NEW DELHI (AFP/Reuters) – India and the United States agreed Monday a defence deal expected to boost US arms sales here, as New Delhi also approved sites for two US nuclear reactors, Secretary of State Hillary Clinton said.
At a joint press conference with Foreign Minister SM Krishna, Clinton said the two sides had agreed on “end-use monitoring” arrangement that would provide safeguards for the sale of sophisticated US weaponry to India.
The agreement “will pave the way for greater defence cooperation” Clinton said, while Krishna said it would help the “procurement of US defence technology to India.”
The two agreements gave Clinton tangible accomplishments from a trip designed to deepen ties and demonstrate US President Barack ObamaÂ’s commitment to IndiaÂ’s emergence as a player on the global stage.
“We have agreed on the end-use monitoring arrangement which would refer to Indian procurement of US defence technology and equipment,” India’s External Affairs Minister, SM Krishna, told the news conference.
Known as an “end-use monitoring” agreement and required by US law for such weapons sales, the pact would let Washington check that India was using any arms for the purposes intended and was preventing the technology from leaking to others.
A US official said the arrangement was for a provision to be written into future defence contracts, guaranteeing sensitive equipment will be used for its intended purpose and not transferred to a third party.
India is expected to spend more than $30 billion over the next five years on upgrading its largely Soviet-made arsenal, roughly a third of which will be a contract to buy 126 multi-role fighters.
That could prove a boon to US companies like Lockheed Martin Corp and Boeing Co.
The two companies are competing with RussiaÂ’s MiG-35, FranceÂ’s Dassault Rafale, SwedenÂ’s Saab JAS-39 Gripen and the Eurofighter Typhoon, made by a consortium of British, German, Italian and Spanish firms.
The press briefing came after a day of official meetings between Clinton and a series of senior Indian leaders including Krishna, Prime Minister Manmohan Singh and ruling Congress party president Sonia Gandhi.
She did not specify the locations, but Indian press reports have suggested they would be in the states of Gujarat and Andhra Pradesh.
“I am also pleased that Prime Minister Singh told me that sites for two nuclear parks for US companies have been approved by the government.”
US officials estimate that the nuclear sites represent up to $10 billion in business for US nuclear reactor builders such as General Electric Co and Westinghouse Electric Co, a subsidiary of JapanÂ’s Toshiba Corp.
“We will work not only to maintain our good relationship, but to broaden and deepen it. To that end our governments have agreed on a strategic dialogue… which minister Krishna and I will co-chair,” Clinton said.
Clinton was accompanied by her special climate envoy Todd Stern, who has been tasked with finding a common approach with India before a December summit in Copenhagen aimed at securing a new international agreement on climate change to replace the Kyoto Protocol, which expires in 2012.
Hillary also announced two nuclear parks to be set up in India, reported IBN India.
If it comes through, the end-use agreement will allow American defence companies to sell defence hardware and software with the rider that India will neither pass on the weapons nor the technology forward.
Three agreements on science and technology, space cooperation and end-user monitoring accord were signed.
Clinton told Press conference India and US had also agreed on a strategic dialogue co-chaired by foreign ministers.
Our Monitoring Desk adds: US Secretary of State Hillary Clinton said there had been “real will” on the part of Pakistan to tackle terrorism and that her country would enlist the help of India in fighting the menace, reported Doordarshan and Zee News on Monday.
The top US diplomat also asked both India and Pakistan to hold talks, saying dialogue was the only way forward for both the countries.
“I have seen a real will on the part of Pakistan government to tackle terrorism…It is their government which is being attacked and people who are being mistreated,” said Hillary while addressing the professors and students of Delhi University in New Delhi on Monday, adding thereÂ’s a need to look for ways to support those who oppose terror.
Admitting that India is an emerging leader in the South Asian region, she urged the country to take the lead to talk to Pakistan.
Emphasising that combating terrorism is the “number one” challenge; she said the US will enlist the help of everyone including India.
She noted that India has faced various acts of terror but sought support for Pakistan, saying the world needs to support those fighting extremism.
She said US President Barack Obama has a very ambitious agenda which her government is committed to fulfilling. She reiterated that President Obama and her government were committed to resolving several key issues facing the world, including the issues of both India and Pakistan.
Acknowledging IndiaÂ’s growing stature, she said the world is now willing to know where it is headed to.
She further described India as an emerging global power and said military strength does not define the greatness of nations in the present day world. Soft powers have become more appealing now, she added.
Later, Hillary Clinton met Indian Prime Minister Mahmohan Singh at the latterÂ’s office in 7 Race Course Road in New Delhi. The two leaders discussed terrorism, Pakistan and ways to enhance bilateral relations between the two countries, said Indian sources.
In her talks with Prime Minister Manmohan Singh on Monday, Clinton said he accepted an invitation for him to make a state visit to Washington on Nov 24.
A State Department official said on condition of anonymity that Singh would be the first foreign leader to make a state visit under Obama, another mark of the relationshipÂ’s importance to the United States.
Hillary also called on Congress President Sonia Gandhi at her residence in New Delhi and discussed several issues, including cross-border terrorism and Indo-US relations.
Clinton went to GandhiÂ’s residence at 10, Janpath, after meeting Bharatiya Janata Party (BJP) leader LK Advani. Sonia GandhiÂ’s son, Congress general secretary Rahul Gandhi, was also present during the meeting.
Sonia Gandhi, who is also chairperson of the ruling United Progressive Alliance (UPA), voiced optimism about the future of India-US relations and expressed concern on the use of terrorism by Pakistan against India, according to party sources.
Online adds: Alluding to the July 16 India-Pakistan joint statement at Sharm-el-Sheikh in Egypt, Hillary praised both countries for agreeing to share intelligence on terror attacks.
Leader of Opposition in Lok Sabha L K Advani on Monday told US Secretary of State Hillary Clinton that the joint statement by India and Pakistan delinking terrorism from composite dialogue had “tried to disrupt the national consensus” among political parties here on the issue, reports The Hindu.
Indian hardline Hindu leader Advani also expressed his unhappiness over the reference to Balochistan in the statement, saying it puts India “in the dock” on disruptive activities in the region.
“We are in favour of good relations with the US but any action against this consensus will not get the country’s support,” Advani told Hillary.
“The statement has named Balochistan as if we are doing something there…as if we are in the dock,” Advani said, according to Ms. Swaraj.