NEW DELHI: India_ said Thursday “some difficulties” had appeared in bilateral wade and economic relations with the Soviet Union because of “disruptions in the Soviet economy arising out of difficulties in that country”.

The 1990-91 annual report of the external affairs ministry said the need for “modifications and innovations” in economic bilateral cooperation mechanism was recognized at a working meeting of the Indo-Soviet joint commission for economic scientific and technical cooperation last year.

Trade in 1990 was expected to fall slightly short of target. “Nevertheless the Indo-Soviet trade plan for 1991 signed last year envisages an increase in trade turnover toRs9411 crore” it said

In keeping with the tradition of helping each other in times of need India extended urgently needed relief assistance to the Soviet Union. It consisted of one million tonnes of wheat on loan basis and a gift of 20000 tonnes of rice as well as medicines medical supplies processed foods and other items according to the report.

India welcomed the movement towards democracy and more humane and liberal system of governance in the Eastern Europe.

“We are confident that as these countries follow a more open economic system and integrate with the mainstream of the world economy new opportunities will open up for strengthening and widening India’s existing cooperation with them” it stated.

It said India believed that only a negotiated political settlement which took into account the legitimate demands and aspirations of the Tamils could bring lasting peace to the Island. “The political settlement must be finally arrived at between the government and the Tamils of Sri Lanka” it emphasized.

Developments in Fiji were of great concern to India. The Indian mission in Suva had to be closed in May last year.

India the report said was opposed to institutionalization of racial discrimination in Fiji and the promulgation of an undemocratic constitution

According to the report 1990 witnessed the continuing consolidation of Indo-US relations

With all-round improvement in Bilateral ties a limited cooperation in the field of defence has commenced it said.

At present this was mainly focused on the transfer of sophisticated technology and equipment for the light combat air-craft project.

The report said in recent years the US government had been car marking small quantities of aid under its international military education and training program

The US state department requested US dollars 2.99 lakhs from the Congress appropriations in 1990 to program

The US state department requested US dollars 2.99 lakhs from the Congress appropriations in 1990 to finance visits and exchanges between Indian and US armed forces personnel.

The US the report said remained India’s largest trading partner and accounted for 18.5% of Indian exports and about 11.5% of its imports “However there were several problems which resulted in an adverse impact on Indian exports to the U.S.” These included antidumping and countervailing duties by the U.S.

During 1990-91 there was further improvement in dialogue with China. Both sides hope that by working in a “sincere and forward looking manner it would be possible to arrive at a negotiated solution to the boundary question” it said.

The second meeting of the joint working group also resulted in agreement on a mechanism for maintaining peace and tranquility in the border areas.

This mechanism envisaged holding of periodic meetings between the border personnel of the two sides at specified locations in the eastern and western sectors of the border the report said.

Article extracted from this publication >> September 6, 1991