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Priority to ties with neighbours: Rao

Pawar made Defence Minister
NEW DELHI. June 26: A powerful rival of Prime Minister PV Narasimha Rao was sworn in Wednesday as the Defence Minister and is likely to take the number two spot in the Cabinet, report agencies.
Sharad Pawar, a Bombay -Based politician, took the oath of office and secrecy at a brief ceremony in the presidential palace.
Pawar had challenged Rao for the prime minister's post but withdrew his nomination hours before the Congress Party met last week to choose
a leader. The withdrawal allowed Rao to be elected unanimously
Rao and 53 government ministers were sworn in by President Ramaswamy Venkataraman on Friday. The defence portfolio was left vacant
Pawar's swearing-in was delayed because he had to resign as the chief minister of Maharashtra state. Pawar resigned from the state post Tuesday after he named a longtime aide to succeed him.
Two junior ministers and a
deputy minister were sworn in with Pawar, raising the number of people in the cabinet to. 58. including Rao. The other three named in Friday's list of government ’ ministers but could not take the oath on that day.
Pawar's name came just below Rao's in the list. Indicating he will officiate as the head of government in the prime minister's absence.
Rao said that ft would be the endeavour of his govern me nt to restore India to its place of honour in the comity of nation* and ensure Its voice is once again heard with respect and attention in world fora.
Our relation* with neighbour* will enjoy the priority they deserve so that our region become* an area of peace, prosperity and stability. he said in hi* first nationwide
The Prime Minister is unfortunate that at the very Juncture when Indian needed to give a lead in this historic endeavour its international prestige suffered setbacks and relations with friends and
Meanwhile. Finance Minister Manmohan Singh said newspaper reports that India will seek a seven-billion-Dollar loan from the International Monetary Fund to tide over a balance of payments crisis were untrue. 'We are seeking a loan but have not mentioned any figures." he said. "We are In the process of discussions.'
India's external debts amount to 63 billion dollars. Its foreign exchange reserves cannot purchase imports for more than one month.
On Tuesday. Singh told reporters the government would undertake major structural changes In the economy to ease the crisis.
Observers said this implies the government would loosen some of the strict controls on the economy and allow multinational companies greater access to restricted Indian mar kets.
The Congress and its allies won 241 of the 511 seats to Parliament in the balloting. It is still 15 seats short of a majority and is likely to approach centrist and leftist alliances to provide parliamentary support.
Rao. who has to face a vote of confidence In Parliament within three weeks, told reporters Wednesday that he has initiated talks with senior opposition leaders.
Both he and Singh have to win election to Parliament within six months to keep their ministerial posts.
An Indian court Tuesday ad-
journed a petition by the widow of Rajtv Gandhi de manding the white cotton 'kurta' he was wearing at the time of hi* slaying, the Press Trust of India (PTI) said.
The Chief Judicial Magis trate in the southern city of Madras will hear the petition July 12. He ordered the ad journment after detective* said the homespun kurta was in 20 blood-stained and badly burned pieces, the new* agency said.
The Centra! Bureau of Investigation. which is probing the former Prime Minister's May 21 slaying by a woman suicide bomber, told the court the clothing was under chemical analysis and could not be produced in court. .
Gandhis Italian bom wldow j Sonia liad demanded the shirt for sentimental reasons.
Earlier this month. Mrs Gandhi was given back the Lotto sports shoes her husband was wearing when he was killed.
In a separate despatch quoting unnamed official source*. PTI said Gandhi's kurta appeared to be missing.
The Forensic Department of the Tami) Nadu's state government said the kurta had not yet been brought in for chemical examination, the sources were quoted as saying, adding that a hunt had been launched for the missing pieces.