Congressional Statements

Pallone calls for easing of remaining sanctions in advance of Vajpayee visit

Press Release
July 28, 2000

Now that the White House and the Indian Foreign Ministry have officially announced that Prime Minister Atal Behari Vajpayee of India will be making his Official Visit to the United States in September, Rep. Frank Pallone, Jr., D-NJ, is urging the Clinton Administration to take action to ease the remaining sanctions on India.

"White House and State Department officials have stressed that the U.S.-India economic relationship will form one of the major areas of focus during Prime Minster Vajpayee's visit," Pallone said. "In this spirit, action must be taken to end the effective U.S./G-8 veto of loans to India from the World Bank and other international financial institutions (IFIs). The Administration should also take another look at the entities list. Last year, that list was cut by about a quarter, but some 150 other entities remain on the blacklist, many of which do not belong.

"The Administration wants to keep these sanctions in place as leverage to compel India to sign the Comprehensive Test Ban Treaty (CTBT). I believe that it would be an extremely positive step, on the eve of the Prime Minister's visit, to lift these remaining sanctions. I share many of the Administration's nonproliferation goals. But these remaining sanctions are not, in my opinion, helping to advance those goals. Instead, they are holding back areas of cooperation that could benefit both the people of India and America."

Pallone noted that, after India's May 1998 nuclear tests, economic sanctions were automatically triggered against India. Congress has subsequently given the President authority to waive these sanctions, and President Clinton has waived most of them. But two key sanctions remain: the so-called "entities list" maintained by the U.S. Commerce Department, and a veto by the U.S. and the other G-8 countries against loans to India by IFIs.

Pallone explained that the entities list is essentially a blacklist of public and private entities in the two countries that are deemed to have some relationship to nuclear technology - however passing and inconsequential that relationship may be, and without regard to whether the specific areas of U.S.-India trade or cooperation in any way contribute to nuclear weapons or missiles. Late last year, the Commerce Department reduced this list by about a quarter - removing 51 Indian companies and research institutions from the list, but leaving more than 150 other entities.

"Clearly, the Administration recognized that it cast too wide a net in listing entities that do not threaten U.S. security interests, and took a first step towards addressing this issue," Pallone said. "But that list still needs to be refined. It would represent a great step if the U.S. were to substantially cut back on this list on the occasion of the Prime Minister's visit - not just as a way to improve relations, but because there are strong substantive arguments in favor of taking this step.

"On the issue of the international financial institutions, the U.S. And our G-8 partners have tied the lifting of this sanction directly to India's signing of the CTBT. Indeed, it was largely under pressure brought to bear by our country that the G-8 took this step. I believe this connection is inappropriate. Sure, I would like to see India sign the CTBT - just as I'd like to see our Senate ratify it. But blocking loans from international financial institutions is not the right way to achieve our diplomatic objectives.

"This policy is preventing investment in projects that would not only benefit the people of India, but would also create opportunities for many American firms. India's infrastructure needs are great. While the current sanctions make exceptions for projects with direct humanitarian implications, the fact is that many of the infrastructure projects would translate into improvements in the quality of life of literally millions of people."

Pallone also noted that the Prime Minister will be addressing the United Nations' Millennium Summit, which he said was a perfect occasion for the U.S. to evaluate the need for expansion of the Security Council and to champion India's bid.

"As I'm sure Mr. Vajpayee will mention, it is high time that India be given its rightful position as a permanent member of the UN Security Council," Pallone said. "India is clearly a major world player, the second most populous nation, a nation that has shown a significant commitment to UN projects and organizations. I urge our Administration to more strongly support India's bid to be a permanent member of the Security Council.

Finally, Pallone welcomed the fact that the Clinton Administration is hoping to use the occasion of the Prime Minister's visit as an opportunity to showcase the achievements and the leadership of the Indian-American community, stating: "The Indian-American community has, in just the past few decades, emerged as one of the most successful and affluent communities in our country. The members of this community will continue to play the role as a human 'bridge' between the world's two largest democracies. I welcome the much-deserved attention that the upcoming visit of Prime Minister Vajpayee will bring for this significant and growing community."