EDITORIAL

Bus across LoC

One should express a sense of satisfaction that India and Pakistan have finally removed irritants in the way of the resumption of bus service between Srinagar and Muzaffarabad. According to a joint announcement made by Foreign Minister Natwar Singh and his Pakistani counterpart Khurshid Mahmud Kasuri in Islamabad the first bus is expected to run on this historic route from April 7. It appears that the vexed issue of legal travel documents has been resolved by working out a via media of entry permits. For this the designated authority in Srinagar will be the Regional Passport Officer. As one understands from the available details all citizens ...more

Extended ties

While even officially the Srinagar-Muzaffarabad bus would take some time to become a reality, India and Pakistan have moved towards close cooperation in an entirely new field --- training Pakistani youth in outsourcing skills. An Indian information technology-training firm and a Pakistan software firm have jointly bid for a US $ ...more

Civic polls: Reasseration of democratic process

By Ghazanfar Butt

The successful conduct of the civic polls in Jammu and Kashmir has been one of the significant achievements of the Peoples Democratic Party-Congress coalition Government. It has also been a victory for the .....more

Baglihar dispute a stream of conflict

By Subhashis Mittra

The vexed Baglihar hydro power project on the Chenab river in Jammu and Kashmir seems to be moving into the realm of a third-party arbitration, with the Pakistan Government approaching the World Bank for .....more

Aiyar's oil diplomacy

By S.K. Singh

On her first day in office, within hours of moving from the White House to her new job as America’s secretary of state, Condoleezza Rice rang up Pakistan’s President,....more

EDITORIAL

Bus across LoC

One should express a sense of satisfaction that India and Pakistan have finally removed irritants in the way of the resumption of bus service between Srinagar and Muzaffarabad. According to a joint announcement made by Foreign Minister Natwar Singh and his Pakistani counterpart Khurshid Mahmud Kasuri in Islamabad the first bus is expected to run on this historic route from April 7. It appears that the vexed issue of legal travel documents has been resolved by working out a via media of entry permits. For this the designated authority in Srinagar will be the Regional Passport Officer. As one understands from the available details all citizens of India and Pakistan will be entitled to this facility which will be extended right up to the Northern Areas which though part of the undivided Jammu and Kashmir as it had existed in 1947 is directly administered by Pakistan. While New Delhi has ostensibly climbed down from its basic stance on allowing journey only through valid passports and visas Islamabad appears to have compromised with its original posture on restricting the travel on this road only to the State subjects. Such give-and-take is unavoidable in the tense and ticklish situation that prevails along the Line of Control. It would be entirely counter-productive to interpret this understanding in any manner that runs contrary to the underlying spirit of shared bonhomie. Since the official version is carefully worded ---it merely states that the 'travel will be by an entry permit system, once identities are verified. Application forms for travel will be available with designated authorities in Srinagar and Muzaffarabad' --- its pros and cons are likely to be intensely debated in the days to come. Both the countries would be required to place all their cards on the table that they have held back at the initial stage evidently to watch popular reaction to the first major step they have taken. In our case, the budget session of Parliament is scheduled to begin later this month. The Government will thus get plenty of opportunity before April 7 to explain its position and mobilise the support of opposition parties in order to propel the bus in the direction of Muzaffarabad on that date. So far the general impression has been that the Government and the leaders of the erstwhile ruling National Democratic Alliance, who can justifiably take credit for breaking the ice with Pakistan, are moving in tandem on the issues involving the neighbouring country.

Clearly, the two governments are being extremely cautious and are carefully walking a tight rope. They can't be blamed for this. They are well aware that the bus service in this region is perhaps the most important confidence -building measure and if it flops it would negate many constructive developments that have already taken place. The bus would race over more than half-a-century old barrier of hatred and mistrust first created by the Pakistani army-backed tribal raiders in 1947. Once it takes off it would possibly help brush aside the bitter past memories and slowly but surely usher in an unprecedented era of prosperity in the region that has otherwise been literally a minefield. This will certainly give an opportunity to dream big in terms of the creation of thriving tourism infrastructure all the way via Uri on this side of the LoC and Chakoti on the other. There can't be two opinions that the successful restoration of the Srinagar-Muzaffarabad highway holds the key to the reopening of the Jammu-Sialkot road and many other links including those in Poonch, Rajouri, Leh and Kargil districts. It would also give a fillip to the moves to resume the Munabao-Khokrapar rail link between Rajasthan and Sindh and may translate into reality the plans for close interaction between two Punjabs separated by the Wagah border.

A significant fall-out from the bus service would be the possibility of closer inter-action between the new generations that have grown on either side. One of them has been exposed to the harmful influence of the two-nation theory based on religion while the other has witnessed and considerably patronised a liberal ethos in the Valley notably even in the face of heavy odds generated by extremist forces after the late eighties. The two will get a rare chance to match their notes. Amidst all these optimistic feelings it needs to be remembered that one wrong move can have far-reaching negative impact. It has to be ensured that the users of this road are genuine persons and not the masters of intrigue and perpetrators of terror. An iota of mischief and suspicion can knock down the foundation of hope that has been laid after a long and tortuous process of negotiations. There should be no room at all for this. Instead, let's look forward to raising an edifice of lasting peace and friendship.

Extended ties

While even officially the Srinagar-Muzaffarabad bus would take some time to become a reality, India and Pakistan have moved towards close cooperation in an entirely new field --- training Pakistani youth in outsourcing skills. An Indian information technology-training firm and a Pakistan software firm have jointly bid for a US $ one-million contract with the Sindh Government in the neighbouring country in this behalf. This is the first-ever such joint collaboration between IT companies in the two countries. The information given by a delegation of the Pakistan Software Houses Association (PASHA) that recently toured this country holds out the promise of experts from one country working in the other for common benefit. For instance, if the combined attempt to secure the assignment in Sindh materialises the specialists from this country would be able to show their potential in Pakistan for up to six months. Pakistan has made considerable progress in software industry although it is way behind India which has already earned global respect in this sphere. Nevertheless, the neighbouring country is showing an annual growth between 50 and 100 per cent in this industry. This in turn has strengthened the view that Pakistani companies can form joint ventures with their Indian counterparts to offshore contracts from the affluent West. As a Pakistani delegate remarked: "The cake (of IT outsourcing) is too big. By competing as well as working jointly we can all enjoy the pie. We should look at making the entire South Asian Region (SAARC) a place for outsourcing." At the ground level it has to be acknowledged that computer culture has picked up in a big way in Pakistan during the last five years. It is possible these days to conveniently e-mail a report or a message to any place in India, including Srinagar and Jammu, from the crowded streets of Rawalpindi.

Indeed, the sentiments expressed by the Pakistani delegate are healthy and should be warmly reciprocated. The previous experience has shown that the two countries can hone each other's skills in every field - from hockey at one time to IT these days --- by constant inter-action. Their inability to do so has proved their undoing apart from sending a wrong message to the global community. The current trends aimed at building mutual trust are optimistic and should be wholeheartedly encouraged. They promise a prosperous sub-continent.

Civic polls: Reasseration of democratic process

By Ghazanfar Butt

The successful conduct of the civic polls in Jammu and Kashmir has been one of the significant achievements of the Peoples Democratic Party-Congress coalition Government. It has also been a victory for the people of the State who have decided to ignore the threat by militant organizations not to participate in the elections

The civic elections were held after a lapse of 27 years. The State Government was contemplating holding the elections to local bodies for over a decade. There was a school of thought which felt that civic elections should be held before the Parliament and Assembly elections in 1996. But many felt that if there was violence in the State during the civic elections, it would be very difficult to hold the Parliamentary or Assembly elections in 1996. The Central Government was keen that an elected Government should assume office in the State, the most appropriate authority to combat militancy was an elected Government. The holding of Parliamentary and Assembly election got priority and civic elections were deferred.

Following the announcement of civic elections this year, the militant organizations in the State warned people not to take part in the polls. The Hizbul Mujahideen put up posters with warnings in several villages. Several outfits, including the Syed Ali Shah Geelani led All Parties Hurriyat Conference came out with a boycott call. Joining Geelani were the Jammu and Kashmir Liberation Front, the Democratic Freedom Party and the United Jehad Council. The JKLF Chief Yasin Malik and the Democratic Freedom Party leader Shabbir Shah led processions asking people not to cast their vote. The Kashmir Bar Association and the Jamiat-e-Ahlihadees joined in the anti-poll campaign.

Unlike the Parliament and Assembly elections in 1996 and 2002, there was little tension in the State during the civic elections this year. On hindsight, it looks as if the people had made up their mind to stand up to the militants. The consensus was that, time had come for the people to send a message to the authorities that they were ready to assume their democratic responsibilities.

The Peoples' Democratic Party and the Congress, a part of the State Government which decided to hold the civic elections, were expected to participate in the polls. The BJP has been keen to make a good showing in the Jammu region to re-establish its claim to popularity which had received a drubbing during the Lok Sabha polls in 2004. In the Kashmir region, the National Conference had to demonstrate that it had a strong following among the people. The National Conference President Omar Abdullah said that "conditions were hostile to us; still we have decided to take on Mufti Sayeed on the electoral turf".

The trend was set in the first phase of the polls in the north Kashmir districts of Baramullah and Kupwara. People came out with quiet determination to cast their votes which touched over 70 percent in many areas, as compared to less than five percent in the Assembly and Lok Sabha elections in 1996. "These elections have nothing to do with the Kashmir problem. We came out to vote because we want an end to our day-to-day problems", said a voter in Sopore (Indian Express 30/1). The PDP-Congress combine emerged winner in the Baramullah and Kupwara districts.

The decision of Omar Abdullah to participate in the polls turned out to be a right one. The National Conference secured 41 of the 68 seats in the Srinagar Municipal Corporation during the second phase of the elections. The Peoples' Democratic Party got 17 seats, while the Congress had to be satisfied with six and the independents won four. What was significant was that the voter participation had crossed 20 percent in Srinagar as compared to five percent in the Assembly elections in 2002. In Jammu, the Congress could win only 27 seats in the -71 member Municipal Corporation. None of the other major parties - the National Conference (6), BJP (25) or the PDP (2) were in a position to lead in the Jammu Corporation. The suspense ended when seven Independent Corporators decided to extend unconditional support to the Congress-PDP combine.

In the third phase held in Pulwama and Anantnag the PDP and the Congress won a clear majority. Over 44 percent of the voters participated, the turnout of the voters being 34 percent in Anantnag and 55 per cent in Pulwama. The PDP made a clean sweep in the Municipal Committee of Shopian and Bijbehara. The PDP also gained control of the Anantnag Municipal Council bagging 11 of the 21 seats.

In the fourth phase, voter turnout was 71 percent in Ganderbal, 81 per cent in Khansahib, 78 percent in Budgam, 68 percent in Magam and 65 percent in Charar-e-Sharief. The PDP secured Ganderbal and the Congress-PDP combine secured Charar-e-Sharief. In the next phase the Congress emerged as a single largest party in the Udhampur Municpal Committee securing 7 out of the 17 seats. BJP was a close second with six seats. In that phase, the Congress-PDP combine secured a majority in five civic bodies, the National Conference in two and the NPP in one.

When the final counts are made, all the political parties in the State have established their dominance in certain parts of the State: the National Conference in Srinagar, People's Democratic Party and the Congress in the rest of Kashmir Valley, and the BJP and the Congress in the Jammu region.

The successful holding of civic elections does not mean an end to violence. The elected member of the National Conference-- Mohammad Maqbool Shah Khaksar -- who was tipped to be the Mayor of Srinagar -- was gunned down on February 8. The previous day, the elected member of the PDP of Beerwah Municipal Committee - likely to be elected the Chairman -- Ghulam Mohiuddin Mir, was killed. Terrorists will try their best to frustrate the efficient functioning of the civic bodies. Govt. may thus have to provide security cover to the elected councillors and corporators.

One expects that the State and Central Governments will delegate authority and resources to the local bodies to meet the expectations of the people. Prime Minister Manmohan Singh feels that "the State can benefit immensely from revitalization of local Government and decentralization of administration". The State of Jammu and Kashmir has demonstrated that it is possible to implement the democratic process in difficult conditions. One hopes that enough funds will be provided to the local bodies and they will be free to function efficiently.

In the final analysis People of Jammu and Kashmir will give the most effective answer to the militants. The civic elections are a demonstration of the democratic process, and the assertion of the right to elect their representatives by the people. It is worthwhile recalling that militancy started in the State in the late eighties, following perceived manipulation of Assembly elections. With re-assertion of the free electoral process and effective functioning of representative democracy, people of Jammu and Kashmir will give the most effective answer to militants and terrorists. 2005 will then go down as a watershed in Jammu and Kashmir. - (ADNI)

Baglihar dispute a stream of conflict

By Subhashis Mittra

The vexed Baglihar hydro power project on the Chenab river in Jammu and Kashmir seems to be moving into the realm of a third-party arbitration, with the Pakistan Government approaching the World Bank for appointing a 'neutral expert' to resolve the latest India-Pakistan dispute.

A day after Islamabad moved the World Bank, Pakistan President Pervez Musharraf said that Baglihar was now one of the dispute between India and Pakistan that required resolution for improvement in relations."

The development on the Baglihar project is not good and it should have been resolved between the two countries" Musharraf said as he suggested a 'pragmatic approach' to improve relations between the two countries.

Under the Indus Water Treaty, 1960, three rivers --- Sutlej, Ravi and Beas --- were allocated to India; while three other rivers --- Chenab, Jhelum and Indus --- were allocated to Pakistan. The treaty allows India to have 'non-consumptive' projects that do not consume any water, like hydro-electric projects, on the rivers allocated to Pakistan.

Now, with Islamabad sending the request, the World Bank will appoint a neutral expert to go into the dispute. This will be approved by the two countries. And, if they don't agree on the expert or his findings, the World Bank may appoint a court of arbitration.

According to World Bank expert and authority on the Treaty, Salman Salman, Pakistan's reference for arbitration could end up opening a "Pandora's Box' with the dispute prolonging for years.

Describing the Baglihar hydel-power project as "Kashmir's jugular vein and flagship of its future prosperity", Jammu and Kashmir Chief Minister Mufti Sayeed said his Government would pursue the project.

However, the World Bank has said that it was not a 'guarantor' of the Treaty concluded by India and Pakistan on September 19, 1960. The Bank said in a statement posted on its website that it is a signatory to the Treaty for certain specified purposes. Many of the purposes for which the World Bank signed the Treaty have been completed. There are now three remaining responsibilities for the World Bank under the Treaty relating to settlement of differences and disputes.

As per the World Bank, the disagreements on the interpretation of the Treaty fall under three categories: questions are examined by the Permanent Indus Commission; differences by a Neutral Expert; and disputes by a Court of Arbitration.

According to the Treaty, the remaining responsibilities of the World Bank are role for it in the appointment of a neutral expert and first step under the Treaty is to resolve any 'question' through the Permanent Indus Commission itself.

If the 'question' is not resolved there, it becomes a 'difference' and is referred to a neutral expert, to be appointed by the two countries, or by a third party agreed upon by the two countries. In the absence of an agreement on the name of a neutral expert, the World Bank, in consultation with the two countries, would make the appointment.

"The decision of the neutral expert on all matters within his competence shall be final and binding," the Treaty says.

The Treaty provides for a role for the World Bank in the establishment of Court of Arbitration. If the 'difference' should be treated as a 'dispute', then a Court of Arbitration would be established.

Even as the World Bank is saddled with the task of bridging over Baglihar's troubled waters, Pakistan is of the view that construction of the project violates the treaty and will rob Pakistan of Chenab water.

Experts in India, however, do not buy the argument and feel Pakistan's objections are political and not technical.

On Pakistan's argument that the Chenab water is a reservoir, India does not agree and says it is a run of the river project. New Delhi is also not prepared to stop construction, as desired by Islamabad, which also wants that the issue be sort out first. New Delhi is also opposed to any change in the design as suggested by its neighbour.

Thus, it appears that the controversy over the Baglihar hydropower project on the Chenab river in Jammu and Kashmir is far from over.

When Indian and Pakistani officials had met in New Delhi last year, a breakthrough appeared to be in sight after hard negotiations on the contentious project, bogged down in dispute for the last five years.

Both the sides had discussed "all issues" with an "open mind" showing respect to each other's assessments and New Delhi claimed to have taken them very close to resolution. Islamabad too said the talks have concluded in a "win-win" situation. But, experts were skeptical.They felt that the dispute is all but resolved.

The dispute began in 1999, when Pakistan first cried foul over that it thought was a violation of the 1960 Indus Water Treaty (IWT). But, suddenly after the meeting of the officials from both sides, it looked like being settled.

The news made the worried people on both sides of the border happy, said a Pakistani daily had reported in its editorial.

Experts feel the only way to resolve the matter will be to call in neutral foreign experts as laid out in the Treaty. But that may be worse from India's point of view than setting the issue with Pakistan bilaterally. Perhaps, that is the reason why India has reportedly not liked Pakistan's decision to take the Baglihar dam issue to the World Bank.

Pakistan had raised objections to the Baglihar hydroelecric project four years ago and since then the issue has been a sticking point in annual meetings of the Indus Commission. In the meeting in Islamabad in 2002, Pakistan had indicated that it would be asking for neutral experts if its demand of the visit to the project site was not met. Then Pakistan served India with a note for appointment of neutral experts in May last year. The issue again came up during the talks in New Delhi in 2003.

At the last year's meeting, India maintained that Pakistan could not seek appointment of netural observers until the technical aspects of the project were discussed between the sides. The insistence by the Indian side not to appoint netural experts is seen by observers as yet another attempt to buy time for completing the project.

Accusing India of dragging its feet over the Baglihar issue since May 1999, when Islamabad first objected to its design, another Pakistani daily said that new Delhi postponed almost half a dozen times inspection tours of the project site that Pakistan had requested under the Treaty.

"The delaying tactics by India nothing but time-taking strategy," the daily in its report.

Brushing aside such remarks, India, however, maintains that the technical design of the project was well within the provisions of the Treaty and national and international practices.

Pakistan believes that the Baglihar project, which provides for submerged gated-spillways, is in breach of the 1960 Treaty. These spillways would allow India to increase the storage capacity far beyond what is allowed to India under the pact.

Islamabad's main concern is that the structure would provides India the capability to manipulate flow of water to Pakistan's disadvantage. Therefore, prevailing acute water shortages in the Indus basin could be one of the serious adverse consequences for Pakistan.

The Indus Water Treaty was signed under the good offices of the World Bank at Karachi by Mohammed Ayub Khan, the then President of Pakistan and Jawaharlal Nehru, the then Indian Prime Minister and W A B Illif of the World Bank in 1960.

Thus, history turned a full circle when Pakistan's Minister of State for Finance Umer Ayub Khan signed the petition to World Bank. Umer is son of former Pakistan Foreign Minister Gohar Ayub Khan and grandson of Ayub Khan, who had linked the Treaty.

Under the Treaty, Pakistan has exclusive use of the Indus the Chenab and the Jhelum rivers, except that upper riparian India can make hydro-electricity from them and use them as navigational facility. India on its part has similar rights over the Beas, the Sutlej and the Ravi, the eastern tributaries. But for both these "permitted" uses, water has to be collected in reservoirs.

Had relations been cordial between India and Pakistan, the reservoirs could be built through mutual consultations and joint approval of project designs as happens all the time among upper-lower riparian states with treaty obligations.

Under the Treaty, India was entitled to construct a plant on the three western rivers (allocated to Pakistan for unrestricted use) for generation of hydel power if it did not construct spillways with submerged gates. Pakistan thought Baglihar had them over Chenab and objected. The underwater gates would raise the capacity of the dam beyond stipulated levels and thus deprive Pakistan of about 7,000 cusecs of water per day and completely disrupt supplies for an uninterrupted period of 26 days during the critical period of December-February.

Pakistan then connected Balighar with several other lesser known projects on the Indian side and projected a doomsday scenario of utter depredation in Pakistan.

For some, this was an issue on which Pakistan could declare war on India under international law. On the Indian side, there were hawks who said that Pakistan should be punished for infiltrating "terrorists" across the Kashmir border even if it meant a violation of the Treaty.

If resolution of water-related disputes is important for the process of normalisation, one project that can come on line immediately is the supply of surplus Pakistani electricity to India. Here it may be recalled that in mid-1990s, the offer was made and India went into negotiations but due to lack of political consensus and will the deal was called off. India did not then take the chance of linking Pakistan to itself as an ancillary economy. But, it can do so now since more and more Indians are now inclined to give priority to economics. Pakistan's economic straits to have forced it to think that it can survive next to India's big economy by benefitting from it.

Interestingly, the Treaty has survived for over four decades, despite wars and diplomatic stand-offs between the two countries.

According to Salman, the "fair Treaty" has remained only "one of its kind in the world" because it involved the most complex negotiations.

Most of the differences between India and Pakistan are at the political level and for that reason common people from both sides should not suffer. Both the sides should realise that water is a social issue and not a political one like Kashmir.

Perhaps, that is the reason why Pakistan's Prime Minister Shaukat Aziz has contended that failure of talks on Baglihar issue will not stall the composite dialogue process. However, Musharraf believes there are linkages between economic and political issues between India and Pakistan and favours progress in tandem between confidence -building measures and the dialogue process.

(PTI Feature)

Aiyar's oil diplomacy

By S.K. Singh

On her first day in office, within hours of moving from the White House to her new job as America’s secretary of state, Condoleezza Rice rang up Pakistan’s President, Pervez Musharraf, and discussed, in the words of the state department spokesman, Richard Boucher, "how they can work together on many issues in the future". On the same day, she made 14 other phone calls to her counterparts and leaders across the world. These included Russia’s foreign minister Sergei Lavrov, Italian foreign minister Gianfranco Fini, Brazil’s foreign minister Celso Amorim, Nato secretary-general Jaap de Hoop Scheffer, Romania’s foreign minister Mihai Razvan Ungureanu and nine more.

India’s Foreign Minister, Natwar Singh, was not among those she called. This is a matter of record. Her spokesman was reminded at his daily briefing that day by a reporter who had a sense of the diplomatic play. "Well, the Indians are going to say, why didn’t she call them?" Boucher demurred that "she is still in the process of making phone calls, so don’t anybody start getting feeling that she is calling somebody and not somebody else. She is just has a number of calls she wants to make".

Eventually, it was Singh who called Rice to congratulate her and to invite her to India, South Block’s spokesman has confirmed. On November 18, 2004, as well, Singh had called up Rice to congratulate her on her nomination as secretary of state. There is nothing improper or undiplomatic about Singh having taken the initiative to place these calls to Foggy Bottom, where the state department is located.

Indeed, if India considers better Indo-US relations to be a matter of national priority, he ought to take such initiatives. After all, when Tony Blair became Britain’s first Labour prime minister in 18 years, IK Gujral, the then prime minister, timed his message to 10, Downing Street so precisely that his letter of congratulations rolled off Blair’s fax machine as he walked into his office after his customary audience with the queen. But Singh and the rest of the UPA Government must acknowledge that a gap exists between the hype about Indo-US relations and the reality.

One man in the UPA Government who can change the order of things in India’s complex relations with the United States of America, it became clear last week, is Mani Shankar Aiyar, the purposeful and intensely active minister for petroleum. When Aiyar arrived in Houston, Texas, at the beginning of first week of February, as part of his global "oil diplomacy", the US department of energy was still in a state of flux. His trip to Houston had little to do with the US Government: he was in America’s oil capital primarily to meet America’s energy majors and to get US oil companies as involved in India’s hydrocarbon sector as those from Europe.

Yet, the DoE made sure that Robert S. Price Jr, the department’s director for European and Asian affairs, flew from Washington to Houston to meet Aiyar. Since Samuel Bodman, George W. Bush’s new energy secretary, had not yet been sworn in, Price stood in for his boss and told Aiyar that Bodman wanted to visit India soon. The new energy secretary is not unfamiliar with what India can bring to the world energy table in terms of opportunities or in technological assets. During the six years when he was an associate professor of chemical engineering at the Massachusetts Institute of Technology, Bodman taught a long line of Indian students at the MIT.

America’s DoE is more than a US counterpart of India’s ministry of petroleum and natural gas. It is actively involved in US national security and part of its mission is the application of nuclear technology to America’s defence. It is also a key US Government agency in charge of scientific research and the application of science to the protection of America’s security, including economic security. Without Bodman on its side, New Delhi would be unable to realise its ambitious goals of a strategic partnership with America along the long road to becoming a global power.

It is easy to see why Rice, who finds it imperative to telephone Musharraf or Lavrov within hours of taking up her new job, can put off calling her Indian counterpart - or wait for South Block to make the call, instead. Washington has a stake in Islamabad in its fight against terrorism: it has always had a stake in Pakistan as a frontline state against whoever its enemy has been in the last 50 years.

Lavrov’s Russia is still a big power, although it is no longer a superpower. Italy is a valued ally in Europe, while Japan - another country which was on her radar - is important because of its economic muscle. Rice telephoned Mexico’s foreign minister too on her first day in office, not only because of geography, but also because Mexico and the US have big economic and demographic stakes in each other.

None of these situations applies to Indo-US relations. The core of friendship between Washington and New Delhi is based on pious praise for democracy, rule of law and a common commitment to values which acquire an amorphous quality when confronted by realpolitik in diplomacy and national security. One man who can change that on the Indian side is Aiyar.

In Houston, and later in Calgary, Canada, Aiyar made CEOs of at least 100 oil and gas exploration and production companies as well as others engaged in assets and financial management in the energy sector excited with his projections of a 21st century Indian version of the California gold rush some 150 years ago. He spoke a language that men and women in George W. Bush’s White House, with its heavy Texan presence, understand. What Aiyar merely hinted at, if followed up, would be enough to write off complaints in Washington of India’s unfulfilled promises in its dealings with America in the last decade.

When Aiyar comes to North America and assures that only 82 per cent of India’s sedimentary basin with potential for hydrocarbons has been explored so far, he is sending a crucial message in the US, which is perennially thirsty for oil and obsessed with energy security. India has never even attempted to spread a message of that kind in the past or make itself relevant to America in such a fashion. If American companies secure contracts in the fifth and current round of bidding for 20 blocks under India’s new exploration licensing policy, these companies would be trailblazers in creating a stake for Washington in New Delhi, which will inevitably have a fallout in areas of their bilateral relations that go well beyond energy. Among the companies that attended Aiyar’s presentation in Houston were Exxon Mobil, Chevron Texaco, Conoco Phillips, Unocal and several others, which collectively have overwhelming influence in the present White House.

The presence of one company at the petroleum minister’s Houston road show has become a talking point in Washington. The China National petroleum Corporation flew in its executive who have been engaged in Beijing’s energy collaboration with Ecuador. A fortnight before the road show, India and Ecuador signed an agreement for similar bilateral energy cooperation.

That presence and Beijing’s positive approach to Aiyar’s idea of coordination among oil and gas importers in Asia, crystallised at an energy summit in New Delhi in January, may turn out to be catalysts in the complex process of rapprochement between India and China, which started with Rajiv Gandhi’s prime ministerial meeting with Deng Xiaoping in 1988. If that happens, it will have a ripple effect, not only on gas pipeline projects through Pakistan and Bangladesh, but result in significant improvements in India’s relations with both these countries. All in all, just as "economic diplomacy" was being dismissed as a clich‚, "oil diplomacy" may turn out to be an engine of unprecedented political and economic change in south Asia. INAV

 
 



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