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INDO-US Ties - Some More Knots

Issue: 07-2009By Sangeeta Saxena

US Secretary of State Hillary Clinton’s recent visit to India from July 17 to 20 has been meaningful in many ways, translating into significant expansion of bilateral and multilateral relationship between the two nations

Slivers of cheer are breaking through the decades-old sulk. Against the backdrop of the emerging unipolar world scenario, India is forced to re-examine the by now common refrain that despite Washington’s bonhomie with Delhi, Islamabad appears to be its favoured child. The grouse, though rarely articulated above a whisper, seems to be losing its edge somewhat with the US increasingly reinforcing its estimation of India’s importance, both strategically and economically. Republicans or Democrats, the definitive transformation in Washington’s views surfaced during Bill Clinton’s regime, was echoed by George W. Bush and now appears to be pursued by President Barack Obama. Cutting across party lines and united by the common goals of eradicating terrorism and developing defence, space and nuclear technology, the two countries appear to finally have discarded the pall of mistrust to reach out for a warm clasp.

Consequently, US Secretary of State Hillary Clinton’s recent visit to India from July 17 to 20 has been meaningful in many ways, translating into significant expansion of bilateral and multilateral relationship between the two nations. Transiting from the rank of an observer as the First Lady accompanying her husband, to visiting India as a world decision-maker, Senator Clinton’s role of a goodwill ambassador has been wholeheartedly embraced by India. Her trademark steely grit and determination while discussing issues of concern common to the two nations have made Delhi and Mumbai sit up and listen, affording both India Inc and South Block with a lot of food for thought.

Acknowledging the great potential in Indo-US science and technology collaboration, the two sides have concluded a Science and Technology Endowment Agreement, and inked a Technology Safeguards Agreement that will permit the launch of civil or non-commercial satellites containing US components on Indian space launch vehicles. The other highlight is the signing of an agreement to facilitate the launch of US satellites on Indian launch vehicles. Both sides welcomed India’s participation in the Future Gen Project for the construction of the first commercial scale fully integrated carbon capture and sequestration project and India’s participation in the Integrated Ocean Development Project—an international endeavour for enhancing the understanding of Earth and ocean dynamics and addressing the challenges of climate change.

Significantly, India, along with China and other developing nations, has been resisting any cap on greenhouse gas emissions that can be detrimental to its economic growth. The US has also opposed the India-Pakistan-Iran gas pipeline and views with suspicion Delhi’s ties with Tehran. Clinton stressed that the US is keen to know India’s perspective on Iran’s nuclear weapons programme and sought Delhi’s advice. “In the discussions today and to come in future, we will be exploring with India their approach and perspectives towards Iran and any advice that they can contribute to an international consensus about the dangers posed to global stability if Iran were to become a nuclear weapons power,” Clinton said.

Delhi agreed to identify two sites where US companies could set up nuclear power plants. This will, however, have to wait for India to pass the required liability legislation as required under the US law. What has led to a controversy is the conclusion of the End Use Monitoring Agreement under which the US will be allowed to inspect individual items obtained from the US for defence purposes, to ensure that these were being used for the purpose originally intended for. Delhi, however, has been maintaining that the inspection will not be at the site but at a place and time to be decided by India. The US has such agreements with 83 countries, and it will invariably be welcomed by Lockheed Martin Corp. and Boeing Co., both competing with Russian, French and Swedish companies for a massive $12 billion (Rs 57,510 crore) tender to supply 126 Medium Multi-Role Combat Aircraft to the Indian Air Force.

Intriguingly, despite the US orchestrated G8 ban on Enrichment of Uranium & Reprocessing (ENR) technology for Nuclear Non-Proliferation Treaty non-signatory countries, India is bending over backwards to offer American companies two sites for locating nuclear plants—a concession made publicly during the Clinton visit. Presumably, the 10,000 MW reactor sales India has promised is still on course, despite the ENR ban.