Official Spokesperson: A very good evening to all of you, and thanks for waiting.
As you know, today Prime Minister has had a packed calendar of engagements. Foreign Secretary Shrimati Nirupama Rao is here to brief you about Prime Minister Dr. Manmohan Singh's meeting with President Obama. Finance Secretary Shri Ashok Chawla will talk to
you about the G20 Summit, Prime Minister's intervention at and his vision of the G20 Summit. Secretary (West) Shri Vivek Katju will apprise you about the bilateral segment of Prime Minister's meetings and interactions with his Canadian counterpart. I would
also like to introduce Dr. Harish Khare, who is to the left of Finance Secretary. He is Media Advisor to Prime Minister. May I invite Foreign Secretary to please make her remarks?
Foreign Secretary (Shrimati Nirupama Rao): Thank you, Vishnu.
I will just give you a heads up on the meeting between our Prime Minister and President Barack Obama of the United States. That meeting took place this evening and lasted for a little more than half an hour. It was a meeting marked by great warmth, goodwill,
and cordiality between the two leaders. The focus was on the new thrust, the new areas and the new content of the strategic partnership between India and the United States. Both leaders expressed great satisfaction about the pace, about the momentum with which
relations are currently developing. They spoke about the recently held strategic dialogue between the two Governments in Washington, the recently held meeting of the India-US CEO's Forum and also of the enormous opportunities that lie ahead for the development
of this relationship.
They looked at areas of focus like export controls where President Obama said that both sides should think creatively on how to craft solutions to move forward. They looked at the potential for expanded commercial relations between the two sides, especially
in the light of the recently held CEO's Forum where a number of interesting ideas had been articulated. They also discussed the situation in the region and their common dedication and resolve to fight terrorism, to cooperate in countering the terrorism that
affects both countries.
President Obama said that he looks forward greatly to his forthcoming visit to India in November. And Prime Minister Singh observed that intensive preparations were being made for this visit, that we wanted to make it a great success, and that President Obama,
Mrs. Obama and their children would be received with great warmth, and we looked forward very much to their forthcoming visit in November. Thank you.
Official Spokesperson: May I invite Finance Secretary to make his opening remarks?
Finance Secretary (Shri Ashok Chawla): Thank you. The Summit in Toronto - just to put it in perspective, this is something which you all know, not anything new - this Summit was the Fourth Summit which the G20 leaders have
had. The first one in Washington in November 2008 was when the financial crisis had just started and that Summit focused heavily on how to address the immediate problems of the financial sector. The Second Summit in London, April 2009, was the trillion dollar
summit where the idea was that lot of money should be spent, the governments should come in in a big way where private sector does not have the resources, is feeling shy, so that growth is sustained.
The Third summit at Pittsburgh in September 2009 put many of these things on to formal tracks and also declared G20 as the premier forum for international economic cooperation. I am mentioning this just to indicate that it is not as if what was expected
here at the Toronto Summit was one off, something which was going to happen as a specific individual activity. It is a continuation of what has been decided by the leaders, what has been commended by them to their Finance Ministers and their Technical Advisors
over this period of time. So, that is the context in which I think one has to look at the Summit. That is why the Canadians called it a summit which would take stock of what has happened so far and identify the next steps.
I have no doubt you would have had occasion to see the leaders' statement, or the communiqué which has been issued. It would be on the site. You have a look at it. But I will just very briefly cover some of the important issues. Quite understandably, the
main issue was on how to handle growth versus fiscal consolidation. Everybody is keen that the incipient growth impulses which are visible all around the world should not be stifled, they should not be cut off. But equally, the leaders in the G20 are conscious
of the fact that it cannot go on like that for long, that you need to start the process of fiscal consolidation, and that unless you do that growth which is important is not going to be sustainable.
The overwhelming mood of the house, if I may say so, was that growth is still more important and that it should not be lost sight of. That was the predominant theme in the intervention which the Indian Prime Minister made this morning. The G20 in its Declaration
has talked of the framework for sustainable, balanced growth. IMF has done some work on that. They will carry forward this work over the next few months and report the Phase-II progress which will identify individual countries and what countries need to do
at the time of the Seoul Summit. But generally speaking, the G20 have declared that they should cut their fiscal deficits by half by the end of 2013. Most countries have committed to this and are sure that they will be able to do this. We have independently,
even prior to the G20 coming to this understanding, a roadmap which is designed to cut our fiscal deficit, Indian fiscal deficit, to half by 2013-14.
On financial sector reforms, it is basically work in progress. The Financial Stability Board and the Basel Committee on Banking Supervision are working in the direction of regulation, how to make supervision more effective, how to handle systemically important
institutions. One issue which engaged the attention of the G20 and the financial community has been the proposal to levy some kind of tax on financial institutions and banks so that the burden is not borne by the governments or the taxpayers if such crises
occur in future. There were divergent views on this even prior to the Summit. What has come out in the Summit is that this is something which some countries will do, some will take other steps or continue with the kind of steps that they have which need not
necessarily involve specific levies of taxes. That is recorded in the leaders' declaration. So, there is no unanimity on this. In fact, there need not be unanimity because the financial structures and the regulations are different in different countries.
On international financial institution reform, as you are aware, the World Bank change in terms of quotas moving to the developing countries has already happened. On the IMF side, the deadline is the Seoul Summit. So, that is work in progress. That will be
carried forward, we are quite confident. That is what the G20 has again reiterated.
One specific intervention which has been made by the G20, and the host country Canada pushed it in a big way, is to set up a fund for small and medium enterprises after identifying the best practices and so on in this sector. The fund which will be a voluntary
fund to which countries can contribute, multilateral development banks will contribute is called SME Finance Challenge. But what it basically means is that the best kind of ideas and innovative ideas which come from the SME sector will be funded through this
instrumentality.
Trade and the Doha Round is something which the global community and the G20 feel it is essential to push through as soon as it is possible. But in any case there is a separate track for the WTO negotiations. What the G20 leaders meanwhile have declared
is that for three years, to the end of 2013, no new trade barriers should be raised so that there are no continuation of or fresh protectionist tendencies, and that they look forward to the completion of the Doha Round as early as is possible.
There were one or two other issues, new aspects in the leaders' declaration which I thought I will highlight before you. One is that there is desired focus on issues relating to corruption, the UN Charter against corruption, its ratification and its full implementation.
A call has been given by the leaders. There is also a proposal because some countries felt that the G20, now that it is moving on from issues relating to financial sector and the financial crisis, should focus on issues relating to development which concern
not only the emerging market economies who are members of the G20 but the international community as a whole. So, the G20 has decided to set up a Working Group on Development.
This is broadly the contours of what the G20 deliberated upon and decided, and the intervention which the Prime Minister made. Thank you.
Official Spokesperson: Thank you, Sir. Can I now invite Secretary (West) to please make his opening remarks?
Secretary (West) (Shri Vivek Katju): Thank you, Vishnu. Good evening ladies and gentlemen. The hour is getting late. So, I will be very brief.
The Prime Minister met his Canadian counterpart Prime Minister Stephen Harper in a one-on-one format followed by delegation-level talks. Following the talks, as you know, the two Prime Minister's witnessed a signing ceremony and then interacted with you.
Thereafter, the Prime Minister attended a dinner hosted by Prime Minister Stephen Harper. In fact, the dinner was hosted by Prime Minister Stephen Harper and Mrs. Harper for the Prime Minister and Shrimati Gursharan Kaur.
At the press interaction the Prime Minister had made an opening statement that will be no doubt with you or it would be with you shortly. It has been circulated already. There is also a Joint Statement that has been issued and that too is with you. The Prime
Minister made a speech at the dinner. That text has been already given to you. So, taken together, there is a fair deal of information with you on what is actually a very brief but an official visit following the Prime Minister's participation in the G20 Summit.
The media notes too have been given to you. So, I would not go over all that ground.
I will only highlight a couple of things. The first is that both the leaders are committed to the transformation of the relationship and the deepening of the dialogue between the two countries. You would have got a flavor of this in the remarks made by Prime
Minister Harper during the press interaction when he said quite clearly that the 1970s were over and we were now in a different era, an era in which both countries can contribute a great deal to each other, and also contribute to peace and development in the
world.
During the discussions there was a desire that the dialogue that I have mentioned should also include an exchange of perceptions on regional security issues, in particular about Afghanistan in which India of course has vital interest but Canada too has a
significant troop presence for the last many years. There was also a recognition that the field of energy was a significant area where the two countries could make a contribution to each other. And finally, there was a proposal by the Canadian Prime Minister
to set up an Eminent Persons Group between the two countries. Our Prime Minister responded positively and he said that yes, such a group could bring in the civil society into the dialogue in a meaningful way. And the two leaders decided that officials now
would discuss modalities of how this Eminent Persons Group can be established.
I think I will stop here. If there are any questions, I will be happy to answer.
Question: First of all, I congratulate all of you, especially my media friends that we have got great success in G20 and India has come closer to the world powers. Madam, India always has been a supporter of the human rights.
But is it not unfortunate that those people who made 90 per cent of the sacrifices of the total sacrifices made by Indians for the freedom of the country have to today demonstrate for their rights? I have gone through the list. There are so many people against
whom there is not even a single case. Your list is with me. There are some children and some old people who want to visit India, their native land before death. Will you please tell why the genuine demands have been kept so long pending by the previous governments?
India's stand is very much positive and we are playing our great role for the revival of global economy and we have been successful also. Will you please tell us that when this violation of human rights will end and people will get justice?
Foreign Secretary: Let me say that the matter is under the consideration of the Government. We are aware of the issues that have been raised by the group of people that you referred to. The Ministry of External Affairs
has taken up the matter with the Ministry of Home Affairs. The whole matter is under review currently. We have begun a series of meetings to look at the issue in depth with a view to considering the requests that have been made by these people. I am confident
that we will have an outcome before long and an outcome that will do its best to meet some of the points and the issues raised by this group of people.
Question: First a clarification from the Foreign Secretary. There have been some reports about a sense of expectation that India could use the US bilateral talk about Warren Anderson's extradition. Was that at all on the
agenda? Did it figure in the talks, Madam?
Foreign Secretary: No, it did not figure in the talks.
Question: A couple of questions on the G20. Clause No.30 essentially seems to hint that there will be a more transparent process of selecting the heads of international financial institutions. Does it, Sir, now work in
favour of India? The second question really is in terms of what we have started out to achieve. Could you quantify or summarise what has India achieved in terms of its participation in the Summit because the sense that some of us get is that while the world
was united during a crisis, it has sort of decided to go its own independent way in the aftermath?
Finance Secretary: On the first question about the heads of international financial institutions, this has generally been a demand all over the world that the process of selection of the Chiefs and the senior management
should be more transparent, it should be merit based, it should not be confined to any specific countries or regions, as has somehow been in the past. So there is nothing in the book which says that. So, this is in a way a vindication of that position which
has been acknowledged by the G20 nations who are the main shareholders in these institutions. So, the process of selection will help all countries including India.
On the second point of where the G20 is heading, what is happening, what does India get out of it, and so on, now this is, as you understand, a group of 20 countries which are certainly diverse in terms of their economic development, in terms of their regional
backgrounds, in terms of what they produce and what commodities they have and so on. So, there are bound to be divergent interests even in the Group of 20. Having said that let me say that what the G20 has achieved in the aftermath of the crisis since 2008
is to really bring together the countries, the leaders, their Finance Ministers, their technicians, whether in the Government or in the Central banks, to sit and talk and think of coordinated policy strategies. And the proof of pudding is that it has helped.
So, it is not as if today the feeling is that now the job is over, we need to get back to our own respective individual ways. Well, naturally every country will have its best economic interests at heart. But the spirit of cooperation, the spirit of working
in coordination - coordination does not necessarily mean that they will align their policies with each other or with what the G20 would want to do - the spirit of coordination continues. It continues in the approach to fiscal consolidation where certain kind
of countries will start consolidating first. In respect of surplus countries which need to follow policies where more domestic demand is generated in respect of advanced deficit economies which need to generate more local demand so that there is some kind
of optimal balancing to the extent that is possible.
It is working together even in the area of regulation where, as they decided over the last few summits, there would be international benchmarks and regulations but to be enforced, to be implemented, and to be supervised nationally. So, the broad parameters
and the broad framework continue. I think that is something very important which the G20 brings to the table, what the G20 sort of signals to the financial community and the markets.
Question: My first question is addressed to the Foreign Secretary. Madam, during the discussions between President Obama and Prime Minister Manmohan Singh you talked about the fact that they discussed about counter-terrorism.
Is there any new area of cooperation that the two talked about?
The second question is addressed to Mr. Katju. Did the Prime Minister specifically raise the issue of some pro-Khalistan elements acting in Canada and did Prime Minister Harper given any specific assurance that the Canadian soil will not be used for any anti-India
activity? Did he also raise the fact that there is some concern in India about injustice being given to Kanishka victims and is the Canadian Government going to do something about it?
Foreign Secretary: On your first question, when they spoke about counter-terrorism, in my opening remarks I referred to the fact that they discussed the situation in the region. And in that context the situation in Afghanistan
came up, including the need to stabilize the situation in Afghanistan. That was the first point. The second point was of course relations with Pakistan. President Obama was very positive in his references to the efforts that we have initiated commencing with
the meeting between our Prime Minister and Prime Minister Gilani at Thimphu to reengage with Pakistan and to view dialogue as the best way forward. That was the second point. In this context, Prime Minister referred of course to the fact that Pakistan is our
neighbor and with neighbours the choice before us is really to strengthen dialogue, to resolve outstanding issues, but he added with Pakistan it is very important that Pakistan abides by its commitment not to allow its territory to be used by elements that
engage in terrorism directed against India. And if that commitment was abided by and was strengthened in the future, then the relations between India and Pakistan would greatly benefit. Then they also spoke about the ongoing investigations into the activities
of David Coleman Headley. Both India and the United States, have a mutual interest in ensuring that the information that is coming out of this interrogation is taken seriously by Pakistan and with a view to controlling and eliminating terrorist elements on
its territory which affect the stability of the entire region. That was how it was discussed.
Secretary (West): On the questions that you had asked me, on Kanishka I think I can do no better than draw your attention to the opening statement of the Prime Minister at the press interaction where he does speak of
the justice to the victims. You could have a look at that.
On the Khalistani issue, again if you recollect, at the press interaction the Prime Minister went into great detail on this and it would not really be proper for me to try to paraphrase that. That is on the record.
Question: Was there any specific assurance from the Canadian side?
Secretary (West): They do I think. If my recollection is correct, I think the Prime Minister said that the Canadian Prime Minister spoke to him about Canadian laws in this regard. But during the interaction at the delegation-level
talks this matter had come up. And I think the feeling was that while laws and freedoms had to be respected, and there is freedom of expression in particular, but extremist activity itself cannot be accepted or is not acceptable if it converges into the kind
of extremist activity which is now seen. So, there is a thin line between freedom of expression and extremism and that has to be monitored all the time.
Question: Madam, Pakistan ki baat aapne abhi ki. Lekin abhi bayan aaya hai Rehman Malik, Interior Minister, ka. Unhonne kaha ki Haafiz Saeed to lekar ke ki Bharat aur Pakistan mein kucchh
aise log hain jo kuchh kuchh bolte rehte hain doosre deshon ke baare mein – Bharat mein aise log hain jo Pakistan ke baare mein bolte hain aur Pakistan ke log Bharat ke baare mein bolte hain. To aise logon ka kuchh nahin kiya ja sakta. Kyon ki freedom aur
expression ki baat ho rahi hai, ya democracy ki baat hoti hai, usmein hum log kuchh nahin rok sakte, un logon ko, Hafiz Saeed ko lekar ke.
Foreign Secretary: I just want to say in response to that that our Home Minister has just visited Pakistan and our concerns about Hafiz Saeed have been very effectively conveyed to the Pakistani Government and it continues
to be our hope that Pakistan will pay close attention to what we are saying about individuals like Hafiz Saeed. And when Pakistan says that under their laws it is difficult to take action against such people, we still think it should still be possible for
Pakistan to put some control on the activities of such persons who are not doing anything good for the relationship between the two countries.
Question: Sir, there is a clarification. Is there a dilution on the new capital framework where every country will be free to decide on the phasing of new capital structure?
Finance Secretary: The communiqué, from what I recall, refers to the fact that capital norms will be fixed, capital norms will indicate what can be included as capital, and that this will have to be implemented by the end
of 2012 giving them some transition period. The basic objective is that the excess of which was the problem of the financial crisis, should be arrested and should not be allowed to become a problem or a malady again in the future. I do not think there is any,
while there are views on that, but the process of regulation through the Financial Stability Board is proceeding at.
Question: Sir, two things. One is, besides the Final Declaration of the G20, how much of power Prime Minister's vision on the economic policies for the world is reflected?
Secondly, specifically this is the paragraph 28 …(Unclear)… where actually another five per cent has to go to the developing countries. What is holding it up? Last time I recall that in Pittsburgh there was an agreement that five per cent additional distribution
will be done by next summit. Now you said that more work has to be done. Is there something holding out? Is the European Union still not reconciled? …(Unclear)…
Finance Secretary: So far as India is concerned and so far as our Prime Minister is concerned, there are three main issues which we have been focusing on, not only in this summit but even in the previous discussions and
the previous summits. One is that growth should not be stifled. It is still fragile. We should not get the impression that the world is out of the woods and therefore, start rolling back very fast. That is because 1) it is generally harmful for the entire
group of countries, particularly harmful for developing countries. So, that is one issue which was pushed which has come through in the communiqué. In the nuancing between growth and fiscal consolidation where the tilt or the spectrum is slightly on the side
of growth.
Number two, India and the other emerging economies have been pushing for reforms in international financial institutions. One part relating to the World Bank has been achieved. The other will be achieved in the next five, six months. Now let me say very
honestly and clearly and this is something which we have to all appreciate, when you say five per cent quota shift from one part to the other side, there are countries who are going to lose. There are countries whose vote share is going to go down. So obviously
there will be resistance from those countries. There will be attempts to delay the process; there will be attempts to bring in extraneous and other issues to try and build up what can be called composite packages that alright if you get quotas and we want
these kinds of things and there should be certain governance reforms or certain changes in the way they fund, operate and so on and so forth. So, this is a process of discussion, of negotiation, if you call it, which is going at. But the mandate from the leaders
is very clear. The timeline earlier was January 2011. It has been brought forward to November 2010 so that there is a concrete deliverable at the time of the Seoul Summit. We are hopeful that will happen.
The third thing which again is very important from our point of view and from the point of view of most countries is that we must get to a multilateral agreement on trade because a more efficient trading regime itself is the pill for many of the economic
and financial problems. That has been in the works for some time. You would be aware, it is called the Doha Development Round. It is supposed to be more equitable, more in favour of the developing countries. The G20 is obviously not the main forum for that.
But if the G20 keeps pushing and puts its weight behind it, we hope to get that. These are the three main things on which the Prime Minister has been concentrating, on which we have been concentrating. We see some progress in these areas. More will come in
the months ahead.
Official Spokesperson: Thank you very much.
(Concluded)
Toronto
June 27, 2010