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Wary of Chinese advances, India's Modi woos neighbours
by Staff Writers
New Delhi (AFP) June 13, 2014


India's Modi visits Bhutan to woo neighbours
Thimphu, Bhutan (AFP) June 15, 2014 - India's Narendra Modi held talks in Bhutan Sunday on his first foreign trip as prime minister, as he steps up a charm offensive with neighbours to try to check China's regional influence.

The Hindu nationalist premier was greeted at the airport by his Bhutanese counterpart Tshering Tobgay at the start of a two-day visit to the tiny Buddhist kingdom, a month after his landslide election victory.

Tobgay later wrote on Twitter that he had "very good discussions" with Modi, who shared his "passion for education, development and environment".

"He declared B4B: that Bharat (India) is there for Bhutan, ready to support in all our endeavours," Tobgay said.

Modi received a grand welcome with a ceremonial guard of honour, while schoolchildren in national dress lined the mountainous road between the airport and the capital Thimphu and waved the two countries' flags.

Ahead of his visit, Modi said relations with Bhutan would be "a key foreign policy priority" of his government.

"India and Bhutan enjoy a unique and special relationship... forged by ties of geography, history and culture," he said in a statement late Saturday, adding that Bhutan was a "natural choice" for his first visit.

The Indian premier had an audience with King Jigme Khesar Namgyel Wangchuck and later inaugurated Bhutan's Supreme Court, built with Indian assistance.

He was expected to address a joint session of parliament on Monday.

Tobgay was one of seven regional leaders invited to Modi's inauguration. Analysts say the decision to make Bhutan his first port of call is designed to underline the importance he places on neighbourly relations, which suffered under the last Indian government.

"Bhutan may be a small country but it is strategically very important and... China is on the other side," said Ranjit Gupta, a retired ambassador.

"If you aren't interested in your neighbours, they'll lose interest in you."

With the exception of Pakistan, India enjoyed generally close ties with its South Asian neighbours in the first six decades after independence.

But critics say the previous Congress party government began to take relationships for granted, allowing economic giant China -- which shares a border with four of India's neighbours -- to step into the breach.

- Hydropower plants -

The talks in Bhutan were expected to focus on strengthening ties over the kingdom's hydropower plants, which supply much-needed clean energy to India.

Bilateral trade was worth $1.1 billion in 2012, and Tobgay earlier told The Hindu newspaper that Bhutan's hydropower industry was "the centrepiece of our bilateral cooperation".

India, a power-deficit nation with severe outages, has helped Bhutan develop three hydropower plants with another three under construction.

In April the two countries signed a framework agreement on four more joint-venture power projects totalling 2,120 megawatts, and Modi was due to lay the foundation stone for a new project during the visit.

Amit Bhandari, from the Indian thinktank Gateway House, said electricity to India was Bhutan's single largest export.

"Modi's visit to Bhutan demonstrates the importance India places on furthering this relationship," he said.

There was friction with Bhutan when India cut fuel subsidies before elections last year, although they were restored after Tobgay's victory.

The move was seen as a rebuke over Bhutan's moves to engage more closely with China. But commentators say India is more likely to keep its neighbours on side by reaching out to them rather than punishing them.

Narendra Modi will step up a charm offensive with India's neighbours in the hope of stopping them falling into China's embrace when he travels next week to Bhutan on his first foreign trip since becoming prime minister.

A month after his election, the Hindu nationalist premier will pay a two-day visit to the tiny Buddhist kingdom from Sunday when he will meet his counterpart Tshering Tobgay and King Jigme Khesar Namgyel Wangchuck.

"We're honoured to have him choose Bhutan as the first country he's visiting," Tobgay said in comments published by the local Kuensel daily. "It speaks volumes about the importance he attaches to the region."

Tobgay was one of seven regional leaders invited to Modi's inauguration and analysts say the decision to make Bhutan his first port of call is designed to underline the importance he attaches to neighbourly relations, which suffered under the last government.

"Bhutan may be a small country but it is strategically very important and ... China is on the other side," said Ranjit Gupta, a retired ambassador whose postings included Nepal and India's UN mission.

"If you aren't interested in your neighbours, they'll lose interest in you."

With the exception of Pakistan, India enjoyed generally close ties with its South Asian neighbours in the first six decades after independence.

But critics say the previous centre-left Congress party government started to take things for granted, allowing China -- which shares a border with four of India's neighbours -- to step into the breach.

Relations with Sri Lanka, complicated by India's large ethnic Tamil population, became so bad that Modi's predecessor Manmohan Singh boycotted November's Commonwealth summit in Colombo to protest at the government's rights record.

More evidence of waning influence came during recent election disputes in the Maldives, Nepal and Bangladesh, where Indian mediation efforts failed.

There was friction with Bhutan when India cut fuel subsidies ahead of elections last year, although they were restored after Tobgay's victory.

The move was seen as a rebuke over Bhutan's moves to engage more with China but commentators say India is more likely to keep its neighbours on side by reaching out to them rather than punishing them.

- Chinese power -

Former diplomat G. Parthasarathy said "far greater imagination" was needed given China's economic clout.

"The fact of the matter is that China's power has grown substantially and its economy is larger," he said. "As the Indian economy has slowed, our ability to engage in the neighbourhood has been affected."

As Chinese investment has grown, countries such as Sri Lanka and the Maldives have fallen further away from India's sphere of influence. Even Bangladesh, which partly owes its existence to India's intervention in its independence war, is seeking China's help to build a new port.

Despite his nationalist credentials, Modi has stressed a desire in his early days in office to forge good ties with Beijing and has invited President Xi Jinping to visit.

There had been expectations Modi would pick Tokyo for his first trip but such a choice could have upset China.

"Mr Modi -- who is keen on strengthening economic links with China -- is clearly alert to reactions in Beijing were Tokyo to be his first port of call," said an editorial in The Hindustan Times.

"Equally, by heading to Thimphu, Mr Modi conveys to China that just as he is alert to dynamics in its neighbourhood, Beijing too must be sensitive about Delhi's sphere of influence."

It is three years since the eight-nation South Asian Association for Regional Cooperation (SAARC) has held a summit.

In a speech read by President Pranab Mukherjee on Monday but written by the premier, Modi said he wanted "to revitalise SAARC as an effective instrument for regional cooperation and a united voice on global issues".

While Modi is heading to Bhutan, his Foreign Minister Sushma Swaraj has chosen Bangladesh for her maiden trip.

Belying his reputation as a bruiser, Modi's charm offensive has already produced one unexpected result.

After being a guest at Modi's swearing-in, Pakistani Prime Minister Nawaz Sharif sent a sari as a thank you gift for his mother. Modi promptly thanked him for the "wonderful" present.

Philippines protests over Chinese reef 'reclamation'
Manila (AFP) June 14, 2014 - The Philippines said on Saturday it had filed a protest with Beijing for reclaiming land on a disputed South China Sea reef, the fourth such complaint in three months.

The new protest over reclamation at the McKeenan Reef in the Spratly Islands chain further heats up an increasingly tense dispute over the waters where China has been accused of using bullying tactics against other claimants.

Foreign department spokesman Charles Jose said the protest was filed last week. "They are doing reclamation work," he said in a brief statement.

He did not say if China had responded.

The Philippines previously filed an objection against China in April after monitoring large-scale reclamation and earth-moving activity on Johnson South Reef, which it said might be intended to turn the tiny outcrop into an island with an airstrip.

It later announced a similar challenge over Chinese reclamation at Gaven and Cuateron Reef. China has previously brushed aside such protests, saying the outcrops are part of its territory.

All four reefs were already occupied by Chinese forces but are also claimed by the Philippines.

China claims the Spratly Islands along with nearly all of the South China Sea, which contains vital sea routes and is also believed to hold large mineral resources.

The Philippines, along with Vietnam, Brunei, Malaysia and Taiwan have conflicting claims to parts or all of the same territory, which has led to tense confrontations in recent years.

In recent weeks, China and Vietnam have traded accusations of their ships ramming each other after China set up an oil rig in a South China Sea area also claimed by Vietnam.

The Philippines asked a United Nations tribunal in March to declare China's claim to most of the South China Sea illegal.

However China has refused to take part in the proceedings.

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