China to open its first military base abroad in Indian Ocean

Beijing, Dec 12 (PTI)

In a move that may cause unease in India, China today announced that it will set up its first military base abroad in the Indian Ocean island of Seychelles to ''seek supplies and recuperate'' facilities for its Navy.


The naval fleet may seek supplies or recuperate at appropriate harbours in Seychelles or other countries as needed during escort missions, Chinese Defence Ministry announced here today.

China has already cemented its foothold in the Indian Ocean by signing contract with the UN backed International Seabed Authority to gain rights to explore polymetallic sulphide ore deposit in Indian Ocean over the next 15 years.

The contract awarded this year to a Chinese association exclusive rights to explore a 10,000-square-km of international seabed in the southwest Indian Ocean.

The base in Seychelles is regarded significant by analysts as China is about to launch its first aircraft carrier. It is currently undergoing final trials.

Playing down its significance, Chinese Defence Ministry statement today said it is international practice for naval fleets to re-supply at the closest port of a nearby state during long-distance missions.

Apparently commenting on a recent report that China will establish a military base in Seychelles, it said Chinese naval fleets have re-supply facilities at harbours in Djibouti, Oman and Yemen since China sent its first convoy to the Gulf of Aden in 2008.

The decision to establish its first naval base abroad was taken during Chinese Defence Minister Gen Liang Guanglie's goodwill visit to Seychelles earlier this month.

During the visit, Seychelles Foreign Affairs Minister Jean-Paul Adam said his country has invited China to set up a military base on the archipelago to beef up the fight against piracy.

"We have invited the Chinese government to set up a military presence on Mahe to fight the pirate attacks that the Seychelles face on a regular basis," Adam was quoted as saying in the media reports.

"For the time being China is studying this possibility because she has economic interests in the region and Beijing is also involved in the fight against piracy," he said.

During Liang's visit, the two sides exchanged views on their countries' and armies' cooperation, as well as on the global and regional situation, state-run Xinhua news agency reported.

Seychelles appreciates China's efforts to maintain safe navigation on the Indian Ocean, as well as the support it has granted to Seychelles, the ministry said.

Seychelles also invited China's navy to re-supply and recuperate in the country during escort missions, the defence ministry statement said.

Relations with China not externally driven: India

by Ananth Krishnan


Observing that India and China have “a relationship which is not externally driven,” National Security Adviser (NSA) Shiv Shankar Menon said here on Tuesday that China's decision to sell two nuclear reactors to Pakistan would have no bearing on the recent warming of ties between New Delhi and Beijing.

Mr. Menon, who raised the controversial deal in talks with Chinese Foreign Minister Yang Jiechi on Sunday, said: “We have discussed the issue [of China's sale of two reactors] with them on two or three occasions. They have told us that what they are doing will be in accordance with their international obligations. I think we will wait and see where this is going.”

The NSA, in China as the Prime Minister's Special Envoy, held talks with Chinese Premier Wen Jiabao on Monday. The focus of the talks — and this visit — was to explore new areas of co-operation to take the bilateral relationship forward, Mr. Menon said.

Much of the attention has, however, been on China's recent decision to sell two nuclear reactors to Pakistan. Some countries say the move goes against China's commitments as a member of the Nuclear Suppliers Group (NSG), which prohibits the transfer of technology and equipment to countries which have not signed the Nuclear Non-Proliferation Treaty (NPT).

The attention on the deal, according to Mr. Menon, was misplaced. “This was not the whole point of the visit,” he stressed, adding: “This took less than two and a half sentences in the whole visit.”

Mr. Menon pointedly stressed in an interaction with journalists that China's close relationship with Pakistan, its all-weather strategic ally, would have no bearing on New Delhi taking forward its ties with Beijing, despite being a source of mistrust between the neighbours in the past.

“We're no longer in an either-or, zero-sum game kind of situation,” Mr. Menon said. “Our relationship with China is not dependent on the state of our relations with Pakistan, or vice versa. And judging by what we have seen in practice over the last few years, I think that is also true of China. Nowhere in my talks was there any such linkage [made] by them, or by us.”

He said an increasing convergence of interests on the global stage, on issues such as climate change, energy security and trade, was in some sense bringing the countries closer. They had moved into “a new stage of the relationship,” where they were engaging on a broader set of issues of global relevance.

India has cordial relationship with China: Antony

PTI

Making it clear that India is not paranoid over China, Defence Minister A.K. Antony on Wednesday said that Sino-Indian bilateral relations were improving and getting better, despite the border dispute.

“Nothing like that,” was Mr. Antony’s response to reporters’ queries if the government was paranoid over China and if there was any problem or bad feeling about Beijing.

The government has taken a conscious policy decision to maintain “very cordial and friendly” relations with all the neighbours, he said while interacting with the media after inaugurating a conference of Defence Accounts Controllers here.

“In this context, we are trying to improve our relations with all our neighbouring countries and this includes China also. All are reciprocating well,” he said.

Noting that Sino-Indian border disputes still existed, the Defence Minister said the two governments had evolved mechanisms to talk about these disputes.

“Despite these disputes, our relations are improving (with China) in all aspects. China is today our largest trading partner. Our cultural relations are improving.

“Regarding my ministry, disputes are there, but military relations are improving,” he said citing the example of two Sino-Indian army exercises held in the last three years and the visit of Defence Secretary Pradeep Kumar to China earlier this year.

“Our relations with China is improving and it is comparatively better and the border is peaceful,” he said.

China, India and Nepal Agree on A Common Way Forward for Conservation and Sustainable Development

China, India and Nepal agreed on a common framework for developing a conservation strategy and environmental monitoring plan for the Kailash Sacred Landscap. This is a first step towards developing a regional cooperation framework for this transboundary region linked to the sacred mountain. This is also known as Kang Rinpoche, Gangrenboqi Feng, and Kailasa Parvata. The representatives of this three countries met at the First Regional Workshop on the Kailash Sacred Landscape Conservation Initiative held last week in Almora, Uttarakhand. The three day workshop was organised by the International Centre for Integrated Mountain Development (ICIMOD) and hosted by the GB Pant Institute of Himalayan Environment and Development (GBPIHED), supported by the United Nations Environment Programme (UNEP). The Kailash Sacred Landscape Conservation Initiative (KSLCI) focuses on developing a transboundary regional cooperation framework for conservation and sustainable development. The preparatory phase of 18 months started in August 2009 following consultations with governments and partners in China, India and Nepal. This Initiative is the first pilot for implementation of ICIMOD’s ‘Trans-Himalayan Transects Programme’ which encompasses seven landscapes and four transects in the Hindu Kush-Himalayas, and aims to focus and increase the effectiveness of research and development activities.

Development of the Regional Cooperation Framework for the Kailash Landscape is being facilitated by ICIMOD with support from UNEP. The Landscape, which includes the southwestern portions of the Tibet Autonomous Region of China, and adjacent Himalayan regions in India and Nepal, is among the most culturally and ecologically diverse and fragile areas in the world, and has sacred significance for hundreds of millions of people in Asia, and around the globe The framework is expected to focus on transboundary biodiversity, and environmental and cultural conservation; scientific and technical cooperation; information exchange and sharing; and regional guidelines and policy mechanisms. The framework is being prepared based on the principles of participatory management, equity, sustainability, partnerships, ecosystem approach, lessons-learned approach, and transboundary cooperation.

This first regional workshop had 35 participants representing 18 institutions and including senior government officials led by Joint Secretaries from the Ministry of Environment and Forests, Government of India, and the Ministry of Forests and Soil Conservation, Government of Nepal, and senior officials from the Chinese Academy of Sciences, PR China. Representatives of the lead partners – the Institute of Geographical Sciences and Natural Resources Research, Chinese Academy of Sciences, GB Pant Institute of Himalayan Environment and Development, India, and the Central Department of Botany, Tribhuvan University, Nepal – reported the progress of the feasibility assessment studies and the review of the policy and enabling environment. The feasibility assessment included delineation of the target landscape by each of the countries following common agreed criteria, and the workshop finalised the landscape area. Other topics in the feasibility included country-wise descriptions of the landscape, status of resources, culture and heritage sites, tourism/pilgrimage status and potentials, environmental degradation and cultural integrity, identification of priority areas, community perception on biodiversity, cultural values and best-suited livelihood options, enabling environment assessment through policy review and finally the identification of gap areas. All three countries will finalise their reports after these discussions. ICIMOD will prepare a regional landscape map, and synthesise the feasibility report, policy and enabling environment report, conservation strategy, and environmental monitoring plan, all of which will feed into the regional cooperation framework.

The International Centre for Integrated Mountain Development, ICIMOD, is a regional knowledge development and learning centre serving the eight regional member countries of the Hindu Kush-Himalayas – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan – and based in Kathmandu, Nepal. Globalisation and climate change have an increasing influence on the stability of fragile mountain ecosystems and the livelihoods of mountain people. ICIMOD aims to assist mountain people to understand these changes, adapt to them, and make the most of new opportunities, while addressing upstream-downstream issues. We support regional transboundary programmes through partnership with regional partner institutions, facilitate the exchange of experience, and serve as a regional knowledge hub. We strengthen networking among regional and global centres of excellence. Overall, we are working to develop an economically and environmentally sound mountain ecosystem to improve the living standards of mountain populations and to sustain vital ecosystem services for the billions of people living downstream – now, and for the future.

source;pib-Govt of India

India, China ink pact to establish hotline

PTI

AP External Affairs Minister S.M. Krishna delivers a speech at the China Institute of International Studies in Beijing on Tuesday. India and China have on Wednesday signed a pact to establish a hotline. Related

In a significant step in taking their bilateral relations to a new level, India and China on Wednesday signed an agreement to establish a hotline between Prime Ministers of the two countries.

The agreement was signed by External Affairs Minister S.M. Krishna and his Chinese counterpart Yang Jiechi after their first round of talks here.

This is the first time in recent years that India has established a dedicated hotline facility with any country.

The hotline would enable Prime Minister Manmohan Singh and his Chinese counterpart Wen Jiabao to hold direct conversations.

The decision to establish the hotline was reached during a meeting between Mr. Singh and Chinese President Hu Jintao in the Russian city of Yekaterinburg in June 2009.

After the meeting, Mr. Krishna said the establishment of hotline facility showed how close India and China were with each other.

“This has been one of the highlights of my visit and it is fitting that the two countries were able to do it during the celebrations of 60th year of establishment of diplomatic relations,” he told reporters.

Asked whether the issue of stapled visas were taken up during the meeting with Mr. Yang, Mr. Krishna said: “All issues concerning bilateral ties were discussed.”

The Minister said the discussions between him and Mr. Yang were “purposeful and indeed satisfying.”

“We want to have continued, sustained and cordial relations with China. That has been one of the priorities of India’s foreign policy. That purpose has been served by my visit to Beijing,” he said.

“We want to have cordial and friendly ties and lift the bilateral relations to a new level of strategic cooperation and partnership.”

He said the trade between India and China will touch $60 billion this year and the issue of trade deficit with China is being discussed.

Behind China's India policy, a growing debate

BY Ananth Krishnan

Beyond the expected statements Chinese officials will exchange with External Affairs Minister S.M. Krishna in Beijing this week, there is little consensus among different policymakers in Beijing on how to engage with a rising India.

Earlier this year, the United States' decision to approve a $ 6.4-billion arms sale to Taiwan sparked a series of agitated commentaries in China's military journals. The tone will sound somewhat familiar to an Indian audience: it reflected a growing anxiety among strategists that the U.S. was building a “crescent-shaped ring” to encircle and contain China. Interestingly, much of the debate focussed on what role India would — or would not — play in a supposed U.S.-led “encirclement.” Some strategists expressed concern that an eventual “integration of India” into an American alliance “would profoundly affect China's security,” as the official China Daily reported. Dai Xu, an Air Force Colonel of the People's Liberation Army (PLA), warned that China needed to be vigilant against this growing network running “from Japan to India” that would suffocate China.

Others, however, were not so convinced, and instead sought to calm the tensions. Pei Yuanying, former Chinese Ambassador to India, said India, as “an independent international power in the international arena,” was “unlikely to be part of any such U.S. scheme.” Shen Dingli, one of the leading voices in the strategic community in Beijing, also disagreed with Dai's views in an interview with The Hindu, suggesting that the current relationship was sound enough for China to have no reason to worry about India's ties with the U.S.

These differing views point to an ongoing debate in Beijing on a question that many policymakers are grappling with: how should China engage with a rising India? On one side of the debate are voices from the PLA, who are pressing Beijing to take a harder line with India and who see little room for cooperation between two rivals. On the other are voices in the Hu Jintao government and official think tanks, which are pushing for a more moderate and non-confrontational foreign policy line, one which they see as crucial to China's own self-interest and continued development.

The military view

The appearance of a number of articles and commentaries last year in military journals and official Communist Party-run newspapers has led some to suggest that the first group is increasingly beginning to have its voice heard. In recent months, articles in influential publications like the People's Daily, have taken a noticeably harder line on India, accusing New Delhi of “arrogance” and calling on China to take a stronger position on the border dispute. The People's Daily, in particular, has also begun to devote extensive coverage to India's military build-up, frequently speaking of an “India threat.”

The articles more or less reflected the “PLA view” of Sino-Indian ties, according to Srikanth Kondapalli, a professor at Jawaharlal Nehru University who studies the Chinese military. According to him and other analysts, this view is predicated on three basic policy positions on India. The first assumes that India is seeking to become a great power. The policy response is to support Pakistan, which China continues to do, and confine India's influence to South Asia. The second, he says, assumes that India has “hegemonic ambitions in South Asia” — a phrase often used by the People's Daily last year. The policy response in China is to “oppose hegemony” by supporting smaller states in South Asia, like Nepal and Bangladesh. The third is on India's presence in the Indian Ocean, and the policy response is to strengthen China's naval capabilities.

The other view

Much as the PLA is influential, its view by no means reflects a consensus opinion among the highest policymakers. Besides the PLA, there are at least three groups which have a role in shaping China's India policy, including commercial lobbies, retired officials and a select group of India scholars in official think tanks. This section tends to view the relationship beyond the narrow military paradigm of the PLA. It argues that despite the persisting mistrust between the countries, it is in China's own interest, both from the point of view of sustaining its economic development and its standing as a responsible world power, to have harmonious relations with India and a peaceful periphery.

“Many people in the Chinese government realise that despite historical differences, there are growing commonalities in relations between the two countries and their positions on international issues,” says Ma Jiali, a leading South Asia scholar at the China Institutes of Contemporary International Relations (CICIR), who advises the government on its India policy. “There is also the common goal that both countries do not want to see a unipolar world.” He considers “four roles” India plays in shaping his policy view — “a close neighbour, a developing country with common goals, a rising power and an increasingly important international player.” “The basic fact is,” he continues, “we must have good relations with India, or our national interest will be damaged.”

His view is echoed by Sun Shihai, another influential ‘India hand' at the Chinese Academy of Social Sciences. He says he “completely disagrees” with the policy views voiced by the nationalistic commentaries in much of the official media last year. “Many of those reports misperceived India very deeply,” says Professor Sun. “Among most scholars at least, there is a growing awareness that India's power is rising, its international status is rising, and these facts are a reality that cannot be altered.” He believes that it is in China's self-interest to work with India on issues in which the countries have a common stake such as climate change and combating terrorism. “China has more respect [now] for India's rise, and it is in our interest to co-operate where we can, as we did so effectively last year at Copenhagen [on climate change],” he says. “But as two rising powers with growing international roles and strategic weight, cooperation and competition will be natural. What the governments need to do is manage the competition and avoid conflict. Most serious scholars are of this view.”

Reading the debate

Do these different views matter to India? Chinese foreign policy is ultimately decided at the highest levels of the ruling Communist Party's Central Committee using these various inputs. But how these inputs get used is “an extremely complicated process,” says Prof. Kondapalli. “Various groups put out their agenda to try and have their opinions heard, but what is eventually decided depends on who has greater influence at a given moment in time.” For now though, the outcome of this debate still seems uncertain. “The academic community appears to follow a soft and co-operative line while the PLA maintains its stridency to keep India on tenterhooks,” says Brigadier (retd.) Arun Sahgal of the Institute of Peace and Conflict Studies, New Delhi.

Until there is greater clarity on its outcome, the mistrust between the countries will likely persist. For usually, it is only the harder “PLA view” of India that gets covered in the media, serving as fodder for the often over-hyped ‘China threat' perspectives dished out by strategic analysts. Part of the reason, no doubt, is that these views are more “newsworthy” than balanced views from the government and other scholars. But another factor behind misperceptions is the continuing opacity in China's own government, in both policy-making and the state's control of the media.

“The main problem in understanding China's policies is the lack of transparency, which often leads to misperceptions” Prof. Kondapalli says. Consequently, even extreme opinions, from any media outlet, often tend to be regarded as Beijing's official line, and drown out other views even if they are no more than voices in an ongoing debate. And until China becomes more transparent, analysts say, external observers will likely continue to imagine the worst when reading the tea leaves.

SOURCE:THE HINDU

ONEONONE - India and China should work together

BY UTPAL B HASKAR



A s e t the energy policy advisr to 28 member counries,Nobuo Tanaka is a man short on time. International Energy Agency, or IEA, apart from being the world's premier energy monitor, also plays an important role in climate change policies, market reform and en- ergy technology collaboration.

Tanaka was recently in New Del- hi to participate in the 6th Asia Gas Partnership Summit where he spoke to Mint on issues as varied as Indian government's attempts to address the issue of subsidy burden, crude oil prices, US interventions in energy-rich countries and the growing com- petition between India and Chi- na for energy resources. Edited excerpts: India has been talking about re forms in the energy sector for some time now. The intent is to bring down the subsidy burden as they are unsustainable over a long term. What are your views?

Yes, that's right. When the price of oil is high at certain ref- erence price, it increases the fis- cal burden for the government.

So in the long term, due to cost of exploration and development, the cost of oil will get higher... So subsidies will be very difficult to sustain. We have been asked by the G-20 (Group of Twenty) countries to make some analysis of subsidies. We are going to re- port to the G-20 finance minis- ters meeting which is next month on 23 April in Washing- ton, DC.

We did a similar study in 2007.

The total amount then was $320 billion (around Rs14.5 trillion today) globally.
Since in 2008 the oil prices were very high, the subsidies should have been much higher, that's what we guess.

So for India, we are strongly advising to phase out price con- trol and subsidy as it is very im- portant to make price signal from the market directly to the consumer. That is the way to conserve energy or move to an energy-efficient society or econ- omy. We understand that the In- dian government is serious about phasing out subsidies and trying their best. It is also politi- cally very difficult, we under- stand that. In many countries, it is mandatory for the govern- ments to help and to support the poor population. Our advice is--yes, it is necessary to support the poor but don't undermine the energy sector, because sub- sidy is wasteful use of energy sources and also adds to the problem of low investment in in- frastructure. It (subsidy) prohib- its infrastructure investment. So this is not good. In the longer term, I think this (Indian) gov- ernment is committed to phas- ing out subsidy but in practical terms it will certainly take some time.

So when this report is ready, would G20 as a group ask India to take care of the subsidy burden?

G-20 is asking the Indian gov- ernment to make sure that the phasing out of subsidy happens.
We do not have the power to re- ally enforce this phase out. I think that this government clearly understands the necessi- ty and is moving in the direction towards it. Our study tries to help the governments to move in the right direction. There is still a considerable per centage of population in India which does not have access to en ergy. How do you see India's ener gy demands growing?

That is the point. In China and India, the per capita energy con- sumption is very low compared to the global average and much more growth is necessary to reach there. On the other hand, if India or China go through the same way as the former develop- ed countries, I mean the OECD (Organization for Economic Co- operation and Development) countries, then the fossil fuel consumption will go so high that the price of oil and price of gas will climb rapidly. World CO2 emissions will increase so much that it will not be sustainable. So the only solution for this eco- nomic growth and the CO2 emission is more energy-effi- cient society, more greener sys- tems of living, using electric ve- hicles and more efficient hous- ing. So this kind of revolutionary change in lower carbon technol- ogy is necessary. We are working with the Indian government on what kind of technology does In- dia need to make this revolu- tionary change.

Is $100 per barrel of crude the re alistic price?

We are not commenting on the level of price. It is always moving. About four-five years ago, $30 per barrel price was seen as a very high price. Now $100 may be a high price but we have seen crude oil prices reach- ing $147 per barrel, so what is the high price, we can't tell. In the mid to long term, we know that the cost of investment in ex- ploration, development and production will increase. We will have much more deeper offshore oil fields or oil sands so the cost will increase. Because of the supply-demand situation, the market is tighter, and if the economic recovery is robust as it should be, the prices will get higher.

Given the way that the crude de mand has picked up, is the world out of the recession?

That is a good question. I think India, China and Middle East are out of recession, but not necessarily the OECD countries because OECD countries de- mand is projected to be negative in 2010. The OECD demand will shrink in 2010. On the other hand, macro economists say that OECD countries are on the track of economic recovery. So we call it oil less recovery. In other emerging economies, we see economic recovery happen- ing and the demand for oil is coming back.

When do you see a recovery in OECD demand?

That is a difficult question be- cause the current price levels and current financial troubles in Europe may have a very negative impact.

Is there a way around for energy firms across the globe which want to invest in Iran, Sudan and other countries where the US has im posed sanctions?

This is a very difficult judge- ment an investor should make because they risk their business chance in the United States if they don't abide by the sanc- tions. On the other hand, we want stabilization of the place and as much investment to hap- pen, for decline of the current production level from the exist- ing oil fields is a serious con- cern. We need a huge invest- ment just to offset this decline. Isn't the US policing these re sources now? For example, Indian firms have done well in Sudan. It seems that when the US compa nies can't get through they impose sanctions, which will also make sure that no one goes there and those resources are well covered for the US?

(Laughs). Well, if Indian com- panies take some risk and go there and explore and develop, certainly it helps the global mar- ket in the demand and supply situation.

So as an organization would you be interested in promoting invest ments in countries such as Iran or Sudan?

We are not promoting that.
Certainly in terms of the global markets, difficult places, not only these geopolitically difficult places, but also in places like the Arctic, very deep offshore, no- body dares to take the risk. If that's the case, then we have a serious problem. Taking risk is part of the business. The ways of taking risks are different, de- pending on the way of a country or the way of a corporation.

Given the fact that the demand will come from China and India with the demand slowing down in the West, the two countries are in a quest for securing energy re sources overseas. In the process, it inflates the acquisition cost of an asset. What is the way forward?

Yes, to some extent it depends upon how companies from India and China do business. It is ob- vious that due to high prices you suffer... If you suffer, you change the way of making a deal, con- sulting more closely with other consuming countries, compa- nies and make a consortium.
This is the process.

So the way forward is to collabo rate?

Exactly, for example, we al- ways ask the European countries to speak in one voice to the sup- plier. By doing so you have a huge advantage in negotiations.

source; Livemint