Extracts.


                       India, Russia Sign Sweeping Arms Deals, Defense
                       Accord

                       India signed a series of multi-million
                       dollar arms contracts with Russia Wednesday
                       to acquire frontline tanks, fighter jets
                       and an aircraft carrier.

                       The two sides also inked a wide-ranging
                       accord on military and technical
                       cooperation and another agreement on
                       cooperation in "peaceful uses of nuclear
                       energy."

                       The weapons contracts involved the licensed
                       production in India of Sukhoi SU-30M fighters and the
                       export and licensed production of T-90 battle tanks.

                       A third contract was for a Russian aircraft carrier
                       named Admiral Gorchkov, which Moscow is offering for
                       free, with India picking up the tab for a complete
                       refit.

                       "All (the) deals were finalised and signed Wednesday
                       morning," said Samir Sinha, information officer at
                       the Indian defence ministry.

                       The signing of the contracts had been delayed amid
                       last-minute haggling over prices, and Sinha gave no
                       details of the final value of the deals, which
                       initial estimates had put at well over 1 billion
                       dollars.

                       An Indian military source said the pact on the T-90
                       tanks had been stalled for some time because "there
                       was a price differential of about 150 million
                       dollars," adding that New Delhi was expected to buy
                       about 310 tanks.

                       The Press Trust of India quoted unidentified
                       officials as saying 150 tanks would be bought
                       outright and the rest assembled in India under
                       licence. They said the deal could be more worth than
                       450 million dollars and the first batch of the tanks
                       due to arrive "in the next few months."

                       The Indian military source said the 30,000-tonne
                       aircraft carrier, Admiral Gorchkov, would cost about
                       750 million dollars to refurbish while its fleet arm
                       of MiG-29K jets would cost about 1.2 billion dollars.

                       India totted up a mountain of debt through its heavy
                       arms purchases from the former Soviet Union, and
                       still owes an estimated 200 billion rupees (4.5
                       billion dollars).

                       Russian equipment has continued to provide the
                       backbone of India's armed forces since the end of the
                       Cold War but recently New Delhi has been looking at
                       other markets in Europe and Israel.

                       The accord signed by Indian Defence Minister George
                       Fernandes and Russian Deputy Prime Minister Ilya
                       Klebanov envisaged the creation of an Indo-Russian
                       commission on military-technical cooperation.

                       The commission will be headed by Fernandes and
                       Klebanov.

                       The pact on the peaceful use of nuclear energy was
                       significant given India's difficulties in acquiring
                       technology transfers because of sanctions imposed
                       after the country's 1998 nuclear tests.

                       The showpiece of Indo-Russian nuclear cooperation is
                       the Kudankulam atomic power station being set up by
                       the state-run Nuclear Power Corp. in the southern
                       state of Tamil Nadu.

                       According to the terms of the agreement, all major
                       equipment and materials including fuel for the entire
                       life of the power station will be supplied by Russia.

                       Putin will visit India's premier nuclear research
                       centre during his trip to Bombay on Thursday.


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                       Death Toll in Israeli-Palestinian Violence Rises to
                       66

                       Israeli helicopters sprayed bullets onto Palestinian
                       homes in the West Bank city of Hebron on Wednesday,
                       witnesses said, as the death toll in a week of
                       Israeli-Palestinian violence rose to 66.

                       Almost all the dead in the fighting that has swept
                       the West Bank, Gaza Strip and Arab Israeli towns are
                       Arabs.

                       In Paris, an Israeli official said Israeli,
                       Palestinian and US leaders had agreed on steps to
                       curb the violence.

                       Israeli Prime Minister Ehud Barak, Palestinian
                       President Yasser Arafat and U.S. Secretary of State
                       Madeleine Albright reached an initial agreement for
                       Israeli troops to withdraw to positions held before
                       the violence started.

                       Palestinians in return would stay away from two
                       flashpoints on the West Bank and the Gaza Strip.
                       There would also be an urgent security review.

                       In the West Bank, witnesses said a 19-year-old
                       Palestinian was killed as Palestinians exchanged fire
                       with Israeli security forces and Jewish settlers in
                       the heart of Hebron. Israeli armoured troop carriers
                       rumbled into the edge of the divided town.

                       An Israeli army spokeswoman said no helicopters had
                       been in the area.

                       A 22-year-old Palestinian policemen was killed during
                       confrontations in the West Bank town of Tulkarm and a
                       second policeman died in street battles in the West
                       Bank city of Ramallah, Palestinian hospital sources
                       said.

                       They said a 17-year-old Palestinian youth from the
                       Ramallah area died of a gunshot wound to his head, as
                       did a 22-year-old man from the West Bank town of
                       Jenin, his family reported.

                       NINE-YEAR-OLD BOY KILLED

                       Earlier in the day, a nine-year old Palestinian boy
                       was killed in clashes with Israeli security forces at
                       the flashpoint Netzarim junction in the Gaza Strip.

                       Mohammed Abu Assi was the youngest to die in the wave
                       of violence that has left the Middle East peace
                       process in tatters.

                       He was shot in the chest during a battle that raged
                       as Israeli helicopters fired rockets at a building in
                       which Palestinian gunmen had taken up positions,
                       witnesses said.

                       Anti-Israeli demonstrations flared again in Egypt.
                       Hundreds of Egyptian demonstrators marched on the
                       Israeli embassy in Cairo and burned Israeli flags
                       outside.

                       In Denmark, Palestinians immigrants threw stones and
                       clashed with police in Copenhagen after an initially
                       peaceful anti-Israeli demonstration turned violent.

                       Thousands of Syrians stoned the U.S. embassy in
                       Damascus over the violence before riot police and
                       security forces broke up the demonstration.

                       The street battles in the Israeli Arab areas, West
                       Bank and Gaza Strip erupted last Thursday after
                       Israeli right-winger Ariel Sharon visited a Jerusalem
                       shrine holy to Muslims and Jews, an act which Arabs
                       said defiled the site.

                       Gun battles also erupted on Wednesday in the West
                       Bank town of Bethlehem, although no injuries were
                       reported.

                       Two hand grenades were thrown at an Israeli post in
                       Rafah on the border with Egypt, an Israeli army
                       spokeswoman said.

                       More violence flared in Jaffa, home to thousands of
                       Arabs on the edge of Tel Aviv, when Arab
                       demonstrators attacked television crews and beat an
                       Italian journalist who was taken to hospital.

                       In the West Bank town of Nablus, a large crowd of
                       Palestinians gathered at the funeral of a man killed
                       on Tuesday and then headed to Joseph's Tomb, a Jewish
                       shrine guarded by Israeli troops. Gun fights erupted
                       at the site, witnesses said.

                       Police said an Israeli bus came under fire in the
                       West Bank near Jerusalem and one passenger was
                       wounded.






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