HVK Archives: Counter-curbs if U.S. blocks funds
Counter-curbs if U.S. blocks funds - The Times of India
M.D. Nalpat
()
May 19, 1998
Title: Counter-curbs if U.S. blocks funds
Author: M.D. Nalpat
Publication: The Times of India
Date: May 19, 1998
High-level policy circles in New Delhi say that commerce minister
R.K. Hegde's remarks on Sunday that "India should not impose
counter-measures on the United States" were his personal views.
They compared this 'Hegde doctrine' to the security doctrine of
P.V. Narasimha Rao who had declined to permit the Indian security
establishment to respond even to overt attacks on Indian
interests.
"Thanks to Mr Rao, China has almost made Pakistan a nuclear
state, while Islamabad has expanded its terror war on India from
a handful of states to the entire country," they pointed out.
These sources say that a comprehensive set of counter-measures on
the sanctioning power's economic interests in India have been
drawn up and will be put into effect "if Washington joins other
countries to block World Bank and other multilateral agency
loans, or prevents their own private sector, including financial
institutions, from conducting normal business with India."
One high-ranking source in the Vajpayee government said that
these measures would be taken against all economic entities that
participate in the China-Pakistan plan to economically cripple
India. "While we will ignore verbal abuse and the cut-off of
government aid funds, blocking multilateral loans or private
entities will be treated very differently."
Should the World Bank and the IMF block fresh loans to India, or
halt funds already in the pipeline, "then New Delhi may have to
stop repayments of existing loans until the blockade is lifted",
said a top official. He added," Unfortunately, both ambassador
(to the U.S.) Naresh Chandra and (finance secretary) Montek Singh
Ahluwalia had given the Americans the impression that India was
scared of sanctions when, in fact, we know our capacity to
withstand them is total."
The sources said that "all RBI and Department of Banking permits
and facilities to foreign financial entities operating in India
will be withdrawn until further notice should they obey the
Clinton, Kohl and Hashimoto administrations in their efforts to
create the same economic chaos in India that we are seeing in
Indonesia".
As for private companies that comply with the sanctions, "all
progress payments under existing government and public sector
contracts will be stopped under the Force Majeure clause. Ongoing
purchase negotiations with such companies (except for medicines
and food) will be cancelled and alternative supply sources
identified", said a top official
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