NEWSWEEK: President Jiang Zemin of China has just ended a visit here. Did your meeting lessen the tensions between China and India?
GOWDA: This is the first time since India became independent that a Chinese president has visited this country. It will definitely create a new atmosphere, and I think it will warm up our relationship. We talked about building up our trade and restoring our relationship.
Did Jiang reduce your concerns about China’s complicity with Pakistan’s nuclear program as well as its alleged sales of missiles to that country?
He made it very clear there is no question of providing any nuclear weapons [to Pakistan]. I honestly got the impression that the Chinese want to build a warmer relationship with my country; I don’t think they will go against India’s interests.
You don’t think there have been some missile sales and other transfers of weapons technology to Pakistan in the past?
Jiang made it categorically clear that they have not sold any arms that could be used against India. That is what he said.
Will you be able to help resolve the tension between India and Pakistan?
With Pakistan, too, we want to maintain a good relationship. I wrote to former prime minister Benazir Bhutto suggesting that a dialogue be started. But because of internal problems in Pakistan, nothing happened.
Is it central to India’s national security to have nuclear weapons as well as missiles?
From the beginning, India has taken a consistent stand that there should be a total ban on nuclear weapons. But some of the advanced countries who possess nuclear weapons are insisting that India sign the Comprehensive Test-Ban Treaty.
You have said you will continue the economic liberalization program begun by your predecessor. Can you do this when you have communists in your coalition?
Economic liberalization has become a fait accompli. All political parties have accepted the policy. Even communist-run states like West Bengal and Kerala are welcoming foreign investment in sectors like power, tourism, ports and high-tech industries. Reversing economic liberalization is ruled out. I would like to make this very clear. There are some areas where cautious steps are required. Where it is possible to improve the working of state-run in- dustry and make it healthy, the question of privatization does not arise. In other cases, we allow private investment by giving them 49 percent of the total value. In some areas, we’ve allowed up to 75 percent ownership.
Do you want U.S. investment?
Why only Americans? Anybody can come. India is open globally. That is the purpose of economic liberalization.
To become a world-class power, won’t India have to abolish trade barriers, reduce tariffs and abandon its protectionism?
In areas where our interest is involved, we will try to safeguard our country’s interests and its trade . . . and also allow the multinationals to come in.
There are complaints from American businessmen about the Indian bureaucracy.
Who says? The bureaucracy is going to cooperate with the policymakers.
Do you see the United States as a partner in India’s economic expansion?
We want to build up our relationship with almost all countries. Why only the United States?
When you reply, “Why only the United States?” does that mean you are not attaching great importance to the relationship with America?
There is no question of any confrontation with the United States. But our main object is to work in cooperation with our immediate neighbors. That doesn’t mean that we have any reservations in building our relationship with the U.S. In fact, I have invited your president, Bill Clinton, to visit India. We are eagerly waiting for him. When he comes to India, we will give him a red-carpet reception.
For many years, India had a close relationship with the Soviet Union. What’s India’s relationship with Russia today?
We have had a cordial relationship culturally, politically and economically.
You lead a 13-member coalition. Is India in for a long period of rule by unwieldy and unstable coalition governments?
Coalition governments are nothing new. They have them in Italy, Brazil and other countries.
