The Rt. Hon. Sir John Major KG CH

Tag: India

  • Mr Major’s Doorstep Interview in Bombay – 27 January 1993

    Below is the text of Mr Major’s doorstep interview with the press, held in Bombay on Wednesday 27th January 1993.

    QUESTION:

    Prime Minister, you were criticised for coming here, how in retrospect do you see the value of your visit here?

    PRIME MINISTER:

    I do not think there is any doubt whatsoever about the value of this visit. There is a tremendous opportunity for both India and the United Kingdom to expand their trade and to expand their investment relationship, here was an opportunity to grasp that and I think it is perfectly apparent from the discussions across a range of matters that the businessmen have taken that opportunity. We have had two very large contracts already, the British Gas contract and today it has been confirmed that GEC are going to be awarded a very large contract as well. So I think that in itself would probably have made the visit worthwhile but in fact a large number of other things are being discussed as well.

    QUESTION:

    But was it really wise to be out of direct contact with British politics for nearly a week?

    PRIME MINISTER:

    I have not been out of direct contact with British politics. But I think I would put the point back to you the other way. Here is one of our oldest friends offering the British Prime Minister a position, the greatest honour they can offer as the quest of honour in their Republic Day, apart from the fact that I would have wished to come, it would have been very churlish to refuse and it would perhaps have done immense damage to the relationship between India and the United Kingdom. Even if there had been difficulties I would not have wished to have done that. As it was, I was delighted to accept and there were very many matters we were able to discuss.

    QUESTION:

    It is a great honour to have you here in India, is there any message that you have for Indians living in Britain from Indian soil?

    PRIME MINISTER:

    I am very pleased to make my first visit to India. We know at home the extent to which the Indian community plays a practical part in our community, not least of course in our business community. I have been able to see here how it operates locally and I am delighted to have done so.

    QUESTION:

    At your press conference in Delhi you spoke very positively about the Indians settled in the UK, whereas the successful ones have no problem, what is your government doing for the less fortunate?

    PRIME MINISTER:

    I think most people looking at the large number of Indians in the United Kingdom would see right across the range of income groups a tremendous increase in their quality of life and their standard of living in recent years and I think they will benefit, as will everyone else in the United Kingdom, as we move out of recession and back into growth.

    QUESTION:

    In the BCCI bank collapse many Asians lost everything and they are very unhappy with the way the government has handled it, do you not think the problem needs to be addressed?

    PRIME MINISTER:

    I think the problem has been addressed. If you recall the BCCI affair it was in fact a criminal fraud on a gigantic scale but the overwhelming majority of the investors have now got around three-quarters of their money back, three-quarters of their money back as the result of a protection scheme after a criminal fraud and of course a very careful investigation subsequently.

    QUESTION:

    What about the new immigration law that the government proposes, in effect it means that if a person from the sub-continent applies for entry to the UK and is refused leave to enter he loses the right to appeal, is this not against the rule of law?

    PRIME MINISTER:

    No it is not against the rule of law and I think you slightly mis-state the position. The Asylum Bill is dealing with a substantial problem we have with the huge weight of people who are actually waiting a very long time for decisions, we now have administrative measures to deal with it and of course none of that prevents anybody reapplying again if they feel they have been unfairly treated.

  • Mr Major’s Doorstep Interview at Indore Airport – 27 January 1993

    Below is the text of Mr Major’s doorstep interview at Indore Airport, held on Wednesday 27th January 1993.

    QUESTION:

    Prime Minister, what is your reaction to your visit to Indore?

    PRIME MINISTER:

    I think it is impossible to see it without realising the scale of the problem that needs to be dealt with. But what is clear as I saw the second and improved slum dwelling is the opportunity for what could be done and also the extent to which the people living there are prepared to contribute.

    QUESTION:

    But do you think that more work needs to be done?

    PRIME MINISTER:

    I think self-evidently for a long time there is going to be a great deal more work needed to be done and that will need funds from all sorts of areas.

    QUESTION:

    [Inaudible].

    PRIME MINISTER:

    ODA have got an on-going programme for this and for other projects like this, there are 8 projects like this and a number of other ones as well, it is for that reason that our commitment to India is so large.

    QUESTION:

    How do you think that the funds should be utilised in the development of this colony?

    PRIME MINISTER:

    It seems to me from what I have seen this morning that they are being utilised very wisely, not in grandiose projects but in practical methods that will improve sanitation, improve health and improve quality of life, that is far more important than large prestige projects.

    QUESTION:

    Are you aware of the mis-use of funds [indistinct].

    PRIME MINISTER:

    We always look very carefully through the ODA at what is happening to make sure the funds are used properly, it is a constant point.

    QUESTION:

    Are you aware of the report?

    PRIME MINISTER:

    I am not aware of the report but ODA officials here will be.

  • Mr Major’s Speech to Businessmen in Bombay (Mumbai) – 27 January 1993

    Below is the text of Mr Major’s speech to the Businessmen’s Dinner in Bombay (now Mumbai) on Wednesday 27th January 1993.

    PRIME MINISTER:

    It is a pleasure to be with you today. This is my first visit to India though coming here has long been an ambition. Already it has made a deep impression on me and whetted my appetite to see more. I am sure this will not be my last visit to this great country.

    The first theme of my visit has been dialogue and partnership. I wanted to experience – to develop at the highest level – the increasingly close bilateral dialogue between our two countries. This of course owes much to ancient ties of history, culture, parliamentary democracy and personal contacts. But the changes in the world after the end of the cold war have made possible a new kind of partnership between India and Britain.

    To be truly worthwhile a partnership needs to reflect the interests and realities of today in the new international environment. Old history is valuable. But so is current reality. My discussions in New Delhi this week certainly met both those tests. I look forward to continuing and developing the dialogue.

    My visit was given symbolic meaning by the invitation of the Indian Government for me to be chief guest on Republic Day. The parade was a memorable spectacle. Standing there with the President and the Prime Minister of India I felt that the shadows that the past has sometimes cast over our relationship had been dispelled by a modern partnership between sovereign democracies.

    Another theme of my visit has been confidence – British confidence in India. In our country, as in yours, there is a deeply entrenched commitment to the principles of democracy, tolerance and the rule of law. India’s problems can be solved only by Indians: but, as you work them out, you can be sure of our close interest, sympathetic concern and confidence in India’s secular democracy.

    By the same token, the world has watched with dismay the disturbances and destruction that afflicted this great city earlier this month. I hope and pray that peace and harmony, now restored, can be maintained. You do not need me to tell you of the responsibility which rests with the leaders of the business community in helping to resist the forces of hatred and disruption and healing the social and economic wounds. I bring you today the hope and confidence of the British Government that Bombay, which has met so many challenges in the past, can meet this challenge also.

    And may I say a word about Maharashtra’s governor, Dr. Alexander. India has a tradition of sending her best to be High Commissioner in London. And we return the compliment. We have warm memories in Britain of Dr. Alexander’s time as High Commissioner. He has many friends and admirers and all of these friends wish him well in his new post.

    For your city has a special place in British hearts. The connection goes back to 1661 and has developed over the years as the city has become the vibrant heart of India’s economic and commercial life.

    London and Bombay are the financial capitals of our two countries. The effective provision of financial services is vital, not only for the health of the domestic economy but also as a source of foreign earnings. We are proud of the achievements of the City of London, and we depend on them to help earn our keep in the world. Bombay too has the potential to be a world commercial and financial centre.

    One of the main themes of my visit is the partnership which Britain and India can enjoy in the wider world economy. This is what I want to focus on tonight.

    World Economic Prospects

    The international economy is living through hard times. It is precisely at such times that the temptations of economic isolationism grow, together with the pressures on governments to give special help to their own industries and their own companies. It is precisely at such times that governments must be strongest in resisting these siren calls. For those policies would lead us into a downward spiral of beggar-my-neighbour. We can be sure they would do no one any lasting good and would damage most those who are already most vulnerable.

    Uruguay Round

    We need international co-operation – regionally and globally – to bring back growth to the world economy. The most important key to that recovery remains success in the Uruguay Round.

    An early and comprehensive settlement of these GATT negotiations is crucial for the future health of the international economy. According to OECD estimates it would mean a boost to the world economy of some 200 billion dollars per annum. That in turn means new income and new jobs for millions of people all over the world. It would be folly to put all that at risk.

    I sometimes hear that GATT is arranged to suit the developed countries. It is of course true that we have much at stake. But developing countries need free trade just as much, if not more. Their companies need the opportunity to sell those goods and products where they are competitive, and to buy the inputs they need at prices they can afford. The progressive liberalisation of trade in textiles and agricultural products promises enormous benefits for developing countries, including India. Protectionist barriers damage most those who think they are being protected. The developing countries which have opened their markets most have prospered most. The evidence is there for all to see, not least in Asia. Trade and investment are far more important than aid in promoting sustained economic growth in developing countries.

    So a GATT agreement will be good for India too. Like the rest of us, the Indian Government have seen that the whole settlement is greater than the sum of its parts.

    European Community

    Britain is not of course an independent actor in the GATT talks. The European Commission negotiates on behalf of the 12 members of the European Community. The EC is India’s largest trading partner, and an essential source of investment and development assistance. Britain has just completed its Presidency of the Community. At the Edinburgh Summit last month, we sorted out many of the Community’s own problems.

    The progress of the Community has been further underlined by the opening for business of the European Single Market on the first of this month. It is the biggest market in history. Barriers to trade and enterprise have been broken down. Europeans can now live where they like in the Community and buy goods and services freely in the country of their choice.

    The Community remains open to trade from all parts of the world, and should be increasingly open when Uruguay Round provisions come into force. No new barriers to trade arise from the Single Market. We want to destroy the barriers to trade, not just move them. And the increasing harmonization of standards in the EC makes life easier, not harder, for outside exporters. They have only one target to aim at, rather than 12.

    Last month, under the British Presidency, India and the EC initialled a new Co-operation Agreement. Proof of Britain’s determination to keep the Community open and outward-looking. The new text opens the way for increased co-operation in areas as diverse as trade, investment, development, the environment, agriculture, science and technology, energy, telecommunications and drug abuse.

    We hope that when the Agreement is signed, it will be accompanied by a Joint Statement on political dialogue. This second document – also negotiated under our presidency – enshrines arrangements for the Indian and EC governments to work together closely on a wide range of political and other issues.

    We are your natural partners and friends within the Community and are delighted to continue to make this count in practical ways.

    To sum up, my message on Europe is threefold:

    – the Community is moving forward with full British commitment;

    – the Single Market is emphatically not a barrier to Indian exports;

    – the relationship between the Community and India is set to develop further, with Britain as one of India’s friends at court.

    The British Economy

    It is against the background of these world and EC developments that we have to deal with the more immediate economic concerns of our two countries. A few words about the British economy first.

    1992 cannot be claimed as one of our vintage years. Signs of economic recovery were slow to appear. Unemployment continued to rise. Company and individual confidence remained stubbornly low.

    But behind the scenes I believe the stage is set for a decisive move towards our consistent economic objective: sustainable non-inflationary growth. The necessary underlying conditions for this are now in place:

    – inflation – at 2.6 per cent – is at its lowest for six and a half years;

    – interest rates – following yesterday’s reduction – are now 6 per cent, the lowest figure for 15 years and the lowest in the European Community;

    – confidence is beginning to return to house-buyers, consumers and investors; and

    – our exchange rate is highly competitive.

    All this provides a tremendous opportunity for British industry. The government will be working closely with industry, especially manufacturing companies, to maximise investment in modern equipment and increase exports. We shall also be redoubling our efforts to free up our own markets, and reduce the burdens of government and bureaucracy on our own companies. The cornerstone of our policies remains the conviction that the creation of wealth is most effective when economic and commercial freedom are greatest.

    Indo-British Economic Links

    India and Britain are two of the largest dozen economies in the world. British investment in India is estimated at about 2 billion pounds, significantly larger than that of any other country. At least 250 British companies are well established here with an important stake in India’s economy. Many more have tie-ups involving the transfer of technology and know- how. The open British market will provide ample opportunities for India’s increasingly competitive exporters, many of them from Bombay and Western India.

    British development assistance to India is almost twice as much as to any other country in the world. We are proud of our aid programme here, which combines support for projects aimed at encouraging economic growth with help for the poorest. I was able to see something of our aid programme earlier today when I visited two slum improvement projects in Indore. The project is transforming life for the people, enhancing their environment, their health, their education, their opportunities to earn a living, and above all their dignity. We are proud of our partnership with the Indian authorities in making all this possible.

    So we are already doing much together. But this is only a beginning. New perspectives are opened by the dramatic change in India’s economic management and policies in the last eighteen months. Prime Minister Narasimha Rao and his Government have made Herculean efforts to stabilise the economy after the crisis of mid-1991. And having achieved this stabilisation, they are set to change the policies which, however justified at the outset, would never have built prosperity.

    We have admired and applauded the sweeping away of so many of the bureaucratic obstacles – the so-called licence raj – to normal business decision-making. We have welcomed the attack on high trade tariffs and even more direct barriers to trade, and the shift to genuine encouragement of foreign investment. We believe the policies of reducing wasteful and irrelevant government subsidies, cutting the budget deficit, and redirecting government spending to where it is most needed – the basic needs of the poorest, particularly in education and health – are absolutely right.

    We all know the entrepreneurial talents of the Indian people. We in Britain know them particularly well from the immense and valued contribution to our economic and commercial life made by so many entrepreneurs, large and small, of Indian origin. These talents can now be fully liberated in India too. India can look forward to taking its place before long among the fastest growing economies of Asia.

    The land of the tiger can become an economic tiger herself. She starts with great advantages: a huge domestic market, a reserve of trained and inexpensive manpower, a thriving private sector with an established entrepreneurial tradition and great natural talent, most of the necessary financial institutions already in place, and an exuberant democracy.

    But – there is always a but – the fruits of reform will only arrive if reform is continued and deepened. The effort to liberalise the economy and expose it to international competition must not only be maintained, but increased. The UK government has supported the process wholeheartedly through extra balance of payments support, through the positions we have taken in the international financial institutions, through the encouragement we have given to our companies to look at investing in India.

    What goes for Britain, goes for India – free markets and competition increase prosperity for everyone. Opening up trade, including in consumer goods. Liberalising further industrial and agricultural markets. Confining the public sector to its proper role and make public sector enterprises free to act and accountable for their actions. Making your labour laws encourage job creation and investment, rather than giving an illusion of job security to a privileged few. The Indian people will be the winners.

    Future Co-operation

    I said that we have been encouraging our companies to take a fresh look at India. It is significant that I have been accompanied on this visit by one of the most senior British industrial delegations ever to be in one place overseas at one time. These are senior businessmen, seriously interested in what they can do in and with India.

    Most of them have come with me to Bombay and are here this evening. They will tell you of the welcome message they received from Ministers and senior civil servants of the Indian government’s determination to maintain the reform programme. They are already making plans to carry this message back to their fellow British businessmen at home. They have agreed with their Indian counterparts on an Indo-British Partnership Initiative to promote trade and investment in both directions. As long as the reform programme continues – and the Government will need the continuing support of industry in carrying through difficult political decisions – I have no doubt that existing British investments in India will expand, and other British firms will set up here.

    During my visit we have taken some big steps forward. Here in Bombay, British Gas and the Gas Authority of India agreed this week to collaborate in bringing natural gas on-shore first to industry, and then to private consumers – a deal worth £100 million. And today I was delighted to hear that the Indian authorities intend to award to GEC Alsthom a contract to link the electricity networks of the West and South of India, this time worth £140 million. These and other deals which I know are in the pipeline will bring employment and new technology to India, not least to Bombay, and jobs and continuing export business to Britain. It is a partnership from which we both stand to benefit enormously.

    At my meeting with Indian business leaders yesterday, the first question I was asked was about the scope for privatisation in India and how Britain could help. I am sure that there is great scope for making more use of private sector skills in many parts of the Indian economy. I believe that this is one of the areas that the Indo-British Partnership Initiative should focus on. Britain has enormous experience of privatisation – we have carried out the most far-reaching privatisation programme in the world. Our experts – banks, accountants, consultants, civil servants – stand ready to advise and help as and when you in India decide to go down the same path.

    I know there has been disappointment in India at the apparently slow pace at which foreign investment has been increasing. But investment depends not only on the right policies and general goodwill. It depends on policy implementation at all levels, on confidence that reform is here to stay on the certainty that the era of suspicion of foreign companies is over. The stability and clarity of policy objectives over time is what counts in persuading foreign investors to take decisions.

    If that vision is there, Britain and India have so much to offer each other. I have already spoken in Delhi of the enormous general improvement in our bilateral relations. Much of the practical benefit for both of us from these excellent links will derive from the breadth and depth of our joint economic and commercial activities.

    Governments cannot of course make this happen. The theme of my speech has been that at global, regional and national level it is competition and free markets which bring prosperity. The whole point of free markets is that individual companies and people decide for themselves where to invest and with whom to do business. But governments must create the right environment for free markets to flourish. We are on the right course. Let us both stick to it, build on what has been achieved so far, and together help to create a better future for all our people.

  • Mr Major’s Doorstep Interview in Indore – 27 January 1993

    Below is the text of Mr Major’s doorstep interview with the press, held in Indore on Wednesday 27th January 1993.

    QUESTION:

    Prime Minister, what are your impressions of what you have seen today?

    PRIME MINISTER:

    I have now seen both the projects, the one that had no improvement work done on it and the one that has had some improvement work started, and I think there are several impressions. Firstly, you can see the enormous amount that needs to be done; and secondly, you can see as the improvement work proceeds the impact it is actually making on people, even the relatively modest improvements above ground and below ground have made a complete change to the Community. Much more to be done of course, but very valuable work.

    QUESTION:

    Now there are improvements in life and health?

    PRIME MINISTER:

    Certainly in life and health. Many of the improvements you physically cannot see, it is the availability of proper sanitation, proper water, it is well below ground but it is there, it was not there elsewhere, the improvement of the medical facilities. And here, here is one of the extremely unimproved homes, but if you look around you now find there are clubs being formed, clubs for young wives, clubs for children, gymnasiums, there is a great deal of health activity, all of which would not have been apparent some time ago, It is desperately needed and very welcome.

    QUESTION:

    Some of this money comes from Britain although it is a drop in the ocean when put alongside India’s problems. Do you believe these people actually know who you are, that you are a representative of that country, do they know who John Major is?

    PRIME MINISTER:

    They seem to but whether they do or not the important thing is that the resources are here so that the help can be given, that is the thing that really matters, where the resources come from is entirely a secondary matter, the fact that they are here to help provide a quality of life that otherwise there would not be is desperately necessary. One only has to look around for a few minutes to see how much needs to be done.

    QUESTION:

    Does this make you think that you should be reaching the UN target for foreign aid more quickly?

    PRIME MINISTER:

    Everyone would like to reach the UN target as soon as they can. The degree of need, we have seen it here in India, but we know it exists in other countries as well not all that far away, in Bangladesh you find it, you see it in many parts of Africa, there is a huge amount of need. It cannot all be met by aid of course, but aid often is the need towards tremendous domestic improvements. One of the attractive features of what is happening here that has been stressed to me several times going round, as the improvements have become apparent people have begun improving their own homes and their own quality of life as well, so I think the aid can play a very important part.

  • Mr Major’s Doorstep Interview in New Delhi – 26 January 1993

    Below is the text of Mr Major’s doorstep interview in New Delhi held on Tuesday 26th January 1993.

    QUESTION:

    [Inaudible].

    PRIME MINISTER:

    I think the market conditions were right to cut interest rates. The Chancellor and I discussed the possibility last week and he judged it was right today and I am delighted he did. I think it is a good move. I think it will be good for confidence, good for investment, good for jobs.

    QUESTION:

    The news at home means there will be no publicity for your trip here in India.

    PRIME MINISTER:

    I am very happy that the interest rate is reduced. I think it is appropriate. That is the most important thing. I think the economy will benefit from the fact we have been able to reduce interest rates again and I think all this is adding to the climate of confidence that is so necessary for sustained investment and to return to a secure pattern of growth. That is what we seek.

    QUESTION:

    Do you support the United States move to have Germany and Japan join the permanent members of the Security Council?

    PRIME MINISTER:

    I think the most important thing about the Security Council is to make sure that Security Council continues to be effective. That is the most important matter. I am certainly happy to look at matters that make it more effective. I would not wish to do anything that made it less effective.

    QUESTION:

    Do you think Germany and Japan joining will make it more effective?

    PRIME MINISTER:

    I don’t know. There has been no discussion about this at all. I know the suggestion has been around for some time but it has not been the subject of any detailed discussion. I think you would have to change the United Nations mandate and a raft of other things but I dare say these are matters that will be discussed.

    QUESTION:

    Is there a worry that they will overbalance the European element and Britain might have to lose its place?

    PRIME MINISTER:

    No, I don’t think that is at all likely. I certainly don’t think that is likely but these are matters that would have to be discussed if there is a general will for them to be discussed but they are not new ideas, they have been around for some time.

    QUESTION:

    Does the interest rate cut set the scene for moves to help business and industry in the budget, Prime Minister?

    PRIME MINISTER:

    I am not going to anticipate the budget.

  • Mr Major’s Comments on Terrorism – 25 January 1993

    Below is the text of Mr Major’s comments on terrorism, held during an interview in New Delhi on Monday 25th January 1993.

    QUESTION:

    [The Prime Minister was asked about the bomb threat].

    PRIME MINISTER:

    I have no means of knowing whether it is or not and I am not especially concerned about that. What I was seeking to do was to draw attention to the fact that governments around the world do need to cooperate generally against terrorism. It is an international problem, it will require international cooperation. That is the point I was seeking to make.

    QUESTION:

    [Mr Major was asked if the extradition treaty would be passed in the House of Commons].

    PRIME MINISTER:

    Yes, I believe so. There may be some opposition – I am not sure how much there will be – but I am quite confident there will be a clear majority for it in the House of Commons.

    QUESTION:

    [Mr Major was asked if India was stable enough for Britain to invest in].

    PRIME MINISTER:

    Yes, I am, but far better than my view about that is the view of the businessmen who have come with me. Here you have a collection of some of the leading businessmen in the United Kingdom; they are confident not only to come but to contemplate large-scale investment over many years, so quite apart from my confidence their practical investment where they are prepared to put their money, their future and their companies in India, is an indication of the way things have changed and the prospects that people see for India in the future.

    QUESTION:

    [Mr Major was asked if he thought Indian democracy would last].

    PRIME MINISTER:

    What I am utterly confident about is the commitment of the government to what they would call – and I agree – secular democracy. That has been a tradition in India. Britain is the oldest democracy in the world, India is the biggest democracy in the world and I don’t have a shred of doubt that the Indian government are committed to that.

  • Mr Major’s Joint Press Conference with Director General of CBI – 25 January 1993

    Below is the text of Mr Major’s joint press conference with the Director General of the CBI, Howard Davies, held in New Delhi on Monday 25th January 1993.

    PRIME MINISTER:

    Can I say at the outset how delighted I am to have been invited to be India’s guest on Republic Day, I believe it is the first occasion that a British Prime Minister has been invited and honoured in this fashion and I am delighted to have had such a remarkable privilege.

    I think in one sense this does indicate with great clarity the changing and improving relationship between India and the United Kingdom. What is equally clear and has been wholly clear to me in my discussions today, is the extent to which India is changing and opening its doors a good deal more widely to the world. It is no coincidence, I believe, that shortly after I leave President Yeltsin will be arriving and Chancellor Kohl will be there very shortly after that.

    I have had the opportunity today to have discussions with the President, with the Vice-President, with the Prime Minister, the Minister for Home Affairs, the Minister of Finance and the Minister for External Affairs. It is absolutely clear to me that relations between the two countries have I believe never been closer since Independence. There are nearly 1 million people of Indian origin living in Britain, they play a very prominent part in the life of the United Kingdom. We have a very large amount of foreign investment in India, our exports last year to India were very nearly 1 billion pounds and India of course remained by far our largest aid recipient.

    My reasons for coming here, apart from the invitation, were threefold; firstly political, second economic, and thirdly commercial. Politically I have been able to reaffirm our support for India’s deep-rooted democracy, I think it is extremely important and remarkable achievements have been made over the past 40 years or so. In particular I welcome the strength with which the Indian government has reaffirmed its commitment to the rule of law, to the secular constitution and to tolerance and protection for minorities.

    In our discussions today I have reaffirmed our cooperation, our joint cooperation, in the fight against terrorism and I have confirmed also that we are fully committed to using our law to this end.

    I have had the opportunity, with the Prime Minister in particular, of discussing the issue of greatest concern to them and their neighbour Pakistan – namely Kashmir. I believe that is essentially an issue for the two governments themselves to resolve, albeit with the strong encouragement of their friends. The principles which underlie our approach to this problem I think are well known, we wish to see a dialogue between India and Pakistan, a genuine political process in Kashmir and respect for human rights and an end to external support for violence in Kashmir.

    On the economic front I was very pleased to hear from the Prime Minister of India’s determination to pursue her programme of economic reform and liberalisation. That is not something we would have heard just a few years ago, today it is a very clear clarion call to the future that forms a central part of India’s policies. And one of the things that emerged from my discussions and from the separate discussions with British businessmen has been the commitment of all concerned to that reform and the belief that that reform is already bringing results. I believe that India will see the benefits of her perseverance in terms of large scale support from the IMF and more relevantly in terms of economic results here in India. We have as a country very long-standing commercial ties with India, but one change that economic reform has certainly brought about is that it is now much easier for private sector companies to do business directly with the private sector in India and they are certainly very keen to do so.

    I have brought with me to India one of the most senior groups of British businessmen ever to come to India and with them Howard Davies, the Director General of the CBI. Some very significant contracts are under discussion. I am certainly delighted to tell you that British Gas has this afternoon agreed a 100 million pound joint venture project with the gas authority of India for a natural gas distribution project in Bombay. And British Aerospace has today signed an agreement with Hindustan Aeronautics for software. A number of other contracts are being discussed and are due for agreement. We want to build on that, by we I mean the governments of India and the United Kingdom and the private sector in both countries as well. We seek to translate India’s economic reform into a revitalised commercial relationship.

    Yesterday, British businessmen met their opposite numbers in business and also met senior government officials. They have launched their initiative, they have launched a partnership initiative led not by government but by the private sector. On our side the group will help increase awareness in Britain of the opportunities to do business with India. Prime Minister Rao and I have agreed this morning to give this initiative our personal support and we have asked for a report on the progress made, and the achievements made, critically the achievements made, to be given to us at the end of this year and I have no doubt that Howard Davies will say a little more about this in a minute. But it is that partnership that will lead to more investment and to more exports. Each of the businessmen has said that he will be pursuing the contacts made during this visit and those of you who may have spoken to the businessmen will know how enthusiastic they are about the opportunities opening up.

    India already is the world’s 14th largest economy. Other countries are already moving to build on the opportunities that that represents. British investment in India will help India’s economic reform, export growth will lead our domestic recovery, there is a joint interest that both of us wish to exploit. We have as two countries an historic relationship. In this visit we have been looking to develop a modern partnership as well and I believe it has been very fruitful and we have begun to do that.

    MR DAVIES:

    For the benefit of Indian journalists here I should point out that the CBI in England is not the Central Bureau of Investigation and emphasise the Prime Minister is not under investigation, not from me.

    From the business point of view, this has been an outstandingly successful trip. The Prime Minister has announced two particular deals involving British Gas and British Aerospace, I mentioned a third yesterday involving Cadbury’s increased investment in India.

    British Gas have today reached agreement with the gas authority of India to form a joint venture company to supply natural gas to the city of Bombay. The investment by the new company will total around 100 million pounds but the significance of the agreement is broader since it puts British Gas in pole position in the development of natural gas in India which could lead to between 1.5 – 2 billion pounds worth of business in the longer term. And there will be many opportunities within those contracts for other British suppliers.

    British Aerospace signed a contract today with Hindustan Aeronautics Limited to found a joint software company, it involves a satellite link between Bangalore and Warton in Lancashire so that software engineers and designers in India may work jointly with their colleagues in Britain. Clearly that is a further strengthening of the link between the aerospace industries of India and the UK.

    Other companies on the team have been in active negotiation around the main meeting and much other progress has been made, further important contracts are expected in power generation and elsewhere.

    All these negotiations have been hugely assisted by the Prime Minister’s presence here and by the access to decision-makers that that has guaranteed for the business team. We have had a very interesting programme and we are extremely grateful to the Indian side for their hospitality and indeed for the patience with which they have answered our detailed questions.

    I mentioned yesterday our meeting with the businessmen and the Permanent Secretaries on Sunday. Today the business team met the Ministers of Commerce and Finance and then we collectively reported back on our discussion to the two Prime Ministers, a very unusual type of meeting but which was a great privilege for us. We said that we had been very impressed by the commitment to liberalisation and reform, this had been evidenced by all the Indians we had met. We did, however, press for further progress on liberalisation and indeed suggested a private sector-led initiative to raise the awareness in Britain of opportunities for trade and investment in India, matched by a similar effort over here. We believe the timing for such an initiative is exactly right since the opening of the Indian market gives a lot of encouragement to British companies who have been here already and who propose to invest.

    The British effort will be led by Robert Evans, the Chairman of British Gas, with CBI help and the Prime Minister has agreed to support, provide a secretariat and other assistance, for that initiative and that applies on both sides. We will report back to the Prime Ministers in a year on the progress made and the group of business people here are very committed to pursuing that.

    Particularly perhaps of interest to the British press, a couple of hours ago in London the CBI’s most recent quarterly industrial trend survey was issued. It showed the sharpest increase in business confidence for 5 years with strong optimism about export prospects. One-third of manufacturers were more optimistic about exports than four months ago. Prices in export markets for British manufacturers are not a problem, the main remaining restraint on exports reported by 40 percent of companies is political and economic conditions abroad. That from the business point of view is the context for this visit, the government in partnership with industry trying to create more favourable conditions for British exports and investment. We have been asking for more government support for exporters for some time and now we are getting it. The business group is very chipper as a result and for a number of them this has been a nice little earner and I cannot translate that into the Anglo-Indian idiom.

     

    QUESTIONS AND ANSWERS

    QUESTION (Dubai Gulf News):

    During your meeting today with the British media, you are reported to have told them by way of explaining the British Government’s position on Kashmir, that any solution to the Kashmir issue should take account among other things of the aspirations of the people – I think you used the expression “the population of Kashmir”. My question is would you please elaborate what you meant by this particular word “aspirations”, whether it is another word for “referendum” and did you discuss this with the Indian Government as apparently in your opening remarks you did not make any reference to that particular word “aspirations”?

    Secondly, by “Kashmir” do you mean all the parts in India and Pakistan?

    PRIME MINISTER:

    I am not quite sure from where you got that quote or what detailed interview people are supposed to be referring to but it is certainly a novelty to me. Yes, I did discuss the matter with the Prime Minister this morning; I discussed it privately as an old friend of India, indeed as an old friend of Pakistan as well, we are all members of the Commonwealth.

    I don’t believe advice on how to deal with this problem best comes publicly from third party governments. Any comments in detail I may have upon it I think are best given privately to the Prime Ministers concerned and that, other than the general position I set: out in my statement, is what I will maintain.

    QUESTION (Charles Wright, Evening Standard):

    Prime Minister, can I ask you just on a domestic note since Howard Davies has mentioned it, your reaction to that rather encouraging CBI quarterly trend survey and on a less happy note here, your thoughts about the stories about various terrorist threats?

    PRIME MINISTER:

    If I can deal with the domestic matter first, I am clearly delighted. I have not had a chance yet to study all the details of the survey but one of the necessary ingredients for lasting recovery is confidence amongst companies at home about their prospects at home and their prospects to export. If that confidence is there, the other basic ingredients encouraging people to develop their companies and for the economy to grow are clearly in place: lower interest rates than we have had for a long time; the inflation rate well under control, far lower than we have had for a long time; and also a very competitive exchange rate so the ingredients for investment and for recovery are there. The missing ingredient for a long time has been the confidence amongst businessmen themselves that they will be able to build on the economic scene at home. So to that extent, it is very good news indeed that we have this survey showing such dramatically increased confidence; I look forward to it being translated into dramatically increased action and that of course is a matter for the private sector. I very much hope that they will be able to do that.

    On the second half of your question, I am entirely content with the security arrangements that have been made here. We had been in touch with the Indian authorities for some time about security matters during this visit and all those discussions have been entirely satisfactory.

    I think probably the threats you refer to come specifically from our commitment to the extradition treaty. I have no reservation about that treaty whatsoever. We, by which I mean the Indian Government and the British Government, are two governments amongst many that have to deal with international terrorism. Terrorism is a problem that each and every government across the world will need to combat and they will often need to coordinate their efforts so I don’t believe any threats, wherever they may come from or for whatever reason they may come, change the necessity to deal with the terrorist threat in each and every country around the world so I am perfectly content with the security arrangements that have been made.

    QUESTION (BBC):

    Prime Minister, you have made a friendly offer of help, if invited by Pakistan and India, in resolving the Kashmir dispute. If invited, how do you envisage the role of the United Kingdom, in what capacity in that unresolved problem? If not resolved during a period, what kind of pressure or what kind of persuasion do you think you can exercise?

    PRIME MINISTER:

    I am glad you asked that question because it enables me to clarify a misunderstanding that I have certainly seen reported in a number of newspapers.

    At no stage have we suggested or have I had it in my mind to suggest that Britain should be an intermediary between Pakistan and India. At no stage has that been our intention and at no stage has that suggestion been made.

    This difficult and intractable problem will not, I believe, be solved by an intermediary; it will be solved by the governments of India and Pakistan.

    What we have said is that as longstanding and close friends of both countries, as a senior member of the Commonwealth, we are keen to see them get together and do what they can to solve the problem and if they believe that there is any way in which we or others can assist, then we are there prepared to be asked for that assistance but it is not for us to artificially offer to broker a solution. I don’t believe that would be appropriate, we have not done it and we are not going to do it.

    QUESTION (IMPAH):

    Mr. Prime Minister, did you talk to the Government of India about Indo-British military cooperation because their latest problem is about the Air Jet trainer? Did you speak to the Prime Minister about that?

    PRIME MINISTER:

    We spoke about a number of matters including that one, yes.

    QUESTION (LADY ALSO FROM IMPAH):

    Prime Minister, some temples were demolished in your country recently. What action is your government contemplating on that if any at all?

    PRIME MINISTER:

    Wherever people break the law, they are subjected to the rigours of the law and all such matters of that sort are investigated by the police and where appropriate, action is taken. Our law requires that and that is what happens.

    SAME LADY:

    Is your government planning any action or why hasn’t taken any action so far?

    PRIME MINISTER:

    It is a matter for the police. Where action like that occurs, it is a matter for the police and the police will and are dealing with it.

    QUESTION (TV Asia, London):

    With more than one million Indians settled in Britain, would it not have been encouraging if you had included an Indian businessman in your delegation?

    PRIME MINISTER:

    It wasn’t entirely my delegation. I would have been delighted to have brought an Indian businessman with me and perhaps on a future occasion I will be able to do so.

    I am delighted that the Indians are playing a much greater role both in the business community and increasingly in politics in the United Kingdom. I think there have been very great advances on both those fronts over the last few years and I thoroughly welcome that.

    I hope on a future occasion we will have some Indian businessmen but I suppose it is possible that they may think their contacts here perhaps don’t require them to come with me!

    QUESTION (Yugoslavian News Agency TANYUK):

    Mr. Prime Minister, recently you said to the “Hindustan Times” that Great Britain is playing a leading role in resolving the Yugoslavian crisis. Tell me please, what are you going to do about this Croatian aggression in the United Nations protected areas populated by Serbs where in two or three days many Serb civilians were killed?

    Secondly, are you actually going to take steps towards lifting the unjustified sanctions on the Federal Republic of Yugoslavia or are you going to persuade and continue the politics of punishing Serbian people only because they did not agree to and the degradation of their country?

    PRIME MINISTER:

    With respect, I am not entirely sure I agree with some of the premises upon which you base that question. I think some of them are contentious and you will be unsurprised to know that I don’t accept them.

    As for our position on the general crisis in Yugoslavia, I think there are several points that I might justifiably make about the position of the British Government.

    Firstly, the London Conference and the Vance-Owen peace proposals spring essentially from the conference I chaired during our Presidency of the European Community. The Vance-Owen team have made far more progress, I think, than many people may have imagined. There is still more to be done; there is still no agreement on the maps that they, have presented to the various parties but the progress that they have made thus far has been astonishing; few people would have expected it; I am delighted it has taken place and they must continue their work. I believe a political settlement is the only satisfactory conclusion that we will get out of the present difficulties that exist in Yugoslavia.

    The second point I would make is about the immense degree of hardship faced by many people especially – not universally but especially – in Bosnia and I believe the part that the United Kingdom has taken in the delivery of humanitarian aid both by the humanitarian agencies and provided by the United Kingdom and also provided by others – but a very large amount of the aid, the medicines and the food was provided by the United Kingdom – and also the fact that we have far more troops working to assist the delivery of humanitarian aid in Bosnia than any other country shows that in a raft of ways we have played a leading role in seeking to bring this affair to a conclusion and to minimise suffering until such time as it does end.

    On the specific point about Croatia, I think the right way to deal with the problems in Croatia and elsewhere is through the Vance-Owen dialogue and I know that is being pursued.

    QUESTION (Business Standard, Calcutta):

    I would like to know whether the recent communal disturbances in India have in any way influenced British perceptions on investment in India and also whether Britain would like to influence public opinion in the West on this issue?

    PRIME MINISTER:

    Why ask me when you have the Director-General of the Confederation of British Industry here? I will ask Howard to reply.

    HOWARD DAVIES:

    I think that it has not. British business people have been concerned by those disturbances because of the human cost which is upsetting to business people in Britain as it is elsewhere but we do not interpret that as being about the economic reform programme and we have been assured that that programme proceeds so I think that we as business people not wishing to involve ourselves in purely political matters have set that aside and have concentrated on what we have heard from the Government about the reform programme. Nobody who was planning to come on the trip didn’t come as a result of that news so we have pressed on regardless.

    QUESTION (Economic Times):

    You mentioned a lot of interest of the business delegation and all this has come without any progress on our labour laws. Has there been some assurance from our Government regarding something done on this or are the labour laws not so important for the British businessmen?

    Secondly, Mr. Prime Minister, there were some reports saying that there was some softening or a more sympathetic stance from the British towards India’s views on the Non-Proliferation Treaty. What discussions regarding this have you had with our Prime Minister and what are your views?

    PRIME MINISTER:

    Clearly, every aspect of economic relations dealing with competition in the country is of interest to us so we are very keen to see the liberalisation in all its aspects that the Indian Government are moving towards.

    I believe the extent to which they have moved in the last two years has astonished many people and delighted India’s friends and I am in no doubt after my discussions today that the Government propose to move more towards liberalisation. Clearly, they will have to take some things at a measured pace and it is not for me to predict which measures they will deal with most speedily but I think they are very conscious of the need for changes.

    On the Non-Proliferation Treaty, I think everyone around the world wishes to see the extension of the Non-Proliferation Treaty. What I have said is that I can understand the difficulties faced by a number of countries in particular circumstances. I understand India’s position on the Non-Proliferation Treaty. I would still like India and Pakistan and other countries – the 32 who have not yet signed it – I would like to see all those countries signing the Non-Proliferation Treaty. The more one gets non-proliferation as a common cause, the easier it is for the two superpowers in particular but the other nuclear weapon-holders as well to begin increasingly to scale down their own nuclear capacity and believe that is something that every sane person would wish to see.

    QUESTION:

    Prime Minister, are you aware of the sentiments of British Hindus regarding the closing of a Rama Krishna temple in London?

    PRIME MINISTER:

    No. I have not had any discussion with them about that. I am aware of the case but I have had no discussions with them about it but very probably the Home Secretary will have done and he was here very recently; he may well have responded to questions like that.

    QUESTION:

    Mr. Prime Minister, after talking with your Indian counterpart, I think you are satisfied with India’s new economic policy. In 1997, Hong Kong is going to China. Will you advise your Hong Kong people or Indian people that India is the right place, “You have no need to go to UK or USA for settlement, India is the right place for investment!”?

    PRIME MINISTER:

    There is a lot of investment available in a number of countries and if I may restrict myself to India, I think there are many very good reasons for looking to the future of India with confidence and for deciding that now is a good time to invest in India but it is easy, if I may say so, for a politician to say that. More relevant is the fact that with me are a series of businessmen who are not only prepared to say that but at this moment they are prepared to commit themselves, their companies, their future and their money confident in the future of India. I believe they have made a wise judgement in doing that.

  • Mr Major’s Doorstep Interview in New Delhi – 25 January 1993

    Below is the text of Mr Major’s doorstep interview in New Delhi held on Monday 25th January 1993.

    QUESTION:

    How would you describe the present relations between Britain and India?

    PRIME MINISTER:

    I think our present relations with India are as good as they have been at any time since independence and I say that not just for effect because I think there is a very practical reason for supposing that to be the case. The Prime Minister and I have had a number of meetings before. I am delighted to be back in order to renew our acquaintance and to talk about a whole range of matters. I think we clearly want to talk about a number of regional and diplomatic matters, we have some bilateral issues to discuss and also a number of matters related to trade and as the Prime Minister said, there are some agreements to be signed so I am delighted to be here albeit for a short visit but one I am much looking forward to.

    QUESTION:

    Prime Minister, there was as you know something of a security alert last night, four Sikhs allegedly arrested. Are you quite happy with security?

    PRIME MINISTER:

    Entirely happy.

    QUESTION:

    Are you under threat in any way?

    PRIME MINISTER:

    Under no threat, entirely happy and delighted to be here.

    QUESTION:

    You don’t believe that it is linked with your visit in any way?

    PRIME MINISTER:

    I have no means of knowing but I am entirely content with the security.

  • Mr Major’s Comments on his Visit to India – 24 January 1993

    Below is the text of Mr Major’s comments on the importance of his visit to India, made on 24th January 1993.

    QUESTION:

    [The Prime Minister was asked why his Indian trip was important]

    PRIME MINISTER:

    We have a huge trade flow with India and the capacity for increasing that is dramatic, exports abroad mean jobs at home.

  • Mr Major’s Comments on India – 24 January 1993

    Below is the text of Mr Major’s comments on India, made in Delhi on 24th January 1993.

    QUESTION:

    [The Prime Minister was asked whether he thought the Indo-British relationship was damaged by Britain’s new role in the European Union]

    PRIME MINISTER:

    No, I do not see how they can and I certainly do not think whatever may happen within the European Community will affect them in the slightest. The relationship that exists between England, the United Kingdom and India is based on years of history, on years of common interest. They are both leading members of the Commonwealth, we have a common view on many international problems. Now I see that as a quite separate matter from our relationship with the European Community and an enduring matters. I would have suggested, and I daresay most Indian politicians would agree with me, that the present relationship between my country and India is as good today as at any time for very many years past and I see no reason why it cannot continue to stay that way.

    QUESTION:

    [The Prime Minister was asked about the future of the Commonwealth]

    PRIME MINISTER:

    Oh yes, I do not have a shred of doubt about the future of the Commonwealth. You cannot break up the sort of links that have been built up between Commonwealth countries over recent years. You cannot always point to them in tangible form in the same way that one may have a direct trading relationship with a near neighbour, but they are links of language, they are links of history, they are links of interest and they are links of common interest. So I do not have any reservations about the future of the Commonwealth, I have deliberately sought to manoeuvre Britain’s position back into the centre of the Commonwealth, I think that is where she belongs and I wish to see the Commonwealth strengthened. I very much expect in the years to come that other countries will wish to join the Commonwealth and I see no-one wishing to leave it and I think that perhaps is the clearest illustration of its continuing strength.