Congressional Statements

Pallone sees progress in de-coupling India and Pakistan on economic sanctions

Press Release
October 28, 1999

In light of this week's decision by the Clinton Administration to waive most of the Glenn Amendment sanctions on India, while keeping most of the sanctions on Pakistan in force, Rep. Frank Pallone, Jr., D-NJ, stressed the need for U.S. policy to de-couple India and Pakistan and to treat the two South Asian nations based on their individual merits.

Speaking this evening in the House of Representatives, Pallone also praised India's new government for its proactive agenda on the economy in general, and energy issues in particular.

"Unfortunately, there is often a tendency to lump India and Pakistan together, to see all developments in South Asia as a function of the conflicts between India and Pakistan," Pallone said. "In fact, what we now see in South Asia are two great nations moving in completely different directions. While Pakistan is mired in military coups and economic collapse, India sticks to the path of democracy and economic reform.

"We must consider India, and take it seriously, on its own terms, as the world's largest democracy, the second most populous nation, an important regional player in Asia in its own right, a huge and growing market for American trade and investment, a potential partner on security issues and the fight against terrorism, and as a country with a great potential for cooperation in such areas as environmental protection, energy efficiency and infrastructure development."

Pallone noted that this week, under the renewed waiver authority, President Clinton has waived the economic sanctions on India, but kept most of the sanctions against Pakistan in response to the recent military coup. Under the President's determination, Pakistan would be ineligible for loans from the Export-Import Bank, and unable to participate in the International Military Education and Training (IMET) program. It also means that the U.S.-backed Overseas Private Investment Corporation (OPIC) and the Trade Development Agency would not be able to operate in Pakistan.

Pallone cited the statement from a White House National Security Council spokesman stated that "the different treatment of the two countries reflects the reality that things have changed for the worse in Pakistan" and that "there can be no business as usual with Pakistan until an elected government is restored."

"I hope that our government will stick with that policy," Pallone said. "More important, I would urge the Administration not to use the prospect of reopening military assistance to Pakistan as an inducement to the military coup leaders. This is particularly timely in light of recent reports of serious border attacks against India by Pakistani troops in Kashmir. Secretary of State Albright has called on the Pakistani side to withdraw from the Line Of Control in Kashmir. Given the evidence that the hard-liners now in charge of Pakistan were in large part responsible for launching the aggression against India last spring, maintaining the ban on military assistance to Pakistan makes very good sense."

Pallone spoke appreciatively about the new BJP-led coalition that has been sworn in, noting that the strengthened support Prime Minister Vajpayee's party received promises greater political stability.

"The new government has wasted no time in demonstrating its commitment to moving forward on a bold economic agenda," Pallone said. "The government will review the existing foreign direct investment regime to bring in greater transparency, cut delays in project implementation and create a policy to insure an investment inflow of at least 10 billion U.S. dollars. In the energy and power sector, the central government will work closely with the state governments on privatization and regulatory overhauls. The government will work to dismantle the administrative price regime. Improvement and expansion of transportation and telecomm infrastructure is another major priority.

"In the energy sector, in particular, the potential for U.S.-India cooperation is great. During his recent trip to India, Energy Secretary Bill Richardson and Indian External Affairs Minister Jaswant Singh have signed a joint declaration on energy cooperation, which calls for cooperation in conventional energy projects, renewable energy and clean coal technology. Secretary Richardson has also reported progress with his Indian counterparts in discussions on the Comprehensive Test Ban Treaty.

"I hope that we will see continued progress in these and other areas, and that the upcoming planned visit to South Asia by President Clinton will further advance the process of establishing a U.S.-India relationship based on shared goals, mutual respect and appreciation for each other's vital interests," Pallone concluded.