Wednesday, March 16 2005 09:26 Hrs (IST) - World Time -

Washington: The US has said that Secretary of State Condoleezza Rice would discuss the "Defence matters" with Indian and Pakistani leadership during her ongoing visit to Asia but refused to say anything about the reports of American offer to sale F-16 fighter jets to the two nations.

"There's a story about the United States selling fighter jets F-16s to India and Pakistan. In the meantime, you oppose the European Union's (EU's) arms embargo lifted towards China. Why the double standards?" White House Press Secretary Scott McClellan told reporters yesterday (Mar 15, 2005) when asked about the news reports regarding the offer.

"Well, I did see news reports, I have not seen any announcements. Secretary Rice is travelling to the region. She is in India, I believe, today (Mar 16, 2005) and tomorrow (Mar 17, 2005), and then going on to Pakistan. We have developed good relations with both those countries, and we have worked to support the efforts of both those countries to reduce tensions in the regions. And we appreciate the efforts of those countries in the global war on terrorism, as well," McClellan said.

"In terms of any specific announcements, I don't have anything to add from here. Secretary Rice is going to be in the region, and she'll be talking with these leaders, as well. I'm sure that Defence matters are an issue that will come up, as well. I just don't have anything to add from here," he said.

McClellan also said that the US was concerned over the size of Chinese Military budget this year. "Secretary Rice did express our concerns about that earlier today," he said.

The United States is also raising objections to a proposed $ 4 billion gas pipeline running from Iran through Pakistan to India, and this is an issue likely to arise during Secretary of State Condoleezza Rice's Asia visit, a media report said today.

India sees the "peace pipeline" project, as it is called, as a boost to its rising competition with China for energy resources and as a way of fostering economic cooperation with Pakistan, 'The Washington Times' said.

But the US, at odds with Iran over its nuclear programme, "has warned India that if it proceeds, it could run afoul of the Iran-Libya Sanctions Act, which empowers US President George W Bush to order punitive measures against any international company that invests more than $ 20 million a year in Iran's energy sector," the paper adds.

The paper quoted US Ambassador to India David Mulford as saying on Saturday (Mar 12, 2005) that he had raised the issue during a meeting with Petroleum and Natural Gas Minister Mani Shankar Aiyar. At that meeting, Mulford said, he explained "the US Government's concern about Iran's ongoing pursuit of Weapons of Mass Destruction (WMD) and support for terrorism."

These concerns, the paper said, are likely to be aired again when Rice meets with Indian officials in New Delhi and Pakistani officials in Islamabad.

The pipeline from Iran could be operational by 2011.