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Clinton likely to announce investment in India

Head of US export credit agency says
WASHINGTON. Mar 10 US President Bill Clinton may make several trade and investment announcements during his visit to India this month, the head of the US export credit agency, who recently returned from a trade mission tn the South Asian nation, said yesterday. reports Reuters.
Possible sale of US aircraft and equipment to help improve India's technology, energy and environment sectors are among the agreements Clinton may amiounvv during his visit, which includes stops in Bangladesh and Pakistan. US Export-Import Bank President James Harmon said.
Harmon heads the agency that aids US businesses in exporting their products to developing nations by backing loans
from lending Institutions the buyer needs. He met with reporters to discuss his six-day trade mission In February to India where he met with gov-emment ministers.
"As a result, we laid the groundwork for what the presi-ent will be able to announce." Hannon said. "We were able Io start down the road for the things ... that will encourage trade and investment In India. "
Harmon would not specify which agreements Clinton may make except to say that there will be an announcement regarding the environment in India. The Clinton administration still has not made a final decision on many of the trade and investment issues, he said.
'The environment is an area which the president will ad-
dress." Harmon said. "Water treatment is a very important item that we can address.”
Harmon's recent trade mission comes only a few months after the United States lifted economic sanctions on India for carrying out nuclear testing In 1998. which was quickly matched by Pakistan.
Existing sanctions on Islamabad prohibit the US Export-Import Bank from promoting US exports to Pakistan.
During a span of about eight months, US businesses were prohibited from investing In India, whose population hovers around 975 million people. Only after the US Congress extended last year the president's temporary order to lift the sanctions did US businesses begin to shed their hesitation to
invest in India.
"Were trying to Increase support for trade and Investment In India by the United States." Harmon said, adding that $1.8 billion in loans and guarantees are outstanding with India.
Harmon said he met with various ministers of the Indian government and central bank officials during his trip and saw signs that several of India's states are undergoing reforms alined at reducing their budget deficits.
He also said he had some "Important meetings" with the Indian airlines which are considering purchasing commercial aircraft from US aerospace giant Boeing Co BA.N or European consortium Airbus Industrie ARBU.CN.