India, Russia to go ahead with N-plant, strike seven more deals

Russian President Boris Yeltsin said on Tuesday he was pleased with the co-operation between Russia and India as he began talks with Indian Prime Minister H D Deve Gowda.

''We were friends for many decades, and we remain friends,'' said Yeltsin, whom Deve Gowda met following a Russian assurance to clear the sale of two nuclear reactors to India, despite opposition from the US.

After separate meetings with Yeltsin and Prime Minister Viktor Chernomyrdin, it was announced that India and Russia would go ahead with the construction of the nuclear reactors in Kudumkulam in Tamil Nadu. Yeltsin also declared he would ban sale of arms to Pakistan and stop supply of key parts of the T-80 tanks to Ukraine which used to fit on the tanks and forward them to Islamabad.

Seven agreements were also signed with Chernomyrdin to further strengthen bilateral co-operation, calling for, among others, fewer taxes, mutual assistance in customs matters, easier extradition and mutual legal assistance in criminal matters.

This comes less than a week after a US-Russian summit in Helsinki that underscored the North Atlantic Treaty Organisation’s proposal to expand into eastern Europe despite Moscow's protests, and amid calls in Russia for Moscow to strengthen ties with its traditional allies like India.

Ukraine had annoyed Kremlin when it agreed to supply T-80 tanks to Pakistan when Russia, the key supplier, had refused. Which is why it is refusing to supply the guiding system and the 125-mm, two of the tank's main attractions. Russia has a monopoly in the manufacture of these parts.

A new arms deal is also not ruled out during Deve Gowda's current visit. Last December, India signed a $ 1.8-billion deal for 40 Sukhoi-30 fighter planes and said it planned to buy Russian combat ships, submarines and an aircraft carrier for its aging fleet.

External Affairs Minister I K Gujral, who was part of the Indian delegation, said the two countries had decided to hold annual summits. He said the Russian president promised to give personal attention to the nuclear plant project for which India will raise Rs 10 billion and Moscow will raise the same amount at a rate of 4.5 per cent over the next few years.

Yeltsin also supported India’s claim to permanent membership in the UN Security Council and was keen on co-operation with India in nuclear energy, hydro-electricity and defence.

Deve Gowda spoke of India’s betterment of relations with Bangladesh, Nepal and Pakistan during his tenure, pointing out that India was to resume talks at the foreign secretary level on March 28. Yeltsin agreed with him that India and Pakistan should resolve their differences through dialogue under the Shimla agreement.