405 Half-An-Hour [7 DEC. 1987] Discussion 406 Agent Was Kidnapped

405 Half-an-Hour [7 DEC. 1987] Discussion 406 agent was kidnapped. In Sattenapalli Mandal THE VICE-CHAIRMAN (SHRI JAGESH there were clashes... (Interruptions) . .. and DESAI): This has been allowed by the fifteen persons were injured and polling was Chairman. You can speak, Mr. Dipen Ghosh. postponed. TDP supporters set fire to the house of a Congress-I worker. These are SHRI DIPEN GHOSH: Mr. Vice- matters which we anticipated and feared, but Chairman, when, along with my other despite the reign of terror which was sought to colleague, I had raised certain questions under be unleashed, the Congress won the election Starred Question 342 of 1st December, though and I think Mr. Upendra would do a service to about forty minutes were spent in replying to his leader and his party gracefully accepting all the supplementaries, we found that many the verdict... more questions still remained unanswered. So we wanted a full-fledged discussion on this SHRI PARVATHANENI UPEN- issue. However, the Chairman has kindly con- DRA: We have already said that we accepted sented to grant a half-an-hour discussion, and the verdict. The Chief Minister also issued a I must cojivey our thanks, through you, to the statement accepting the verdict. You need not Chairman for giving me this opportunity to tell us. raise a half-an-hour discussion on this very important issue. It is because, Sir, of the fact SHRI P. CHIDAMBARAM: ... by that in reply to my question on the 1st of accepting the spirit of democracy, by Decemt-ber 1987, Shri Ram Niwas Mirdha, accepting the spirit of debate. Don't make a who was replying on behalf of the Minister of mountain of a molehill. You must imbile the Commerce, had stated: spirit of democracy, you must imbile the spirit of debate, and that is the lesson of this debate. "Counter-trade is a well accepted policy of the Government for promotion of exports from our country and we are importing a lot of things from all over the HALF-AN-HOUR DISCUSSION ON world and we want to use this bargaining POINTS ARISING OUT OF THE position t 0 promote our exports." ANSWER GIVEN IN THE RAJYA SABHA ON THE 1ST DECEMBER, 1987 Sir, it is true that counter-trade is TO STARRED QUESTION 342, a well established policy of our coun REGARDING COUNTER-TRADE AG- try in promoting exports, in promot REEMENT WITH BOFORS ing the export trade of our country, against imports. But so far as my SHRI DIPEN GHOSH (West Bengal): Mr. knowledge goes, till now Indi a has Vice-Chairman, ... counter-trade at least worth about Rs. 1,400 crores and of this THE VICE-CHAIRMAN (SHRI amour^, about one-third comes JAGESH DESAI): I would request frorm M/s. Bofors alone. So, this seems to be Members to ask pointed questions very important and my learned friend on the and not make speeches. other side, Mr. Ratnakar Pandey, did not know about what this Half-an-hour Discussion SHRI DIPEN GHOSH: I have not even is on because the word 'Bofors' haunts them started... everywhere, . (Interruptons) ... whether it is in connection with the arms deal or with THE VICE-CHAIRMAN (SHRI counter-trade. JAGESH DESAI); I am making mis request to all the Members. DR. G. VIJAYA MOHAN REDDY (Andhra Pradesh): My sympathies are with them; 407 Half-an -Hour [RAJYA SABHA] Discussion 408 SHRI DIPEN GHOSH: But I pity them. bring solace by saying that even items like Sir, how much India will gain from such a deal is minerals, though Sweden has go! much i n another question. It is very difficult to assess its possession, it has agreed to buy from us at this moment and, as you may recall, on that with the idea to re-export to third countries. day when we discussed this, you had the So the question came-I which you also opportunity also, as a Member of this House, personally raised, Sir-about the price. So in to raise certain supplementaries, and still such type of counter-agreements and deals we are to keep our Angers crossed because the other side. when forced to buy something though fifty per cent of the total amount against the import, tries to bargain either over involved in the arms deal has to be covered the items or commodities and|Or over he by this counter-trade; so far. only for about price. So the question was whether the deal Rs. 14 crores some agreement has been was being made at the international parity price. reached out of which trade amounting only to R.S. The reply was evasive inasmuch as the 4 crores has materialised and, according to the Minister had stated lhat the organisation which statement of the Minister, it will be Rs. 20 has been entrusted to make an agreement and see crores this year and Rs. 50 erores next year and that the deal is materialised, that organisation even if we continue at this rate there is will take care of the point. But I want to hardly any possibility of completing it know specifically from the Minister of Com- unles the pace of counter-trade is increased. Sir, s merce today-we are fortunate that both the the aim ot such a deal is obviously to senior Ministers and the Minister of .State are increase the quantum of trade. But, in practice it present--whether it is at -he international does not always work and M/s. Bofors is not an exception, as I have already indicated from the parity price; and particularly if We would statement given the other day by Shri Ram Niwas export, which we otherwise do. directly to Mirdha while answering my original third countries, whether we would have question on behalf of the Minis-tef of Commerce. gained, and. if so. at what rate and if not, But that day also, the Minister had replied, why? while answering certain supplementaries, Now, the basic question that ho raised was particularly from one of my colleagues here whether there was any pay-off in signing this who is absent today, as to what the items are deal. This question comes Wheneve,, ihe which we are going to export and what the name Bofors comes. That day the hon. items are which M/s. Bofors had indicated its Minister had denied that there was any • willingness to import from us in the same commission agent or ay. Normally, the items which have been mentioned in the statement of that day [The Deputy Chairman in the Chair.] are traditional items so far as Indian's export trade , is concerned. We wanted so far there was any question of pay-off. What he as my information goes, to bargain a deal had stated was that there is no question of with M/s. Bofors so that we could export more having any commission in this Memorandum manufactured goods. But, as you of Understanding (Time Bell rings) This know, Sir, an advanced country like Sweden Memorandum of Understanding does not is not interested in buying manufactured goods include many other things, this from our country. I And it is more Memorandum of Understanding is born out interested t 0 buy raw materials and semi of the main contract signed between the finished goods and. therefore our effort to Government of India and Bofors in the push the export of manufactured goods matter of arms deal. That day Mr. Mirdha through such counter-trade agreement did not had admitted, and in that main contract also material-lise. But the Minister that day tried to there was no clause whereby a commission agent could be appointed or whether it was a kick- back o r ihe winding up expenses could be paid. When the question arose in this House, Madam, you know, there was an emphatic denial from the other side: there was no commission agent and there was 409 Half-an-Hour [7 DEC. 1987] Discussion 410* no question of making pay-off . Our Prime THE DEPUTY CHAIRMAN: 1 cannot Minister had a talk with the late Prime have patience if you go on speaking as much Minister of Sweden, Mr. Olof Palme, and as you like. Please try to understand. there was an assurance, so on and so forth. SHRl DIPEN GHOSH: What shall I But later on it was admitted that the pay-offs understand? Is it that you have no patience? were there. The question is, who received the THE DEPUTY CHAIRMAN: You have to ■•ame? That is to be seen by the Joint understand. After all, there ii some time- Parliamentary Committee. Here also, there is limit which is fixed for it. a denial, but there is no clause in the Memorandum of Understanding either SHRI DIPEN GHOSH: Madam, there prohibiting appointment of agents or payment was no clause in the Memorandum of of commissions. Madam, it is also admitted. Understanding by which commission agents could be appointed or commission THE DEPUTY CHAIRMAN: There could be paid. The other way round, there was no such clause by which ap are 10 other Members. Please be blief. pointment of commission agents could be prohibited. It flew from that original SHRI DIPEN GHOSH: I know that. That contract. In that contract also, there was is why I wanted a ful-fledged discussion. no such clause. It was admitted later, Madam, if you could convert a Special after much denial at the initial stages, Mention into a debate which lasted three that commission agents were there and days, you can convert this Half-an-Hour commission was paid.

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