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June 19, 1998


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US spells out sanctions on India, Pakistan

The US today detailed a series of sanctions against India and Pakistan which it said was designed to punish these governments for their nuclear policies but sought to avoid harm to impoverished people.

Under the sweeping sanctions, Deputy Secretary of State Strobe Talbott said the measures were not designed to punish or isolate the two countries, but to send a message to them and any other countries thinking of going nuclear that there are heavy economic costs in such a decision.

Among the sanctions announced:

All US foreign assistance to India is cut off with the exception of humanitarian aid such as food or other agricultural commodities. Foreign aid to Pakistan had already been cut off because of Pakistan's nuclear weapons programme.

All new military sales to both countries are cut off and previously purchased defence items will not be delivered.

New US government credits for sales to both countries will be halted. India had been receiving 300 million dollars annually in such support.

US banks will be prohibited from granting loans to the Indian and Pakistani governments, but the banks can continue to do business with private firms in India and Pakistan.

The United States and other major industrial countries will stop all loans to both countries by international financial institutions such as the World Bank or the International Monetary Fund. That is expected to cost India 2.5 billion dollars in expected loans and Pakistan 1.5 billion dollars.

Indian officials said they had anticipated the sanctions for their tests, conducted five weeks ago and will go to other suppliers in Europe and elsewhere for American products which are blocked.

Talbott said the United States had conferred with other members of the G-8 group and that "some went along with us and some did not".

Talbott said, "We would hope that our allies and partners would resist the temptation to exploit the situation in the short term. The sanctions go to the core interests of us all, especially the other industrialised nations."

Talbott said, "We're out in front on the sanctions issue which is exactly where we belong, but we're not totally alone. We think there is sufficient consensus to make the sanctions effective."

The text of the statement

US to spell out sanctions this week

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