Relations between India and Nepal have been traditionally close and have reflected the links of history, culture, language and religion. These relations continued to strengthen, symbolized by exchange of high-level visits. On the auspicious occasion of the Silver jubilee of the accession to the throne of King Birendra Bir Bikram Shah Dev in 1996, the Government of India announced a Silver Jubilee Scholarship Scheme. Under this scheme, 25 Nepalese students were selected for award of scholarships for pursuing postgraduate studies in professional courses at Indian colleges/universities. As in earlier years, India continued to play an active role in Nepal's developmental efforts. Construction of broad gauge rail links between Raxaul and Sirsa, as well as other projects, were initiated. Additional rail coaches were supplied to strengthen the service on the Jayanagar-Janakpur railway sector. Foreign Minister of Nepal visited India in December 1996 to attend the SAARC Ministerial Meeting. Letters were exchanged between the Government of India and the Government of Nepal for renewing the India-Nepal Trade Treaty for a period of five years and the Third Session of High Level Task Force was held in New Delhi on 9 August 1996. The Task Force received progress achieved in projects of Indo-Nepal cooperation.

India and Bhutan have traditionally enjoyed a warm and cordial relationship marked by a strong resolve to ensure welfare of people of both the countries by extensive economic cooperation. The existing friendly relationship between the two countries was further nurtured by significant exchange of views at various levels. Bilateral Plan Talks between the two countries were held from 26-30 August 1996 to review the on-going projects in Bhutan undertaken with Indian assistance during Bhutan's VII Five Year Plan (1992-97) and to discuss assistance for new projects to be taken up during Bhutan's VIII Five Year Plan (1997-2002).

India's relations with Bangladesh were greatly enhanced during 1996-97. Prime Minister Sheikh Hasina paid an official visit to India from 10-12 December 1996, during which a landmark Treaty on Sharing of the Ganga Waters at Farakka was signed by the Prime Ministers of India and Bangladesh. Prime Minister Sheikh Hasina again visited India from 14-16 February 1997 to participate in the Inter-Parliamentary Specialized Conference. The Prime Minister's visit to Bangladesh on 6 and 7 January 1997 consolidated the greatly enhanced bilateral relationship between India and Bangladesh. The Fifth meeting of the India-Bangladesh Joint Economic Commission UEQ convened on 12 March 1997 agreed to step up the pace and scope of cooperation in the fields of economy and finance, trade and commerce and transport and commu-nications. Discussions with Bangladesh on security related issues yielded positive results with both sides reiterating their determination not to permit their territory to be used by insurgents and undesirable elements.

Bilateral relations with Sri Lanka continued to be close, friendly and cooperative. High level contacts were regularly maintained to strengthen bilateral cooperation in all fields of mutual interest. India has always stood for a peaceful political settlement of the ethnic issues. During his visit to India from 19-21 June 1996, the Sri Lankan Foreign Minister briefed the Indian leadership on the security situation in Sri Lanka and also on the ongoing debate on the proposed devolution of powers to regional councils. He again came to India in December 1996 to attend the SAARC Ministerial Meeting. The Sri Lankan President came to India on a private visit in December 1996. The Minister of External Affairs visited Sri Lanka from 19-22 January 1997 and co-chaired the third session of the Indo-Sri Lankan joint Commission. India sent 1,750 tons of rice to assist Sri Lankan efforts for rehabilitation of civilian population of Jaffna. India extended a fresh line of credit worth Rs 105 crore through an agreement signed in January 1996.

India continues to maintain very close and friendly relations with Maldives, which is an important maritime neighbor. A regular and cordial interaction was kept up during 1996-97. The Maldivies, Institute of Technical Education, a Government of India funded project, was successfully completed and the complex was handed over to the Government of Maldives on 16 September 1996.

India's relations with Myanmar remained cooperative and cordial. A regular and constructive interaction was maintained with Myanmar authorities in areas relevant to India's strategic interests as improved border management, border trade, security dialogue and checking traffic in narcotics and arms. The Government of India approved the construction of Tamu-Kyigone-Kalewa and Kyigone-Kalemyo roads in Myanmar. The road would significantly improve the infrastructure in an area close to Indian borders and would provide an impetus to border trade and also improved communications. The Myanmar Deputy Minister for Home visited India for the Fourth National Level meeting held in New Delhi in October 1996 to discuss issues such as checking illegal trade, insurgent activities and overall border management. The Fourth Indo-Myanmar meeting of Heads of Nodal Agencies under the Indo-Myartmar Agree-ment on Reducing Demanci and Preventing Illicit Trafficking in Narcotic Drugs and Psychotropic Substance was held in August 1996. Cooperation between the defense forces was discussed during the visits of Chief of Air Staff to Myanmar from 30 April-2 May 1996 and Commander-in-Chief (Air) of Myanmar to India in December 1996.

The Government desire to build a relationship of trust, friendship and cooperation with Pakistan. During 1996-97 the Government continued their efforts to resume the bilateral dialogue with Pakistan. The Prime Minister, in his letter of 8 June 1996 to the then Prime Minister of Pakistan, put forward the concrete proposal of resuming Foreign Secretary level talks, which had remained suspended at Pakistan's choosing since January 1994. After the victory of the Pakistan Muslim League led by Nawaz Sharif in the February 1997 elections, the Prime Minister sent a letter to Prime Minister Nawaz Sharif reiterating India's desire to resume the bilateral dialogue as a measure to improve the relations. On receipt of a positive response from Prime Minister Nawaz Sharif, the Minister of External Affairs, in his felicitation letter to Foreign Minister of Pakitstan Gohar Ayub Khan, reiterated India's desire to convene bilateral talks at an early date. Bilateral talks at the level of Foreign Secretaries of both the countries from 28-31 March 1997 represented official talks for the first time since January 1994. Earlier the Foreign Minister of Pakistan visited India in December 1996 to attend the SAARC Ministerial Meeting. To create a positive environment and foster people-to-people relations, the Government took several measures to increase the number of visas being issued to Pakistani nationals and to encourage increased interaction between the intellectuals, scholars, journalists and academicians of the two countries. The Government also exercised restraint in responding to the polemical statements of the Pakistani leaders. Pakistan's response to these measures was not encouraging.

Pakistan's support to cross-border terrorism directed against India, particularly in Jammu and Kashmir, continued unabated. Concerted efforts were made to disrupt the political process in the State. Pakistan attempted, unsuccessfully, to question the credibility of elections, which were widely welcomed by the international community. Pakistan continued its efforts to acquire sophisticated arms and technology, in excess of its legitimate requirements, from various sources. During 1996-97, several reports surfaced about illegal and clandestine acquisitions by Pakistan for its weapons oriented nuclear and missile programs. The Government continued to closely monitor these developments and their bearing on the security environment in the subcontinent.

India maintained her traditional policy of friendship and cooperation with Afghanistan, with the Government of Professor Rabbani, whom it continued to support as the legitimate Government of Afghanistan. However, the situation in Afghanistan remained unstable. The situation was further exacerbated by the interference of Pakistan directly and more so through its creation, the Taliban. With the take over of Kabul by the Taliban militia on 27 September 1996 a new dimension was added to the unstable condition in Afghanistan. The Taliban continue the pursuit of obscu-rantist doctrine and the consequent denial of human rights, especially the rights of women. India has always supported the unity, independence, territorial integrity and sovereignty of Afghanistan. India called for the cessation of foreign interference in Afghanistan and for peaceful discussions and negotiations between Afghan parties. India also supported the efforts of the UN Secretary General and his Special Represen-tative in bringing peace to Afghanistan. India has been in the formal international peace processes on Afghanistan. India attended the Tehran conference on Afghanistan on 29 and 30 October 1996. In recognition of India's ability to contribute to the United Nations efforts aimed at ending the crisis in Afghanistan, India was among the 19 countries invited by the UN Secretary General to a meeting in New York on 18 November 1996 of regional states and other states with influence in Afghanistan. India was invited, despite the attempts of some countries to scuttle the invitation, to the meeting of the International Forum on Assistance to Afghanistan held on 21 and 22 January 1996 in Ashkabad, Turkmenistan.

India-China relations acquired maturity and substance. While continuing to address outstanding issues, including the boundary questions, both sides sought to expand mutually beneficial cooperation in all areas, particularly in the economic and technological fields. Political contacts between India and China continued through high level exchanges and consultations at other levels. President Jiang Zemin's visit to India from 28 November-1 December 1996 was part of the process of dialogue at the highest level. A significant outcome of the visit was the signing of the Agreement on Confidence Building Measures (CBMs) in the Military Field along the Line of Actual Control in the India-China Border Areas. This agreement is built on the foundation of the Agreement on the Maintenance of Peace and Tranquillity along the Line of Actual Control (LAC) in the India-China Border Areas, signed in September 1993, and provides for a number of important CBMs which will help in preserving peace and tranquillity in border areas. The importance of paying adequate attention to each other's concerns on vital issues affecting unity, territorial integrity and security was underlined in discussions with the Chinese side during President Zemin's visit. The India-China border has been generally peaceful in recent years. Both sides have also agreed to work out details of force reduction or limitation along the LAC and put into place additional confidence building measures. Discussions on these issues were held within the framework of the India-China Joint Working Group (October 1996, Beijing) and India-China Expert Group (3-5 March 1997, New Delhi). The two countries agreed to impart a much greater economic and technological content to bilateral relations.

SAARC

India organized a number of events and activities in commemoration of SAARC's first decade of existence. These included a commemorative postage stamp issued on SAARC Charter Day (8 December 1996); special Radio/TV programs; painting competition; TV/Radio quiz competition and an essay writing competition.

India's Chairmanship of SAARC continued through the year 1996-97, coinciding with the beginning of SAARC's second decade of existence. The period witnessed an intensification of activity in all sectors and the launching of several new initiatives for SAARC action, aimed at widening and enriching its agenda over the coming years, in keeping with the global trend towards consolidation of regional organizations. Sub-stantial progress was made in the liberalization of intra-regional trade under the South Asian Preferential Trading Arrangement (SAPTA). Nearly 2000 additional tariff lines have now been covered under preferential tariffs for intra-regional trade, over and above the 484 lines, which had been offered under concessional tariffs earlier. Of this consolidated figure, India has granted the highest number of tariff concessions on 911 lines.

India hosted the seventeenth session of SAARC Council of Ministers at New Delhi in December 1996. Other SAARC activities hosted by India during 1996-97 include SAARC Economic Cooperation Conference (19-20 November, New Delhi), Committee on Economic Cooperation (October 1996, New Delhi), Workshop to Review the Status of Girl Child (October 1996, New Delhi), Technical Committee on Women in Development (December 1996, New Delhi), Annual Meeting of Liaison Officers to exchange information on the Implementation of SAARC Regional Convention on Suppression of Terrorism (May 1996, New Delhi).