
DATE=11/6/98 TYPE=CORRESPONDENT REPORT NUMBER=2-241338 TITLE=INDIA/PAK SANCTIONS (L) BYLINE=NICK SIMEONE DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: THE UNITED STATES HAS DECIDED TO LIFT SOME SANCTIONS ON INDIA AND PAKISTAN, IMPOSED IN RESPONSE TO NUCLEAR TESTS CARRIED OUT BY BOTH COUNTRIES EARLIER THIS YEAR. U-S OFFICIALS ARE POINTING TO PROGRESS BY THE ASIAN NEIGHBORS IN CURBING WHAT HAD BEEN AN ESCALATING NUCLEAR ARMS RACE IN THE REGION. WE GET DETAILS FROM V-O-A'S NICK SIMEONE. TEXT: WHEN INDIA AND PAKISTAN CARRIED OUT MULTIPLE NUCLEAR TESTS LAST MAY, THERE WERE FEARS THAT ACCOMPANYING TENSIONS BETWEEN THE TWO COUNTRIES OVER THE DISPUTED TERRITORY OF KASHMIR WERE PUSHING THE SUBCONTINENT TO THE BRINK OF NUCLEAR CONFRONTATION. PAKISTAN HAD IGNORED DIRECT APPEALS BY PRESIDENT CLINTON TO HOLD OFF FROM RESPONDING TO INDIA'S NUCLEAR TESTS WITH TESTS OF ITS OWN. IN RESPONSE, THE UNITED STATES AND OTHER NATIONS PUT BOTH COUNTRIES UNDER SANCTIONS. BUT FRIDAY, THE CLINTON ADMINISTRATION ANNOUNCED SOME OF THOSE SANCTIONS -- INCLUDING MILLIONS OF DOLLARS WORTH OF ECONOMIC AND MILITARY TRAINING PROGRAMS -- WOULD BE LIFTED. WHITE HOUSE SPOKESMAN P-J CROWLEY: // CROWLEY ACT // THE PRESIDENT HAS TAKEN THIS ACTION IN RESPONSE TO POSITIVE STEPS THAT BOTH INDIA AND PAKISTAN HAVE TAKEN SINCE THEIR NUCLEAR TESTS IN MAY. WE HAVE SAID ALL ALONG WE WANTED TO BE IN A POSITION TO RESPOND POSITIVELY TO CONCRETE STEPS THAT BOTH COUNTRIES WOULD TAKE TO EASE TENSIONS IN SOUTH ASIA. // END ACT // ONE OF THOSE CONCRETE STEPS WAS THE PLEDGE BY BOTH INDIA AND PAKISTAN TO REFRAIN FROM FURTHER NUCLEAR TESTING. BUT A WIDE RANGE OF SANCTIONS -- INCLUDING U-S TECHNOLOGY EXPORTS AND MILITARY SALES IN THE CASE OF PAKISTAN -- REMAIN IN PLACE. BOTH COUNTRIES DEPEND HEAVILY ON FOREIGN AID BUT THE SANCTIONS HAD HIT PAKISTAN THE HARDEST. THE PAKISTANI GOVERNMENT, WITH MORE THAN 30 BILLION DOLLARS IN FOREIGN DEBT, FACED A SUSPENSION OF NEARLY ALL U-S AID AND LOANS FROM AMERICAN BANKS. ANALYSTS PREDICTED THAT SUCH MEASURES WOULD PUSH THE COUNTRY TO THE BRINK OF DEFAULT. ADDING ANOTHER FINANCIAL CRISIS TO AN ALREADY TUMBLING WORLD ECONOMY WAS SOMETHING THE CLINTON ADMINISTRATION WANTED TO PREVENT. (SIGNED) NEB/NJS/JO 06-Nov-98 7:20 PM EST (0020 UTC) NNNN Source: Voice of America .