[Congressional Record Volume 143, Number 104 (Tuesday, July 22, 1997)]
[Extensions of Remarks]
[Pages E1469-E1470]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          RECOGNIZING INDIA'S 50TH ANNIVERSARY OF INDEPENDENCE

                                 ______
                                 

                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                         Tuesday, July 22, 1997

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today regarding United 
States foreign involvement with India. Last December I visited India 
and spoke with some of the country's business leaders, and I discovered 
that businesses in India are entrepreneurial, active, and growing. Due 
to India's undying spirit to be a participant in the world's economy, 
Indo-United States relations and bilateral trade have grown during the 
past year. The United States is now India's largest trading partner and 
foremost foreign investor. Many U.S. companies are looking for 
opportunities for further expansion. Both the Indian market and 
government are working to secure a place for United States business in 
India. The economy, markets, and infrastructure are being reformed and 
liberalized. India needs foreign investment and technological 
development. Foreign aid from the United States is instrumental in 
implementing programs that help solve problems in the areas of health, 
family welfare, and education.
  In light of India's current reforms, its strong democracy, and its 
devotion to the welfare of its people, it is clear that India has and 
will continue to put United States aid to good use. On August 15, India 
will be celebrating its 50th anniversary of independence and democracy. 
It is imperative that the United States recognize India's achievement 
at this time and renew its commitment to the country. I recently 
received a letter from the Ambassador from India, Naresh Chandra, who 
explained in detail India's past achievements and current goals. I have 
included the Ambassador's letter with my statement, and I encourage my 
colleagues to read it.
  India is growing and expanding, and now it is time for the United 
States to participate in that expansion.

                                          Ambassador of India,

                                    Washington, DC, July 11, 1997.
     Hon. Alcee Hastings,
     U.S. House of Representatives, Longworth House Office 
         Building, Washington, DC.
       Dear Congressman Hastings, Almost a year ago when I had 
     just about started my assignment as Ambassador to this great 
     country, I had occasion to write to you on an amendment moved 
     by Congressman Dan Burton on the Foreign Operations Bill. 
     This amendment was not approved by a vote of 296 to 127. It 
     now appears that the House would be moved to consider a 
     similar amendment to the Foreign Operations Bill for FY 1998.
       First, I would like to say that my year in Washington has 
     been a most interesting and rewarding experience, the 
     highlight of which has been the encouragement and support 
     that I have received from Members of Congress, like yourself. 
     We have witnessed during this period a further upswing in 
     Indo-US relations and in the growth of bilateral trade making 
     US our largest trading partner as well as the foremost 
     foreign investor in India.
       US trade with India which was a mere $500 million in 1991 
     is now around $9.5 billion. Many US companies are considering 
     further expansion of their operations in India. Enron which 
     had to cross many hurdles to commence the $1.2 billion Dabhol 
     power project is so interested in the opportunities emerging 
     in the Indian market that it has plans to invest an 
     additional $10 billion over the next decade. Many processed 
     foods with American brand names have become very popular in 
     the Indian market. Automobiles of US design are increasing 
     their presence on Indian roads. Banks and financial 
     institutions too are taking advantage of recently created 
     business opportunities. In the insurance sector also, the 
     door has been opened for starting joint ventures in the field 
     of health insurance.
       The coalition of parties ruling at the Centre have not only 
     continued with economic reforms but expanded it into many 
     more areas. Custom duties and other taxes have been further 
     liberalized to encourage foreign investment in infrastructure 
     and other areas of the economy. The US Administration has 
     included India among the 10 most important emerging markets 
     and this is borne out by the number of major US companies 
     operating in India. A list of these companies is enclosed.

[[Page E1470]]

       There is now in India much greater understanding and 
     acceptance of the need for foreign investment and technology 
     collaboration for meeting the vast needs of India's 
     developing economy. All sections are agreed that this is 
     necessary to maintain and increase the growth rate of around 
     7 per cent that we have been achieving in recent years.
       While US aid funds are relatively much smaller than the 
     inflow of capital into business and industry, they do serve 
     the purpose of enabling very important programmes to be 
     implemented in backward areas for the benefit of the 
     disadvantaged in the field of health, family welfare and 
     education. These programmes involving interacting of American 
     experts and officials with NGOs and Indian volunteers is of 
     great help in enhancing people to people understanding 
     between the two countries.
       In a month from now we would be celebrating the 50th 
     anniversary of India's independence and democracy. While we 
     have achieved much during this period by way of consolidation 
     of the nation state, providing adequate food security for the 
     people, and setting the base for economic development, there 
     are still many challenges that we have to face and overcome 
     for providing the desirable level of living to large sections 
     of our people. At this time of review and introspection, we 
     are conscious of the benefits that we have derived by way of 
     bilateral cooperation with the US in the important areas of 
     agriculture, education, science and technology. At this time 
     when we are looking for much greater cooperation in these 
     areas, it is unfortunate that we might have to tackle 
     something of a negative nature in the House.
       It was gratifying to see in the debate on the House floor 
     that took place in June last year on a similar amendment, 
     that several Congressmen very ably put forth the following 
     points:
       (i) India has made a success of its democracy and 
     established powerful institutions like an independent 
     judiciary, a free press and vigorous political parties 
     providing for consultation and participation in Government in 
     accordance with the rule of law.
       (ii) India, which like the US has a multi-religious and 
     multi-ethnic society, has resolved conflict situations in a 
     lawful, democratic manner and taken concrete steps to further 
     improve the human rights situation, including the setting up 
     of an effective National Human Rights Commission.
       (iii) Indo-US business and trade relations have improved 
     considerably with the US companies taking good advantage of 
     the opportunities emerging in the Indian market, as borne out 
     by the large number of US companies operating successfully in 
     India.
       (iv) The situation in Punjab had been resolved and the 
     situation in Jammu & Kashmir has improved.
       All the above points continue to be not only valid, but 
     have acquired even greater force. Investment approvals 
     pertaining to US companies are now for the order of $8.5 
     billion. The opportunities existing for US companies in 
     infrastructure sectors like telecom, roads, ports and power 
     have a potential for fruitful investment of over $20 billion 
     per year.
       The US Administration has acknowledged the improved 
     situation with regard to human rights and also cited the 
     problems created by the trans-border support for terrorist 
     activities in India; the most recent example of which was the 
     explosion caused in a train in Punjab which killed thirty-
     four civilian passengers on July 8th with serious injuries to 
     many more. This highlights the need for not doing anything to 
     encourage front organizations created for the sold purpose of 
     mobilizing support and funds for essentially terrorist 
     outfits.
       Since last year there have been general elections to the 
     State Assemblies in Punjab with a voter turn-out of over 69% 
     and which brought the Sikh-dominated party, the Akali Dal to 
     power in association with another party, namely, the Bhartiya 
     Janata Party. There could not have been a clearer rejection 
     of the separatist movement in the State of Punjab.
       In Jammu & Kashmir too, general elections recorded a good 
     voter turn-out of around 55% and resulted in Dr. Farooq 
     Abdullah gaining majority not only in the Kashmir valley, but 
     also in the regions of Jammu and Ladakh. This democratically-
     elected State Government has revitalized the Government 
     machinery despite the strains created by terrorist gangs on 
     the law and order machinery with the help of agencies across 
     the border.
       Initiatives taken by Prime Minister I K Gujral from the 
     time he was the Minister for External Affairs have greatly 
     helped in improving bilateral relations between India and its 
     neighbors. As part of this policy, special steps have been 
     taken to initiate discussions with Pakistan to tackle all 
     outstanding issues. Agreement has been reached in the talks 
     held so far to set up Working Groups for seeking solution to 
     specific problems including the State of Jammu & Kashmir and 
     terrorism. The House was good enough to applaud these 
     efforts. It is our hope that progress at these talks would 
     help create a better climate for tackling terrorist activity.
       This letter has become much longer than I intended, but the 
     subject being very important and your consideration and 
     support of great value to us, I had to put the relevant facts 
     before you. I am confident that with your goodwill and 
     encouragement we shall build upon the strong foundation that 
     has been laid in recent years in our bilateral relations. As 
     always, I and my staff at the Embassy are available to assist 
     you in any way possible. Please do not hesitate to contact me 
     if you have any questions.
           Yours sincerely,
                                                   Naresh Chandra.

     

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