Rice: India Should Not Strike Oil Pipeline Deal With Iran

The Associated Press, USA Today:

The United States and India papered over differences on U.S. arms sales to Pakistan and an Indian oil pipeline deal with Iran on Wednesday, ahead of a possible visit to India by President Bush later this year. READ MORE

Secretary of State Condoleezza Rice discussed future sales of sophisticated F-16 fighter planes to both India and rival Pakistan with her Indian counterpart, but said no announcement is imminent.

India wants to buy the U.S. weaponry while denying it to Pakistan. The neighboring rivals have fought three wars since their 1947 independence from Britain.

Meanwhile, the United States wants India to scotch a potential deal to build an oil pipeline from Iran to serve the expanding economy in India, the world's largest democracy.

"We did express ... concerns about several matters on the defense issue," Indian Foreign Minister Natwar Singh said at a joint press conference with Rice.

"There are one or two items on which we don't agree, but our relations have now reached a maturity where we can discuss these things freely and frankly."

Rice said U.S. objections to the pipeline are well-known. The United States has no diplomatic relations with Iran and wants to keep international pressure on the Tehran regime to give up nuclear ambitions and institute democratic reforms.

Singh, however, indicated little willingness to back off pipeline discussions.

"We have no problems of any kind with Iran," Singh said.