
DATE=6/14/98 TYPE=CORRESPONDENT REPORT NUMBER=2-233875 TITLE=INDIA / REACT / L BYLINE=ANJANA PASRICHA DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: INDIAN NEWSPAPERS ARE URGING NEW DELHI AND ISLAMABAD TO HOLD EARLY PEACE TALKS. ANJANA PASRICHA REPORTS FROM NEW DELHI, THE ADVICE COMES AS EFFORTS BY INDIA AND PAKISTAN TO REVIVE A DIALOGUE LATER THIS MONTH APPEAR TO HAVE DEADLOCKED. TEXT: INDIAN NEWSPAPERS ARE STRESSING THE NEED FOR IMPROVING THE SECURITY ENVIRONMENT IN SOUTH ASIA AND AVOIDING OUTSIDE INTERFERENCE IN THE REGION. THE "HINDUSTAN TIMES" SAYS NEW DELHI FACES WESTERN SANCTIONS AND MUST BEGIN A DIALOGUE WITH ISLAMABAD SOON, WITH A STATEMENT COMMITTING INDIA TO IMPROVING RELATIONS WITH PAKISTAN. THE "STATESMAN" NEWSPAPER ALSO STRESSES THE NEED FOR A SETTLEMENT -- SAYING "SANCTIONS ARE NOT TO BE TREATED LIGHTLY." IT SUGGESTS THE SETTLEMENT MUST BE REACHED WITHOUT AMERICAN HELP. THE UNITED STATES AND OTHER MAJOR INDUSTRIALIZED NATIONS HAVE IMPOSED ECONOMIC SANCTIONS ON BOTH COUNTRIES AND SAY THEY WILL BLOCK LOANS FROM INTERNATIONAL FINANCIAL ORGANIZATIONS. THE U-N SECURITY COUNCIL AND THE MAJOR INDUSTRIALIZED NATIONS ARE URGING THE ARCHRIVALS TO RESUME AN IMMEDIATE DIALOGUE TO EASE TENSIONS IN SOUTH ASIA FOLLOWING NUCLEAR TESTS BY THE TWO COUNTRIES. HOPES OF AN EARLY RESUMPTION OF TALKS BETWEEN INDIA AND PAKISTAN SUFFERED A SETBACK FRIDAY WHEN BOTH NATIONS INVITED EACH OTHER FOR TALKS -- BUT SUGGESTED DIFFERENT VENUES AND DIFFERENT AGENDAS FOR THE MEETING. THE "ASIAN AGE" NEWSPAPER SAYS THE DEADLOCK, EVEN BEFORE THE DIALOGUE, BEGAN HAS HURT INDIA. IT URGES EARLY TALKS WITHOUT OUTSIDE INTERFERENCE BY OTHER NATIONS. AN INDIAN FOREIGN MINISTRY STATEMENT SATURDAY REITERATED INDIA'S WILLINGNESS TO TALK, BUT SAID NEW DELHI WILL NOT ACCEPT THIRD-PARTY MEDIATION. POLITICAL ANALYSTS SAY THE ROAD TO A SETTLEMENT IN SOUTH ASIA COULD BE LONG AND DIFFICULT. THEY POINT OUT THAT NEW DELHI IS DETERMINED TO SETTLE DIFFERENCES, BILATERALLY, BUT ISLAMABAD WANTS TO INVOLVE OTHER NATIONS IN THE TALKS. INDIA SAYS THE DISPUTED REGION OF KASHMIR IS JUST ONE AMONG A RANGE OF ISSUES THAT NEED TO BE DISCUSSED. PAKISTAN INSISTS THAT KASHMIR IS THE CORE ISSUE THAT MUST BE SETTLED. MOST ANALYSTS AGREE WITH THE INDIAN EXPRESS WHICH SAYS -- AS BOTH NATIONS TALK IN DIFFERENT DIRECTIONS, ONE THING SEEMS CLEAR -- THE POST-NUCLEAR PHASE REVEALS THEIR "DEEP-SEATED DISTRUST AND ANIMOSITY." (SIGNED) NEB / WD / WD 14-Jun-98 6:23 AM EDT (1023 UTC) NNNN Source: Voice of America .