The Hindu : Second phase of economic reforms on: PM

Online edition of India's National Newspaper
Sunday, Nov 30, 2003

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Second phase of economic reforms on: PM

By Amit Baruah

NEW DELHI NOV. 29. Dismissing suggestions that India is slow in reforming its economy, the Prime Minister, Atal Bihari Vajpayee, said today that the country was already in the "second phase" of reforms and was concentrating on infrastructure development.

Addressing a joint press conference with the European Commission President, Romano Prodi, following the Fourth India-European Union summit at Hyderabad House, Mr. Vajpayee said that India was "doing well in the field of agriculture."

There was no effort on India's part to "steal" jobs from the developed world, he said in response to a question from a European journalist. Asked whether India would deal with Europe on a par with the United States, he shot back: "That's up to Europe."

Mr. Prodi refused to give a commitment on whether or not the E.U. supported India's entry into the United Nations Security Council, claiming that this issue had to be looked at in a comprehensive, not insulated, manner.

He claimed that India's role in world politics was being stunted by its differences with Pakistan. "Tension with Pakistan obstructs India's role in the world," Mr. Prodi said, adding that the E.U. was happy with the latest peace initiatives in South Asia.

Two agreements — one on trade and investment development and the other on customs procedures — were signed in the presence of Mr. Vajpayee and Mr. Prodi. India and the E.U. also agreed to hold detailed negotiations on India's participation in the Galileo satellite navigation project.

Shedding the differences on terrorism and dialogue between India and Pakistan that had marked the Copenhagen summit last October, a joint press statement said today: "We [India and the E.U.] reiterated the unacceptability of use of terrorism in pursuit of political goals."

"The E.U. warmly welcomed Prime Minister Vajpayee extending the hand of friendship to Pakistan in April 2003 and the latest peace initiatives...the E.U. welcomed the ceasefire recently agreed upon between both parties as a further step towards the normalisation of India-Pakistan relations," the statement said, making it clear that this was an E.U. formulation.

"The E.U. expressed the hope that the process could be continued and differences between the two countries resolved peacefully through dialogue...India stated emphatically that there could be no negotiations until cross-border terrorism ends."

The two sides also agreed that there could be no justification for terrorism and they supported the fight against international terrorism, wherever it occurs, regardless of its motives.

"As democracies founded on the rule of law, India and the E.U. remain committed to ensuring compatibility of counter-terrorism measures with universally accepted human rights standards and norms," the statement stressed.

'Central role' for U.N. in Iraq

On Iraq, India and the E.U. agreed that the U.N. should play a central role in the restoration of peace and normality as well as the rehabilitation and reconstruction of that country.

"We emphasised the urgency of the adoption of a clearly laid-out political process within a realistic time-frame, in order to allow the Iraqi people to determine their own political future and retain an effective control of their economic resources."

Referring to Sri Lanka, India and the E.U. supported the process of seeking a negotiated settlement acceptable to all sections of society, consistent with democracy, pluralism and respect for individual rights, within the framework of a united Sri Lanka and called for early resumption of negotiations.

"India welcomed the enlargement of the E.U., and the ongoing discussions on its future evolution. We both affirmed that deepening and widening of (the) E.U. would further strengthen relations between us. We have also agreed to remain in touch on the evolution of our respective foreign, security and defence policies."

On West Asia, both sides expressed deep concern at the resurgence of violence in Israel and the Palestinian territories. They called for the sincere implementation of the "road map" provisions, and in line with the relevant U.N. Security Council resolutions, envisioning two States, Israel and Palestine, living side-by-side, within secure borders. India and the E.U. expressed concern at the continuing threats to security and stability in Afghanistan, including those contained in Security Council Resolution 1510, aimed at improving maintenance of peace, security and consolidation of authority both inside and outside Kabul.

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