Foreign Policy Issues

The summit had to deal with two unexpected crises – India and Indonesia – but still managed to dispose of all the foreign policy issues before it during the first G8 dinner on 15 May. A three page statement covered Northern Ireland, Indonesia, FRY/Kosovo, Bosnia, the Middle East and Indian nuclear tests.

INDONESIA. The outbreak of serious rioting in Jakarta obliged the leaders to make a statement about political as well as economic problems in Indonesia. This was important for Japan, whose banks are heavily exposed in Indonesia. The leaders could agree without difficulty to endorse the IMF-supported economic reforms and to call for political reforms as well. But they were careful to stop short of urging Suharto to stand down.

INDIA. The Indian nuclear tests had taken all G8 countries by surprise and their reactions diverged. US legislation obliged Clinton to introduce economic sanctions. Japan did the same, because of its horror of nuclear war – and this made Clinton and Hashimoto allies. Canada was also in this camp. But the Europeans traditionally dislike sanctions; Blair wanted to try persuasion first; and Chirac could hardly punish India for doing what France itself had done in 1995. The leaders did not allow these differences to turn into the sort of dispute they have had over sanctions in the past, eg at Versailles 1982. Clinton made no real effort to get the Europeans to impose sanctions. Instead the leaders focused on what should happen next and – after condemning the Indian tests – put all their weight behind getting India to sign up to the CTBT and the NPT. A phone contact between Blair and the Indian prime minister on 15 May offered some hope of this.

The leaders also urged restraint on Pakistan. Chretien had spoken to the Pakistan prime minister in this sense and there had also been high level American approaches. (The Blair/ India, Chretien/Pakistan contacts suggest the value of the Commonwealth network.) Even so, the summit's last morning was disturbed by rumours that Pakistan had also conducted a nuclear test – how should they react if this were true? The rumours were not confirmed, but the summit dispersed with Pakistan's intentions still unclear.