During the recently concluded Budget session of Parliament, Prime Minister Atal Behari Vajpayee had stated that India was moving closer to signing the CTBT.

The economic resolution, also adopted today, made the BJP's stand on the economic situation clear. Shore up the falling value of the rupee against the dollar and don't go in for devaluation, it urged the government. A contingency plan against worldwide recession and troubled South East Asian economies should be formulated, it said. Soaring prices were also emphasised. The party called on the government to take urgent action to hold the price line.

Addressing a press conference later, Vajpayeesaid that the CTBT contained a provision for a country to act outside the agreement if its security perceptions were very seriously threatened. In a guarded reaction to the US strikes on Afghanistan and Sudan, Vajpayee stopped short of justifying America's action a response markedly different from Defence Minister George Fernandes who has criticised the US. ``Terrorism took place before the US took action. There may be two opinions about it. But our stand is very clear terrorism has to be fought. Wherever it takes place, it has to be condemned,'' the PM said.

Calling for international initiative against terrorism, he said, ``I am confident that now the US will be aware that terrorism wherever and against anyone will have to be dealt with determination. I hope double standards will not be followed on the question of terrorism. We are victims of terrorism and would like it to be rooted out completely,'' he said. To a specific question on the US supporting Pakistan's proxy war in India, Vajpayee replied:``I hope the US will have second thoughts now.''

It was pointed out that until recently the US had encouraged the Taliban in Afghanistan and Pakistan and asked if unilateral action by the US could be perceived as ``international initiative''. ``I don't want to go into past history,'' Vajpayee replied.

In his address to the National Executive earlier in the day, the PM asserted that the government was committed to recovering Indian land that was still occupied the reference being to Pakistan-occupied Kashmir. Without referring to any particular ally, he urged all parties to observe the ``dharma'' of coalition politics and warned that otherwise ``problems'' would arise''.

At the press conference, he brushed aside all questions on Jayalalitha. But asked why a Coordination Committee meeting was not being called, he retorted, ``It means that the crisis is not so serious.''He rejected the demand for a CBI inquiry into Jayalalitha's charge that ``hefty bribes'' were paid for the transfer of EnforcementDirectorate chief MK Bezbaruah.

Vajpayee said he had asked the AIADMK leader to furnish evidence in support of her charge but ``so far she has not produced any evidence to substantiate her charge.'' ``Therefore, there is no question of a CBI probe into the matter,'' he said.

In the economic resolution, the BJP National Executive (the highest decision-making body of the party) blamed the policies of the previous government and the weather gods for spiralling prices. However, it was suggested that steps like strengthening the PDS, cracking down on hoarders and formulating a national policy on inter-state movement of agricultural produce would have an impact on prices. If all such steps were taken without delay, the impact could be felt by mid-September, the resolution said. The issue has assumed urgency also because crucial assembly elections are to be held in November in important States like Rajasthan and Delhi where the BJP is already in power, and Madhya Pradesh (where the party hopes to capture powerfrom the Congress).

Referring to the economic sanctions, the BJP noted with satisfaction that they had neither deterred the government nor dampened the nationalistic spirit of Indians at home and abroad. Resurgent India Bonds had already fetched $ 3.25 billion instead of the targeted $ 1.5 billion and were expected to bring in another $ 75 million, it noted.

For the rest, the resolution applauded the government for making swadeshi the cornerstone of its development model. The BJP-led regime had inherited a legacy of years of mismanagement of the economy, it said, but this government had begun the process of correcting the mistakes of the past.Tomorrow, the National Executive will pass a political resolution which is expected to indicate the strategy the party will adopt, especially in the light of the problems it is facing from allies like the AIADMK.