South East Asia and the Pacific

India’s relations with the countries in the South East Asian region have expanded and diversified and more so since the conscious adoption of our ‘Look East’ policy which sought to strengthen existing linkages and forging new ones with the ASEAN countries. The closeness of relationship was reflected in the exchange of visits with these countries, including visit of H.R.H. Crown Prince of Thailand to India and holding of Joint Commission Meetings with Laos and Vietnam. Total bilateral trade with ASEAN countries in 1997-98 was US$ 5.98 billion compared to US$ 5.99 billion in 1996-97. The marginal decline in bilateral trade can be largely attributed to the fall in the value of the currencies of ASEAN countries and contraction in imports from India. The economic difficulties facing these countries have posed new challenges and we offered to cooperate with these countries in finding ways and means to ensure that the crisis does not adversely impact on our economic & commercial relations.

Our ties with ASEAN have been developing satisfactorily since India became a Full Dialogue Partner of the ASEAN in 1996. The ASEAN India Joint Cooperation Committee Meeting held in New Delhi in April 1998 provided important mechanisms for implementing various decisions. India has a fundamental interest in the regional security issues as we share maritime boundaries with several ASEAN countries and land and maritime boundary with Myanmar. India sought to promote wider and deeper contact with ASEAN countries in the ASEAN and ARF framework to promote peace development and security in the region. Shri Jaswant Singh, Deputy Chairman, Planning Commission and a special envoy of PM led the Indian delegation to the 31st ASEAN Post Ministerial Conference (PMC) and the 5th ASEAN Regional Forum (ARF) meetings held in Manila in July 1998. The ARF Meeting was significant for India as it was the first time after our nuclear tests that all nuclear weapons States were interacting in a security related forum. The meetings provided opportunities for important bilateral interactions with ASEAN and ARF members.

Following our nuclear tests in May last year, Australia had taken several measures including ban on visits to India of Ministers and senior officials and suspension of defence cooperation and non-humanitarian aid. In response to the Australian measures Indian Government took reciprocal actions. The Australian government in December, 1998 decided to relax the suspension on Ministerial and senior officials’ visits, but the other restrictions remained in place. The Australian Government has recently been trying to start official contacts at high level. Australian deputy PM and Minister of Trade Tim Fisher is scheduled to visit India from February 25-27, 1999 to co-chair the Joint Ministerial Commission Meeting with Commerce Minister.

Cambodia

After months of infighting and violent incidents, general elections were held in Cambodia on July 26 to elect a 122 member National Assembly. These elections were the first since a UN-organised vote in 1993 which followed years of war and political upheaval. In the five years since that poll, Cambodia witnessed further violence and bloodshed. The National Election Committee of Cambodia declared the poll results on 1 September showing that the Cambodian Peoples Party (CPP) led by Hun Sen had won 64 seats, followed by Prince Norodom Ranariddh's FUNCINPEC with 43 seats and the SAM RAINSY’s party with 15 seats. At a summit held on 12 &13 November, under the auspices of King Norodom Sihanouk, the CPP and the Funcinpec reached an agreement, to form Cambodia's next coalition government ending a deadlock of almost three months since the declaration of the results. In accordance with the deal, Mr Hun Sen was appointed as the sole Prime Minister; Prince Ranariddh as the President of the National Assembly and Mr Chea Sim, President of CPP becoming the Chairman of a newly created Senate.

India maintained friendly and close relations with Cambodia. On Cambodian Government’s request, a team of five officials led by Shri Sayan Chatterjee, Deputy Election Commissioner from the Election Commission was deputed to Cambodia from 19-29 July as Observers to observe the elections. Bilateral trade during 1997-98 amounted to Rs. 10.3 crores. India donated medicines worth Rs. Five lakhs for humanitarian assistance to the internally displaced persons in Cambodia. As part of the Celebrations of the 50th Anniversary of India’s Independence a Photo Exhibition was organised in July 1998 and Leela Samson’s Group gave two dance performances.

General Ke Kim Yan, Chief of General Staff, Ministry of Defence of Cambodia led a 3-member delegation for participation in the AeroIndia ‘98 at Bangalore from 6-14 December, 1998.

The UN General Assembly, on the recommendations of the Credentials Committee decided (December 7) to give Cambodia’s seat in the UN to the new coalition government after keeping it vacant for fifteen months.

At the 6th ASEAN Summit held in Hanoi on 15-16 December, 1998, it was decided to admit Cambodia as the ASEAN’s tenth member at a special admission ceremony to be organised in Hanoi on a subsequent date.

Lao People's Democratic Republic (Lao PDR)

India’s relations with Lao People’s Democratic Republic (Lao PDR) continued to be close and cordial with Laos showing considerable understanding on matters of importance to India. Dr Souli Nanthavong, Vice-Minister of Science, Technology and Environment of Laos visited India from 1-4 April to participate in the Global Environment Facility Conference at New Delhi. Shri S T Devare, Secretary (ER) visited Vientiane from 5-6 July, 1998 and had detailed discussions with the Lao Deputy Prime Minister, Vice-Minister of Foreign Affairs and other officials. Lao Vice-Minister of Commerce, Mr Siaosavath Savengsuksa visited India from 15-17 November to attend the India-G77 and China Trade Conference.

Bilateral trade with Laos during 1997-98, while remaining at a modest level, showed a healthy increase, at Rs. 2.9 crores compared to Rs. 1.3 crores in 1996-97 and maintained the trend during 1998-99. Several Indian companies such as Kirloskars, Tatas, BHEL, PEC etc. evinced keen interest in exploring the Lao market. Kirloskar Bros. Ltd., which exported irrigation pumps worth about US$ 30 million to Laos, set up a showroom-cum-service centre in Vientiane.

As part of 50th Anniversary Celebrations of India's Independence, an exclusive Indian Photo Exhibition was held at Savannakhet from 24-26 July; a Seminar titled 'India and Laos: Areas of Understanding and Cooperation' was held in Vientiane from 27-29 July; a Bharatnatyam dance recital by Ms Leela Samson and her troupe was held in Vientiane on 12 August and a Hindi feature film ‘Aasman Se Gira’ was screened in a prominent auditorium on the eve of the Birth Anniversary of Maulana Abul Kalam Azad on 10 November. 21 officials of the Lao Government attended training courses in India under ITEC and Colombo Plan. In one of the major archaeological findings in the southern Champassak Province, Hindu religious relics and symbols (Shiva Lingam) were discovered in September, reinforcing the strong cultural and civilizational links between the two countries between 5th and 17th century AD. Three Lao artisans visited Bhopal in May at the invitation of the Indira Gandhi Rashtriya Manav Sangrahalaya to participate in the Workshop & Exhibition of Folk and Tribal Artists from South East Asia and India.

Smt Vasundhara Raje, Minister of State for External Affairs visited Laos from 17-20 January, 1999 to co-chair the second Meeting of the India-Laos Joint Commission (JCM) held in Vientiane on 18-19 January, 1999. The Lao delegation was led by H. E. Mr Phongsavath Boupha, Vice-Minister of Foreign Affairs of The Lao’s People’s Democratic Republic. In their discussions at the JCM, the leaders of the two delegations reviewed the overall state of bilateral relations and agreed to further strengthen and upgrade the existing economic and cultural relations which will be commensurate with the excellent political bilateral relations. During her visit to Laos, MOS called on the President and the Deputy Prime Minister and the Foreign Minister of Lao PDR. An Agreement for US $ 2 million soft credit to Laos and a Protocol to renew the Cultural Exchange Programme for another three years (1999-2001) were signed during the visit.

Vietnam

India and Vietnam continued to work towards further strengthening and diversifying the existing traditionally close and friendly relations. The 4th session of the India-Vietnam Joint Working Group Meeting (JWG) was held at Hanoi from 25-27 April and co-chaired by Shri S T Devare, Secretary (ER) from the Indian side. During the JWG detailed discussions were held with the Vietnamese side on promotion of bilateral trade and expansion of cooperation in agriculture, science and technology and small and medium industries. Smt Vasundhara Raje, Minister of State for External Affairs paid a visit to Hanoi on 18 & 19 June and had detailed discussions with Deputy PM and Foreign Minister Mr Nguyen Manh Cam. In October 1998, Smt Suseela Gopalan, Minister of Industries of Kerala led a four-member delegation to Hanoi and had high level discussions with the Vietnamese ministers for enhancing trade between the two countries. Shri Dilip Ray, Minister of State for Coal, accompanied by a high level delegation paid a visit to Vietnam from 4-7 November to discuss programme of cooperation between India and Vietnam in the field of coal trade.

Bilateral trade during 1997-98 (Rs 478.2 crores) registered a marginal increase of 12.5 % over the 1996-97 volume of Rs 425.2 crores and continued to grow further during 1998-99. The Embassy of India, Hanoi organised the Second Pride of India Exhibition at Hanoi from 23-26 October, 1998 in which 28 Indian companies, both from private and public sector displayed state-of-the-art products in various industries and services. Coinciding with the Exhibition were: the 3rd Meeting of the India-Vietnam Joint Business Council in Hanoi and a visit of nine-member delegation from Engineering Export Promotion Council to Hanoi and Ho Chi Minh City for business promotion.

Funds were raised in April 1998 for upgrading a School in Nam Mao Commune and with the approval of the Vietnamese Government the school was renamed ‘The Vietnam-India Friendship School’. Three Vietnamese artists visited Bhopal in May at the invitation of the Indira Gandhi Rashtriya Manav Sangrahalaya to participate in the Workshop & Exhibition of Folk and Tribal Artists from South East Asia and India. The Leela Samson dance troupe visited Vietnam in August and gave performances at Hanoi, Ho Chi Minh City and Da Nang. A 12-member team of Indian scientists participated in the 5th ASEAN Science & Technology Week held at Hanoi from 5-15 October. The 2nd session of India-Vietnam Joint Commission for Science & Technology (JCST) was held on November 2 & 3 in New Delhi. A Seminar on India-Vietnam Studies was organised in Ho Chi Minh City on 5 November. Six Indian scientists visited Vietnam from 10-12 November to participate in the first ever joint seminar on biotechnology. A delegation from Vietnam's Institute of Oceanography visited Goa in October to participate in the International Symposium on Information Technology and discuss bilateral cooperation. Historic photographs of President Ho Chi Minh and Nehru taken on the occasion of Nehru’s visit to Hanoi and Ho Chi Minh's visit to Delhi in 1958 were presented on Children’s Day (14 November) to Ho Chi Minh Museum for permanent display. Three Indian Naval Ships – INS Rajput, INS Delhi and INS Khanjar paid a Goodwill visit to Vietnam from 1-4 October. Regular exchanges of armed forces delegations from both sides took place.

The cultural Exchange Programme between India and Vietnam for the years 1998-2000 was signed at Hanoi on 14 December, 1998.

Vietnam hosted the 6th ASEAN Summit at Hanoi on 15-16 December, 1998. The Summit leaders outlined a ‘hanoi plan of Action’ for the period 1999-2004 indicating measures aimed at enhancing intra-regional economic integration, trade liberalization and financial cooperation and to establish an ASEAN free trade area by 2002.

An 8-member Vietnamese Parliamentary delegation visited India from 13-22 December, 1998 on a study tour on population and development policy under UNFPA Hanoi – Country Programme.

Dr R Chidambaram, Chairman, Atomic Energy Corporation of India led a six member delegation to Vietnam from 14-19 January, 1999 to discuss bilateral cooperation programme with Vietnam Atomic Energy Corporation.

H. E. Mr Nguyen Manh Cam, Deputy Prime Minister for Foreign Affairs of the Socialist Republic of Vietnam visited India from 30 January, 1999 to co-chair the 9th meeting of the India-Vietnam Joint Commission held in New Delhi. During the visit H. E. Mr Cam called on the President and the Prime Minister. At the Joint Commission Meeting, discussions were held on bilateral, regional and international matters of mutual interest and for reviewing the ongoing cooperation and identifying fresh areas with a view to enhancing bilateral interaction. An agreement for extending soft credit of Rs. 47 crores to Vietnam and a Work Plan for 1999-2000 in the area of agriculture were signed during the visit. The two sides agreed to setting up a Working Group on coal for cooperation in the sector. Besides the officials, a 5-member business delegation accompanied the Vietnamese dignitary for interaction with Indian businessmen.

Indonesia

During 1998-99, there were major economic and political upheavals in Indonesia, which became the biggest victim of the economic crisis that hit the East Asian countries in late 1997. The economic downturn resulted in depreciation of over 70% in the value of the Indonesian Rupiah, sharp rise in the prices of food and other essential goods and massive layoffs. Succumbing to internal and external pressure in the wake of worsening economic crisis, students unrest and rioting in Indonesia, President Soeharto resigned on May 21 after being in office for 32 years, and handed over power to Vice-President B J Habibie. With President Habibie at the helm of affairs, Indonesia entered an era of greater openness and political freedom, which saw a proliferation of political parties. A special session of Indonesia's highest constitutional body, the People’s Consultative Assembly (MPR) was held from 10-13 November to approve a framework for political reform. MPR Session was opposed by various groups seeking immediate removal of the Indonesian Armed Forces (ABRI) from the House and investigation into former President Soeharto's wealth. Failure of MPR Session to accommodate people's demands and fulfill their aspirations led to huge demonstrations and widespread rioting during the month. During the Special Session, MPR endorsed twelve decrees which pledged to hold elections in May/June 1999; to limit President’s and Vice-President’s tenure to two terms in office; to reduce armed forces’ allocation of seats in the House gradually and a decree on good governance free from corruption, collusion and nepotism.

Bilateral relations between India and Indonesia, which have been traditionally close and cordial, continued to progress satisfactorily with bilateral exchanges and Indonesia showing understanding on issues of vital interest to us. Prof Dr Farid Anfasa Moeloek, Minister of Health of Indonesia, visited New Delhi from 3-7 September, 1998 to attend WHO Conference during which he had discussions with our Minister for Chemicals & Fertilizers, Shri Surjit Singh Barnala. Shri Madan Lal Khurana, Minister for Parliamentary Affairs & Tourism led a ten-member parliamentary delegation to Jakarta (September 22-25). The delegation had meaningful exchanges with Indonesian Ministers for Population, Education and Tourism besides interacting with the Indonesian parliamentarians. The delegation also met prominent Buddhists and representatives from travel industry in Indonesia in connection with the Buddha Mahotsav organised in India from October 24-November 8, 1998. Prof Dr Juwono Sudarsono, Minister of Education and Culture of Indonesia visited New Delhi from 11-14 October, 1998 to deliver a lecture under the ‘India-ASEAN Eminent Persons Lecture Series’. During the visit Prof Sudarsono called on our Minister of Human Resource Development, Dr Murli Manohar Joshi.

Shri S T Devare, Secretary (ER), MEA visited Jakarta from July 9-11 for bilateral consultations and met the Indonesian Foreign Minister, the Education Minister, ASEAN Secretary-General and senior Government officials. Dr J S Djiwandono, Professor of Economics and former Governor of Bank of Indonesia visited Delhi from 12-13 September to deliver a lecture for the ASEAN-India Eminent Persons Lecture series. Shri Virendra Dayal, Member, National Human Rights Commission visited Jakarta from 6-10 September to participate in the Third Annual Meeting of the Asia Pacific Forum of Human Rights. Shri Sayan Chatterjee, Deputy Election Commissioner paid a visit to Indonesia from 29 November-6 December, 1998 to participate in bilateral and multi-lateral conferences on electoral law reforms arranged by the International Institute for Democracy and Electoral Assistance (IDEA)’s Mission to Indonesia.

Bilateral trade between the two countries during 1997-98 amounted to Rs. 4330.3 crores as compared to Rs. 4226.2 crores during 1996-97. With a view to strengthening trade relations with Indonesia (which registered a declining trend during 1998-99 due to the economic turmoil being faced by Indonesia for the past one year), a delegation led by Shri Nripendra Mishra, Additional Secretary in the Ministry of Commerce visited Indonesia from 12-14 July and had meetings, inter alia, with Indonesian Minister of Trade and Industry. During this visit counter-trade arrangements as well as export from India of rice and bulk drugs were discussed. In September 1998, a delegation from the Indonesian pharmaceutical industry visited India to explore the possibility of import of bulk drugs from India. Indonesian State Logistic Bureau (Bulog), which is responsible for rice imports, sent a delegation to India in November 1998 for further discussions on rice imports.

As part of the celebrations of the 50th Anniversary of India’s Independence, various functions were organised in Jakarta and other major cities in Indonesia. These included a Photo Exhibition, a Bharatnatyam dance performance by Ms Leela Samson and a Kuchipudi dance recital by Ms Swapan Sundri. Mr Nurcholish Madjid, an economic scholar visited India at the invitation of ICCR from 2-6 September to participate in an international seminar on India’s Islamic Heritage.

Cooperation in the scientific and technical areas also continued. Over 63 Indonesian candidates received training in India under the Colombo Plan, ITEC and other schemes. Under the MOU signed by ISRO and LAPAN of Indonesia the construction of Telemetry, Tracking and Command (TTC) ground station at Biak (Kalimantan) for continuous monitoring ISRO’s Geosynchronous Satellite Launch Vehicle (GSLV) was completed satisfactorily. As regards defence cooperation, an Indonesian Naval Ship visited India from 25-28 April to participate in joint exercise ‘Madad ‘98’.

The next general elections in Indonesia will be held on June 7, 1999 to elect 500 members of the Lower House (DPR). The new DPR would be convened on August 29, 1999 and election of the President and Vice President would be held on November 10, 1999 after the consultation of the Upper House. Anti-government agitation and demonstration by students, communal strife between Christians and Muslims have continued unabated in various parts of Indonesia. Former President Soeharto was questioned by the office of the Attorney General on the charges of corruption.

India provided humanitarian assistance worth US $ 56,000 consisting of 18 tonnes of baby milk powder to Indonesia. The consignment was handed over by our Ambassador to the Indonesian Minister of Health on 16 December, 1998.

Brunei Darussalam

Relations with Brunei Darussalam remained friendly and cordial. Shri S T Devare, Secretary (ER), Ministry of External Affairs, visited Brunei in early July for bilateral consultations on matters of mutual interest as part of the ongoing process. An Indian cultural week, first of its kind, was held in Brunei in June, in celebration of the 50th Independence Anniversary. The events included a Kathak dance performance, a photo exhibition, and a film festival.

Philippines

A new administration under President Joseph E Estrada took over in Philippines following elections in May 1998. The new administration addressed itself to the continuing economic and financial problems caused by the regional monetary and financial crisis, while maintaining continuity in external relations. Ties with India remained friendly and registered favourable trends during the year.

The 5th ASEAN Regional Forum (ARF) was held in Manila in July 1998. Philippines was in Chair. Earlier, Minister of State for External Affairs Ms Vasundhara Raje visited Manila from 17&18 June, 1998 in the course of which she conferred with President-elect Joseph Estrada and Foreign Secretary Domingo Siazon Jr.

The 3rd India-Philippines Foreign Office Consultations were held on 23 & 24 April, 1998 with the Indian delegation led by Secretary (ER) and the Philippine delegation by Undersecretary Mr Lauro L Baja, Jr. The consultations covered the whole range of bilateral relations besides regional and international issues.

The Indo-Philippine Agreement on Promotion and Reciprocal Protection of Investment was initialled in Manila in April 1998.

India-Philippines trade showed a downward trend during the year, with India’s exports to the Philippines at $ 90 million from January to July marking a 31.36% decline from the same period last year. The decrease is to be mostly attributed to the impact of the regional monetary and financial crisis on the Philippine economy, causing reduced demand for industrial and consumer goods. A commercial delegation from India headed by Commerce Secretary visited the Philippines from 31 August to 1 September to hold discussions with the Philippine government officials including Secretaries (Ministers) of Trade, Agriculture and the Governor of the Central Bank of various matters pertaining to trade and economic relations including institutional and financial arrangements in sustaining bilateral trade, prospects for counter-trade and the possibility of using national currencies in trade exchanges. Two important trade issues which figured in discussions during the year related to Indian rice and buffalo meat exports. Greater market access for these products was sought and some gains were achieved.

Three Indian naval ships-INS Delhi, INS Khanjar and INS Jyoti-visited Philippines from October 24-27, 1998. The ships were visited by the Philippines Defence Secretary (Minister) and high-ranking officials of the Philippine Navy. They also held joint exercises with units of the Philippine Navy.

Singapore

Close relations between India and Singapore have been underpinned by a steady growth in as East Asian economic potentialities shrunk. A large number of high level visits have been exchanged to demonstrate the political commitment of both governments to further India-Singapore relations. Important visits included visit by MOS of External Affairs in June 1998 and Secretary (ER) MEA during April 1998. In August 1998, Commerce Minister and a seven-member CEOs delegation of the Confederation of Indian Industry (CII) visited Singapore and called on Prime Minister and Foreign Minister. During September 1998, Minister of Parliamentary Affairs and Tourism led a parliamentary delegation and interacted with the Speaker and inaugurated the International Buddha Festival. Four Indian naval ships paid a goodwill visit in September 1998. Minister of Power represented India at the East Asia Economic Summit organised in Singapore by the World Economic Forum in October 1998. Other important visitors in October included the Minister of Surface Transport as also Chief Commissioner (Investment and NRIs) and Chairman IIC. In November 1998, Minister of State for Finance (Revenue, Banking and Insurance) held meetings with the Forum of Indian Banks and Insurance Companies in Singapore.

From the Singapore side, in July 1998, Mr Davindar Singh, Member of Singapore Parliament, led a delegation of senior businessmen from the Indian Business Group of the Singapore Trade Development Board (TDB). He paid a courtesy call on the Prime Minister.

Indian exports to Singapore in Sing-dollars terms grew by 26% during January-November, 1998. Bilateral trade, however, remains in Singapore’s favour at the ratio of 16:5. An important feature in bilateral trade was the entrepot role played by Singapore with approximately 40% of trade-flow both ways comprising as re-exports. Singapore is a trading hub for Indian trade with South East and East Asian countries and a window for India's counter-trade in the region.

Thailand

India continued to maintain warm and friendly relations with Thailand. Bilateral cooperation continued in all fields. The two countries co-operated actively in the regional economic cooperation grouping. BIMST-EC, launched in June 1997.

Bilateral trade between India and Thailand was US$ 650 million in the year 1996-97 which declined to US $ 567 million in 1997-98. In 1998, this trend continued. The economic crisis in the region would seem to have affected the trade turnover. However, the surplus is still in favour of India, though reduced.

There were several high level visits to Thailand during this period. Commerce Minister led a delegation in April 1998, to attend the 54th Annual Session of ESCAP. During this visit, Commerce Minister met Thai Deputy Prime Minister and Commerce Minister Dr Supachai Panitchpakdi and had useful discussions on various bilateral issues. Commerce Minister also led a delegation to Thailand in August, to participate in the Economic Ministers’ Retreat of the BIMST-EC. Commerce Secretary led a business delegation to Thailand in September to explore ways and means of promoting trade and investment linkages. Shri Baba Gouda Patil, MOS for Rural Areas and Employment visited Thailand in June. He met the Thai Minister for Agriculture and Cooperatives, and visited various programmes being implemented by the Thai Government in the rural areas.

Shri Madan Lal Khurana, Minister of Parliamentary Affairs and Tourism visited Thailand in September 1998, as the head of a Parliamentary delegation. He held discussions with the President of the National Assembly of Thailand and the Chairman of the Foreign Relations and the Parliamentary Affairs Committee of the House of Representatives of the Thai Parliament. The Minister also utilised the opportunity to meet the Governor of the Tourism Authority of Thailand and to invite high level participation from Thailand for the Buddha Mahotsav which was celebrated in India in November 1998.

Both the National Assembly of Thailand and the newly established National Election Commission of Thailand interacted with the Election Commission of India on various aspects of the rules and procedures on conducting of elections and the electoral system in India.

H. R. H. Crown Prince Maha Vajiralongkorn of Thailand, along with his two daughters and Minister of Foreign Affairs of Thailand, paid a 7-day State visit to India (December 23-29) at the invitation of the Hon’ble Vice-President of India. During the visit, the Crown Prince held discussions with the President, Vice-President and Prime Minister in New Delhi.

Malaysia

India and Malaysia continued to maintain close and friendly relations. A number of important visits took place from India to Malaysia during this period. Dr Murli Manohar Joshi Minister of Science and Technology and Human Resource Development, led a delegation for the Commonwealth Games held in Kaula Lumpur from 11-21 September, 1998, and attended the inauguration of the sports event. He was accompanied by eight Members of Parliament and three Ministers from different States. During the visit, Dr Joshi also signed an Agreement of Cooperation with Malaysia in the field of Science and Technology. Shri Madan Lal Khurana, Minister of Parliamentary Affairs and Tourism headed a Parliamentary delegation to Malaysia from September 25-26, 1998, and had meetings with Malaysian Minister of Tourism and Speaker of the Senate. Shri Siddaramaiah, Deputy CM of Karnataka along with four other Ministers from the State, led a delegation to Malaysia to promote investment in the State. A business delegation headed by Commerce Secretary, P P Prabhu and comprising representatives from Ministry of Commerce, EXIM Bank, RBI, ECGC and FICCI visited Kuala Lumpur in August 1998. The delegation met with the Minister of International Trade and Industry Rafidah, Samy Vellu, Minister of Works etc. A 3-member delegation headed by Shri C M Udasi, Karnataka Minister of Public Works, visited Malaysia from June 25-29, 1998 and interacted with senior level officials including Malaysian Minister of Works and Malaysian Deputy Minister of Domestic Trade and Consumer Affairs Dato Subramaniam. He also invited Malaysians to invest in Karnataka, specially in developments of roads and highways and water supply projects. Prof U R Rao, Member, Space Commission of India, visited Malaysia July 14-19, 1998 and delivered addresses on space development at various apex institutions in Malaysia

From the Malaysian side the Hon’ble Chief Minister of Penang, Tan Sri Dr Koh Tsu Koon led a business delegation to India on November 2-6, 1998.

Australia

Relations between India and Australia were cordial and friendly before India’s nuclear tests. Bilateral cooperation had been in full swing and was slated to grow in diverse fields but suddenly hit a lull, after India’s nuclear tests of 11-13, May 1998.

Government of Australia reacted strongly to our nuclear tests. It recalled temporarily it’s High Commissioner for consultations. Other measures directed against India were, suspension of bilateral defence relations with India, recall of Australian defence adviser and of Australian defence personnel currently training in India and Indian defence personnel undergoing training at Defence College in Australia, cancellation of ship and aircraft visits, suspension of non-humanitarian aid, and suspension of Ministerial and Senior Official Visits. India too conveyed its displeasure by responding similarly to Australian Government's actions. Since then bilateral relations have been on hold. General elections were held in Australia on 3rd October and the ruling Liberal Party of PM John Howard was returned to power, though with a reduced margin and formed a Coalition Government with the National Party.

Economic and trade relations between Australia and India continued to expand. Two-way bilateral trade in 1997-98 stood at US$ 1.58 billion (an increase of 23% over the last year). With a sustained export effort, Indian exports to Australia in 1997-98 increased by 19% over the previous year reaching US$ 427 million. Australian companies are now taking an active interest in investments in India, in areas like mining, power, oil and natural gas and coal.

During the period, the Chief of Airstaff, Air Chief Marshall S K Sareen visited Australia (March 30 - April 3) to attend the 1998 RAF Air - Power Conference before nuclear tests and a 7 member Australian Young Leaders Delegation comprising young Australians of different political and corporate backgrounds visited India (29 November - 6 December) to initiate a programme of youth exchanges between Australia and India.

Former Australian FM Mr Gareth Evans paid a private visit (14-16 December) to India which was undertaken with full encouragement and support of the Australian government.

The Australian Senate’s Foreign Affairs, Defence and Trade References Committee held a public hearing on India and Pakistani nuclear tests on December 4, 1998. The officials of the department of Foreign Affairs and Trade gave evidence to the committee at the hearing for the second time – their previous appearance being in July 1998. Our High Commission has been told that the Government of Australia, in a review of measures adopted in response to the nuclear tests, has decided to relax suspension of Ministerial and senior officials visits. However, suspension of non-humanitarian aid and bilateral defence relations with India and Pakistan will remain in force.

New Zealand

New Zealand Government reacted strongly to India’s nuclear tests. It announced a temporary recall of its High Commissioner from New Delhi for consultations. Its Foreign Ministry summoned the Indian High Commissioner S Kipgen twice to its Foreign Office to lodge New Zealand’s protest against India even before our High Commissioner had presented his credentials. New Zealand also declined to accept the accreditation of our Defence Attache from Canberra. Since the Pokhran tests bilateral relations have been somewhat lukewarm. But efforts are being made by the New Zealand Government to improve trade relations with India. New Zealand’s Minister for International Trade Dr Lockwood Smith visited India (10-15 October) to attend the 8th JBC Meeting in New Delhi on 12th October. A 30-member delegation comprising MPs and Speakers of State Legislatures led by Lok Sabha Speaker GMC Balayogi attended the 44th Commonwealth Parliamentary Conference in Wellington, New Zealand (17-23 October).

Bilateral trade between India and New Zealand has moved up at a satisfactory pace though in overall terms, it has remained on a modest scale with the balance of trade being in New Zealand’s favour. India’s exports to New Zealand for the year 1997-98 were Rs. 2,534 million/US$ 63 million and imports Rs. 3,031 million/US$ 76 million.

Papua New Guinea

Bilateral relations between India and Papua New Guinea have been friendly and cordial since the opening of our resident Mission in April 1996 in Port Moresby. PNG deplored India’s nuclear tests of May 1998 but it was more or less, a proforma protest, as they had earlier also condemned similar tests by France and China. The leadership showed understanding and India’s security concerns.

About 250 Indian professionals continued to be employed in Papua New Guinea. India awarded 12 scholarships for PNG nominees for short term training courses under ITEC/Colombo Plan. PNG utilised all the 12 slots awarded to them.

Two PNG artists from National Museum and Art Gallery attended the Workshop and Exhibition of Contemporary Folk & Tribal Artist of India and South East Asia in Bhopal from 27th May to 5th June. M/s UBS Publishers and Distributors, New Delhi signed a Memorandum of Understanding with the PNG Writers and Artists Association in October under which the books written by the Members of the Association will be published by the Indian firm.

PNG continued to support India’s candidatures to the UN bodies, including those of Shri V K Shunglu, Comptroller and Auditor General of India for election to the UN Board of Auditors and India’s candidature to the Executive Board of the International Coffee Organisation.

One of the Islands of Papua New Guinea was devastated by the onslaught of strong tidal waves on July 17 causing large scale destruction of property and loss of many lives. Medicines worth Rs. 5 lakhs have been gifted to the Government of Papua New Guinea as relief assistance.

Bilateral trade between India and PNG gained momentum. According to available indications, India’s direct exports as well as exports through third countries to PNG, continued to increase during the period.

Fiji

India and Fiji enjoyed, close, cordial relations in the past. The new constitution of Fiji came into effect from July 27, 1998 and according to it, the country is now known as "The Republic of Fiji-Islands" and its nationals as "Fiji-Islanders". Trade relations between two countries resumed with the lifting of trade embargo by the Ministry of Commerce. Government of India communicated its acceptance in principle and on June 9, Cabinet accorded approval to the re-opening of the Indian High Commission in Suva (Fiji). This decision of the Government was conveyed to the Government of Fiji and the host Government's approval was received on June 25th. A three-member delegation from Ministry of External Affairs visited Fiji (1-3 November) to assess government property and to finalise pending issues to facilitate re-opening of Indian High Commission in Suva. Joint Secretary (South) also visited Fiji (11-14 November) to meet with various important dignitaries / Govt. officials. This was the first high level official visit to Suva after the closure of Indian Mission nearly a decade ago. Fijian PM Rabuka announced that general elections would be held on 24 April, 1999 under the newly amended constitution.

Bilateral relations with Pacific-Islands have been cordial and friendly though there have been minimal contacts. The Pacific Islands mildly condemned our nuclear tests. President of Nauru HE Mr Kinza Godfrey Cloduman visited India to attend the Global Environment Facility (GEF) assembly (1- 3 April, 1998).