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N E W S I N ..D E T A I L |
Sunday, October 17, 1999 |
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USA halts aid to Pak WASHINGTON, Oct 16 (Reuters) The USA said it had halted all but a tiny slice of aid to Pakistan in response to the military take-over but was undecided on whether to oppose International Monetary Fund loans. State Department spokesman James Foley yesterday said under Section 508 of the Foreign Assistance Act, the US Government was obliged to halt aid when an elected government was overthrown, but this did not cover lending through international bodies. The ruling is essentially symbolic because US sanctions on Pakistan dating back to 1990, which were strongly reinforced after last years nuclear test, have reduced the US aid to less than $ 5 million. Mr Foley said $ 1.7 million for a Pakistani non-governmental health initiative would be stopped. The only aid that would remain was 2.5 million for counter-narcotics programmes. On further disbursement under a $ 1.5 billion IMF loan approved in 1997, he said: "We are frankly in a wait and see mode in terms of how we would ... act or how we would vote in the event if future lending is to come up at the IMF." The IMF spokesman, Mr Thomas Dawson, has said the fund, which loaned money to Pakistans military rulers some 19 years ago, would not act alone if the international community believed aid would now be a bad idea. The USA has some 18 per cent of the votes at the IMF. This is enough to block major policy decisions but not enough to halt individual loan payments if other countries are determined to push ahead. But the IMF board rarely votes on individual loans, acting by consensus rather than by majority decisions. Trade and development programmes as well as any assistance through the Overseas Private Investment Corporation has been suspended. The Agriculture Department said it was unclear whether Pakistans access would be cut to the GSM-102 export credit programme under which the USDA guarantees loans made by commercial lenders against the possibility that importers may default. Mr Tim Galvin, head of the USDAs foreign agricultural service, told Reuters the agency would lobby to maintain Pakistans access. "We would maintain that that is a commercial programme and certainly not direct assistance," he said. The USDA has not announced assistance for Pakistan for 2000, which began two weeks ago. At the time of the coup, the USA had not begun negotiations with the country on future food aid packages, Mr Galvin said. The USA usually provides credit to Pakistan under the PL-480 food aid programme. The programme is designed to combat hunger and malnutrition and provides government-to-government aid. Pakistan bought nearly 100,000 tonnes of US soft white wheat in September with PL-480 funding. The purchase was valued at approximately $ 13 million. Mr Galvin said that programme may well be cut as it was seen as direct aid.
A report from Washington said Pakistans military ruler had stressed the importance of resumption of bilateral talks with India to resolve all outstanding issues. The Chief Executive of Pakistan conveyed his views to US Ambassador William Milam who met him at the Rawalpindi army headquarters yesterday. "General Musharraf agreed with William Milam about the importance of continuing Pakistans dialogue with India to resolve their differences and of addressing the issue of non-proliferation and security," US State Department spokesman James Foley told mediapersons here. He said "improved relations for dialogue between India and Pakistan are in the interest of the entire world and certainly in the interest of India and Pakistan." He said the USA had an "important non-proliferation agenda with Pakistan and certainly signature on the CTBT is at the front and centre of what we have been discussing with Pakistan and India." Mr Foley said Ambassador
Milam, during his two-hour discussions with General
Musharraf, urged the need to return to democracy. |
Ruler puts off address ISLAMABAD, Oct 16 (DPA) The much-awaited speech today by Pakistan's military ruler Gen Pervez Musharraf was postponed. No reason was given for the postponement and no new date announced for the address that was due to be delivered on the national television and radio networks this evening. The military Chief
Executive of Pakistan was to spell out the features of
the transition set-up to run state affairs following the
overthrow of Premier Nawaz Sharif in a bloodless coup on
Tuesday. |
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