FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury Secretary Lawrence H. Summers, Monday, signed an agreement with Finance Minister Sinha of India to establish the India-U.S. Financial and Economic Forum to strengthen the economic relationship between the two countries by facilitating regular discussions of financial sector developments, investment and macroeconomic policy.

I am confident that this Forum will help inaugurate the wide ranging dialogue envisioned by President Clinton and Prime Minister Vajpayee," said Secretary Summers. "Strengthening our economic and financial relationship through dialogue is critical to developing a closer, deeper multifaceted relationship with India."

Secretary Summers joined Finance Minister Sinha of India, who was in Washington to attend the World Bank/International Monetary Fund spring meetings, to sign the terms of reference for the agreement.

In addition to an annual meeting between the U.S. Treasury Secretary and Indian Finance Minister, staff will meet periodically to discuss technical financial, macroeconomic and investment issues. The first sub-cabinet level meeting is expected in Washington in the next few months.

The agreement grew out of discussions between Secretary Summers and Finance Minister Sinha, during the Secretary's visit to New Dehli in January, and was discussed at the meeting between President Clinton and Prime Minister Vajpayee during the President's visit to India in March.