BEIJING: In an implicit recognition of Sikkim being part of the Indian territory, China on Monday agreed to trade through the northeastern state and India has decided to recognise the Tibetan autonomous region as part of the territory of the People's Republic of China.

The agreement on opening of trading posts on the Sikkim-Tibet border, in effect recognising Sikkim as part of India after 28 years of its merger, is contained in an MoU on expanded border trade signed at the end of Prime Minister Atal Bihari Vajpayee's discussions with his Chinese counterpart Wen Jiabao here.

Besides the MoU on border trade, India and China signed the first-ever joint declaration, to be made public on Tuesday, which lays down "goals and guiding principles" for future relationship between the two Asian giants.

India has agreed to recognise the Tibetan autonomous region as part of the Chinese territory. The details and the exact formulations on the sensitive subjects of Sikkim and Tibet would be known only on Tuesday after the joint declaration, signed by Prime Minister Atal Bihari Vajpayee and his Chinese counterpart Wen Jiabao, and the border trade agreement initialled by the foreign ministers of the two countries, are made public on Tuesday, a day prior to the Indian leader's departure to Shanghai.

While being reticent about the two documents, Indian sources sought to dispel any suggestion of a quid pro quo on questions of Sikkim and Tibet.

Courtesy: www.economictimes.com, June 25, 2003

China on Monday pledged an investment of $500 million for infrastructure development and resource building in India and agreed to a plan of action for economic cooperation between the two countries.

This was stated by the External Affairs Minister Yashwant Sinha after hour-long talks between Prime Minister Atal Bihari Vajpayee and his Chinese counterpart Wen Jiabao at the Great Hall of the People in Beijing.

Sinha told reporters that the Chinese side sought cooperation in the area of public finance and the need for setting up a mechanism for a dialogue in this regard.

The two sides also signed nine accords, including those on simplifying visa procedures, enhancing cooperation on renewable energy and increasing contacts in the field of law and justice.

Sinha said that the Chinese Premier made eight significant points to enhance ties between the two countries that included mutual understanding and trust and greater people to people contact.

Courtesy: www.rediff.com, June 24, 2003

Le Bourget (France): Leading European defence equipment and missile manufacturers are focussing on India with their future design, development and production plans. The growing divide between the EU and the US, marked by the absence of the heads of US majors at the Paris Air Show, has tilted the balance in favour of India.

EADS group firm MBDA has joined hands with Bharat Dynamics Ltd. (BDL) to develop and manufacture all varieties of missile systems, including anti-tank, surface-to-air and air-to-air missile. "We are also willing to invest in BDL or form a JV company for these missile systems. Besides catering to the demand in India, we will also use it as a base to eater to other overseas markets," MBDA CEO Marwan Lahoud said.

This is the company's first strategic venture outside Europe. "We have already received orders from the Indian Navy for an air defence system to be installed on their P17 ships that are under development in Mumbai." It will develop air-to-air and surface-to-air missiles for the IAF and the Indian Army.

In addition, Russian military aerospace major Sukhol Aviation Holding Company has also joined hands with India to partially finance and participate in the development of a next-generation fighter aircraft. The project is still in an early stage.

India and Russia have historically been partners in defence procurement.

Courtesy: The Times of India, June 17, 2003

In a significant development, India on Monday decided to stop taking bilateral aid from most countries except a few major ones and prepay Rs 7,490 crore worth of external debt this year in the face of ballooning foreign exchange reserves, now at over $80 billion.

"The finance ministry has decided to discontinue receiving aid from partners other than Japan, UK, Germany, US, European Commission and the Russian Federation," an official announcement said. This is a followup of the budget announcement, it said, adding smaller bilateral aid from 14 countries totalling Rs. 7,490.77 crore would be prepaid.

The 14 countries comprise Netherlands, Canada, Sweden, Italy, Denmark, Belgium, Austria, Kuwait, Spain, Switzerland, Saudi Arabia, Australia, Russia, and Czech and Slovak Republics.

Courtesy: Hindustan Times, June 03, 2003