Opening remarks

I regret that I was not able to interact with you on the way to Berlin. I was little indisposed. I came here to take part in the meeting of the G 8 Countries and the five out reach countries, Brazil, Mexico, China, South Africa and India. We were not active participants in the G 8 processes, in fact G 8 communiqué was issued even before our meeting and we did make the point that in future, if similar meetings have to take place, then we should get a chance to discuss issues of our concern before the G 8 meeting so that our point of view can be reflected in the thought processes of the G8. And I said we have come here not as petitioners but as partners in an equitable, just and fair management of the global comity of nations which we accept as the reality in the globalized world.

Yesterday before the meeting I made the same point to Chancellor Merkel and she recognized there was merit in what we said. I hope that next year’s meeting, if we are invited, will be in a form in which we have a chance to interact with the G8 nations before they interact amongst themselves. As far as substance is concerned, the discussions with the outreach countries centered on the global economy and issues relating to management of global climate changes. As far as the issues relating to the global economy are concerned there is a general feeling that the world economy is doing quite well, certainly the people talk about the global economy, they talk of the dynamic role played by China, Brazil and India. This is a new reality which the developed countries respect and they recognize there could be no meaningful management of the global issues in which India, China and other emerging countries like Brazil, South Africa, Mexico are not involved.

Another point we said, globalization is a reality but it is certainly not the case that globalization as it is now being practiced is a win win game, Africa is a case in point. They have a feeling of being left out. Also the Millennium Development Goals which were fixed by the international community - I think there is a slippage on many fronts and the slippages in large measure are due to lack of adequate financial resources by the world community in support of Africa’s development processes.

As far as climate change is concerned, I think this was essentially a dialogue among G8 countries with sharp differences between U.S. and the EU and they have been aiming to paper over those differences. I think today there is a general recognition that global warming is a reality, that Green House Gas emissions are giving rise to increased temperatures and something has to be done to protect the integrity of the environment. And we do recognize that the whole world shares a common environment and if environment deteriorates, if essential life support systems of our planet get adversely affected, we also suffer, in some ways more than many other countries. We as global citizens have a responsibility to contribute but in accordance with accepted Kyoto Principles that countries have equal but differentiated responsibilities depending upon their capabilities. We also feel that while anybody is free to discuss issues of climate change in various fora, the central role must be that of the United Nations Convention on Climate Change and the Kyoto processes must not in any way be adversely affected.

I am glad that on that particular point, where there was some doubt that the G8 want to take this issue out of the UN, at our persistence, Chancellor Merkel reaffirmed that there is no part of their thinking to side track the UN in the management of global climate change. In that sense, it was a positive gain of our participation with other outreach countries. Of course there are demands on countries like China, India, Brazil to also accept obligations to reduce green house gas emissions and we said we have not come here to discuss targets or accept internationally enforced targets on us. We will do whatever we can. We have been doing to protect our environment, to promote energy efficiency, to promote the use of renewable sources of energy. May be we could do more, we shall do more, but the time is not ripe to fix any quantitative targets as far as we are concerned. But I did say when I was asked by Chancellor Merkel, I said well, developing countries accept their responsibilities. As an instance we could assure the world that at no time, our per capita emissions will exceed that of the Developed countries. This will act as a two way incentive. If the Developed countries do more to reduce their green house gas emissions per capita, we will also reward them by doing more. For the first time I floated this idea yesterday. In my bilateral meetings when I elaborated on this, Chancellor Merkel said, well this is an idea which has very important positive implications and which needs to be looked into. So this is important outcome of our meeting with G8.

I also used this opportunity to meet with important world leaders beginning with the recently elected President of Nigeria. We had very good discussions. I believe India and Nigeria can foster closer economic cooperation. Our Government is already very active in Nigeria. The President assured me in bilateral relations, the best is yet to come. He also expressed concern that some of our expatriates had been kidnapped and there are criminal elements at work. President assured me that the people were safe, that the Government of Nigeria will do all that is in its power to ensure that they return safe and secure.

I met the Secretary General of the United Nations. We discussed various issues such as the operations of UN Mission in Nepal, also developments in our neighbourhood – Sri Lanka, Afganistan and I assured the Secretary General that as a founder member of UN it is our obligation to strengthen the role of the UN and its SG in dealing with global challenges that international community faces.

I had very good bilateral discussion with President of Mexico. Many of our companies are investing there. Mexico has emerged as an important market for us because they are a member of the NAFTA and therefore it is one gateway for our companies to enter US and overcome tariff barriers. Already some of our companies have taken advantage. Some of our steel companies are active in Mexico, some of our pharmaceutical companies are active. I invited the President of Mexico to visit India. I think he will soon be coming to our country.

I had a very good meeting with British Prime Minister, Tony Blair. We reviewed the state of Indo-British relations and both of us expressed satisfaction at the positive direction that our relationship has strengthened under Prime Minister Tony Blair’s leadership of the UK.

I also had a brief meeting with the new French President, Mr. Sarkozy. Both of us recalled that our relations are multi faceted and were quite good. The economic content of our relationship needs to be enlarged, French investments have to come to India. Further there was defence cooperation, civil aviation cooperation and nuclear energy, and these were important dimensions of our relationship.

I also had a brief meeting on the sidelines with President Putin whom I met in India in January. We reviewed the state of our bilateral relations and touched upon our many faceted relationship - economy, defence and other areas where we are cooperating with Russia. I expressed to President Putin our satisfaction at the interest that he has personally taken in development of relations with our country.

President Bush was not well yesterday. But he came briefly for the meeting and then he took me aside and we had a good conversation on our cooperation in the civil nuclear energy and related issues. There has been a whole lot of speculation in the press about difficulties. There are some difficulties but I think both of us expressed our determination to overcome them. President Bush was quite appreciative of our concerns. Beyond that, I wouldn’t like to say more than that. He has a very positive feeling towards India and he feels a certain sense of ownership of the nuclear deal and therefore I was quite satisfied with my meeting. Mr. Narayanan had a meeting with his counterpart, the National Security Advisor.

As far as my meeting with Hu Jintao is concerned, it was a very warm meeting. We have discussed issues. I did raise the issue of border, cooperation in the management of inter state rivers, exchange of data, flood warning. Hu Jintao responded quite positively that they will sit down, they will nominate their representatives on these groups. And he also agreed that both our Special Representatives dealing with the border issue must move forward and both of us expressed that is the direction we will give to our Special Representatives . It was a very cordial meeting and President Hu was very complimentary on what has been done in recent years to bring our two countries closer to each other. So this is the sum and substance of my meetings.

Question and Answer session.

(questions inaudible in recording)

On the India- US Nuclear deal

1. Let me say that I cannot assert that I got the final answer yesterday. I can only talk about atmospherics. Atmospherics at the yesterday’s meetings were quite positive but it will take some more time. Some tough negotiations will be required before we see light at the end of the tunnel.

2. There are several ideas which are around . I think this is an ongoing process. I think there is nothing new. All we are interested in is the substance of the 123 agreement should conform to what I had told people of India, what I told Parliament. I think various permutations and combinations are discussed from time to time. There is no finality to these till we see light at the end of the tunnel.

3. He [Bush] took copious notes of what I said to him. With him was his deputy, Hadley, the National Security Advisor. Mr. Narayanan had also detailed talks with Mr. Hadley.

4. We did not discuss a time frame. It was too brief a meeting for me. The President was not too well yesterday. In spite of that he did us the honour of pulling me aside and discussing this issue.

5. Well, it will be immature on my part to indicate any deadline. Why September? Why not earlier?

On usefulness of participating in the summit  

6. Well. Let me say that each visit is an opportunity for me to carry to the world what we are doing to develop our economy. The more I talk to world leaders, I feel today there are no international constraints to India’s development. I said this before. The world is appreciative of what India has done. Yesterday, we were discussing the South Asia situation – what is happening in Pakistan, what is happening in Afghanistan, Bangladesh, in Sri Lanka – Prime Minister Blair said in that environment, it is advantageous to have a country like India, with one billion people, functioning democracy – so I think there is a great deal of appreciation of our ability to sustain the democratic process despite our poverty, despite our diversity. The world wants India to succeed. I think that is the impression I too get.

7. I said that today there are no international constraints on India’s development. If there are problems, they are local. Our primary concern is to get rid of chronic poverty, ignorance, disease and the urban and rural divide. And if we do succeed in sustaining 9-10% growth rate, if we pay adequate attention to agriculture, if we pay adequate attention to Human resource development, I think nothing can stop our march ahead. In that process, India needs a favourable environment. We need peace in our region. We need a fast growing world economy. That is why international polity matter for us. I feel today that environment is certainly favourable to realization of our basic development ambitions.

On Opposition parties criticism of the nuclear deal

8. It doesn’t bother me. I have always said, we should judge politicians not by what they say when they are in opposition but what they do when they are in seat of power. I am quite sure any patriotic Indian, if she or he had reins of running this country, they would have welcomed the deal. What we are attempting would end India’s nuclear isolation, preserve the integrity of our strategic programme, and at the same time, open new pathways for India to cooperate in international civil nuclear energy. Energy is our critical bottleneck. Environment friendly energies are now talk of the town. Nuclear energy happens to be one such clean energy. If we get access to International cooperation, international technology, I think that will only enhance our development objectives.

On India – Pakistan relations and example of German unification

9. I have often talked about this. Twenty years ago, who could have imagined that Berlin wall would fall and E. Germany and W. Germany would be united? What was unthinkable in international relations became a norm. So that gives us hope. Even when you are dealing very difficult issues, we should not lose hope. I think there is no solution other than peaceful negotiations to deal with difficult problems including problems in our own region. What is simply considered unfeasible, German unification was one such. It became a norm….I have the same hope that this rule will also apply to our sub continent. India and Pakistan – Our destinies are interlinked and therefore it is our ambition, it is our prayer, that we must both find pathways to live together and resolve all our bilateral issues.

10. I have an invitation and I would certainly like to visit Pakistan and at the moment, President Musharraf has problems at home. I don’t want to complicate his problems. I do wish to go to Pakistan. I have an invitation which I have accepted.

11. What is going on in Pakistan is their internal matter. We don’t want in any way to interfere in Pakistan’s processes of governance. Whosoever is in power in Pakistan, our desire is to live in amity and peace with our neighbours.

On Presidential Elections in India

12. The next President will be a nominee of UPA Left party alliance. As to who that person will be, I think discussions are going on. I think discussions are still not complete. You will hear about it when the decision is taken.

13. There should be a consensus in favour of a candidate who is a nominee of the United Progressive alliance and the Left party. We are governing party. Last time, Dr. Kalam was nominated, the NDA suggested to us and we accepted. I hope this time, NDA endorses the candidate who will be selected by the UPA Left alliance.

14. There should be a reshuffle. I think it will happen after the Presidential election

On his speech at the CII summit

15. No I was not talking about any Government imposed salary regime. The Industry people came to meet me. I was reluctant to go to CII. I have gone there so often. I don’t want to repeat what I said earlier on. I said you must get some new ideas, some new person. They told me, you must talk about what business can do for the country. And it was in that context that I made that speech. It was not an attempt to glorify that everything is right with government sector, and corporate sector is to be blamed for all ills. If you read my speech carefully, I paid compliments to all those who are in the process of wealth creation.

16. All these matters are subject to review by the Reserve Bank of India. I had been the former Governor of the Reserve Bank. I would not like to say anything which interferes with the autonomy of the functioning of the Reserve Bank of India. These are matters that are dealt with and controlled by the Central Monetary authority of our country.

On Sino- Indian ties

17. President Hu Jintao quoted to me twice before using a statement which I made when I became Prime Minister, I said I do not buy this argument that India and China are in competition with each other. Both of us, if we develop in a strong way, will be a source of dynamism in the world economy and the world is large enough to satisfy the development needs of both our countries. So we have every incentive to work together in diverse ways that we can.

On the Doha Round

18. I mentioned to whosoever asked me about Doha Round - I have a strong belief in multilateral trading system which is open, which is non-discriminatory. So we have a vested interest in the successful outcome of the Doha Round of Trade negotiations. Some countries have trading blocks, like the European Union and other Unions, we do not belong to any trading block, and therefore we have every reason to see that the world trade should expand under multilaterally set rules and that there should be no discrimination against poor countries. Our basic position is we want Doha Round to succeed. But Doha Round was advertised as a development oriented round. For 60 years, yesterday I mentioned to Chancellor Merkel, the world trading system on agriculture has violated all canons of fair trading rules which are applicable to trade manufacturers. Many developing countries have this grievance that we talk of. globalization but globalization will never be fair and equitable, if the primary producers in the developing countries do not benefit from the rules of game that apply to world trade and agriculture. Therefore, the developed countries have an obligation to liberalize their agricultural trade, to get rid of trade distorting subsidies, to improve access for developing countries and I said that if this aspiration is met, we will also be flexible. If you look at India’s record in the last 15 years, we have unilaterally reduced tariffs. We have unilaterally reduced our tariff on manufactured goods, the peak manufacturing tariff today in India is no more than 10%.

So regardless of what has been happening in the trade negotiation, we have unilaterally reduced the trade barriers. India is not a part of the problem, India wants to be a part of the solution. But if the developed countries come up with sensible proposals which will satisfy the development aspirations of poor countries, we will work to make a successful Doha Round.

On Tiger population

19. The tiger is a part of our national heritage. I headed the Tiger Task Force. Important decisions were taken. Recently we have strengthened the Crime Bureau dealing with poaching and other activities and I take very seriously our commitment to protect the tigers which is part of our national heritage. I think there is a problem. The onward march of civilization, urbanization and development, if care is not taken, it can have serious problems.

On the recent reservation related violence

20. It is important to retain our sanity. Ours is a country of great diversity, complexity, and yet we have the civilizational balance. The recent violence relating to reservations is an aberration. I sincerely hope all political parties, civil society groups will do nothing to accentuate differences on the basis of caste, religion and similarly poised tendencies.

On attempt to expel Tamils from Colombo, Sri Lanka

21. I have been sharing my anxieties about the situation with important world leaders. Let me say that the recent act to expel, I think, citizens belonging to a particular minority in Colombo has pained me. I hope, I think, better sense will prevail among all concerned. These are not civilized ways of dealing with them. I understand the difficulties concerned but the Human Rights of citizens should not be violated. But at the same time, I am told that it has been stayed by their Supreme Court. I share the concern.

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