DATE=7/15/98
TYPE=CORRESPONDENT REPORT
NUMBER=2- 235512
TITLE= CLINTON / INDA-PAK (L)
BYLINE= DAVID GOLLUST
DATELINE= WHITE HOUSE
CONTENT=
VOICED AT: 

INTRO: PRESIDENT CLINTON HAS SIGNED LEGISLATION EXEMPTING U-S 
AGRICULTURE SALES TO INDIA AND PAKISTAN FROM THE ECONOMIC 
SANCTIONS IMPOSED AGAINST THE TWO COUNTRIES BECAUSE OF THEIR 
RECENT NUCLEAR TESTS. VOA'S DAVID GOLLUST REPORTS FROM THE WHITE 
HOUSE.

TEXT: THE EXEMPTION BILL HAD BEEN RUSHED THROUGH CONGRESS AMID 
BITTER COMPLAINTS FROM FARM INTERESTS ABOUT THE SANCTIONS. AND IN
AN UNUSUAL MOVE, MR. CLINTON SIGNED THE BILL OVERNIGHT SO THAT 
AMERICAN EXPORTERS COULD SUBMIT BIDS IN A MAJOR WHEAT PURCHASE 
AUCTION BY PAKISTAN ON WEDNESDAY (7/15).

THE PRESIDENT SAID, IN A WRITTEN STATEMENT, THAT HE WAS PLEASED 
TO SIGN THE MEASURE, AND THAT U-S SANCTIONS POLICY SHOULD FURTHER
AMERICAN FOREIGN POLICY GOALS WITHOUT IMPOSING UNDUE BURDENS ON 
THE COUNTRY'S FARMERS.

HE ALSO SAID THAT IN IMPLEMENTING SANCTIONS, AMERICANS SHOULD 
NEVER FORGET THEIR HUMANITARIAN IMPACT.

THE WIDE-RANGING ECONOMIC SANCTIONS, WHICH INCLUDED A BAN ON FARM
EXPORT CREDIT GUARANTEES, TOOK EFFECT AUTOMATICALLY UNDER A 1994 
NUCLEAR NON-PROLIFERATION LAW FROM CONGRESS, AFTER BOTH INDIA AND
PAKISTAN TESTED NUCLEAR WEAPONS IN MAY.

AMERICAN WHEAT FARMERS -- ALREADY FACING A SEVERE SLUMP IN PRICES
-- WERE OUTRAGED OVER THE SANCTIONS, GIVEN THAT PAKISTAN IS THE 
UNITED STATES' THIRD-LARGEST OVERSEAS GRAIN CUSTOMER AND HAD BEEN
EXPECTED TO BUY ABOUT 350 MILLION DOLLARS WORTH OF U-S WHEAT THIS
YEAR.

INDIA'S PURCHASES OF U-S FARM GOODS ARE ONLY A THIRD AS LARGE AS 
PAKISTAN'S BUT STILL SIGNIFICANT.

THE KEY SPONSORS OF THE EXEMPTION WERE LEGISLATORS FROM 
NORTHWESTERN STATES WHERE ABOUT ONE THIRD OF ALL WHEAT GROWN LAST
YEAR WENT TO PAKISTAN.

THE CONCERN ABOUT HARDSHIPS THE SANCTIONS IMPOSED ON U-S FARMERS 
PROMPTED INCREASED EXAMINATION IN CONGRESS ABOUT THE WISDOM OF 
SANCTIONS, IN GENERAL, AS A FOREIGN POLICY TOOL.

ADMINISTRATION OFFICIALS HAVE COMPLAINED THAT PRESIDENT CLINTON'S
ABILITY TO CONDUCT DIPLOMACY IS INCREASINGLY LIMITED BY SANCTIONS
MEASURES. IN THE CASE OF THE SOUTH ASIAN NUCLEAR TESTS, THEY 
NOTED THAT THE IMPACT OF THE SANCTIONS HAD FALLEN MORE HEAVILY ON
PAKISTAN -- EVEN THOUGH THAT COUNTRY ONLY CONDUCTED ITS TESTS AS 
A RESPONSE TO THE FIVE EXPLOSIONS CONDUCTED BY INDIA. 

THE ADMINISTRATION, MEANWHILE IS CONTINUING EFFORTS TO GET INDIA 
AND PAKISTAN TO SIGN THE GLOBAL NUCLEAR TEST BAN TREATY AND TAKE 
OTHER STEPS TO DEFUSE THE REGIONAL ARMS RACE.

DEPUTY SECRETARY OF STATE STROBE TALBOTT, WHO MET SENIOR 
OFFICIALS OF BOTH COUNTRIES IN RECENT DAYS, PLANS TO GO TO SOUTH 
ASIA NEXT WEEK TO CONTINUE THE DIALOGUE.

WHTE HOUSE SPOKESMAN MIKE MCCURRY SAID AN INDIA-PAKISTAN TRIP BY 
PRESIDENT CLINTON, WHICH HAD BEEN PLANNED FOR LATER THIS YEAR, 
REMAINS UNDER REVIEW. (SIGNED)

NEB/DAG/PLM

15-Jul-98 4:00 PM EDT (2000 UTC)
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Source: Voice of America
.