Thursday, July 21 2005 16:03 Hrs (IST) - World Time -

Washington: Prime Minister Manmohan Singh yesterday (July 20, 2005) made it clear to Pakistan that he would not be able to push forward the peace process if its territory continued to be allowed for terrorist activities against India.

Addressing the National Press Club here, he said, "India is committed to resolving all bilateral issues with Pakistan, including Jammu and Kashmir, in a practical and pragmatic manner but the climate for resolving the long-standing problems could be vitiated if Pakistani territory continued to be used for terrorist activities directed against India."

Citing recent suicide bomb attack in Srinagar, in which 13 people were killed and 40 injured, he said, "These disturbing developments went against Pakistan President Pervez Musharraf's commitment January last year not to allow its territory to be used for terrorism against India." "I, as Prime Minister of a democracy, would not be able to go against public opinion if acts of terrorism can't be controlled. It affects my capacity to push forward the process of dialogue with Pakistan," he said.

Singh said there were elements in Jammu and Kashmir outside the electoral system and his Government wanted to engage them in dialogue. "I am confident the Indian democracy is resilient enough to bring these elements in the framework of dialogue. I hope I will get US support in this."

Asked about India's long-term nuclear policy, the Prime Minister said that New Delhi was keen on disarmament but was realistic about the current situation.

"We have maintained an impeccable record on proliferation of technology and we also have to maintain a nuclear deterrent," he said adding, "in the interest of expansion of nuclear energy, India wanted to find ways and means to end restrictive regime against it in use of nuclear technology."

"I am very happy to report that President (George W) Bush Administration has realised this and we reached an understanding and made progress."

He said improving relations with the United States (US) was not directed against either Pakistan or China. India was committed to improving relations with both the countries.

Maintaining that India was committed to resolve peacefully disputes with both the countries, Singh referred to recent signing of an agreement to resolve the border dispute with China.

On fears in America that outsourcing took away jobs to India, Singh said he sincerely believed that it was not a one-way beneficial street but was also beneficial to many US corporations because it lowered production costs and helped them compete locally and globally.

"In the process of globalisation, India and the US have to work together so that the process could move forward," the Prime Minister said.

He said in the globalisation process, economic changes were not painless in India. While it had helped socio-economic development, there have been some sectors where it had affected badly and the country needed a social security net.

The Prime Minister said India was not against McDonalds and BMWs but still 65 per cent of the population lived in villages, which were yet to be touched by them.

"It is not that we don't welcome Multi-National Companies (MNCs). McDonalds is doing well in India and I wish them well," he said.

To a question on India's campaign on becoming a permanent member of the expanded United Nations Security Council, the Prime Minister said the US administration recognised that new systems must reflect contemporary realities but Bush said he had other priorities of reforms.

"I did not get any commitment from Bush on 'support the G-4 resolution.' So I believe that G-4 has to do without the US support," he said.

On Iraq, Singh said the US invasion was a mistake. "But this is a thing of the past and we must look to the future," he said, adding India has a role in contributing to establishment of democratic institutions in that country.