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Disregarding evidence by Afghan Intelligence that the attack had been planned across the border in North Waziristan by Taliban military commander Jalaluddin Haqqani's network, and that Pakistani nationals were also involved, Holbrooke remarked: 'I don't accept the fact that this was an attack on an Indian facility. Let us not jump to conclusions. I understand why everyone in Pakistan and everyone in India always focus on each other. But please, let's not draw a conclusion for which there is no proof'. Incensed by such insensitivity, New Delhi told Holbrooke, who had proposed a visit to India, that he was not welcome. Matters have been further complicated by the propensity of Obama administration officials ranging from National Security Adviser General James Jones and Secretaries Gates and Clinton to the Pentagon Brass in Washington, Tampa and Afghanistan, to treat Pakistani Army Chief General Kayani virtually like a Head of Government. Kayani has reportedly been taped by the CIA declaring Taliban military commander Jalaluddin Haqqani as a 'strategic asset'.
Nothing that President Obama said to Prime Minister Manmohan Singh on March 11 has assuaged the adverse reaction that his Administration's insensitivity and disregard for Indian concerns has provoked in India. It has led to a quiet but wide-ranging review of Indian policy, which has been on the anvil for the past few months. Russian Prime Minister Vladimir Putin's visit to India in March led to a new momentum in India's ties with Russia. Plans are underway for Joint Collaboration in developing fifth generation fighter aircraft, which are scheduled to go intoproduction in 2015 and lease a nuclear submarine, apart from a number of other defence industry deals. Moreover, India and Russia have agreed to cooperate in the development of 'fast neutron technology' — a euphemism for fast-breeder nuclear power reactors. This will place nuclear cooperation with Russia on an enduring footing, as such cooperation will dovetail into India's plans for increasing energy self-reliance, through indigenous Thorium-based fast breeder reactors. Moreover, the Russians are planning to involve India's domestic industries increasingly in construction of nuclear reactors they supply.
Following the Putin visit, Indian Foreign Minister Krishna paid a visit to China indicating that despite differences over the border, the two countries would cooperate in areas like Climate Change and on the Doha Round, apart from expanding their growing trade and investment ties. New Delhi has made it known that India would be happy to participate as a full member in the Shanghai Cooperation Organization. Moreover, immediately after the Washington Summit, Dr. Manmohan Singh flew to Brasilia for two back-to-back Summit meetings of the IBSA (India, Brazil and South Africa) and BRICs (Brazil, Russia, India and China). The message from both these Summits was clear. Firstly, that emerging economies wanted a restructuring of Breton Woods Institutions such as the World Bank and the IMF to more realistically represent existing global economic realities. Secondly, reservations were voiced on proposals for 'crippling sanctions' against Iran, because of its nuclear programme. India becomes a non-permanent member of the Security Council later this year and it appears clear it would work closely with Russia, China, Brazil and South Africa, in formulating its responses on international issues.
Given the absence of political warmth in relations with the USA, it does appear that the Nuclear Liabilities Bill, considered essential for American companies to participate in nuclear power projects in India, will not be passed anytime soon by India's Parliament. There are also doubts about whether the Lockheed Corporation's offer to supply 126 F-16 fighters to India will receive favourable consideration, given the Corporation's decision to sell frontline F-16s to Pakistan. Despite these developments, it is acknowledged that for the foreseeable future, India's relations with the United States will remain its most important bilateral relationship. There is immense potential for the development of business and investment ties with the US to meet India's growing needs of finance and technology for developing its infrastructure. Moreover, the US is a crucially important partner for cooperation in areas like agriculture, education, health, space and high technology transfers. But it is recognized that India should not put itself in a position where the Americans take it for granted and ignore its security concerns.
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