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Why South Asia Matters (Part Ii)

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Why South Asia Matters (Part Ii) THE REBALANCE TO ASIA: WHY SOUTH ASIA MATTERS (PART II) HEARING BEFORE THE SUBCOMMITTEE ON ASIA AND THE PACIFIC OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION MARCH 13, 2013 Serial No. 113–7 Printed for the use of the Committee on Foreign Affairs ( Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or http://www.gpo.gov/fdsys/ U.S. GOVERNMENT PRINTING OFFICE 79–892PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 10:41 Apr 16, 2013 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\WORK\_AP\031313\79892 HFA PsN: SHIRL COMMITTEE ON FOREIGN AFFAIRS EDWARD R. ROYCE, California, Chairman CHRISTOPHER H. SMITH, New Jersey ELIOT L. ENGEL, New York ILEANA ROS-LEHTINEN, Florida ENI F.H. FALEOMAVAEGA, American DANA ROHRABACHER, California Samoa STEVE CHABOT, Ohio BRAD SHERMAN, California JOE WILSON, South Carolina GREGORY W. MEEKS, New York MICHAEL T. MCCAUL, Texas ALBIO SIRES, New Jersey TED POE, Texas GERALD E. CONNOLLY, Virginia MATT SALMON, Arizona THEODORE E. DEUTCH, Florida TOM MARINO, Pennsylvania BRIAN HIGGINS, New York JEFF DUNCAN, South Carolina KAREN BASS, California ADAM KINZINGER, Illinois WILLIAM KEATING, Massachusetts MO BROOKS, Alabama DAVID CICILLINE, Rhode Island TOM COTTON, Arkansas ALAN GRAYSON, Florida PAUL COOK, California JUAN VARGAS, California GEORGE HOLDING, North Carolina BRADLEY S. SCHNEIDER, Illinois RANDY K. WEBER SR., Texas JOSEPH P. KENNEDY III, Massachusetts SCOTT PERRY, Pennsylvania AMI BERA, California STEVE STOCKMAN, Texas ALAN S. LOWENTHAL, California RON DESANTIS, Florida GRACE MENG, New York TREY RADEL, Florida LOIS FRANKEL, Florida DOUG COLLINS, Georgia TULSI GABBARD, Hawaii MARK MEADOWS, North Carolina JOAQUIN CASTRO, Texas TED S. YOHO, Florida LUKE MESSER, Indiana AMY PORTER, Chief of Staff THOMAS SHEEHY, Staff Director JASON STEINBAUM, Democratic Staff Director SUBCOMMITTEE ON ASIA AND THE PACIFIC STEVE CHABOT, Ohio, Chairman DANA ROHRABACHER, California ENI F.H. FALEOMAVAEGA, American MATT SALMON, Arizona Samoa MO BROOKS, Alabama AMI BERA, California GEORGE HOLDING, North Carolina TULSI GABBARD, Hawaii SCOTT PERRY, Pennsylvania BRAD SHERMAN, California DOUG COLLINS, Georgia GERALD E. CONNOLLY, Virginia LUKE MESSER, Indiana WILLIAM KEATING, Massachusetts (II) VerDate 0ct 09 2002 10:41 Apr 16, 2013 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 F:\WORK\_AP\031313\79892 HFA PsN: SHIRL C O N T E N T S Page WITNESSES Mr. Walter Lohman, director, Asian Studies Center, The Heritage Founda- tion ........................................................................................................................ 9 Mr. Vikram Nehru, senior associate, Asia Program, Bakrie Chair in South- east Asian Studies, Carnegie Endowment for International Peace ................. 21 Mr. Sadanand Dhume, resident fellow, American Enterprise Institute ............. 32 Mr. Sanjay Puri, founder and chief executive officer, Alliance for U.S. India Business ................................................................................................................ 41 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING The Honorable Steve Chabot, a Representative in Congress from the State of Ohio, and chairman, Subcommittee on Asia and the Pacific: Prepared statement .............................................................................................................. 4 Mr. Walter Lohman: Prepared statement ............................................................. 12 Mr. Vikram Nehru: Prepared statement ............................................................... 23 Mr. Sadanand Dhume: Prepared statement .......................................................... 34 Mr. Sanjay Puri: Prepared statement .................................................................... 43 APPENDIX Hearing notice .......................................................................................................... 60 Hearing minutes ...................................................................................................... 61 The Honorable Eni F.H. Faleomavaega, a Representative in Congress from American Samoathe Honorable Eni F.H. Faleomavaega, a Representative in Congress from American Samoa: Prepared statement ................................. 62 The Honorable Gerald E. Connolly, a Representative in Congress from the Commonwealth of Virginia: Prepared statement .............................................. 64 (III) VerDate 0ct 09 2002 10:41 Apr 16, 2013 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\WORK\_AP\031313\79892 HFA PsN: SHIRL VerDate 0ct 09 2002 10:41 Apr 16, 2013 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\WORK\_AP\031313\79892 HFA PsN: SHIRL THE REBALANCE TO ASIA: WHY SOUTH ASIA MATTERS (PART II) WEDNESDAY, MARCH 13, 2013 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ASIA AND THE PACIFIC, COMMITTEE ON FOREIGN AFFAIRS, Washington, DC. The subcommittee met, pursuant to notice, at 11 o’clock a.m., in room 2172 Rayburn House Office Building, Hon. Steve Chabot (chairman of the subcommittee) presiding. Mr. CHABOT. The committee will come to order. Good morning. I want to welcome all of my colleagues to this hearing of the Subcommittee on Asia and the Pacific and I’d like to extend a special thanks to our ranking member, Mr. Faleomavaega, who cannot be with us this morning as he is en route to Washington. We originally intended to have this hearing later this afternoon but moved it to this morning to accommodate President Obama’s visit to the Capitol this afternoon. Mr. Faleomavaega graciously insisted we move forward without him, so I want to thank him and his staff for their flexibility. In his stead, I would like to welcome Mr. Ami Bera, who will sit in for the ranking member this morning during the course of this hearing and act as the ranking member of this subcommittee. I’d also like to thank our witnesses for being here today and for their flexibility as well. Mr. Bera and I will make opening state- ments now and other members will be recognized for a minute to make a statement if they would wish to do so. We try to keep ours to 5 minutes if at all possible. Today’s hearing is a continuation of the hearing we held 2 weeks ago with Assistant Secretary Robert Blake and Acting Assistant Secretary Joseph Yun, which gave the administration the oppor- tunity to address how it plans to increase South Asia’s role as part of the strategic rebalance toward Asia. I think it’s fair to say that there was bipartisan support in this room regarding the critical strategic importance of South Asia, particularly with India, to U.S. interests in the broader Indo-Pacific region. I want to emphasize today that I do not believe the administration’s rebalance will suc- ceed unless the U.S. does more to build a stronger relationship in that part of the world. That said, 2 weeks ago we did not hear from our witnesses how the administration specifically plans to tackle the myriad of chal- lenges the U.S. confronts in enhancing its engagement in that re- (1) VerDate 0ct 09 2002 10:41 Apr 16, 2013 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\WORK\_AP\031313\79892 HFA PsN: SHIRL 2 gion, or tangible actions the administration intends to pursue to emphasize South Asia’s critical importance and better integrate India into the regional architecture. Today, I hope that we can ex- plore these challenges and examine actions the United States can take to further U.S. interests and foster stronger relations through- out the Indo-Pacific region. The interconnection of U.S. economic, political and security objec- tives can be found in and along the Indian Ocean Rim. Economi- cally, the region is a lifeline of international trade, carrying half the world’s container ships, one-third of the bulk cargo traffic, and two-thirds of the world’s oil shipments. Woven together by trade routes, it is a geographic area upon which the world greatly de- pends, and containing nearly a third of the world’s population, the significant human resources and technological capabilities within the Rim-land is extraordinary. It is certainly no surprise that China and India regard this re- gion as critical, where economic interests meet security interests. Consequentially, actions and decisions made in this region will un- doubtedly have a direct impact on the economy of the United States and on creation of American jobs. Since these actions will also help to shape the political landscape, it is now more important than ever that the U.S. focus on enhancing economic openness, po- litical freedom and democratic governance in this region where so many nations are in the midst of political transition. The opportunities we see in South Asia are at the same time challenges, and one of the biggest challenges we face is building a more dynamic relationship with India. It is vitally important for the U.S. that India takes a more active role in developing the In- dian Ocean region and increases its engagement in the Asia Pa- cific; however, the real question is, how can we help India do this? India is still excluded from various security and economic groups, particularly U.S.-led global nonproliferation and arms control groups and a range of economic associations. Now, India wants the U.S. to play an active role in maintaining regional security
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