It is in our vital interest to normalise our relations with Pakistan. However, we are at a stage where it is for Pakistan to determine the kind of relationship it wants to have with India. Any meaningful dialogue with Pakistan can only be based on the fulfillment of its commitment, in letter and spirit, not to allow its territory to be used in any manner for terrorist activities against India.
The Mumbai attack was launched from Pakistan and the conspiracy behind the attack was hatched there. Clearly, the onus is on Pakistan to unveil the conspiracy. We have sought to assist them in that task by providing vital evidence.
Let me emphasise that it is our considered position that there should be concrete action against those guilty of the Mumbai terrorist attack before there can be any meaningful dialogue with Pakistan. Until the Mumbai attack, India was conducting the composite dialogue with utmost sincerity. But we cannot have terrorism and negotiations at the same time. Pakistan has to prove its credentials by implementing its assurances.
With respect to Sri Lanka, our immediate focus is to see that the process of resettlement and rehabilitation of more than 2.7 lakh IDPs (internally displaced persons) in their original homes is achieved as early as possible. We are in constant dialogue with the Sri Lankan government on the issue. On its part, India has allocated Rs. 500 crore for relief and rehabilitation of IDPs.
We are also actively assisting Sri Lanka in de-mining, which is an essential pre-requisite for people to return to their homes. A delegation led by ICAR (Indian Council of Agricultural Research) will visit Sri Lanka next week to have extensive discussions with stakeholders in Sri Lanka on the specifics of our agricultural assistance.
In Bangladesh, we welcome the return to multi-party democratic politics. Our other key neighbour Nepal is currently undergoing a democratic transition. A peace process is underway.
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We welcomed the process of holding of presidential and provincial elections in Afghanistan on August 20. As regards the internal situation in Afghanistan, we are concerned at the deterioration in the internal security situation. The resurgence of Taliban and Al Qaeda in Afghanistan is a threat to the progress made since 2002.
Let me now turn to China, our northern neighbour. Friendly co-operation with China is a key foreign policy priority. We have a significant trade-economic relationship with China. We consult each other on global issues and have a similarity of outlook. We also have our differences, especially on the boundary question. Both sides are working towards a fair and reasonable settlement of the entire boundary, as per agreed guidelines. The 13th Round of Special Representatives (SR) talks concluded last month.
On the issue of border incursions, I would like to emphasise that there is an established mechanism to deal with such situations. Both sides have agreed that pending the resolution of the border issue, peace and tranquility must be maintained on the LAC (Line of Actual Control). Moreover, India is monitoring the situation constantly and there can and will be no lowering of our defences in this regard. Our borders are secure and it serves no purpose to create excessive alarm.
We have a strong interest in crafting closer ties with fellow Asian countries. After six years of intensive negotiations, the Asean-India Agreement on Trade In Goods was signed last month. Our annual trade with Asean is expected to increase from $40 billion to $60 billion. Similar free trade agreements (FTAs) are to follow. For our country as a whole, the FTA would benefit us, though it may entail some hardship for certain areas. A negative list has been drawn up to protect some commodities and lighten the burden.
As I said earlier, we have been simultaneously paying great attention to our relations with major powers. With USA, we have a robust and multifaceted agenda of co-operation. Our relationship with Russia is time-tested. Rashtrapatiji has just returned from a very successful state visit to Russia and Tajikistan. I will be traveling to Moscow next month for the next India-Russia Joint Commission, and meetings with the Russian leadership.
(Excerpts from Foreign Minister S M Krishna's speech at a meeting of the Editors' Guild on September 10 in New Delhi)