Thursday, June 30 2005 10:40 Hrs (IST) - World Time -

New Delhi: Acknowledging India's important role in world affairs particularly in Asia, Singapore yesterday (Jun 29, 2005) backed New Delhi's claim for a permanent seat in the UN Security Council (UNSC) as the two countries signed a landmark economic pact and three other accords.

After holding talks on a wide range of issues, Prime Minister Manmohan Singh and his visiting counterpart from Singapore Lee Hsien Loong signed the Comprehensive Economic Cooperation Agreement (CECA), which seeks to substantially bolster trade and investments.

Lee extended Singapore's support to India's candidature for permanent membership of the Security Council "recognising the important role" it was playing in the world and "Asia in particular", External Affairs Ministry spokesman Navtej Sarna told reporters.

The 739-page CECA is an integrated package comprising trade in goods and services and envisages an agreement on investments as also cooperation pacts in customs, science and technology, education, e-commerce, intellectual property and media.

The Mutual Legal Assistance Treaty in Criminal Matters inked by Home Minister Shivraj Patil and Singapore Foreign Minister George Yong Boon Yeo seeks to provide the widest level of cooperation in this field.

A protocol amending the agreement on avoidance of double taxation and prevention of fiscal evasion and 'side letters' to CECA were signed by Commerce and Industry Minister Kamal Nath and his Singaporean counterpart Lim Hng Kiang.

Both accords will take bilateral relations "a big step forward," Lee told reporters. He said CECA would give opportunities to businessmen on both sides to take advantage in investments, trade, tourism and movement of people and professionals.

Manmohan Singh felt that CECA would take India another step closer to reaching a similar pact with the Association of South-East Asian Nations (ASEAN).

The two leaders discussed the agenda for the East Asia Summit for which India has been invited, Prime Minister's Media Adviser Sanjaya Baru said.

They also discussed perceptions about China, Japan and the US, he said.

The threat posed by international terrorism figured during the parleys with the two leaders underpinning the importance of intensified global efforts to jointly tackle the scourge.

Prospects of cooperation on the energy front was discussed by the two leaders who shared their perceptions of the requirements on this front by India and Singapore.

On the education front, Singh emphasised that there should be greater institutional linkages and Singapore should accord recognition to degrees given by established institutes in India.

They favoured increasing the civil aviation links, which could facilitate businessmen travel to and fro the same day from either country.

Lee called on President A P J Abdul Kalam and Vice President Bhairon Singh Shekhawat who spoke of the great potential for strengthening bilateral relations through enhanced economic cooperation.

Lee said India has the vast potential to invest and huge trained manpower and hoped that the economic and trade ties would be further bolstered.

He also had meetings with External Affairs Minister K Natwar Singh, Finance Minister P Chidambaram and United Progressive Alliance (UPA) chairperson Sonia Gandhi.

Lee will have meetings today (Jun 30, 2005) with Commerce and Industry Minister Kamal Nath, leader of Opposition L K Advani and former Prime Minister Atal Bihari Vajpayee.

Defence and security cooperation came up during discussions Lee had with Natwar Singh.

Describing CECA as a "milestone", Chidambaram said Lee had told him that it would lead to larger flow of investments into India from Singapore.

Sufficient safeguards have been built in CECA to prevent third country goods from coming in through Singapore.

Aimed at further deepening trade and cultural relations, Lee also launched the India-Singapore Parliamentary Forum. He hoped this would facilitate constructive dialogue between the two countries.

"The forum will enable to engage parliamentarians from both countries in a dialogue that will further develop and deepen the age old ties we have," he said.