Friday, August 12 2005 10:01 Hrs (IST) - World Time -

Washington: Dismissing apprehensions that the Indo-United States (US) strategic relationship may harm the interests of India's neighbours, the United States has said that contrary to this, the tie-up is beneficial to the whole region.

"We certainly do not see any cause for concern on the part of India's neighbours for the relationship that is developing between the United States and India," US State Department Deputy Spokesman Adam Ereli told reporters at the Foreign Press Centre of the State Department here yesterday (August 11, 2005).

"To the contrary, this is a relationship that holds the promise of greater stability, greater prosperity - greater prosperity for the entire region," he said when asked whether the tie-up may cause concern for India's neighbours.

"The way to look at it, frankly, is that the closer the integration, the greater the synergies between individual countries in a region, the greater the benefits for the region as a whole. This is both in terms of trade because you've got goods flowing more freely, you've got economies of scale that work more effectively, that leads to increased employment, increased productivity and increased income."

"When you've got an economic power, like India, which India undeniably is, working together with another world economic power, the United States, to maximise scientific research, to enhance agriculture and these are parts of our developing relationship, there are going to be ripple effects that have a positive impact on countries like Bangladesh, like Nepal, like Sri Lanka, like Pakistan," Ereli said.

"So I think that this is a forward movement that not only serves as an example and will help to support closer ties between countries of the region and the United States, but it also has a very real economic impact.