India's Foreign Relations - 2005 - The Ministry of External Affairs

2313 Pages·2006·4.98 MB·English

by  A S Bhasin

I
INDIA’S FOREIGN RELATIONS – 2005
Documents
INDIA’S FOREIGN
RELATIONS
2005

No Foreign Office today is content to merely build friendly and good
relations in the classical sense. Even economic content of diplomacy,
which had gained currency in recent decades, is no longer the catch
phrase in the conduct of international relations. The sophistication and the
growing needs of the economy coupled with the demands of globalization
have brought about a qualitative change in the conduct of international
relations. Energy – thermal and nuclear, science and technology,
biotechnology, information technology, nanotechnology, environment,
space, sustainable development, PURA and the like are now the core
diplomatic vocabulary. Market protection is giving way to dismantling of
trade barriers. Competition is the mantra, free trade the dharma and
multilateralism the altar on which the economic relations are now
conducted. Energy – the strategic need for which has spurred
unprecedented demand has, today, become the centerpiece of foreign
policy. No wonder in India too the energy, whether nuclear, natural gas or
hydrocarbon dominates the foreign policy debate, as in many other
countries.

The challenge between high growth and social progress, hitherto, the
attribute of domestic politics has today assumed international
ramifications. Neither is possible without foreign investment and modern
technology. The problem of keeping the gap narrow between rich and the
poor, maintaining economic vitality and efficiency, attracting greater
foreign investment and enhancing the competitiveness of indigenous
industry against globalization trends, promoting mega projects and
helping the smaller entrepreneurs to survive and stand competition are
some of the challenges which have assumed foreign policy implications
even as they are governed by domestic economic compulsions. While
much of the burden of reconciling the conflicting demands of
modernization and globalization has to be met by economic and financial
experts, the Foreign Service bureaucracy today is shouldering its own
share of the challenge. The 756 documents in his compendium provide an
ample proof of this.
Avtar Singh Bhasin (b. 1935.) BA (HONS); MA in History.
Initially he had short stint of service in the National Archives of
India and the Ministry of Defence. In 1993 he joined the
Ministry of External Affairs where he served for the next three
decades, retiring in 1993 as Director of the Historical Division.
He looked after the South Asian affairs for many years. He was
posted in the Indian Missions in Kathmandu, Bonn, Vienna and
Lagos. He traveled to several other countries in the discharge of
his official duties in the Ministry. He was a member of several
ministerial and official delegations for discussions with various
countries both in India and abroad.

Since his retirement he has taken to academic research. He was a Senior Fellow of the
Indian Council of Historical Research from 1994 -96. He was Honorary Fellow of the
Institute of Contemporary Studies, Nehru Memorial Museum and Library from 1997 to
2000. He has edited and authored several books on South Asian affairs. He also
contributed articles in many newspapers on developments in the neighbouring countries.
His 75 pieces on Partition and Freedom were published in the Asian Age consecutively
from June 1 to August 14, 1997 coinciding with the Golden Jubilee celebrations of the
Indian Independence.
II INDIA’S FOREIGN RELATIONS - 2005
Other books of Avtar Singh Bhasin since his retirement
1. Documents on Nepal’s Relations with India
and China, 1947 – 92
A set of two volumes
2. India – Bangladesh Relations – Documents, 1971-94
A set of two volumes
3. Some Called it Partition, Some Freedom,
Last 75 days of the Raj
4. India – Sri Lanka – Relations and Sri Lanka’s
Ethnic Conflict – Documents, 1947 – 2000
A set of Five Volumes
5. India – Bangladesh Relations –
Documents, 1971 - 2002
A Set of Five Volumes
6. India in Sri Lanka — Between Lion and the Tigers
7. India’s Foreign Relations – 2004, Documents
8. Nepal – India and Nepal – China Relations –
Documents, 1947 – June 2005
A Set of Five Volumes
III
INDIA’S FOREIGN
RELATIONS
DOCUMENTS — 2005
Edited by
AVTAR SINGH BHASIN
PUBLISHED IN COOPERATION WITH THE
EXTERNAL PUBLICITY DIVISION
MINISTRY OF EXTERNAL AFFAIRS
GEETIKA PUBLISHERS
NEW DELHI - 110 028
IV INDIA’S FOREIGN RELATIONS - 2005
Published by
G
Geetika Publishers
A – 51/II Naraina Vihar, New Delhi - 110 028
Mobile : [phone] : Phone: :[phone] : 011- 2577 – 1897,
E- mail: [email protected]
2005 © Avtar Singh Bhasin
ISBN No. : 81-901629-7-7
Printed and Bound in India at
Kumar Offset, New Delhi
G
Geetika Publishers
A – 51/II Naraina Vihar,
New Delhi - 110 028
INDIA
V
to
Kamaljeet and Mantosh
VI INDIA’S FOREIGN RELATIONS - 2005
President of India
Dr. A. P. J. Abdul Kalam
Prime Minister
Dr. Manmohan Singh
MINISTRY OF EXTERNAL AFFAIRS
External Affairs Minister
Shri Natwar Singh1
Minister of State Minister of State
Shri E. Ahamed Rao Inderjit Singh
Foreign Secretary Shri Shyam Saran
Secretary (East) Shri Rajiv Sikri
Secretary (West) Smt. Shashi Uban Tripathi
Secretary (Co-ordination) Shri Vijay Kumar
Dean, Foreign Service Institute Shri Atish Sinha
Additional Secretaries:
Shri K. C. Singh
Shri Sharad Sabharwal
Shri K.P. Ernest
Official Spokesperson
Shri Navtej Singh Sarna
1. On November 7, 2005 he relinquished charge of the Ministry of External Affairs.
VII
PREFACE
The series India’s Foreign Relations was launched in March 2005
with the publication of the documents for the year 2004. The second volume
in the series covers the period January to December 2005. The documents
in this volume indicate a paradigm shift in the all-round quality of India’s
foreign relations in line with the recent trends in international affairs. No
Foreign Office today is content to be merely building friendly and good
relations in the classical sense. Even economic content of diplomacy, which
had gained currency in recent decades, is no longer the catch phrase in the
conduct of international relations. The sophistication and the growing needs
of the economy coupled with the demands of globalization have brought
about a qualitative change in the conduct of international relations. Energy
- thermal and nuclear, science and technology, biotechnology, information
technology, nanotechnology, environment, space, sustainable development,
PURA and the like are now at the core of diplomatic vocabulary. Market
protection is giving way to dismantling of trade barriers. Competition is the
mantra, free trade the dharma and multilateralism the altar on which the
economic relations are now conducted. Energy - the strategic need for which
has spurred unprecedented demand – has, today, become the centerpiece
of foreign policy. No wonder in India too the energy, whether nuclear, natural
gas or hydrocarbon, dominates the foreign policy debate, as in many other
countries.
The challenge between high growth and social progress, hitherto,
the attribute of domestic politics has today assumed international
ramifications. Neither is possible without foreign investment and modern
technology. The problem of keeping the gap narrow between rich and the
poor, maintaining economic vitality and efficiency, attracting greater foreign
investment and enhancing the competitiveness of indigenous industry
against globalizing trends, promoting mega projects and helping the smaller
entrepreneurs to survive and stand competition, are some of the challenges
which have assumed foreign policy implications even as they are governed
by domestic economic compulsions. While much of the burden of reconciling
the conflicting demands of modernization and globalization has to be met
VIII INDIA’S FOREIGN RELATIONS - 2005
by economic and financial experts, the Foreign Service bureaucracy today
is shouldering its own share of the challenge.
Prime Minister Dr Manmohan Singh has repeatedly emphasized
the need for energy security for a sustained growth rate of 8 percent and
more in the coming years. This inevitably underlined the need to look for
new sources and to go to distant lands. Transporting energy is a concomitant
necessity and presents its own problems. Given the fast shrinking
hydrocarbon sources globally, there is ever-stiffer international competition
to contend with. In recent years Indian policy makers and experts have
scurried around the world to tie up new sources by entering into exploration
contracts, joint ventures through equity investments and otherwise. There
is stiff competition from developed economies of the West, Japan and, of
course, China. The Indian oil entities like the Oil and Natural Gas
Commission (ONGC) and the Gas Authority of India Ltd. (GAIL) with the
support of the government are busy courting oil producing countries seeking
resources far and wide. Energy is on the agenda of all high-level official
visits to and from India, including at the highest level.
Sourcing energy from abroad necessitated cheaper means of
transporting it through pipelines, which is no easy feat particularly when no
supplies are available across India’s own borders. Sourcing gas from
Bangladesh continues to be a problem. Iran-Pakistan-India and
Turkmenistan-Afghanistan-Pakistan-India pipelines in the west and
Myanmar-Bangladesh-India pipeline in the east presented attractive but
difficult choices. For some time now India is exploring the option of Nuclear
energy as an alternative. This is an area of restrictive technology and
international controls. India’s refusal to sign the discriminatory NPT and
testing of nuclear weapons in 1998 with all its political implications denied
India access to advanced nuclear technology. Breaking this logjam has
become a major foreign policy concern of New Delhi.
Prime Minister Manmohan Singh’s visit to the USA in July 2005 was
a major effort in the search for energy security. The prospect of nuclear
energy cooperation, not only with the USA but also with other Nuclear
Suppliers Group countries which is now within reach, promises energy
security as a consequence of the recognition of India as a responsible
nuclear weapon State. There have been some dissenting voices within the
country against the nuclear agreement with the USA and the follow up action