Congressional Statements

Pallone urges Foreign Operations Subcommittee to maintain support for programs in India

Press Release
March 30, 2000

Rep. Frank Pallone, Jr., D-NJ, today stressed the importance of continuing and strengthening U.S. initiatives to promote economic development, environmental protection, clean energy resources and regional cooperation in India in an appearance before the key Congressional panel with jurisdiction over foreign assistance programs.

Pallone, who took part in President Clinton's trip to South Asia last week, testified today before the Subcommittee on Foreign Operations of the House Appropriations Committee at a hearing on the fiscal year 2001 appropriations bill.

He urged the Subcommittee to support the Clinton Administration's proposals for India. He also thanked Members of the Subcommittee for their efforts in past years to resist proposals to aid to India - most notably those supported by Rep. Dan Burton, D-IN - in the annual debate on the House floor on the Foreign Ops bill.

While welcoming the resumption of activities by the U.S. Agency for International Development (USAID) in India - which were halted because of the automatic invoking of the Glenn Amendment sanctions - Pallone noted that important World Bank loans to India continue to be held up by the remaining sanctions.

Pallone called on the Foreign Operations Subcommittee to include language in the bill for the next fiscal year (which begins October 1st) that would waive these remaining sanctions.

"The President's trip to South Asia has produced many positive initiatives that promise both an improved quality of life for the people of South Asia and new opportunities for American businesses in this important and emerging region of the world," Pallone said.

"The initiatives announced during President Clinton's trip, combined with the President's decision to waive most of the sanctions imposed on India after the nuclear tests, have helped to usher in a new era in Indo-U.S. relations," Pallone continued. "Or perhaps it would be more accurate to say that we have resumed the new era in our relations that began in the early '90s but was briefly interrupted because of the sanctions regime imposed after the nuclear tests.

"Last year, the President took the important step of waiving most of the economic sanctions imposed on India. The waivers have allowed US AID to resume work on so-called 'non-basic human needs,' such as: the FIRE (Financial Institutions Reform and Expansion) Program, the South Asia Regional Initiative (SARI) to promote better regional cooperation, particularly in the energy sector; and an effort to extend information technology into rural areas, with a particular focus on education. I support these efforts, and welcome the Administration's initiative in waiving the sanctions to allow these programs to go forward."

In his testimony, Pallone cited the FIRE program as one of the most important US AID programs in India. This four-year, $25 million initiative would provide technical assistance to strengthen Indian financial markets and regulatory agencies.

"The FIRE program assists in creating the institutional base necessary for the emergence of a flourishing private insurance industry," Pallone said. "The program also benefits the U.S. by helping to create an environment conducive to expanded U.S. trade and investment with India. The bottom line is the development of more sound financial markets and institutions in India, vital to succeeding in a globalized world and ultimately the key to addressing India's vast developmental and infrastructure needs."

During the recent trip, Pallone in took part in a ceremony with Clinton in Agra where an historic agreement was signed between the U.S. and India to further promote cooperation in the areas of clean energy and the environment. "The agreement resulted in the creation of a binational group that will focus on clean energy policy and projects, commercial development of clean energy technologies, and enhanced cooperation to reduce greenhouse gas emissions," Pallone said. "In addition to the benefits to India, this initiative opens up new opportunities for U.S. companies developing clean energy technologies."

Pallone noted with dismay that currently, there are more than $1 billion worth of loans for India held up at the World Bank due to U.S. opposition, including funding for highway and state power projects.

"Clearly, the provision of electricity and the development of infrastructure translate into the ability of a society to meet the basic human needs of its citizens. These projects will have a significant ripple effect, potentially lifting millions out of poverty. Further, whatever our differences with India's central government, these projects are under the jurisdiction of individual state governments in India. I strongly believe that it is in the national interest of the United States to allow these loans to proceed" Pallone told the Subcommittee.