India and US - III

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India is a mature and a stable democracy.-United States Vice  President
Cheney

The Vice President Cheney mentioned  at the U.S.-India Business Council's
31st Anniversary Leadership Summit.

"Indians can also be  optimistic because they live in a mature and a stable
democracy. In six decades  of independence, the people of India have erased any
doubt that a multiethnic  society can thrive under self-rule. If you consider
that the religious majority  is Hindu, the largest political party is led by
a Christian, the President is  Muslim, and the Prime Minister is Sikh, it
becomes very clear that the decisive  factor is not anyone's heritage, but
everyone's devotion to certain ideals.  India's political system ensures the
broadest possible participation. And the  political system respects diversity and
assures legitimate means of dissent.  India shows the world that the best hope
for harmony and success in a  pluralistic country is individual liberty,
equality, and  democracy."

- United  States Vice  President Cheney

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The following is a transcript of remarks by Vice President Cheney to the
U.S.-India Business Council's 31st Anniversary Leadership Summit:
The U.S. Chamber of Commerce Washington, D.C. 12:17 P.M. EDT

<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->THE VICE PRESIDENT:  Well, thank you very much, Ambassador Blackwill and -- for the introduction. And  I appreciate the warm welcome today, and the
opportunity to be with all of you.  It's good to see a strong turnout for the
leadership summit of the USIBC. And  I'm also glad that Minister Nath and
Ambassador Sen are here with us today, as  well.

I want to welcome all of you to Washington, particularly those who  have made
the journey from India and the distinguished Indian-Americans who've  joined
us today from all across the country. And I bring good wishes from the 
President of the United States, George W. Bush.

The President has covered  a lot of miles lately -- Baghdad last week, this
week Vienna and Budapest, back  to the White House later tonight. Another very
important journey he made  recently, obviously, was his trip to India, where
he received an extremely kind  reception from Prime Minister Singh, from
President Kalam, and the Indian  people. The President's visit was immensely
productive and historic, and it  underscored a basic fact of our world today: In
this new century, America's  relationship with India is better than ever before.

That relationship is  vital for reasons of economic progress, national
security, and global stability.  And part of the closeness is due to the work of
the U.S.-India Business Council,  and to the commitment of many of you here in
the room today. For more than a  generation, the USIBC has been a major link
between entrepreneurs who live and  work half a world away from one another, but who have common values and a common  outlook. You've promoted sensible trade practices, spoken out for economic  reform and market-based policies, as you've provided leadership in complex  areas, from telecom to capital investment to issues of intellectual property  rights. As leaders in commerce, finance, and
industry, you've helped to generate  trade, jobs, and wealth in the United
States and India. You personify the good  will that prevails between our two
nations. And I commend you for your hard  work, for your high standards, and
your consistent leadership.

The  31-year history of this organization tracks the rise of India as a world
leader.  In our time we have witnessed the swift transformation of India into
a healthy,  vibrant, growing economic power. Annual growth in India is now in
the  neighborhood of 8 percent, and the size of the economy has more than
doubled in  the last 15 years. The country is on its way to becoming the world's
most  populous nation -- and thanks to the future-oriented leadership you've
had in  recent years, the Indian people can look forward to greater heights of 
achievement and prosperity.

Indians can also be optimistic  because they live in a mature and a stable
democracy. In six decades of  independence, the people of India have erased any
doubt that a multiethnic  society can thrive under self-rule. If you consider
that the religious majority  is Hindu, the largest political party is led by a
Christian, the President is  Muslim, and the Prime Minister is Sikh, it
becomes very clear that the decisive  factor is not anyone's heritage, but
everyone's devotion to certain ideals.  India's political system ensures the
broadest possible participation. And the  political system respects diversity and
assures legitimate means of dissent.  India shows the world that the best hope
for harmony and success in a  pluralistic country is individual liberty, equality,
and  democracy.

That fundamental commitment to democracy, central to  both our republics,
makes the U.S. and India natural partners in the world. Yet  the fact is that
many years passed without much progress, and the dynamics of  the Cold War made that period a time of missed opportunities. These last five  years, however,
have seen a completely transformed relationship. Early on,  President Bush made
clear that it was time to put relations with India onto a  new footing. Today
there is a new strategic partnership between our countries --  a partnership
based on democratic values, common interests, strong commercial  ties and a
climate of trust and good faith between our governments. And we have  moved
ahead with an agenda that is ambitious and forward-looking -- to fight  terror,
advance democracy, expand free and fair trade, and provide for our  common
energy
needs.

Together, the U.S. and India are determined to  confront and defeat the
global terror network, which has harmed people in so  many parts of the world.
The United States experienced multiple terrorist  attacks during the '80s and
'90s, culminating in 9/11. Similarly, India has  suffered through acts of terror,
including the attack on its parliament in 2001,  the October 2005 bombing in
New Delhi that targeted innocent civilians preparing  for holiday celebrations,
and the bombings earlier this year in  Varanasi.

As victims of terror, both our countries accept a duty to join  in the fight
against these enemies. American and Indian forces have worked  closely in many
different ways, including sophisticated joint operations with  our armed
forces. These coordinated efforts are useful not just in confronting  danger,
but in bringing relief to disaster victims, as we did following the  Asian
tsunami. We have also had great cooperation in law enforcement and  intelligence
operations. And the United States is proud to stand with such a  strong partner.

I also want to say that we admire the moral clarity of  India's leaders,
reflected in the words of Prime Minister Singh in a speech to  the United States
Congress. He said, "We must fight terrorism wherever it  exists, because
terrorism anywhere threatens democracy everywhere." We are  confident that India will continue to play a leading role in ensuring that  terrorists are not free
to operate in South Asia. And we're confident that India  will work closely with
its neighbors to resolve long-standing disputes in order  to concentrate on
rooting out terror and to maintain stability in the  region.

The U.S. and India also understand our duty to help build a safer  world
beyond the war on terror. The adversary in this war is more than a tactic;  it
is an expansionist ideology, trying to gain influence by exploiting  resentments
and stirring ancient hatreds. And the way to overcome that ideology  in the
long run is to offer a better alternative. Our vision recognizes the  right of
men and women to govern their own affairs; to live and work in freedom;  to
have the protection of laws that uphold equality, justice, and the dignity of 
the individual.

The United States and India strongly support the advance  of democratic
values as the surest way to long-term security and peace. Through  our joint
Global Democracy Initiative, our support for the U.N. Democracy Fund,  and the daily help both of our nations have provided to the peoples of  Afghanistan and
Iraq, we are helping to lift the sights of whole nations, giving  them real hope
for a better life, and building the long-term peace that freedom  brings. This
support is not without cost, and, in particular, the United States  mourns
the loss of Indian citizens working in Afghanistan. But it is imperative,  as
India's government has made clear, that we must not and will not bow to the 
intimidation tactics of the terrorists.

The most visible element of our  strategic partnership is the broad and
expanding bilateral trade relationship.  The U.S. is India's largest trade
partner, and we intend to remain so. Many  billions of dollars in goods and services flow between the two countries, and  the linkages are multiplying steadily. Prime Minister Singh has pointed out that  a vast majority of Fortune 500
companies are already operating in  India.

The U.S. and India are working to enhance our trade relationship  in areas
from agriculture to defense to information technology. And through the  creation
of the CEO Forum, we have integrated the private sector's  recommendations on
how to expand this relationship. We have signed a science and  technology
agreement, to expand relations between our extensive scientific and 
technological communities and to promote technological and scientific 
cooperation in areas of mutual benefit. In aviation, we concluded an open skies  agreement. Boeing has sold $15 billion worth of aircraft to India, and four U.S.  airlines have opened direct routes to India.

We have worked successfully  to reduce barriers to bilateral trade through a
reinvigorated Economic Dialogue,  Trade Policy Forum, and the High Technology
Cooperation Group.

Yet,  despite this tremendous success, there is much more that we can do to
expand our  trade relationship. The United States welcomes the recent reforms
that India has  made to open its markets to trade and to capital investment; we
hope India will  also remove its remaining restrictions on foreign direct
investment; will reduce  tariffs on agricultural and industrial products; and
will strengthen the  protection for intellectual property rights. India can also
show the same reform  minded leadership by pressing for the conclusion of an
ambitious agreement this  year at the Doha Round.

It seems clear that there's a consensus building  in India toward greater
economic reform. And that is a very encouraging sign.  The consequences -- in
new opportunities, new markets, and new wealth -- add up  to a bright economic
future for India's people and her trading  partners.

As our business continues to grow, there is, naturally, some  anxiety in the
United States over the outsourcing of jobs to India. When a job  is sent
elsewhere, it's a heavy blow to the person who no longer has that  paycheck and
now has to look for something else. The real question for  policymakers is how to
face that challenge. One option is to attempt to freeze  the status quo, and
to close ourselves off from the global economy. The obvious  problem is that
protectionism invites more of the same; if we turn our backs on  other
countries, we can expect them to respond in kind. Protectionism would also  take
away our competitive edge, cost jobs in exporting industries, harm American 
consumers, and cause a long-term decline in our standard of living.

There  are far better ways to answer the challenge of outsourcing. We need to
focus on  job training and educational excellence, so that we can prepare our
citizens to  fill the good, knowledge-based, high-wage jobs of the 21st
century. We need to  continue on the economic course we set five years ago, with
a low-tax,  pro-growth policy that encourages risk taking and investment, and
rewards  entrepreneurship instead of punishing it.

And we need to engage the  global marketplace with confidence. President Bush
often reminds Americans that  we have about 5 percent of the world's
population -- so 95 percent of our  potential customers live outside the United
States. By itself, India has a  middle class of 300 million people -- more than
the entire population of the  United States. India is one of the fastest- growing
markets for American goods  and services, and in fact our exports to India
grew by more than 30 percent last  year alone. In addition, American companies
that have research centers in India  have become more competitive worldwide.
From almost every angle you look at it,  our bilateral trade relationship with
India brings tremendous benefits to both  countries. And for the good of the
peoples we serve, American and Indian leaders  have a duty to keep that
relationship strong.

A strategic partnership in  the 21st century also requires a new and
realistic approach to nuclear energy.  For decades -- that issue, there was no
cooperation at all between the U.S. and  India. India had developed nuclear
power as a non-signatory to the  Nonproliferation Treaty, and we never departed from the basic stance we took  during the Cold War. Now we believe it's time to
update our policy and to bring  it into line with modern realities. And that is
the primary purpose of the civil  nuclear initiative that President Bush and
Prime Minister Singh agreed to  several months ago.

Under the agreement, America will support the  development of civil nuclear
power programs inside India. And for its part,  India will place its civil
nuclear facilities under International Atomic Energy  Agency safeguards.

The logic of the deal is straightforward. First, there  is no question that
nuclear power is critical to meeting India's energy needs.  Those needs are
already immense, as we see every day in the competition for  crude oil in the
world market. Given the forecasts for India's increased energy  needs in the
future, diversifying India's sources of energy is important in  relation to the
world energy market and to U.S. energy prices. And as the United  States begins
a serious effort to reduce our dependency on fossil fuels, it  makes sense to
encourage others to do the same -- and to do so without slowing 
modernization, sacrificing economic growth, or bringing needless harm to the 
environment.

Nuclear energy, with production and spent-fuel disposal under IAEA  standards,
is safe and clean. India now gets about three percent of its  electricity
from nuclear energy, and the government plans to increase that  substantially
over the next several decades. The notion of generating that much  power --
without releasing an ounce of greenhouse gases into the atmosphere --  is an
extremely worthwhile enterprise, and good news for the environment. This 
initiative will also create new business opportunities for U.S. firms, which  translates into new jobs for American workers.

The second key factor is  that India will enter the international
nonproliferation mainstream by  separating its civil and military nuclear
programs, adopting international  safeguards, and conforming to international standards.

For more than 30 years,  India has remained outside the international
nonproliferation fold. As IAEA  chief Mohamed ElBaradei recently put it, India
will get safe and modern  technology to help lift more than 500 million people from
poverty, and it would  be part of the international effort to combat nuclear
terrorism."

Under  the deal, India will maintain a moratorium on nuclear testing, and put
in place  very strict measures to prevent the diversion of nuclear materials
and  technology. By taking these steps, the agreement strengthens the
international  nonproliferation regime and plays a vital role in enhancing
international  security and stability. In a time when terrorists are bound and
determined to  gain access to weapons of mass destruction, nothing is more important than  keeping weapons of mass destruction, in particular nuclear technology, out of  the wrong hands. So India's commitment to nonproliferation clearly serves the  interest of us all.

Third, India has a very good nonproliferation track  record. India has no
interest in the spread of this deadly technology. By taking  additional steps to
secure its nuclear materials and technology, India continues  to build upon
this track record.

Fourth, like the United States, India is  an open, transparent society with a
vigorous political process, an energetic  free press, oversight, and
accountability. The Indian people and their leaders  understand the
responsibilities of a nuclear nation -- indeed they have acted  more responsibly than some countries that actually signed the Nuclear  Nonproliferation Treaty.

It is only right and sensible that we begin  cooperating with India on civil
nuclear programs. The civil nuclear deal is  plainly in the interest of both
countries -- economically, environmentally, and  from the standpoint of
national security. The U.S.-India civil nuclear  initiative also symbolizes the
great potential of the U.S.-India relationship.  It is one of the most important
strategic foreign policy initiatives of our  government. There is a great deal
of discussion in India's Parliament and the  U.S. Congress about what this deal
means for our countries. And that's how  democracies do business.

At the same time, given this agreement's  strategic importance, we must be
sure that amendments or delays on the U.S. side  do not risk wasting this
critical opportunity. And as the discussion proceeds,  President Bush and I are
confident that this agreement will receive the strong  bipartisan support it
deserves.

The Indian-American Caucus in the United  States Senate is led by Republican
Senator John Cornyn and Democratic Senator  Hillary Clinton. In the House,
Republican Representative Ileana Ros-Lehtinen and  Democratic Representative Gary Ackerman lead the caucus. We encourage these  members to use their leadership role to help usher through a critical agreement  that benefits both the
United States and our friends in India. We hope Congress  will move quickly to
enact legislation that enables our two nations to move  forward on this
important agreement without delay.

As I said a few  moments ago, our strategic partnership with India gives rise
to a broad and  ambitious agenda. And that's the way it should be for the two
great nations at a  time of challenge. President Bush has described our
relationship as warm and  results-oriented. It is strengthened every day by a
kinship of high ideals --  and by deep, personal connections. Some 80,000
students from India go to school  here. America is home to more than 2 million people of Indian origin. The  contribution of the Indian-American community to the
U.S. economy is tremendous.  Indian Americans are leaders in business, science,
medicine, technology and many  other fields, and we must work to continue to
implement an immigration policy  that encourages highly-skilled and talented
immigrants, including many Indians,  to come to America.

Our peoples know each other, we like each other, and  we see greatness in our
shared, common future. It is now up to us to build upon  the new relationship
-- with a forward-looking agenda that promotes free  institutions, open
trade, and a future of prosperity and peace.

It is my  privilege to serve with a President who has done so much to
strengthen the bond  between our two great democracies. And I am honored to
stand with all of you,  and to thank you for being part of this fine organization. I
accept your award  with confidence that close ties of commerce, and security,
and above all  friendship, will always define India and the United States of 
America.

Thank you very much.  (Applause.)<!--QuoteEnd--><!--QuoteEEnd-->