New Delhi, February 16
The President, Dr A.P.J. Abdul Kalam, today expressed the UPA government's commitment to the ongoing composite dialogue with Pakistan but underlined India's concerns over infiltration and cross-border terrorism.

"There has also been good progress in increased people-to-people contacts and bilateral trade with all our neighbours, including Pakistan," Dr Kalam said while addressing a joint Budget session of Parliament.

Pointing out to the spontaneous outpouring of sympathy and assistance from the people of India for the victims of the earthquake in Pakistan, the President said it was an evidence of the goodwill among the people of the two countries.

"While we remain concerned over infiltration and cross-border terrorism and expect Pakistan to fulfil its commitments in this regard, we reiterate our commitment to the composite dialogue process with Pakistan," Dr Kalam stressed.

Terming the opening of new bus links between Amritsar and Lahore and Amritsar and Nankana Sahib and rail link between Khokrapar and Munabao as further steps in promoting people-to-people contacts between the two countries, the President said the foreign policy of the government continued to be guided by "enlightened national interest".

Referring to SAARC, he said India regarded it as an important forum for regional cooperation and "we look forward to Afghanistan joining SAARC as its eighth member."

Dwelling on the government's policy towards neighbours, the President said the government had taken several steps to improve relations with neighbouring countries. "The landmark visit of the Prime Minister to Afghanistan in August last year has reinforced our commitment to help in the reconstruction of Afghanistan."

Referring to reports that the USA was changing its goalpost on the nuclear deal with India, the President said the government "expects" that the country would gain access to international cooperation to its civil nuclear energy sector based on "reciprocal commitments" made by the two countries last July.

Ahead of US President George W Bush's visit next month, Dr Kalam also said "major initiatives" were under way to encourage expansion of investment, trade and technology transfers, accelerate cooperation for energy security and evolve framework for defence cooperation between the two countries.

Speaking on the government's foreign policy, the President said Parliament would be apprised of the on-going discussions between India and the USA on the nuclear issue in this session.

Reports that the USA wants India to put its Fast-Breeder Reactor programme under the IAEA safeguards has triggered a political storm here, raising questions over the future of the nuclear deal reached on July 18 last year during the visit of Prime Minister Manmohan Singh to Washington.

There is an uncertainty over whether the two sides can reach an agreement for implementing the deal during the visit of US President here from March 1.

"The government expects that the country may gain access to international cooperation for enlargement of our civilian nuclear energy sector based on the reciprocal commitments of India and the US in the joint statement," Dr Kalam said.

At the same time, he said Indo-US relationship also encompassed many more important issues pointing out to "major initiatives" which were under way to encourage the expansion of investment, trade and technology transfers.

These measures were also aimed at accelerating cooperation in agriculture, health, human resource development, energy security and defence besides working together on key global challenges, he said.

The President touched on India's relations with Russia, China, Japan, the European Union as also countries in the Gulf region while observing that the foreign policy has always been guided by "enlightened national interest."

Dr Kalam said India was working to build its relationship with China on the basis of its strategic and cooperative partnership forged during the visit of Chinese Premier Wen Jiabao here in April last year.

"A positive start has been made in the second phase of discussions between the Special Representatives on the boundary question based on the agreement on the political parameters and guiding principles signed in April, 2005 and we are looking forward to this process gaining further momentum," he said.