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  • Hillary Clinton's Business Trip To India

    HILLARY CLINTON'S BUSINESS TRIP TO INDIA
    Kamalakar Duvvuru

    Dissident Voice
    August 11th, 2009

    India's booming economy and vast new market made Hillary Clinton,
    not surprisingly, to stop first in India's commercial capital Mumbai
    during her three day tour of India in July 2009. In an op-ed in The
    Times of India, Clinton laid out clearly US' interests in India. First
    was "the 300 million members of India's burgeoning middle class" whom
    she identified as "a vast new market and opportunity."1 The focus
    on India as fundamentally a market for the US business indicates the
    purpose of Hillary's visit to India.

    In Mumbai, Hillary Clinton first had a meeting with a selective group
    of Indian business executives. Later she stayed at Taj Mahal Palace &
    Tower, one of the two hotels that had been attacked by terrorists
    in November 2008. At a news conference she subtly brought India's
    11/26 and US' 9/11 together: "Just as India supported America on
    9/11, these events are seared in our memory...."2 The reason for
    this, probably, was to direct Indian public's attention to the
    common perpetrator: Islamic extremism. In her op-ed in The Times of
    India, Clinton clearly made her point. She mentioned about security:
    "Our countries have experienced searing terrorist attacks. We both
    seek a more secure world for our citizens," and therefore, "We should
    intensify our defense and law enforcement cooperation to that end." In
    the same breath she identified the common enemy as the extremism that
    Pakistan is confronting.1 The two events - Clinton's meeting with
    Indian business executives and her stay at Taj hotel - are steeped in
    a powerful, but unfortunate, symbolism, as 11/26 is linked with 9/11.

    US' 9/11 and Weapons' Trade On September 11, 2001 there was a
    significant shift in security trend. For the first time since the
    British burned down Washington in 1814, US experienced death and
    destruction on its land through an enemy attack.3 Till then death
    and destruction have always been suffered on foreign lands. George
    W. Bush, then President of the US, in his State of the Union address
    on January 28, 2003 recognized this: "In two years, America has
    gone from a sense of invulnerability to an awareness of peril." This
    challenge to its hegemony and attack on its land, instead of leading
    to introspection of its foreign policy and actions on foreign lands,
    resulted in the US' "war on terror." US failed to acknowledge that
    the terrorist attack on its land was a blowback. In an interview
    on the Mike Malloy radio show, former FBI translator Sibel Edmonds
    said that the US maintained "intimate relations" with Osama Bin
    Laden and Taliban "all the way until that day of September 11."4 The
    goals of American "statesmen" using these "intimate relations" with
    al-Qaida included control of Central Asia's vast energy supplies and
    new markets for US military-industrial complex.4 Recently in a very
    rare acknowledgement by Hillary Clinton, she confessed that the US'
    present enemy in Afghanistan and Pakistan was once its friend. To a
    question of the Congressman Adam Shciff in a Subcommittee of the House
    of Appropriations Committee on April 23, 2009, Clinton explained how
    the militancy was linked to the US-backed proxy war against the Soviets
    in Afghanistan: Let's remember here...the people we are fighting today
    we funded them twenty years ago...and we did it because we were locked
    in a struggle with the Soviet Union. They invaded Afghanistan...and we
    did not want to see them control Central Asia and we went to work...and
    it was President Reagan in partnership with Congress led by Democrats
    who said you know what it sounds like a pretty good idea...let's deal
    with the ISI and the Pakistan military and let's go recruit these
    mujahedeen...let them come from Saudi Arabia and other countries,
    importing their Wahabi brand of Islam so that we can go beat the
    Soviet Union...they (the Soviets) retreated...they lost billions of
    dollars and it led to the collapse of the Soviet Union. So there is a
    very strong argument which is...it wasn't a bad investment in terms of
    Soviet Union but let's be careful with what we sow...because we will
    harvest.5 Therefore, the early foundations of al-Qaida were built,
    mainly, on relationships and weaponry that came from the billions
    of dollars in US support for the Afghan mujahedeen during the war
    to expel Soviet forces from that country. The US has long relied on
    weapons supplies and sales to prop up allies or enhance collective
    defense arrangements. According to the report titled "Conventional Arms
    Transfers to Developing Nations,": "For decades, during the height
    of the Cold War, providing conventional weapons to friendly states
    was an instrument of foreign policy utilized by the United States and
    its allies."6 The US Cold War foreign policy of supplying weapons to
    maintain strategic relationship continued even after 9/11. In fact, the
    US' response to the terror attacks was that it was more willing than
    ever to sell or supply high technology weapons to countries that have
    pledged assistance in the global war on terror, regardless of their
    past behavior or current status. Under the guise of the global war on
    terror, George W. Bush fast-tracked weapon sales, released countries
    from arms embargoes, and pumped more money into foreign military
    aid. US sanctions were lifted on Armenia, Azerbaijan, India, Pakistan,
    Tajikistan, and Yugoslavia. These countries have been identified as
    key allies in the global war on terror.7 US-India Relationship After
    initial confidence building measures, on January 12, 2004 US and India
    signed an agreement called the "Next Steps in Strategic Partnership"
    (NSSP) with the aim of implementing a shared vision to expand
    cooperation, deepening the ties of commerce and friendship between
    the two nations, and increasing stability in Asia and beyond. This
    "strategic partnership" has grown into "global partnership" with the
    ratification of the US-India Agreement for Cooperation on Peaceful
    Uses of Nuclear Energy in July 2005. Bush signed the Henry J. Hyde
    United States-India Peaceful Atomic Energy Cooperation Act of 2006 (or
    "Hyde Act") into law in December 2006 (P.L. 109-401).8 Commenting on
    the nuclear deal Nicholas Burns, then Under Secretary of State, said
    that it was "positive for United States national security interest
    because it will help us cement our strategic partnership with India,
    which is very important for our global interests."8 In October 10, 2008
    Condoleezza Rice, then US Secretary of State, and Pranab Mukherjee,
    then External Affairs Minister of India, signed the nuclear deal
    after three years of negotiations. Called the 123 Agreement after a
    section in the U.S. Atomic Energy Act, the pact allowed India to buy
    vital nuclear fuel and technology from American companies.

    Right from the beginning corporate interests led by the nuclear
    industry and arms makers in the US lobbied for the nuclear deal. They
    saw the possibilities for nuclear trade, weapons sales, and selling
    spare parts and other services to India.9 According to the Washington
    Post, American companies saw a vast market in India for nuclear
    reactors and conventional weapons, after having been largely frozen out
    of that market for decades.10 The US-India Business Council hired the
    high-powered firm of Patton Boggs to work on Congress, and the Indian
    government a powerful US lobbying firm, Barbour Griffith & Rogers
    LLC, for which Robert Blackwill - US ambassador to India from 2001
    to 2003 - is president, as well as the law firm of Venable LLP. The
    Confederation of Indian Industry and the India-American Friendship
    Council were also involved.

    US politicians, both Democrats and Republicans, overwhelmingly
    supported the US-India nuclear deal. Because they either have
    investments in or received financial contributions from the arms
    industry.

    US' Interests in the Deal US has acknowledged India's growing global
    economic, political, and geo-strategic clout. So it wanted to court
    India through US-India nuclear deal to further its global interests.

    1. To Contain China US perceives China to be the larger threat to
    its hegemony. According to the 2008 annual report to Congress from
    the Office of the Secretary of Defense on the Military Power of the
    People's Republic of China, "China's expanding and improving military
    capabilities are changing East Asian military balances; improvements
    in China's strategic capabilities have implications beyond the
    Asia-Pacific region."11 US sees India as a new emerging power of the
    21st century, one that can be an ally of the United States and help
    it balance and contain the rise of China. India also directly faces
    the Chinese military along a four thousand kilometer northern border.

    There has been some speculation regarding US' intention to create
    an Asian NATO. During the Cold War era, US forged the Southeast Asia
    Treaty Organization (SEATO) comprising of pro-western countries such
    as Pakistan, Philippines, Thailand, Australia and New Zealand as
    well as France and UK. However, this organization was dissolved in
    1977.12 The speculation about US' intention to forge Asian NATO has
    been substantiated with the proposals of some American politicians
    such as Rudolph Giuliani and John McCain. Giuliani proposed that
    India, Japan, Singapore, Israel and Australia should be included in
    NATO. Whereas McCain suggested the establishment of US-led League of
    Democracies. Trabanco opines that McCain's proposal was a euphemism
    for the inclusion of nonEuropean US allies in a global military
    coalition.12 The reason for this seems to be the rise of China as an
    economic power. The US National Intelligence Council called it "the
    unprecedented transfer of wealth from west to east."12 In order to
    contain China's power and to preserve its control over strategic sea
    routes, US strategists have acknowledged the strategically significant
    geographic location of India. This could be the reason why US has
    forged an alliance with India in maritime cooperation.

    Therefore, the US' willingness to make nuclear deal with India
    is perceived, by some, to gain latter's strategic and geopolitical
    loyalty.12 "(It) would buttress (India's) potential utility as a hedge
    against a rising China, encourage it to pursue economic and strategic
    policies aligned with U.S. interests, and shape its choices in regard
    to global energy stability...." said Tellis.13 1. To Involve India
    in the "Reconstruction" of Afghanistan There is also a talk about
    US' intention to involve India in Afghan "reconstruction" and ask
    for Indian troops.11 India, in the past, refused to send its troops
    to Iraq. However, the US-India "global partnership" might give the
    US leverage over India. As the relationship deepens, it would be
    difficult for India to reject US' request for its partnership in the
    "reconstruction" of Afghanistan, which includes alignment of Indian
    troops with the NATO troops under the leadership of US.

    During her three day visit to India, Hillary Clinton, US Secretary
    of State, mentioned about security cooperation: "Our countries have
    experienced searing terrorist attacks. We both seek a more secure world
    for our citizens," and therefore, "We should intensify our defense
    and law enforcement cooperation to that end." And this cooperation
    is against the extremism that Pakistan is tackling at present.

    The US strategy seems to be to draw India (as a "partner") into
    "Afghan trap", as it did Russia (its enemy). Admitting that an American
    operation to infiltrate Afghanistan was launched long before Soviet
    invasion of Afghanistan, Zbigniew Brzezenski boasted, "We actually did
    provide some support to the Mijahedeen before (Soviet) invasion."14
    "We did not push the Russians into invading, but we knowingly increased
    the probability that they would," Brzezenski bragged. "That secret
    operation was an excellent idea. The effect was to draw the Russians
    into the Afghan trap."15 2. Market for US Military-Industrial Complex
    The US-India nuclear deal not only links India more closely to US
    and its global interests, but also boosts US trade in a profitable
    sector, nuclear industry. It also creates market for US conventional
    weapons. Till now Russia is the largest supplier of weapons to India
    (second is Israel). US expects that the nuclear deal will change
    this scenario.

    India is a huge market for weapons sales. In 2005 it was the
    largest buyer of arms in the developing world with purchases of $5.4
    billion. US' intention to profit from this market is evidenced by
    recent visits to India by US officials, including Robert Gates, the
    Defence Secretary, in February 2008 to strengthen military ties and
    promote weapons sales. Lt. Gen. V.K. Kapoor, a defence analyst, said,
    "Other than obvious commercial interests, the US is keen to invest
    militarily in India...."16 At DefExpo 2008 in New Delhi in February
    2008 at which major US weapons companies were well represented,
    William Cohen, former US Defence Secretary under Bill Clinton,
    declared, "The promise of deeper US-India defence co-operation is
    now a reality, with collaborations and joint ventures between US
    and India firms already under way."16 India is projected to spend
    more than $30 billion by 2012 as the country seeks to modernize its
    military. By 2022 spending is expected to reach $80 billion.

    The US-India nuclear deal has opened a huge market for the US
    weapons industry. For US weapons companies foreign sales mean
    the biggest bucks. Also, sales are often accompanied by lucrative
    deals for accessories, spare parts, and eventual upgrades. There
    is growing evidence that weapons sales are more about money
    for the US military-industrial complex and other major military
    economies. According to the congressional report "Conventional
    Arms Transfers to Developing Nations,": "Where before the principal
    motivation for arms sales by foreign suppliers might have been to
    support a foreign policy objective, today that motivation may be
    based as much on economic considerations as those of foreign policy
    or national security policy."6 Weapons Deals during Hillary Clinton's
    Visit to India The burgeoning "global partnership" between US and India
    is gradually laying bare its contents. India has dramatically increased
    its defence budget up over 34% alone this year. Hillary Clinton's visit
    to India in July 2009 resulted in defence, space and nuclear power
    agreements. It is the payoff resulting from the US-India nuclear deal.

    On July 20, 2009 an accord, known as an end use monitoring agreement,
    between India and US has been reached in New Delhi to clear the way
    for the sale of US weapons to India. "We have agreed on the end-use
    monitoring arrangement which would refer to...Indian procurement of US
    defence technology and equipment," said S.M. Krishna, Indian External
    Affairs Minister, in a joint news conference with Clinton. India is
    now holding a tender for the order of 126 multi-purpose lightweight
    fighters for the Air Force. US company Lockheed Martin stands as the
    front runner to sell F-16. The other three bidders are companies from
    Russia, France and Sweden. According to the tender terms, a winner
    should launch licensed production of its aircraft in India. The
    Indian-assembled F-16 would be a lot cheaper than its equivalent put
    together in the US or Europe. There is qualified labor in India, and
    labor costs are low. For the first time in history the US is making
    such an offer to a country that is neither a NATO member state nor
    has it Americans troops deployed on its territory.

    Hillary Clinton said that India has also approved two sites for the
    construction of two US nuclear reactors. She said, "I am also pleased
    that Prime Minister Singh told me that sites for two nuclear parks
    for US companies have been approved by the government." That means,
    it provides about $10 billion business for the US nuclear reactor
    builders such as General Electric Company and Westinghouse Electric
    Company, a subsidiary of Japan's Toshiba Corporation. However, what
    is not clear is whether India has agreed to the US' demand for legal
    immunity to its companies, if there is an accident.

    India has already bought $2.1 billion worth of anti-submarine planes
    from Boeing earlier this year, the largest US arms transfer to India to
    date.17 Arms deals between India and US will pull the military of the
    two countries together and foster interoperability.11 At a May 2009
    Defense Writers Group convened by the Center for Media and Security,
    to the question "whether the Obama administration will follow the
    general policy of supporting (weapons) exports?" and "do you anticipate
    any change in terms of where US arms will be sold?" Undersecretary of
    Defense for Policy Michele Flournoy responded, "We don't have a sort
    of arms sale policy as much as more a sense of commitment to building
    partner capacity."7 Vice Admiral Jeffrey Wieringa, the head of the
    Pentagon agency that administers weapons exports, was more candid:
    "We sell stuff to build relationships."7 Not surprisingly, Loren
    Thompson of the Lexington Institute, a consultant to Lockheed Martin,
    said, "Weapons could be the single biggest U.S. export item over the
    next 10 years."17 Increased weapons sales will certainly help the US
    Military-Industrial Complex weather the current economic crisis.

    Conclusion Not surprisingly, in the "global partnership" between
    US and India, the people who are missing are the poor of both the
    countries. In the op-ed in The Times of India Hillary Clinton, former
    Wal-Mart Board Director, made no mention of India's poor. According
    to the World Bank poverty line of $1.25 (Rs. 56.13) per day, the
    number of poor in India during 2004-2005 was 456 million, that is,
    41.6% of the population. The official figure of number of poor
    in the US in 2007 was 37.3 millions.18 However, Katherine Newman,
    professor of Sociology and Public Affairs at Princeton University,
    says that apart from 37.3 million poor, there are over 50 million
    Americans, who belong to what she calls "the missing class". In
    her book The Missing Class: Portraits of the Near Poor in America,
    co-authored with Victor Tan Chen, she says that the Americans who
    belong to "the missing class" are those who are living on the edge -
    one sudden illness, one pink slip (i.e., loss of job), one divorce
    away from free fall.19 The impact of arms trade between US and India
    has on the lack of economic development among the poor in both the
    countries, as more and more resources are directed into production
    and acquisition of new deadly weapons. "We've put this money down a
    black hole of so-called security," says David Krieger, President of
    the California-based Nuclear Age Peace Foundation. "In a more just
    and humane society, that money would be spent on health care, housing
    and the alleviation of poverty."20 Therefore, the single most pressing
    "security" issue of the 21st century will be assuring the essentials
    of a healthy, dignified life for the millions of people in India and
    US, who are left out of the global economy. Poverty continues to be
    the main human rights issue in both the countries.

    What needs to be done is, try and reduce the drive for production
    and acquisition of more and more weapons systems, so that resources
    may be used for education, healthcare, and to fight against poverty.

    From: Emil Lazarian | Ararat NewsPress
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