DATE=7/22/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-235864
TITLE=PAK / U-S / NUCLEAR (L)
BYLINE=AYAZ GUL
DATELINE=ISLAMABAD
CONTENT=
VOICED AT: 

INTRO:  SENIOR PAKISTANI AND AMERICAN OFFICIALS DISCUSSING 
NON-PROLIFERATION ISSUES IN ISLAMABAD HAVE EXTENDED THEIR TALKS 
TO THURSDAY AFTER TWO INTENSIVE ROUNDS OF DIALOGUE.  OFFICIALS ON
BOTH SIDES HAVE REFUSED TO MAKE ANY COMMENT SO FAR.  AYAZ GUL 
REPORTS FROM ISLAMABAD. 

TEXT:  PAKISTAN'S CHIEF DIPLOMAT, SHAMSHAD AHMED, AND U-S DEPUTY 
SECRETARY OF STATE STROBE TALBOTT MET FOR A SECOND ROUND OF TALKS
LATE WEDNESDAY IN ISLAMABAD.

A FOREIGN MINISTRY STATEMENT ISSUED AFTER THE MEETING DESCRIBED 
THE DISCUSSIONS AS SERIOUS AND SUBSTANTIVE.

THE STATEMENT SAID THERE WILL BE A FINAL SESSION OF THE TALKS 
SHORTLY BEFORE THE U-S DELEGATION RETURNS HOME THURSDAY MORNING.

EARLIER MR. TALBOTT MET PRIME MINISTER NAWAZ SHARIF AND 
PAKISTAN'S MILITARY CHIEF,  GENERAL JEHANGIR KARAMAT.  A 
STATEMENT ISSUED AFTER THAT MEETING QUOTED MR. SHARIF AS TELLING 
THE U-S DELEGATION THAT KASHMIR WAS AT THE HEART OF THE 
DETERIORATING SITUATION IN SOUTH ASIA.

INDIA AND PAKISTAN HAVE FOUGHT TWO WARS OVER KASHMIR, AND THE 
DISPUTED REGION IS STILL A SOURCE OF TENSION BETWEEN THE TWO 
NEIGHBORING COUNTRIES.

MR. TALBOTT ARRIVED IN ISLAMABAD FROM NEW DELHI AFTER HOLDING 
SIMILAR TALKS WITH THE INDIAN LEADERS THERE EARLIER THIS WEEK.

HIS VISIT TO SOUTH ASIA IS PART OF THE UNITED STATES EFFORTS TO 
DEFUSE TENSION IN THE REGION FOLLOWING THE NUCLEAR BLASTS BY 
INDIA AND PAKISTAN TWO MONTHS AGO.  

THE TESTS HAVE RAISED FEARS OF A NUCLEAR ARMS RACE IN SOUTH ASIA 
AND WASHINGTON IS TRYING TO PERSUADE THE TWO NATIONS TO SIGN THE 
INTERNATIONAL TEST BAN TREATY (CTBT) UNCONDITIONALLY.

THE UNITED STATES AND OTHER NATIONS IMPOSED PUNITIVE ECONOMIC 
SANCTIONS ON BOTH INDIA AND PAKISTAN AFTER THE NUCLEAR TESTS. 

THE SANCTIONS HAVE HAD A DAMAGING IMPACT ON PAKISTAN'S ALREADY 
TROUBLED ECONOMY.  PAKISTAN'S FINANCE MINISTER HAS WARNED THE 
COUNTRY COULD FACE A MAJOR FINANCIAL CRISIS IF THE SANCTIONS GO 
BEYOND THREE MONTHS.

A PAKISTANI GOVERNMENT STATEMENT SAYS KARL INDERFURTH, A MEMBER 
OF THE VISITING U-S DELEGATION, HAS TOLD FINANCE MINISTER SARTAJ 
AZIZ THAT WASHINGTON WILL  NOT  BLOCK PAKISTANI REQUESTS FOR 
LOANS FROM THE INTERNATIONAL MONETARY FUND (IMF). (SIGNED)

NEB/AG/KL

22-Jul-98 3:04 PM EDT (1904 UTC)
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Source: Voice of America
.