DHAKA - Indian Prime Minister Manmohan Singh's scheduled visit to neighboring Bangladesh in September appears to be back on track after a visit to Dhaka by External Affairs Minister S M Krishna and his own efforts to undue damage done by the premier's claim that much of Bangladesh was "in the clutches" of the Pakistan intelligence service.
The remarks also threatened the visit this month by Sonia Gandhi, president of India's ruling Congress party, according to Indian media reports.
Krishna began his three-day visit on July 6 to broaden the "cooperation framework to improve the livelihood of the peoples of two countries significantly" by telling the press that India "has always sought a deeper and stronger partnership with
Bangladesh. We believe that a prosperous, stable and democratic Bangladesh is in the interest of both the countries and the region."
A week earlier, Manmohan told newspaper editors in India that despite good relations between the two countries "we must reckon that at least 25% of the population of Bangladesh swear by the Jamaat-e-Islami [a far-right Islamist political party in Bangladesh] and they are very anti-Indian, and they are in the clutches, many times, of the ISI [Pakistan's Inter-Services Intelligence]."
"So the political landscape in Bangladesh can change at any time. We do not know what these terrorist elements, who have a hold on the Jamaat-i-Islami elements in Bangladesh, can be up to," Manmohan said.
The Prime Minister's Office later withdrew the remarks, explaining they were "off the record", but Bangladesh immediately summoned Indian High Commissioner Rajit Mitter to explain them, according to media reports. The comments angered the ruling Awami League and opposition politicians in Bangladesh and triggered protests in the local press.
Manmohan's remarks risked ruining progress made between India and Bangladesh over the past year, the Business Standard in India reported.
Manmohan called Bangladeshi Prime Minister Sheikh Hasina on July 4 to confirm his visit to Bangladesh in September 6-7. During the call, "Singh praised her [Hasina's] leadership, and said he was sure his visit would be a historic one", Bdnews24.com reported, quoting press secretary Abul Kalam Azad. The official did not say whether the two prime ministers discussed Manmohan's earlier controversial remarks.
Two days later, on his arrival in Dhaka, Krishna talked up the positive side of the relationship between the countries while emphasizing the financial links they share - notably a US$1 billion line of credit agreed last August during a visit to India by Hasina.
"We have made considerable progress in the implementation of the 2010 joint communique and projects under the $1 billion line of credit," Krishna said in a written statement. "I wish to discuss the scope for a broader cooperation framework which will significantly improve the livelihood of our peoples."
Bangladesh's Foreign Minister Dipu Moni was also upbeat. "Since our government assumed office [in 2008], we have given priority attention to expanding relations with our neighbors both in form and substance. Critical to this thrust is the issue of regional connectivity - physical connectivity as much as the connectivity of ideas, of people, of cultures."
Using the $1 billion credit line, Bangladesh on July 4 signed a $16.5 million contract with Texmaco, part of India's K K Birla Group, to buy 165 railroad containers to carry oil to power plants. The purchase will be completed in a year, the Associated Press reported.
Krishna's visit was seen as pivotal in strengthening India-Bangladesh ties, as it can help to promote resolution of a number of issues between the two countries including border killings, a maritime boundary dispute and a deal for improved transit along their shared 3,700 kilometer land borders.
Other issues the two countries hope to reach agreement on before Manmohan's visit include sharing of waters flowing through India to Bangladesh via various rivers, border demarcation, power cooperation and trade concessions.
Easing of cross-border travel for Bangladeshis living in the country's enclaves in India was also discussed during Krishna's visit.
A draft document on water sharing of the Teesta and Feni rivers has been prepared although the two countries "still differ on the proportion of Teesta water to be shared", the Daily Star reported in Dhaka, citing an unidentified senior Bangladesh Foreign Ministry official. Both countries had been asking for 55% of Teesta water during the lean period (October-May). Bangladesh finally asked for a 50% share, according to an official of the Bangladesh Water Resources Ministry.
Sharing of water from other rivers of concern, including the Manu, Muhuri, Khowai, Gumti, Dharla and Dudhkumar, was also to be discussed during Krishna's visit.
As relations between the two countries have improved, pressure has grown to ease the transit between them of goods and people along their shared border. In particular, easing transit in their northern and eastern borders would improve commercial opportunities and sea access for India's far northeastern states, such as Assam and Mizoram.
India has sought "15 road and railway routes" connecting Chittagong, on the eastern side of the Ganges Delta, and the main port for Bangladesh, and Mongla, a seaport on the western side of the delta in Bangladesh and close to Kolkata, the commercial capital of eastern India.
India also wants road and rail transit agreements for the border between eastern Bangladesh and the adjoining, nearly surrounded, Indian state of Tripura. In particular, New Delhi wants road transit through Ashuganj, north of Dakka, to Agartala, in Tripura; rail transit further north between Agartala and Akhuara, and, to the southeast, transit by road from Ramgarh (Khagracharri) in Bangladesh to Sabroom (Tripura).
Bangladesh should charge between $4 and $50 in transit fees for each tonne of goods depending on the route, the Bangladesh Tariff Commission has said. The rate would be equally applicable to vehicles from India, Nepal and Bhutan.
Bangladesh Finance Minister A M A Muhith said after meeting Krishna on July 6 that although "both countries agreed on transit for India, Nepal and Bhutan", Bangladesh also wants transit and trans-shipment facilities "to Myanmar, Thailand, and China with a view to turning the country as a regional economic hub".
Bangladesh used last week's meetings to pursue its demands for duty-free access of 61 items to India.
The countries on July 7 signed an "Agreement on Promotion and Protection of Investments" to ensure "National treatment and Most Favored Nation treatment to be accorded by either country to investments of investors of the other country", the Daily Star reported.
The agreement, initially for 10 years, provides for repatriation of capital investment, non-operating profits, loan repayments, royalty payments and service fees without delay and on a non-discriminatory basis.
They also signed an agreement to facilitate the movement of Bhutanese vehicles between India and Bangladesh land customs stations to promote bilateral trade between Bhutan and Bangladesh through India.
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