry Minister, Mr Kuhnl.

The Indo-Czech Agreement on Avoidance of Double Taxation was signed in Prague on 1 October, 1998 by the Indian Ambassador and Czech Finance Minister, Mr Ivo Svoboda.

The Third session of the Joint Committee took place in Prague on 5 & 6 October, 1998. The Indian delegation was led by Shri P Prabhu, Commerce Secretary, and the Czech delegation was led by First Deputy Minister of Industry and Trade, Mr Vaclav Petricek. Commerce Secretary also met the Minister of Industry and Trade, Mr Miroslav Gregr, and Deputy Finance Minister, Miloslav Fiedler. The 2nd meeting of the Indo-Czech Joint Business Council was held simultaneously with the meeting of the Joint Committee in Prague on 5 & 6 October, 1998, which was attended by Indian businessmen.

A Czech Parliamentary delegation led by the President of the Chamber of the Deputies of the Czech Parliament, Mr Vaclav Klaus, is expected to visit India from 8-14 March, 1999. Mr Klaus will be accompanied by his wife, six Members of Parliament and government officials.

The President of the Republic of Estonia, Mr Lennart Mery, paid a State visit to India 3-10 February, 1999. During the visit, President Mery had separate meetings in New Delhi with the President, the Vice President and the Prime Minister of India as well as other Indian dignitaries. An Indo-Estonian Agreement on Co-operation in the field of Science and Technology and an MOU on co-operation between FICCI and the Estonian Chamber of Commerce was signed during this visit. Besides New Delhi, President Lennart Meri also visited Agra, Jaipur and Mumbai.

Foreign Minister of FRY, Mr Jovadin Jovanovic, met Smt Vasundhara Raje, Minister of State for External Affairs in New York on 29 September, 1998 during the 53rd session of the UNGA. Discussions were held on the need to intensify and renew bilateral cooperation in all fields.

The FRY Minister for Agriculture Mr Nedelijko Sipovac, visited India on 2-7 November, 1998. He met Shri Som Pal, Minister of State for Agriculture, Shri R K Hegde, Minister of Commerce, Shri P A Sangma, Member of Parliament, and called on the Vice President of India. He also visited Maharashtra and met the Chief Minister, Shri Manohar Joshi, and the Minister of Agriculture of Maharashtra, Shri Harsh Vardan Patil.

Dr Murli Manohar Joshi, Minister for Human Resource Development, visited Hungary on 26-28 November, 1998 in connection with the Golden Jubilee of the establishment of diplomatic relations between India and Hungary. He inaugurated a symposium on "Hungary, India and the European Union" on 26th November, 1998. Dr Joshi called on Hungarian President Dr Arpad Goncz and held discussions with Prof Janos Hamori, Minister for National Cultural Heritage, Dr Janos Martonyi, Minister for Foreign Affairs and Dr Zoltan Pokornyi, Minister of Education. The Cultural Exchange Programme for 1999-2000 was also signed during the visit.

To commemorate the 50th Anniversary of the establishment of diplomatic relations between India and Hungary, an International Round Table Conference on "India and Hungary: Perspectives on the Changing World Order"was held at the School of International Studies, Jawaharlal Nehru University, New Delhi from 17 - 18 November, 1998, with the participation of distinguished academics and experts from India and Hungary.

A Hungarian Parliamentary delegation led by Dr Janos Ader, Speaker of the Hungarian Parliament is expected to visit India on 7-13 March, 1999.

Latvian Under Secretary of State Mr Janis Karklins, visited India from 7-12 December, 1998. He held discussions at MEA, besides visiting the 5 Latvian pilots detained in Calcutta in connection with the Purulia Arms Dropping Case. During the visit, he and Joint Secretary (East Europe) initialed the text of the Agreement on the establishment of an Indo-Latvian Joint Commission.

The Chief of General Staff of the Polish Armed Forces Lt Gen H Szumski visited India on 30 March - 3 April, 1998, and called on Raksha Mantri, COAS, CAS, Defence Secretary and Secretary (West).

Indo-Polish Working Consultations on Trade and Economic Related Issues were held in Warsaw on 22 & 23 June, 1998.

The Indo-Polish Working Group on Coal under the Indo-Polish Joint Commission for Economic, Trade, Scientific and Technical Cooperation met in Warsaw on 14 October, 1998. The Indian delegation was led by Mr S S Boparai, Secretary (Coal) who held discussions with the Deputy Minister of Economy, Mr Jan Szlazak and called on Mr Janusz Steinhoff, the Minister of Economy.

Mr Czeslaw Bielecki, Chairman of the Foreign Relations Committee of the Polish Parliament (Sejm) visited India on 14-16 February, 1999 to participate in the "Global Conference on Democracy" jointly organised by CPR and CII in New Delhi. He met Smt Vasundhara Raje, MOS (External Affairs) and Shri I K Gujral, Chairman, Standing Committee on External Affairs of the Indian Parliament.

The Deputy Defence Minister of Poland Mr Romuald Szeremietiew, is expected to visit India from March 22, 1999.

The 13th session of the Indo-Romanian Joint Commission was held on 15-16 December, 1998. Commerce Minister, Shri R K Hegde, visited Bucharest. He met PM Radu Vasile, Foreign Minister Andrei Plescu and the Romanian Ministers of Health, Finance, Industry and Commerce. Commerce Minister also led the Indian delegation as Co-Chairman of the Indo-Romanian Joint Commission. The Romanian side was led by Industry Minister, Mr Radu Berceanu. A Protocol was signed between the two governments on Economic, Scientific and Technical cooperation.

Shri Suresh Prabhu, Minister of Environment and Forests, visited the Slovak Republic from 3-6 May, 1998 to attend the Ministerial Round Table of the 4th Meeting of the Conference of Parties to the Convention of Biological Diversity.

The third session of Indo-Slovak Joint Committee took place on 7-8 October, 1998 at Bratislava. The Indian delegation was led by the Additional Secretary in the Ministry of Commerce, who is also the co-chairman on the Indian side. The Slovak delegation was led by Mr Dusan Gutan, Vice-Minister, Ministry of Economy. The delegation was received by the Minister of Economy, Mr Milan Cagala, State Secretary in the Ministry of Finance, Mr Peter Stanec, and by the Director General in the Ministry of Foreign Affairs, Mr Anton Pitner. A meeting of the Indo-Slovak Joint Business Council took place at Bratislava on 7 & 8 October, 1998, concurrently with the Joint Committee meeting.

Smt Vasundhara Raje, Minister of State for External Affairs met Dr Ernest Petric, State Secretary, Ministry of Foreign Affairs of Slovenia on September 1, 1998 during the meeting of the Nonaligned Movement held in Durban.

Dr Ernest Petric, State Secretary, Ministry of Foreign Affairs of Slovenia, visited New Delhi on 2-6 February, 1999 for the fourth round of Indo-Slovene Foreign Office Consultations. During the visit, he held discussions with Secretary (West). He met Shri Nripendra Mishra, Additional Secretary, Ministry of Commerce, and called on Smt Vasundhara Raje, Minister of State (External Affairs), and Smt Maneka Gandhi, Minister of State, Ministry of Welfare.

Western Europe

West Europe is a region of considerable political and economic significance to India. The European Union (EU), of which 15 countries of the region are members, is India's largest trading partner and the second largest source of approved foreign investment. The adoption of the Euro by 11 of its member states and the evolution of a Common Foreign and Security Policy are significant pointers to the emergence of an "European identity", which would have an increasingly important role in international affairs.

Normal dialogue and interaction has continued in 1998-99 with the countries of West Europe, as also with the EU. A number of high level visits have been exchanged with West Europe. The President visited Germany, Portugal and Luxembourg, in September 1998. The Prime Minister visited France in Sept-Oct 1998. We have also received the visits of the President of Switzerland, and the Crown Prince of Belgium and the Prime Minister of Luxembourg . The 11th Round of the India-EU Troika Ministerial Meeting was held in New Delhi on November 13, 1998. There has also been an exchange of several other Ministerial visits with various other countries. High level official consultations have been conducted with France, the UK and Germany.

During this period, India’s trade with the countries of the region has grown and there has been a further strengthening of the investment and technology cooperation ties between India and Europe. The diversification and deepening of the economic linkages and continuing political dialogue between the two sides reflects a shared desire to pursue a closer relationship for mutual benefit.

While most of the countries in West Europe and the EU expressed concern at the nuclear tests conducted by India in May 1998, the specific reactions by different countries were far from uniform. A few countries like the Netherlands, Switzerland, Norway, Sweden and Denmark imposed unilateral economic measures (primarily curtailing development assistance and banning arms sales) with the others being opposed to such action.

Austria held the Presidency of the EU during the second half of 1998. In this capacity the Austrian Minister of State for Foreign Affairs, Dr (Mrs) Benita Ferrero Waldner led the EU Troika delegation at the 11th India-EU Troika Ministerial Meeting held in New Delhi on November 13, 1998.

Our bilateral relationship with Belgium has progressed well. Belgium is the 7th largest trading partner for India. Bilateral trade, dominated by trade in diamonds, was over US $ 4 billion in 1997. The total approved Belgian investment in India from 1991 to Aug 1998 has been around US $ 1 billion, making Belgium the 9th largest investor in India in terms of approval figures. There are around 140 Indo-Belgium joint ventures in operation.

H.R.H. Crown Prince Philippe of Belgium, accompanied by the Deputy Prime Minister and Minister for Economy and Telecommunications, in-charge of Foreign Trade, Mr Elio Di Rupo, led a large high level business delegation to India from 22-29 November, 1998 at the invitation of the Vice President. The delegation included nearly 80 senior representatives of professional organisations, top Belgian companies and financial institutions. The 9th Session of Indo-Belgium-Luxembourg Economic Joint Commission was held in Brussels on 29 June 1998. Commerce Secretary led the Indian delegation and the Secretary-General, Ministry of Foreign Affairs, External Trade and Development Cooperation of Belgium led the Belgium-Luxembourg side.

The 3rd Session of the Indo-Cyprus Joint Economic Committee was held in Nicosia in September, 1998. A Protocol was signed at the end of the meeting by the heads of the two delegations. An MoU between the National Centre for Trade Information (NCTI) of India and the Cyprus Chamber of Commerce and Industry for exchange of information on electronic media, country and product profile, trade statistics, import tariffs, import/export policy was also finalised on this occasion.

Indo-French relations have continued to progress in a satisfactory manner. There has been an intense high level substantive political dialogue between the two sides. Bilateral economic relations with France have also progressed satisfactorily. The Prime Minister visited France on 29 & 30 September, 1998. He held discussions with President Chirac, Prime Minister Jospin and Defence Minister Richard. His visit helped consolidate the progress in bilateral relations subsequent to President Chirac’s visit to India in January 1998. Raksha Mantri visited France from 11-13 January, 1999 and held detailed discussions with his French counterpart. The Minister of Railways visited France from 19-20 January, 1999. Principal Secretary to PM visited France from 1-2 June, 1998 as Special Envoy of the Prime Minister and from 18-19 January, 1998.

The Indo-French Forum (IFF), a high level non-governmental group of eminent personalities from both sides, set up in January 1998 to advise on ways of diversifying and enriching the bilateral relations, held its first meeting in Paris on 2 & 3 July, 1998. Dr Karan Singh and Mr Jean Francois-Poncet are the two Co-Chairman of the Forum. The second meeting of the Forum was held in New Delhi from 16-17 February, 1999.

The French Minister of State for Trade and Commerce, Mr Jacques Dondoux led the French delegation for the ninth meeting, of the Indo- French joint Committee for Economic and Technical Cooperation held in New Delhi in November 1998. On 24 November, 1998, officials of the Ministries of Industries of India and France, signed a ’Protocol of Intent’ for cooperation. Mr Laurent Fabius, former Prime Minister of France and the present President of the French National Assembly led a Parliamentary Delegation to India from 15- 17 September, 1998. Mrs. Segolene Royal, the French Minister of State for Education visited India from 28 Nov - 1 Dec, 1998. She inaugurated the French Education Fair in New Delhi during the visit.

Indo-German relations have grown closer in recent years. Germany is India's largest trading partner in Europe and the second largest overall. The two-way trade is of the order of DM 9 billion (over US $ 6 billion). Approved German investment in India in 1997 was worth Rs 21.5 billion million and the figure for the period 1991-August 1998 is over Rs. 64 billion. Germany is also an important source of technology and has cooperated in various development projects in India.

The President visited Germany from 6-10 September 1998. This was the first Head of State/Government visit from either side in four years. The President held discussions with the German President, Chancellor and Foreign Minister. A Memorandum of Understanding on bilateral Cooperation in the field of Environment was signed by two sides during the visit.

Mr Guenther Verheugen, one of the two new Ministers of State for Foreign Affairs in Germany, visited India on 13 November 1998 for the 11th India-EU Troika Ministerial Meeting. A high level business delegation, led by Dr Walter Doering, Minister for Economic Affairs in the state of Baden Wuerttemberg, visited India from 22-28 March, 1998. Dr Franz-Josef Feiter, State Secretary and Deputy Federal Minister for Food, Agriculture and Forestry led an economic delegation to India during the same period. Mr Rudolf Kraus, State Secretary in the Federal Ministry of Labour, visited India from 13-19 April, 1998.

The 13th session of the Indo-German Joint Commission on Industrial and Economic cooperation was held in New Delhi from 8-10 January, 1998. The then Finance Minister of India and the then Minister of Economics of Germany, Mr Guenter Rexrodt jointly chaired the meeting. The seventh annual meeting of the high-powered Indo German Consultative Group was held in Dresden on 29 & 30 August, 1998. Bilateral Foreign Office Consultations, at the level of Foreign Secretary, were held in Bonn on 13 July, 1998. The Instruments of Ratification of the Agreement for Bilateral Investment Promotion and Protection were exchanged by the two sides during the visit.

Indo-Greek relations made significant progress. The Greek National Minister for Defence, Mr Apostolos-Athanasios Tsohatzopoulos visited India from 5-8 December, 1998. His visit coincided with Aero India ’98, to which he was invited by Raksha Mantri. An MoU on Defence Cooperation between India and Greece was signed during the visit. The Greek Defence Minister called on the Prime Minister and had detailed meetings with Raksha Mantri and the three Service Chiefs. Foreign Office Consultations were held with Greece on November 30 & December 1, 1998.

The 13th Session of the Indo-Italian joint Commission on Economic Cooperation was held in Rome from 17-18 December, 1998. The Indian delegation was led by our Commerce Minister while the Italian side was led by the Italian Minister for Foreign Trade, Piero Fassino. Both sides reviewed bilateral industrial cooperation projects and renewed their commitment to maintaining and strengthening the multilateral trade system. The fourth session of the Indo-Italian joint Committee on S&T Cooperation was held in New Delhi/Calcutta on 9 & 10 November, 1998. The Indian delegation was led by Secretary, Dept. of S&T, Ministry of S&T while the Italian delegation was led by H. E. Mr Gaetano Zucconi, Ambassador of Italy in India. Both sides agreed to promote joint activities in S&T areas of mutual interest. Foreign Office consultations will be held in Rome shortly, the first since October 1996.

There has also been an intensification of our linkages with Luxembourg. The President visited the Grand Duchy of Luxembourg from 14- 16 September, 1998 at the invitation of the Grand Duke jean. This was the first major high level political visit from either side in the last 25 years. The President held discussions with the Grand Duke, Prime Minister Jean-Claude Juncker, Deputy Prime Minister and Minister of Foreign Affairs Jacques Poos and the President of the Chamber of Deputies Jean Spautz. The Prime Minister of Luxembourg visited India from 11-13 January, 1999. This was the first visit by a Prime Minister of Luxembourg to India. The Instruments of Ratification of the bilateral agreement on cooperation in the fields of art and culture, education, mass media and sports were exchanged during the visit.

India’s relations with the Netherlands have a strong economic content, with a growing bilateral trade of the order of US $ 1.5 billion and total approved Dutch investment of over Rs. 37 billion (1991-July 1998). The Netherlands is our sixth largest trading partner in Europe. The Netherlands ranks 8th in terms of overall approved investment in India since 1991. The Netherlands was among the few countries to have imposed economic measures - restrictions on the sale of arms and on certain categories of government-to-government credit and project assistance against India in the wake of the nuclear tests. Commerce Minister visited the Netherlands in October 1998.

The Nordic countries were critical of India’s nuclear tests. While Sweden, Norway and Denmark stopped their development assistance programmes to India, Finland and Ireland did not impose any economic measures.

The Danish Minister for Development Cooperation, Mr Poul Nielson visited India from April 1-4, 1998 at the head of their delegation to the Assembly of the Global Environment Facility.

The Ethics Committee of Rajya Sabha, led by Shri S B Chavan, visited Finland in May, 1998. A Finnish Parliamentary delegation led by the Deputy Speaker of Finnish Parliament, Mr Mikko Pesala returned the visit and was in India from 13-19 November, 1998. Earlier, in June, 1998, the Minister of State for Communications visited Finland to attend the Inter-Governmental Conference on Emergency Telecommunications.

The Secretary-General to the Icelandic President, Ambassador Kornelius Sigmundsson visited India from 29 August - 2 September, 1998.

The Deputy Foreign Minister of Norway, Mr Leiv Lunde visited India from 31 March - 4 April, 1998 at the head of the Norwegian delegation to the Assembly of the Global Environment Facility. Two consular agreements; an "Agreement on the Transfer of Convicted Offenders" and a Treaty for "Mutual Legal Assistance in Criminal Matters" were initialled by both the sides in May 1998.

Our relations with Portugal received an impetus with a series of high level visits. The President visited Portugal from 10-14 September, 1998. He held discussions with Mr Jorge Sampaio, the Portuguese President and Mr Antonio Guterres, the Portuguese Prime Minister. He also visited the EXPO ’98 Exhibition in Lisbon. A Double Taxation Avoidance Agreement between Portugal and India was signed during this visit. A nine member parliamentary delegation from Portugal visited India from 15-22 December, 1998. The delegation was led by Dr Antonio De Almeida Santos, President of the National Assembly. This was the first visit to India by a parliamentary delegation from Portugal to India. The Third Session of the Indo-Portuguese joint Business Council was held in New Delhi on 5 & 6 January, 1999. The Portuguese Secretary of State for Economy, Prof. Fernando Pacheco visited India from 6-9 January, 1999 for the CII Partnership Summit in Jaipur.

Normal interaction continued with Spain. Bilateral Foreign Office Consultations were held in Madrid on 3 & 4 December, 1998. The Indo-Spanish Joint Commission and joint Business Council was held in Delhi from 15-16 February, 1999.

The President of Switzerland, Mr Flavio Cotti, was in India on a State Visit from 20-25 November, 1998. This was the first ever visit to India by a Swiss President. He was accompanied by a ten member 'business delegation. He called on President, Vice President and held discussions with PM. He also visited the cities of Mumbai and Bangalore and interacted with the business communities.

Our relations with UK are important with a tangible and modern economic content, apart from the historical dimension. India’s annual trade with the UK is of the order of Pounds Stg 3.3 billion. The UK is also the largest cumulative investor in India with a figure of Pounds Stg 3 billion. The presence of a large community of Indian origin, which has done well economically, strengthens the traditional links between the two countries.

The UK in its individual capacity and as the then EU Presidency had been initially critical of the nuclear tests conducted by India. Since then bilateral consultations at a high level have helped to place relations on a firmer footing. The Principal Secretary to PM visited UK on 4 & 5 June, 1998, as the Special Envoy of the Prime Minister and on 20 & 21 January, 1991. The visit of Mr Derek Fatchett, Minister of State for Foreign Affairs and Commonwealth to India in November 1998 was also beneficial. The External Affairs Minister visited UK from 2-7 February, 1999. During this visit, discussions were held on a wide range of issues, including, inter alia, bilateral cooperation, regional developments, nuclear disarmament and non-proliferation. These have proved to be useful in promoting greater mutual understanding.

Chief Emeka Anyaoku, the Commonwealth Secretary General (CSG), visited India from 13-18 February, 1999. The visit was part of the traditional round of consultations that the CSG undertakes with member countries before a Cornmonwealth Heads of Governments Meeting, the next one being held in South Africa in November 1999. During the visit, the CSG called on the President, the Prime Minister and the Minister of External Affairs. The CSG’s visit to India coincided with the Asia Trade and Investment Forum organised by the Commonwealth Business Council and the Confederation of Indian Industry, from 14-16 February, 1999.

Developments with far reaching impact are presently taking place at the EU level. The finalisation of the Economic and Monetary Union with the adoption of a single currency Euro by 11 member states of the EU from January 1999 has significance for the international financial system as also implications for the attempts to forge a "European identity" in international affairs. The EU is working on plans for an eastward expansion and there is a serious discussion on the need for its internal financial reforms. There have been moves towards initiating a discussion on NATO’s nuclear doctrine and the scope and mandate of its activities, even as it prepares to accept three new members from 1999, its 50th anniversary year. The forthcoming NATO Summit to be held in Washington in April 1999 is expected to consider a New Strategic Concept for the organization which may go beyond the defence of the territories of member countries. These developments impact on the evolving security architecture in Europe and have implications for the security around that region.

The EU, with its fifteen member countries is the largest economic entity in the world today. It is India's largest trade partner with an annual bilateral trade of over US $ 21 billion in 1997. It is also India’s second largest source of approved foreign investment (over Rs 300 billion during 1991-August 1998) and an important partner in technology cooperation.

The 11th Round of annual India-EU Ministerial level talks was held in New Delhi on 13 November, 1998. MOS (EA) led the Indian delegation at the talks. The delegations from the EU side consisted of the then Presidency (Austria), European Commission, Germany (next incumbent) and the UK (past incumbent). These were led by Dr (Mrs) Benita Ferrero-Waldner, Minister of State for Foreign Affairs of Austria, Mr Manuel Marin, Vice President of the EC, Mr Guenther Verheugen, Minister of State for Foreign Affairs of Germany and Mr Derek Fatchett, Minister of State, FCO, UK respectively. The discussion covered India-EU relations, new initiatives in this regard, regional developments, disarmament and non-proliferation, reform of the UN, international terrorism and other subjects of mutual interest. The first India-EU Senior Officials Meeting had earlier been held in London on 21 April, 1998. The first meeting of officials of the two sides dealing with Policy Planning was held in April 1998 in New Delhi.