|HOME | BUSINESS | NEWS|
|May 27, 1998||
EU to delay loans to India
The European Union has decided to penalise India for conducting nuclear tests on May 11 and 13.
Though the EU has still not followed in the footsteps of the United States which has slapped sanctions against India, it has decided to 'delay' loans from the World Bank and other international lending agencies, which New Delhi has sought.
The decision may have serious repercussions for India, unless it launches a diplomatic initiative to win over 'lost friends' in the EU. The strategy, experts feel, would be to attract private investment while isolating the hardliners in the EU.
Meeting in Brussels last night, the 15 EU foreign ministers expressed concern over the tests, saying that they pose a 'grave threat' to world peace and security.
Urging India's neighbours to exercise utmost restraint, the ministers said that New Delhi should sign the Nuclear Non-Proliferation Treaty and the Comprehensive Test Ban Treaty without conditions.
Welcoming India's announcement that no more tests are on the anvil, the ministers said New Delhi should give a firm commitment that no weapons would be developed or deployed.
Also, in accordance with its own statement, India should exert stringent controls over export of material, equipment and technology controlled under the Missile Technology Control Regime.
The EU has threatened to slap the 'necessary measures' if India refuses to comply with the suggestions.
Though the ministers have warned Pakistan against conducting nuclear tests, they have also offered the carrot, promising to expedite the signing of the EU-Pakistan trade agreement. They are also willing to consider higher development and economic aid.
Tell us what you think of this report
INFOTECH | TRAVEL | LIFE/STYLE | FREEDOM | FEEDBACK