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News Analysis

US-Bangladesh poised to kick off new era of economic ties

by Mahesh Uniyal
NEW DELHI Nov 18: Although US Secretary of State Madeleine Albright called off her visit to Bangladesh because of an unscheduled stopover in the Gulf, analysts here noted that this did not reduce the high priority Dhaka now gets in Washington.
They pointed out that unlike Washington's tricky ties with India and Pakistan, the United States and Bangladesh are pofsed to kick off a new era of economic collaboration which could bring prosperity to the subcontinent.
Albright's planned halt In Dhaka, on the last leg of her swing through the subcontinent which would earlier take her to Islamabad and New Delhi, was clear evidence of "the American discovery of Bangladesh." they said.
The change in plans, knocking Bangladesh off her itinerary, was announced In Islamabad where Albright arrived last night. She is the first US Secretary of State to visit South Asia in 14 years.
"While Pakistanis are killing American oil executives in Karachi. Bangladesh is rolling out the red carpet for American
and British oil companies, said C. Raja Mohan, Strategic Affairs Editor of the influential The Hindu newspaper.
"The new American commercial interest in Bangladesh provides a historic opportunity for India and the United States to build a mutually beneficial agenda of cooperation in the subcontinent. For far too long. India and the United States have dissipated their diplomatic energies in squabbling about
i ne new u o interest in taking part in energy development in Bangladesh, which was expected to have been taken up by Albright in Dhaka, is said to give an opportunity to New Delhi and Washington to work together to persuade Bangladesh to give up domestic political opposition to gas exports to India.
India is the logical market for Bangladeshi surplus gas because of its proximity and
the Western part of the subcontinent — their respective relations with Pakistan." he added.
Washington's Interest in Bangladesh is said to be centred on the latter's huge natural gas reserves. Bangladesh has proven natural gas reserves of 10.2 trillion cubic feet, but experts estimate the country could be sitting on as much as 50 trillion cubic feet of gas.
The large business opportunities that has opened up for Western oil companies is said to be driving the U S policy towards Bangladesh.
growing energy needs. Companies like the U S-based Enron and Royal Dutch Shell are planning to pipe this to India. Indian need for Bangladeshi gas has Increased with plans to bring Central Asian gas to India affected by the civil war In Afghanistan and New Delhi's difficult ties with Islamabad.
However. Bangladesh's In-dia-baiting politicians have stalled energy cooperation with India, despite pleas by Western oil companies to allow gas exports to India.
Former Indian Foreign Sec-
retary J N Dixit told IANS that both India and Bangladesh have much to gain if Dhaka "can shed its political complexes and inhibitions." adding, that Indian Prime Minister IK Gujral "has laid the basis for such cooperation, but there is not much reciprocity from Bangladesh."
India and the United States also have reason to work together with Bangladesh because of their growing economic ties. Bangladesh has emerged as India's major trading partner buying nearly a billion dollars worth of goods and services annually.
The United States sees Bangladesh as an important emerging destination for American exports and business. Over the past year, there has been a tenfold Increase in U.S. investment in Bangladesh, mainly in oil and gas development.
Several Western companies are showing interest in Bangladeshi gas. Cairn Energy of Scotland was one of the first to hit on a big gas field in Bangladesh.
— India Abroad News Service