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Respect sanctity of contract: Blackwill

US Ambassador in India Robert Blackwill on Tuesday asked India to respect 'sanctity of contract' with Dabhol Power Project of Enron and other American business interests in the country.

Addressing reporters, Blackwill, who is in Chennai in connection with the Indo-US naval co-operation talks beginning in the city on Wednesday, said failure to honour 'sanctity of contract' would mark a 'death blow' to American investments in India, and the contract with the DPC in Maharashtra should be respected.

Answering questions about the Amercian government pressurising India to pay compensation to Enron, the ambassador said it was normal diplomatic practice to take up the interests of American business in India.

''I hope my esteemed counterpart in the US would also be doing the same there'', he added.

Blackwill said American businessmen should feel secured for making further investments in India. There were similar agreements with other American power companies in India. The corner stone of such economic relationship was the sanctity of contract, the ambassador asserted.

It may be noted that Enron has filed insolvency petition in the US and the company's business practice worldwide is now under debate.

Replying to questions, Blackwill admitted that Indo-US economic co-operation had now taken a backseat in view of other developments. The foreign direct investment to India from the US had also become 'flat' and this was a matter of concern.

He wanted more American businessmen to invest in India and added that the Indian government would also want the same.

UNI

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