'US-China relationship has to get back to business quickly'

The relationship between China and the United States, which has gone through a bumpy ride, has to get back on track as soon as possible, a top Obama Administration official has said.

"We've gone through a bit of a bumpy path here, and I think there's an interest both within the United States and China to get back to business as usual as quickly as possible," Assistant Secretary of State for Public Affairs P J Crowley said.

The acknowledgment comes in the wake of the differences between the two countries and even exchange of words on key issues like human rights, arms sale to Taiwan, the Dalai Lama meeting President Obama and Iran.

US Deputy Secretary of State Jim Steinberg is visiting Beijing this week to discuss with Chinese officials on a wide range of issues.

"We have a very broad, deep, complex relationship with China. There are many areas where we have achieved a consensus view. North Korea would be a great example of that. There are some areas where we do not yet have a convergent view. Iran might be an example of that," Crowley said.

"We have different perceptions of our national interest, you know, when you talk about dialogue with the Dalai Lama, for example, or you talk about regional security issues, perhaps involving Taiwan," Crowley said, adding that he expects that the US Deputy Secretary will talk about the full range of these issues.

"We have a common interest in stability in the region; we have a common interest in working together on issues like climate and the environment. We have a common interest in working on issues such as piracy in and around the Horn of Africa," he said.

The US-China relationship, which has recently seen some issues crop up, could be refocused with both the countries having the opportunity to understand each others perspective and views, Crowley added.

Visa rules for US tourists to change

Visa regulations for American tourists wishing to visit India may soon be changed requiring them to take a 60-day break between each exit from India and re-entry. Indian security agencies are said to have pushed for the break following revelations about the activities of David Headley, the US citizen with alleged links with the Lashkar-e-Tayyeba, who was arrested in October. Investigations have shown that Headley was in and out of India repeatedly using tourist visas for two years before the 26/11 attacks in Mumbai last year, during which he reconnoitered many of the spots attacked by the terrorists on 26/11. Details of precisely which categories of tourists will be affected, when and how, are not yet clear.

A message from the United States Mission in India to American citizens in the country on Wednesday, said: "The government of India is reviewing its regulations pertaining to the entry of American citizens holding long-term Indian tourist visas. To date, these new regulations are not finalized and are being implemented inconsistently. ...It is clear that the rules will only affect those who wish to enter India on a tourist visa within two months of their last departure from India," it added.

India-US sign six MoUs on counter-terrorism

India and the US have signed an MoU on counter-terrorism and five other agreements as they agreed to chart their ties as "one of the defining relations" in the 21st century in which New Delhi will have a leadership role in the region and the world. Besides the Memorandum of Understanding on 'Advancing Global Security and Countering Terrorism', the two countries signed pacts covering education and development, health cooperation, economic trade and agriculture, and green partnerships.

The pacts were signed after Prime Minister and US President Barack Obama held talks in Washington at the White House. PM Manmohan Singh is the first foreign leader to be hosted as the State Guest under the 10-month-old Obama Administration. They affirmed their commitment to work together to prevent the spread of Weapons of Mass Destruction- and missile-related technology and to realise their shared vision of a world free of nuclear weapons.

Earlier, at a joint press conference, Obama said US-India relationship will be one of the defining partnerships of the 21st century.

"India today is a rising and responsible global power. So I believe that the relationship between the United States and India will be one of the defining partnerships of the 21st century," Obama said.

With an aim of enhancing US-India cooperation on education and development, the two sides launched the Singh-Obama 21st Century Knowledge Initiative which will provide USD 10 million in combined funding to increase university linkages and support junior faculty development between US and Indian universities.

The two sides also launched "Green Partnership" to strengthen US-India cooperation on clean energy, climate change, and food security, reflecting their commitment to taking vigorous action to fight climate change.

They also announced launch of an Indo-US Clean Energy Research and Deployment Initiative, which is supported by US and Indian government funding and private sector assistance.

This new Initiative will include a Joint Research Center operating in both the United States and India to foster innovation and joint efforts to accelerate deployment of clean energy technologies. The Initiative will facilitate joint research, scientific exchanges, and sharing of proven innovation and deployment policies.

India and the US also launched a new Agriculture Dialogue and agreed on a MoU on Agricultural Cooperation and Food Security that will set a pathway to robust cooperation between the governments.

Under this, the two sides will cooperate in crop forecasting, management and market information; regional and global food security through the L’Aquila Food Security Initiative; science, technology, and education; nutrition; and expanding private sector investment in agriculture.

The United States and India expect cooperation under the agreement to expand access to knowledge to improve productivity, safety, and nutritional quality of food crops; to strengthen market institutions and foster growth of agribusiness investment and improve food security and access to adequate quantities and quality of food, particularly for women and young children.

Renewed bilateral cooperation in the field of intellectual property through a MoU between the Department of Commerce's United States Patent and Trademark Office and Indian Ministry of Commerce and Industry.

The memorandum and action plan will focus on human resource development, capacity building and public awareness programmes in intellectual property protection and enforcement.

White House Meal Heavy on Veggies

The first state dinner held at the White House under President Obama veered away from the old-school American menu of meat and potatoes. That's because the Tuesday night dinner was held to honor India's Prime Minister Manmohan Singh, a vegetarian. Actually the potato part didn't go away. For their first course, the 338 guests could choose a potato and eggplant salad. And for the third (main) course, one choice was roasted potato dumplings with tomato chutney, chick peas and okra.

The other main course selection was curry prawns with caramelized salsify, smoked collard greens and coconut aged basmati. Other appetizer choices included arugula from the White House garden with onion seed vinaigrette and red lentil soup with fresh cheese. American guests could be forgiven if they didn't know what they were eating. And all the guests probably appreciated the fact that the cheese served with the soup was fresh. The dessert menu had a slightly more American flavor: pumpkin pie tart and pear tatin with whipped cream and caramel sauce, petit fours and coffee, cashew brittle, pecan pralines, passion fruit with vanilla gelee and finally chocolate dipped fruit.

The Obamas chose a New York City chef to put together the menu, Marcus Samuelsson of Aquavit.

Obamas welcome PM Manmohan Singh at White House

Prime Minister Manmohan Singh was given a rousing welcome at the White House where he was received by President Barack Obama before they sat down for bilateral talks during which the two countries are expected to take their strategic ties to a new level. Obama and First Lady Michelle personally welcomed Singh, the first State guest of the Obama Administration, and his wife Gursharan Kaur at the White House.

The elaborate ceremonial welcome, which was planned at the White House lawns, had to be shifted to the sprawling mansion due to the rains. National Anthems of both India and the US were also played during the ceremony. Singh's visit is the first state visit hosted by the administration, the highest honor extended to a foreign dignitary, and the two would discuss a wide range of bilateral issues and the situation in Pakistan and Afghanistan during their one-on-one meeting.

Though the two leaders met in April on sidelines of the G-20 Summit in London and briefly at Pittsburgh's G-20 Summit, this would be for the first time they would discuss bilateral issues and possibilities of cooperation on key global issues like climate change. The two leaders are understood to have exchanged views on a range of issues, including terrorism, situation in the region, climate change, economic and business ties, agriculture and education. We can build up partnership based on principles and pragmatism, says the Prime Minister.

This is Singh's second State Visit to the US; he has also met with former President George W Bush in 2005.

The Prime Minister is also expected to have registered India's concerns over diversion of US aid by Pakistan and press for ensuring accountability to prevent misuse of funds and equipment.

After the meeting and discussions between the delegations of two countries, Singh and Obama will jointly address a press conference and issue a joint statement reflecting the strengthening of the relationship between the two countries.

The two countries will sign a number of pacts, including an MoU on Counter-Terrorism to provide a legal framework for stepped up cooperation against the menace, and discuss the problem of climate change ahead of the Copenhagen Summit. The Prime Minister has indicated that he would seek a "more liberal" US technology transfer to India and an early implementation of the Indo-US nuclear deal.

The most anticipated part of the entire trip however has been the State Dinner, when Obama and Michell host the first black-tie dinner for the Prime Minister.

An invitation to the dinner is believed to be the hottest ticket in Washington this week. While no official list has been announced so far, media reports say that some 400 people have been invited to the dinner, which would have the President and the First Lady's personal touch, including on the menu and entertainment. Grammy and Oscar-award-winning singer and actress Jennifer Hudson will entertain the black-tie crowd, sources said.

US recession ends, unofficially

The US economy grew in the third quarter for the first time in a year, beating market expectations, as consumer spending and new home-building rebounded, signaling the end of the worst recession in 70 years. The Commerce Department, in its first estimate of third-quarter gross domestic product on Thursday, said the economy grew at a 3.5 per cent annual rate, the fastest pace since the third quarter of 2007, after contracting 0.7 per cent in the April-June period. The growth pace in GDP, which measures total goods and services output within US borders, was above market expectations for a 3.3 per cent rate. The economy last grew in the second quarter of 2008.

"Better than expected GDP is confirming that the Great Recession has ended," said Kevin Flanagan, fixed-income strategist for Global Wealth Management at Morgan Stanley in Purchase, New York. "The question going forward is, is this more of a statistical recovery or are we going to get some meaningful momentum on a sustained basis." US stock index futures prices rose after the economic data. The dollar rose against the yen, and US government debt prices extended their decline on the better-than-expected reports.

Recessions in the United States are dated by the National Bureau of Economic Research and the private-sector group often takes months to make determinations. The economy slipped into recession at the end of 2007 and has been in the worst downturn since the Great Depression of the 1930s. The third-quarter recovery was generally broad-based, with solid gains in consumer spending, exports and home construction.
It was also driven by government programs like the popular discount on some new motor vehicle purchases, which stimulated auto sales and production, and a $8,000 tax credit for first-time home buyers.

The auto discount program ended in August and the home tax credit is due to expire next month. In the absence government support, there are fears that the sprouting economic recovery could falter, with rising unemployment also inflicting damage. Consumer spending, which accounts for over two-thirds of US economic activity, surged at a 3.4 per cent rate in the third quarter, the fastest advance since the first quarter of 2007. Spending fell at a 0.9 per cent rate in the previous quarter.

Residential investment, which was the main force behind the downturn, jumped at a 23.4 per cent rate in the third quarter, contributing to GDP for the first time since 2005, after declining 23.3 per cent in the April-June period. The surge in consumer spending and residential investment was likely driven by government stimulus programs. The economic recovery in the third quarter was also supported by a sharp moderation in the pace of inventory liquidation by business. Business inventories fell $130.8 billion, slowing from a record $160.2 billion plunge in the second quarter. The change in inventories added nearly 1 per centage point to real GDP in the third quarter.

Analysts are hoping that the slowdown in the inventory decline by businesses will continue to support the economy in the fourth quarter, even as consumer spending is expected to retreat under the weight of the worst labor market in 26 years. Excluding inventories, GDP rose at a 2.5 per cent rate compared to a 0.7 per cent increase in the second quarter. The weak dollar boosted exports, but a rise in imports subtracted from real GDP during the quarter. Federal government spending contributed to growth, but both state and local governments were a drag.

Business investment fell at 2.5 per cent pace, with investment nonresidential structures dropping 9 per cent, a reflection of ongoing problems in the commercial property market. A separate report from the Labor Department showed the number of US workers filing new claims for jobless benefits dipped by 1,000 last week to 530,000 last week. Analysts polled by Reuters had forecast claims to fall to 521,000 last week from 531,000. Continued claims of people still on jobless aid after an initial week of benefits slid by 148,000 to 5.797 million in the week ending October 17. It was the lowest reading since March.

India-US Military Relations Growing Rapidly

For decades, India mostly depended on, first, the Soviet Union and then Russia for its military supplies. But as the Cold War ended and India's relations with the United States began improving during Bill Clinton's presidency, New Delhi gradually increased its military cooperation with Washington. Both New Delhi and Washington have said their relationship is not aimed against India's arch-rival Pakistan. Today, besides holding joint military exercises with the U.S. military, India has also been buying U.S. armaments worth billions of dollars.

The latest India-U.S. defense deal is the sale of this Airborne Early Warning Air Craft, Hawkeye E-2D, developed by American arms manufacturer, Northrop Grumman. Woolf Gross, the corporate director at the company, says the reconnaissance plane has yet to be introduced in the U.S. Navy. Its sale to India, he says, is a symbol of how close India/U.S. military relations are. "So they [the Indians] could have advanced Hawkeyes in India about the same time that the U.S. Navy becomes fully operational with the same aircraft," he explained. During Secretary of State Hillary Clinton's visit to India in July, the two countries agreed on the terms of such high technology sales to India.

India's Ambassador to Washington, Meera Shankar is optimistic about future cooperation.

"Our militaries once unfamiliar with each other now hold regular dialog and joint exercises in the air and on land and sea. We coordinate anti-piracy efforts and have worked together on humanitarian missions. Our defense trade was negligible a decade ago. We placed orders worth $3.5 billion last year and it could grow even more in the future," Shankar said.

Since joint exercises between the two countries are expected to grow, it is better for India to buy equipment that is compatible with the U.S. military, says Walter Andersen at Johns Hopkins University. He says India imports most of its oil and gas and other merchandise by sea, and India is in favor of holding more joint naval exercises.

"And there is real and present danger from growing threats of piracy both on the eastern and western ends of the sea lanes coming out of the Strait of Hormuz carrying oil and gas. And also on the Horn of Africa as well as the Somalia coast where there have been real problems," Andersen said.

In the wake of last year's Mumbai terror attacks, Andersen says India is also keen to get help from the U.S. on how to combat terrorism. India blamed the attacks on a Pakistan based militant group known as Lashkar-e-Taiba.

The group is still intact and determined to repeat the Mumbai terror attacks, says Michael Leiter who heads the Counter-terrorism Center in Washington."I think it is worth noting that in Pakistan, Lashkar-e- Taiba, an al-Qaida ally, continues to pose a threat to a variety of interests in South Asia. The group continues to plan attacks on India that could have major geo-political consequences for the U.S. fight against terrorism," Leiter said.

The Mumbai terror attacks were a "wake up" call for India, says Woolf Gross at Northrop Grumman. He says as India shores up security on its coasts, it will also be a large market for U.S. anti-terrorism equipment. "Speed boats to patrol the coasts in very short range and larger ships further out on the sea constituting a better and broader-based patrol capability as well as operation centers that are geared to share information and provide information back and forth," Gross said.

Military analysts say the ongoing military cooperation between India and the United States is bound to grow as India plans to spend billions of dollars for modernizing it defense capabilities. India, they say, is preparing for short term threats from Pakistan and long-term deterrence against China.