May 23, 1998

Attention of Government has been drawn to a report in a section of the Media containing a report on "Counter-measures planned if Washington blocks funds". The report quotes unnamed sources as asserting that the Government has drawn up a comprehensive set of counter-measures directed against the economic interests of countries imposing sanctions including action against companies and financial institutions of these countries. The report is entirely baseless. The Government is not contemplating any of the counter measures described in the report. 

2. The Government of India regrets the decision taken by some countries to initiate some adverse measures against India which may impede the flow of certain funds from some sources and is engaged in a constructive dialogue with these countries to bring about a better appreciation of India's position. Government is confident that any adverse impact on some flows will be offset by suitable measures.