"Your Excellency, Mr. President, Ladies and gentlemen of the press - It is always a pleasure to meet President Karzai and exchange views and experiences with him. In our meeting just before this, we had very fruitful discussions on a wide range of bilateral issues and matters of mutual interest to the people of this region. I took the opportunity to compliment the President, and through him, the people of Afghanistan on the successful completion of Parliamentary elections in Afghanistan. This is an important landmark in Afghanistan's progress in becoming a sovereign, democratic country.

During our talks, I reaffirmed India's commitment to extending full cooperation to the people and Government of Afghanistan in their reconstruction efforts. I informed President Karzai that India will provide additional assistance valued at US$ 50 million to Afghanistan. This amount will thereby raise the total assistance we have committed to US$ 650 million; the amount of US$ 200 million has already been spent on various projects.

Three Memoranda of Understanding have been signed today, for promoting cooperation in Rural Development, Education Exchange Programme and on Standardisation. These are reflective of our broad-based involvement with Afghanistan's development.

We also discussed the security situation in Afghanistan and expressed concern at the increased terrorist activities in some parts of the country.

The President of Afghanistan and I reviewed our cooperation in a regional setting as well. I welcomed Afghanistan's entry into SAARC, as decided at the last summit meeting. It is a particular privilege for us that the first SAARC summit in which Afghanistan shall participate will be in India early next year. We have also agreed that India will host the second Regional Economic Reconstruction Conference for Afghanistan in New Delhi in November this year.

I should note that we are particularly happy to see the large business delegation for Afghanistan that is accompanying President Karzai. Its members will have a joint meeting with our Business Chambers later today. We would like to encourage such interaction and in order to encourage trade and investment ties, we shall consider establishing a Line of Credit facility of US$ 50 million. We have also decided to set up a Joint Committee of the Commerce Ministers of the two countries to review the implementation of the bilateral Preferential Trade Agreement and promote bilateral trade.

Before closing, I would also like to extend a warm welcome to the Afghan artisans who have come to India for the Festival of Afghanistan which will be inaugurated tomorrow by President Karzai. Mr. President, may I now invite you to say a few words to the press after which we could invite some questions.

Thank you".