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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Ashish who wrote (11519)	5/13/1998 12:44:00 AM
From: Jeffrey S. Mitchell	Respond to of 13949

US to impose sanctions against Indiaÿ AGENCIES ÿ ------------------------------------------------------------------------ NEW DELHI, May 12: The world on Tuesday reacted sharply to India's nuclear tests with US president Bill Clinton declaring that he intended to implement fully tough sanctions against India for carrying out the nuclear tests. Germany decided to freeze fresh development aid worth DM300 million to New Delhi and Japan held out threats of reviewing its billion dollar aid loans. Denmark also announced that it would freeze its development aid to India and Australia and New Zealand recalled their high commissioners from New Delhi for consultation. A barrage of protests also poured in from other countries including France, Canada, Italy and the European Union. China said the nuclear tests were detrimental to the peace and stability of South Asia. Clinton called New Delhi from Washington to announce a freeze on further tests and to sign the comprehensive test ban treaty (CTBT), "now and without conditions." "As most of you know, our laws have very stringent provisions signed into law by me in 1994 in response tonuclear tests by non-nuclear states. I intend to implement them fully," he said. "I want to make it very, very clear that I am deeply disturbed by the nuclear tests India has conducted," he said and added: "The US strongly opposes any new nuclear testing." Urging India's neighbours not to respond with nuclear tests of their own, Clinton said, "This action by India not only threatens the stability of the region, it directly challenges the firm international consensus to stop the proliferation of weapons of mass destruction." Clinton said, "I call on India to announce it will conduct no further tests and sign the CTBT now and without conditions. I also call on India's neighbours not to follow suit, not follow down the path of a dangerous arms race." "Such tests, I don't believe, will contribute to building a safer 21st century," Clinton added. He, however, has decided not to cancel his planned visit to India later this year. "Our plans remain unchanged. I think it remains important that we continue ourdialogue with Pakistan, with India," national security adviser Sandy Berger said. State department spokesman James Rubin said the possible sanctions against India could include "foreign assistance, trade assistance, bank loans etc". Britain, the current president of the European Union, said the 15-member EU was "surprised and disgusted" by India's mutliple nuclear tests. "We are able to express very strongly the views of all the EU colleagues. Everybody is surprised and disgusted by the action taken by the Indian government," junior foreign minister Derek Fatchett said. Russian president Boris Yeltsin, however, merely termed the tests as a "big surprise" and said he would do his utmost to resolve the matter when he visited India later this year. A report from Tokyo said Japan was considering reviewing its billion-dollar aid loans to India because of the latter's "extremely regrettable" nuclear tests. Japan's foreign minister Keizo Obuchi met the Indian ambassador here to lodge a formal protest andwarned him that Tokyo was considering reviewing its huge official development assistance (ODA) loans. Japan is India's largest ODA donor. In the year to March, 1997, Japan gave $1.1 billion in ODA loans to India. World's Angst At India's Big Bang Clinton to implement tough sanctions Japan considering review of loans Germany freezes fresh aid to India Australia, New Zealand recall diplomats UK calls emergency EU meeting Russia feels let down Pakistan carefully analysing situation Canada urges India to denounce N-arms programme China says peace will be disrupted in South Asia "If any sanctions are to be imposed, then the country will have to face them with its own strength -- India Copyright c 1998 Indian Express Newspapers (Bombay) Ltd. Source: expressindia.com ==== - Jeff P.S. I left in the copyright to give credit to Indian Express Newspapers. Please visit their web page. (My way of apologizing for posting a full news story, but as many Y2K stocks are based in India, I think the India Express might actually benefit by increased traffic to their site with a little spamming (gg))

To: Ashish who wrote (11519)	5/13/1998 1:21:00 AM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 13949

Re.: India is way too big a market for US to impose sanctions that could hurt its trade plans in that region. My simplistic explanation of a "check list" is just that - a simple view of events and their influence on stock prices - a subject of interest here. One can analyze the pros and cons of nuclear blasts. India had tested a bomb about 24 years ago and never signed the nuclear non-profileration treaty, a thorn in the US-India relationship. China and Pakistan are two countries that went to war with India. Both share borders with India. China is in the process of negotiation with India on old border disputes. They seem to be making progress. I agree with your assessment that I do not know all the details of Indian or International politics. But I do not see a need to test nuclear bombs as soon as a new party came to power. The only reason they must have done it - shortsigtedly - is to show that they will deliver their promise. By the way, US trade with India is not as big as that with other Asian countries like Korea, Taiwan, Indonesia, etc. As you say, this set back in y2k stocks may be temporary and offer an opportunity. Ram

To: Ashish who wrote (11519)	5/13/1998 1:36:00 AM
From: Jeffrey S. Mitchell	Read Replies (3) \| Respond to of 13949

India is way too big a market for US to impose sanctions that could hurt its trade plans in that region. IMO There's little room for opinion here. US law mandates sanctions. Sanctions on India will affect Indian companies. If Indian companies are affected it stands to reason so will the stocks for those companies. ===== 1994 law calls for sanctions Under a 1994 U.S. law that Clinton said he would enforce, countries that detonate nuclear devices: Are subject to denial of U.S. credits and credit guarantees. Face U.S. opposition if they request loans from international lending institutions. Are barred from loans from any U.S. bank, except borrowing that provides food or other agricultural commodities. Sanctions also could include restrictions on U.S. military aid to India, but currently there is no joint military training between the two countries. The Pentagon says its very limited military contact with India "would cease" if sanctions are imposed. Clinton did not announce what specific steps his administration planned to take, but U.S. officials said privately that the president's senior advisers have recommended that he hit India with "the full range of sanctions" contained in the law, called the Glenn-Symington amendment. An administration official said government experts want a careful evaluation of what happened before making a determination on sanctions. Overall, officials admit that any sanctions will be a "minor irritant" to India, but enough to prevent its goal of creating a "take-off" economy. The law says that if the president fails to act, the sanctions automatically go into effect after 30 days unless Congress decides otherwise. Any U.S. move will be carefully considered by other countries. India's biggest donor is Japan, and the government in Tokyo announced it is currently weighing similar sanctions. Full link: cnn.com - Jeff