DATE=11/9/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-241420
TITLE=U-S/INDIA-PAK (L-ONLY)
BYLINE=DAVID GOLLUST
DATELINE=WHITE HOUSE
CONTENT=
VOICED AT: 

INTRO:   THE CLINTON ADMINISTRATION IS CALLING ON INDIA AND 
PAKISTAN TO TAKE FURTHER STEPS TO EASE THE DANGER OF A SOUTH 
ASIAN NUCLEAR ARMS RACE -- THIS, AFTER IT LIFTED MOST OF THE 
SANCTIONS IMPOSED AGAINST THE TWO COUNTRIES BECAUSE OF THEIR 
NUCLEAR TESTS LAST MAY.  V-O-A'S DAVID GOLLUST HAS DETAILS FROM 
THE WHITE HOUSE.

TEXT:   A MEASURE ALLOWING THE ADMINISTRATION TO EASE SANCTIONS 
WAS TUCKED INTO A CATCH-ALL BUDGET BILL MR. CLINTON SIGNED INTO 
LAW SEVERAL DAYS AGO. AND MR. CLINTON INVOKED THAT AUTHORITY WITH
LITTLE FANFARE LAST FRIDAY-- ALLOWING, AMONG OTHER THINGS, THE 
RESTORATION OF U-S GUARANTEED BUSINESS LOANS TO INDIA AND 
PAKISTAN AND THE RESUMPTION OF SOME MILITARY AID.

THE PRESIDENT HAD BEEN REQUIRED UNDER U-S NON-PROLIFERATION LAW 
TO IMPOSE SWEEPING ECONOMIC SANCTIONS AGAINST BOTH COUNTRIES 
AFTER THEIR NUCLEAR TEST SERIES EVEN THOUGH IT WAS ACKNOWLEDGED 
AT THE TIME THEY WOULD HAVE A DISPROPORTIONATE EFFECT ON PAKISTAN
-- A MAJOR U-S TRADING PARTNER.

THE COMBINED EFFECTS OF THE SANCTIONS AND GLOBAL MARKET CRISIS 
HAD BROUGHT PAKISTAN CLOSE TO DEFAULT ON ITS FOREIGN DEBT. WHITE 
HOUSE SPOKESMAN JOE LOCKHART SAID THE U-S SANCTIONS MOVE SHOULD 
PROVIDE SOME RELIEF:

                    ///LOCKHART ACTUALITY///

         GIVEN THE STATE OF THE ECONOMY AND THE ISSUES THAT 
         PAKISTAN FACES, DOMESTICALLY AND ECONOMICALLY, THIS STEP
         IS PRUDENT AND APPROPRIATE.

                          ///END ACT///

MR. LOCKHART DENIED UNDER QUESTIONING THAT FRIDAY'S ACTION HAS 
HAS DILUTED U-S NUCLEAR NON-PROLIFERATION POLICY AND SAID MR. 
CLINTON CAN PURSUE THAT OBJECTIVE MORE EFFECTIVELY IF HIS HANDS 
ARE NOT TIED BY CONGRESSIONAL RESTRICTIONS:

                     ///LOCKHART ACT TWO///

         THERE'S OBVIOUSLY BEEN SOME STEPS FROM BOTH INDIA AND 
         PAKISTAN ON THAT ISSUE. IF YOU REMEMBER, AT THE U-N 
         GENERAL ASSEMBLY THERE WERE  POSITIVE STATEMENTS TOWARDS
         NON-PROLIFERATION. SO WE THINK, AS THE PRESIDENT HAS 
         OFTEN SAID ALLOWING HIM THE FLEXIBILITY IN USING THESE 
         SANCTIONS CAN OFTEN BE MORE PRODUCTIVE THAN THE RIGID 
         IMPLEMENTATION OF THESE.

                          ///END ACT///

OFFICIALS HERE SAY VOLUNTARY NUCLEAR TEST MORATORIUMS AND 
RESUMPTION OF DIALOGUE ON THE KASHMIR DISPUTE ARE AMONG THE 
POSITIVE STEPS BY THE TWO POWERS. MR. LOCKHART SAID ADDITIONAL 
ACTION BEING SOUGHT BY THE ADMINISTRATION INCLUDE THEIR SIGNING 
OF THE COMPREHENSIVE NUCLEAR TEST BAN TREATY, A MORATORIUM ON THE
PRODUCTION OF FISSILE MATERIAL, AND ADOPTION OF RESTRAINTS ON 
NUCLEAR-CAPABLE AIRCRAFT AND MISSILES.

IT'S HOPED THE RELAXATION OF SANCTIONS WILL ENCOURAGE FURTHER 
STEPS AT HIGH LEVEL U-S/INDIAN TALKS IN ROME NEXT WEEK AND DURING
THE EARLY-DECEMBER WASHINGTON VISIT BY PAKISTANI PRIME MINISTER 
NAWAZ SHARIF.

MR. CLINTON SCRAPPED PLANS TO VISIT INDIA AND PAKISTAN AS PART OF
THE ASIAN TRIP HE BEGINS LATER THIS WEEK BECAUSE OF THE NUCLEAR 
TESTS, BUT HAS LEFT OPEN THE POSSIBILITY OF A VISIT NEXT YEAR IF 
THERE IS SUFFICIENT PROGRESS ON THE PROLIFERATION ISSUE. (SIGNED)



NEB/DAG/PT

09-Nov-98 5:52 PM EST (2252 UTC)
NNNN

Source: Voice of America
.