Rediff On The Net Business News: The text of the US statement spelling out sanctions on India and Pakistan


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June 19, 1998

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The text of the statement

The Bill Clinton administration has announced the details of the nuclear-related sanctions against India, which will affect its funding from World Bank and other multilateral financial institutions. Similar sanctions were imposed on Pakistan.

This is the text of the US government statement giving details of the sanctions:

''The United States imposed sanctions on India and Pakistan as a result of their nuclear tests in May. In imposing these sanctions we seek: to send a strong message to would-be nuclear testers; to have maximum influence on Indian and Pakistani behaviour; to target the governments, rather than the people and to minimise the damage to other US interests.

''Our goals are that India and Pakistan halt further nuclear testing, sign the Comprehensive Test Ban Treaty immediately and without conditions, not deploy or test missiles or nuclear weapons ,cut off fissile material production for nuclear weapons, co-operate in the Fissile Material Cut-off Treaty negotiations in Geneva, maintain and formalise restraints on sharing sensitive goods and technologies with other countries; (and) reduce bilateral tensions, including (in) Kashmir.

Accordingly, the United States:

Terminated or suspended foreign assistance under the Foreign Assistance Act, with exceptions provided by law (eg humanitarian assistance, food, or other agricultural commodities).

21 million dollars in economic development assistance and housing guarantee authority for India (has been) terminated.

A six million dollar greenhouse gas programme in India (has been) suspended.

The trade development agency will not consider new projects.

Most assistance to Pakistan had already been prohibited.

Terminated foreign military sales under the Arms Export Control Act and revoked licences for the commercial sale of any item on the US munitions list.

Suspended delivery of previously approved defence articles and services to India.

Halted any new commitments of USG credits and credit guarantees by USG equities (EXIM, OPIC, CCC).

The administration will permit legislation to permit CCC credits for food and agricultural commodities.

OPIC was only recently reopened in Pakistan. However, India was one of OPIC's top five countries receiving an average of 300 million dollars annually in OPIC support.

EXIM had only recently reopened in Pakistan with one expression of interest pending for 1.1 million dollars; 500 million dollars in pending financing in India will not go forward.

Gained G-8 support to postpone consideration of non-basic human needs loans to India and Pakistan by the international financial institutions to bolster the effect of the Glenn amendment requirement that the US oppose non-BHN IFI loans.

1.71 billion dollars in IFI lending (has been) postponed for India.

Although no IFI loans for Pakistan have been presented for board consideration, 25 million dollars in IMF assistance has been postponed for failure to meet economic benchmarks.

Will issue executive orders to prohibit US banks from extending loans on credits to governments of India and Pakistan.

Will deny export of all dual use items controlled for nuclear or missile reasons, will presume denial for all other dual use exports to entities involved in nuclear or missile programmes.

Will toughen existing controls for government military entities.

Will continue denial of nuclear exports licensed by NRC or authorised by (the) DOE.

Will continue to favourably consider on a case-by-case basis other transactions which do not support nuclear, missile, or inappropriate military activities.

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