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Saturday, July 11, 1998

US senate votes in one voice to free farm credit from sanctions' ambit 

Associated Press  
Washington, July 10: The US senate has voted to exempt agriculture credit programmes from sanctions imposed on New Delhi and Islamabad after the two countries conducted nuclear tests in May.

The sanctions are supposed to squeeze the targeted country, not the American producer,'' said senator Mitch Mcconnell on Thursday.

"We should not sacrifice our farmers in an effort to put the nuclear genie back in the bottle.''

At stake is up to $250 million in wheat sales this year to Pakistan, including a tender offer for 350,000 metric tonnes that US producers, particularly those in the Pacific north-west, would be prevented from bidding on unless president Bill Clinton signs the legislation into law next week. Wheat farmers across America are enduring extremely low prices with huge supplies in storage."Our growers need export markets so they can keep going," said senator Patty Murray of Washington. Her state sells some 300 million dollars in wheat each year to Pakistan.

The vote came after sponsors were forcedto scale the original legislation, which initially would have given Clinton power to suspend temporarily any or all economic sanctions until March 1, 1999.

Senator Pat Roberts said Pakistan and India may not be as pleased with the narrower legislation, since it continues economic sanctions causing hardships. It may drive Pakistan, he said, to buy wheat from France or elsewhere.

"It's difficult to say we have sanctions on everything, but by the way, we want to sell you some agricultural products,'' Roberts said. President Bill Clinton has issued a strong endorsement shortly after the senate passed a bill recommending lifting of sanctions from agricultural credit programmes.

"Food should not be used as a weapon, and I will resist any action that would lead to a de facto grain embargo," the president said in a statement.

Immediately after, senate panel on near eastern and south Asian affairs chairman Sam Brownback announced his plans to push for the lifting of the remaining sanctions on the twocountries.

Brownback, a Republican who visited New Delhi and Islamabad, along with a fellow lawmaker Charles S Robb , a democrat, last week to study the situation in south Asia. They agreed with the president that food must never be used as a political weapon or a foreign policy tool.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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