Wednesday, June 15 2005 07:40 Hrs (IST) - World Time -

Washington: The US has offered to sell to India F-16 fighter aircraft and its advanced versions as also entering into a co-production agreement for the warplanes, US Assistant Secretary of State Christina Rocca said in Washington yesterday (Jun 14, 2005).

The offer of co-production "is a big step," and shows that US relations with India are becoming "ever closer," Rocca told the House International Relations Subcommittee for Asia and the Pacific.

She said the US reserves the co-production agreement for our close allies.

Terming 2005 as "a watershed year in US-India relations", she said, "We are accelerating the transformation of our relationship with India, with a number of new initiatives. We are engaging in a new strategic dialogue on global issues and on Defence and expanded advanced technology cooperation."

"Since Secretary (of State Condoleezza) Rice's trip to New Delhi in March, a series of visits by senior officials from both countries, including Minister of External Affairs Natwar Singh, have underscored the importance of our developing stronger ties.

"Prime Minister Manmohan Singh will be coming to the United States in July and President George W Bush has said he hopes to visit India soon," Rocca told the sub-committee.

"India and the US have begun a high-level dialogue on energy security, to include nuclear safety, and a working group to strengthen space cooperation. Our Defence relationship is expanding and we are revitalizing our economic dialogue.

"The US relationship with India and our commitment to develop even deeper political, economic, commercial and security ties have never been stronger," she said.

"As Secretary Rice said, we see India becoming a world power in the 21st century, and our dialogue with India now touches on broad issues around the region and the world," Rocca said.

"The United States is supportive of India's growing role as a democracy that is stepping onto the world stage to take on global responsibilities. India joined the United States as a charter member of the core group of countries formed to coordinate tsunami relief, and played a prominent role in providing immediate aid to affected South Asian countries.

"We are consulting closely with the Indians on how to help the Nepalese resolve their current political crisis, and India has been supportive of the peace process in Sri Lanka," she said.

President Musharraf and Prime Minister Manmohan Singh have taken bold steps to push forward with reconciliation between their countries, contributing to overall stability in the region, she said.

"We continue to encourage the wide ranging dialogue between India and Pakistan to settle the issues that divide them, including Kashmir. Indian Foreign Minister Natwar Singh's February 15-17 visit to Islamabad resulted in an agreement to start a bus service across the Line of Control (LOC) in Kashmir.

"This dramatic breakthrough involved difficult compromises on both sides. It is having a real impact on the lives of average Kashmiris, allowing resumed contacts between long-separated populations," Rocca said.