"Political and economic factors encouraged me to come here. This is a nation that chose to sign and ratify the Comprehensive Test Ban Treaty; a nation that has used its soldiers to go around the world to help others make peace; a nation that I believe is committed to democracy, with a vigorous level of political debate inside the country".

Clinton said his visit to Bangladesh marked the beginning of a new chapter in enlarging relations between the two democracies.

"Today is the beginning of a stronger partnership. The Prime Minister and I discussed ways to strengthen our economic ties, while ensuring that future prosperity is built upon respect for decent labour practices, the magnificent natural environment of Bangladesh, and a sense of responsibility toward the children who will inherit the future."

The US President made the remarks before foreign and local newsmen on the entrance steps of the International Conference Centre where a special podium was erected for him and the Bangladesh Prime Minister.

Clinton's remarks were preceded by Sheikh Hasina's comments. Only four questions, two from local newsmen and two from the White House Press Corps, were accepted in a conducted press opportunity. However, one question, despite being rejected by the conductors, was accepted by the US President for reply. The reporter wanted to know how the US looked at Bangladesh politics.

Clinton, inserting the reply in another question said, "I think one of you asked what I thought about local politics. I think the less I say about it, the better, except it certainly seems to be vigorous. And I hope it would be peaceful, because---you may know that I have a few opponents back in the United States. We have vigorous political systems; that's what democracies are about. But in the end you have to find constructive ways to resolve your differences and go on."

The US President said that despite many challenges, over the years Bangladesh succeeded in building a nation that has earned "the respect of the world". Clinton said he was proud to announce that he was the first American President to visit Bangladesh.

"But I am quite sure I will not be the last", he added with a note of optimism

"Though far apart geographically, our nations grow closer every day-through expanding trade, through the Internet revolution, and through our shared interest in building a world more peaceful, more tolerant, more prosperous and more free."

Clinton announced that the US Agency for International Development and the Department of Agriculture would provide 97 million US dollars in food assistance to Bangladesh. The same department would extend another 50 million US dollars to Bangladesh and other nations to harness clean energy, he said.

Sheikh Hasina in her remarks said it is a matter of satisfaction that the ties between the two countries have grown substantially.

She spoke about her discussions with the US President prior to the press statement. "Talks were held on bilateral trade with the US, our number one export market".

She said both the countries acknowledge the immense potential of the energy sector "and have decided to intensify cooperation." She also mentioned that two production sharing contracts (PSCs) with US companies were signed.

On gas export, she said this could be done after fully meeting domestic requirements and ensuring gas supply for 50 years for use by future generations.

He also said Bangladesh should remove red tapism, make rules and laws transparent and seek greater regional trade for a stronger economy.

He was speaking at a business conference on 'US-Bangladesh Economic Relations: Prospects and Challenges', organised jointly by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), American Chamber of Commerce in Bangladesh (AmCham) and US-Bangladesh Business Council (USBBC) at Sheraton Hotel.

"We are Bangladesh's largest trading partner. It is not unusual that when an American wears baseball cap, or a t-shirt, it is made in Bangladesh. Despite this, America has a trade deficit with Bangladesh, as we do with most nations," the US Commerce Secretary said. "So quite frankly, one reason I am here is to see how we can do better on the export front, while supporting efforts to develop the local economy."

"Obviously, American companies like your liberal investment policies and today, we certainly are encouraging the government to make sure they are implemented."

"To be frank with you, and I say this in every country I go to, it does not make any sense to bring American companies in when you know they will create jobs in Bangladesh, and then tie the companies up in red tape. Or make them face uncertain rules and laws, or a lack of transparency.

He also hoped that Bangladesh should find ways to trade more with her neighbours. Broader regional cooperation on other fronts often follows trade, as South Asia is finding. And this can build a better future for everyone in South Asia, by bringing stability. It shows that countries that trade openly can benefit substantially.

He said Americans can help Bangladesh take advantage of its resources while investing in critical infrastructure.

"In our view, Bangladesh must be firmly committed to pro-growth, and pro-business policies. I know, for an American official to come in, and suggest what countries should or shouldn't do, may not suit well."

"But the fact is, as democracies, we should all be sharing ideas. That's what democracies are all about. And there is a thirst for our businesses and their innovations. Every country I go to, people want to know how they can get Bill Gates or Jack Welch to invest and bring jobs.

Enforceable commercial laws are a good start. Companies look at the infrastructure, also, and at the skills and training of the workforce.

"They look at whether there is political stability, and at labour laws. We certainly applaud Bangladesh for efforts to stamp out child labour," Daley said.

With the right policies in place, Bangladesh could see sharp increases in American investments in energy resources, he said.

Describing the strength of the US economy, he said information technology and e-commerce has tremendously helped the growth. The free trade policy also helped the country generate more jobs.

He hoped that with the start of a new century, Bangladesh and USA will redouble efforts to trade more, to build Bangladesh's industrial base, so that it can produce quality products.

Speaking on the occasion, Finance Minister SAMS Kibria said Bangladesh offers excellent opportunities for private investment.

"Bangladesh also has a unique locational advantage as it provides a link between South and South East and East Asian markets. It has in place the required institutional facilities for promoting private investment."

Industries Minister Tofail Ahmed also sought unilateral and immediate duty-free access for Bangladesh's goods to US market and welcomed US investments in infrastructure, telecom, IT and manufacturing sectors.

"We need your support, your generous investment, your special treatment to our exportable goods," he said.

Commerce Minister Mohammad Abdul Jalil urged the US government to immediately increase Bangladesh's garments export quota by at least 30 per cent.

"The USA has so far not provided any special and differential treatment to Bangladesh, which is due to her under the Agreement on Textiles and Clothing (ATC)," he said.

He also sought assured market access of IT products and easy entry of IT personnel to the USA and asked the US government not to ink non-trade issues with trade.

Bangladesh Garments Manufacturers and Exporters Association (BGMEA) President Anisur Rahman Sinha sought US support to the huge outlay involved in improving workplace code of conduct and human rights and wanted quota increase for Bangladeshi apparels.

FBCCI President Andul Awal Mintoo hoped that US companies would be involved in the development of down-stream utilisation of gas.

Regarding the US demand for trade union rights in the EPZs, he urged the USA to look at the labour issue with flexibility, allowing Bangladesh more time to accelerate growth and reduce unemployment.

He also sought a bilateral free-trade agreement between the two countries in lieu of seeking unilateral access for Bangladeshi products to the US market.

The conference was also addressed by, among others, AmCham President Forrest E Cookson, US Congressmen Frank Palone and Edward Royce.

" Similarly, on the question of export of power, we maintained that with new gas fields being discovered and developed, we must find good use of the gas," the prime minister said at a joint press conference after official talks with US President Bill Clinton.

She said Bangladesh would welcome commercially viable proposals for export of power produced by utilising natural gas.

Sheikh Hasina also announced initialling of two production sharing contracts (PSCs) with US oil companies Pangaea and Unocal for exploration of oil and gas.

During the talks, the two leaders discussed expansion of trade, cooperation in the energy sector, micro-credit and poverty alleviation programme, extradition of Bangabandhu's killers and nuclear issues.

The US President was aided by Secretary of State Madeleine Albright, Commerce Secretary William Daley, National Security Advisor Samuel Berger, Chief of Staff John Podesta, Assistant Secretary of State Karl Inderfurth and National Economic Counselor Rick Samans.

The Bangladesh Prime Minister was assisted by Foreign Minister Abdus Samad Azad, Finance Minister Shah AMS Kibria, Home Minister Mohammad Nasim, Commerce Minister M A Jalil, State Minister for Foreign Affairs Abul Hasan Chowdhury, Principal Secretary Dr S A Samad, Foreign Secretary CM Shafi Sami and Press Secretary Jawadul Karim.

In her introductory remarks, the Prime Minister said nuclear tests would only destroy the economy of the poor countries. "Instead of going for nuclear programmes, developing countries can spend the money on education and other poverty eradication programmes."

She said the US President's visit bears the testimony of friendly relations between the two countries on peace, democracy and rule of law.

President Clinton praised Sheikh Hasina's efforts for peace in South Asia after nuclear tests by India and Pakistan. He also appreciated the ratification of the CTBT, Bangladesh's role in UN Security Council and in peacekeeping.

BSS adds: Hasina requested Clinton to speed up the deportation of the killers of Bangabandhu who are now living in the United States.

Being the greatest democracy, the United States should not provide refuge to the killers, Sheikh Hasina said.

About extradition of the killers of Bangabandhu, President Clinton said there should be an extradition treaty.

The Prime Minister said a draft of the treaty has already been sent to the US authorities. "Bangladesh would deeply appreciate efforts of Department of State and Department of Justice to send back the killers who had committed heinous crimes to humanity.

"

Hasina also urged Clinton to continue to lend US support to the democratic governments and discourage unconstitutional and illegal change of governments.

"The United States as the champion of democracy and human rights, should continue to send strong messages to the world in support of democratic governments and strongly discourage unconstitutional and illegal change of government, " Sheikh Hasina said during the official talks.

UNB adds: Clinton billed his maiden visit to Dhaka as "only the beginning of a stronger partnership" with Bangladesh that would nudge bilateral economic ties.

"Today, from many sources of our different national traditions, we meet in Dhaka to build our common future," he told newsmen after the talks.

Clinton said he felt proud to be the first President of the United States to tour Bangladesh, "But I'm quiet sure I'll not be the last."

Clinton said though far apart geographically, "Our nations grow closure everyday through expanding trade, through the Internet revolution, and through our shared interest in building a world more peaceful, more tolerant, more prosperous and more free."

Referring to Bangladesh's religion, culture and democratic practices, he said the USA admires Bangladesh as a nation proud of its Islamic heritage, proud of unique culture, proud of its commitment to tolerance and democracy, and proud of its participation in the world community.

Touching on Bangladesh's active role in international affairs, Clinton said: "We are grateful for your leadership in the United Nations and your courageous example in sending peacekeepers to end the conflict in Bosnia and Kosovo."

He said America particularly honoured Bangladesh as the first nation in South Asia to ratify the Comprehensive Test Ban Treaty (CTBT).

About the talks with Premier Sheikh Hasina today he said: "The Prime Minister and I discussed ways to strengthen our economic ties, while ensuring that future prosperity is built upon respect for decent labour practices, the magnificent natural environment of Bangladesh, and a sense of responsibility toward the children who will inherit the future."

Clinton said: "Anyone who looks at the map can see that this is a nation of great rivers, from many sources merging together as they approach the Bay of Bengal. Today, from many sources of our different national traditions we meet in Dhaka to build our common future."

Sources said the White House avoided the Energy Ministry's attempts to keep Clinton at the contract signing ceremony.

The government tried to sign the contracts when Clinton visited the Prime Minister's office in the morning. After the White House refused, the government tried again at different venues.

The last attempt was made at the Bangabhaban where Clinton attended a banquet hosted by President Shahabuddin Ahmed. When that attempt failed, the government postponed the ceremony.

Pangaea and Unocal executives remained on standby at the Petrocentre throughout the day. They were instructed to wait there on Sunday, since the White House refused to agree to the government's plan to sign the contracts in front of Clinton.

"It would have been very unusual to have the U.S. president present on such an occasion," said an official. "It's a company to company affair and Bill Clinton commands a different stature. We've signed PSCs in the past and there is no instance of having such high profile leader present."

The two contracts were for the exploration of Block 7 and Block 8. Both contracts were "over-enthusiastically" initialed recently. The fate of the contract for Block 9, initialed by Tullow-Chevron-Texaco, has become uncertain, since Texaco asked for more time before it signed the final agreement. This contract was also supposed to be signed yesterday.

Sources said Texaco stated in a letter Sunday that Bangladesh's Law Ministry made some changes after the contract was initialed. Texaco said the changes would have to be cleared by its' own lawyers before it could sign the contract.

When Texaco sent the letter to Petrobangla, Chevron proposed unofficially that it wanted to take Texaco's 30 per cent share of Block 9. However, Tullow's representatives said it should have priority, complicating the contract's fate.

"It was a full-fledged meeting as top leaders of the Clinton administration attended it and paid attention to our deliberation," said Abdul Mannan Bhuiyan, BNP secretary general, during a briefing at 29 Minto Road. "The call on turned into a complete meeting."

Bhuiyan said Khaleda welcomed Clinton to Bangladesh, discussed various issues and asked America to invest more in the country. She also asked Clinton to allow Bangladesh to export more to the U.S. and increase the garment quota by at least 30 per cent.

Khaleda also urged Clinton to grant Bangladeshi nationals living in the U.S. residence status.

She discussed the violation of human rights, state of democracy, deterioration of law and order, repression of the opposition, the ineffectiveness of parliament, the collapse of administration, uncertainty in people-oriented programmes and the government's incompetence to complete economic, institutional and administrative reforms.

The leader of the opposition in parliament also briefed Clinton about the opposition's current movement for an early general election.

Khaleda said the opposition was forced to come out on the street as the ruling party refused to allow it to have a say on national issues, including the Ganges Water Sharing Treaty and the CHT Peace Accord.

She said the government has killed 300 opposition activists, arrested about 10,000 others and implicated about 60,000 leaders and workers in false cases.

The former prime minister said existing laws were enough to curb crime and violence, but the government was using the Public Safety Act to harass the opposition.

The U.S. president said Bangladesh is a country of immense possibility. However, he said foreign investors were avoiding it due to the prolonged political conflict. Foreign investment and socio-economic development cannot be achieved if the conflict continue, he maintained.

Clinton said the nuclear tests in India and Pakistan created an unprecedented opportunity for Bangladesh since the international image of both countries was affected.

Meeting sources said Clinton told Khaleda that he was fully aware of social, political and human rights situation in Bangladesh. He added the U.S. government was closely monitoring the situation in Bangladesh.

The U.S. president recalled that he had met Khaleda Zia twice in the past and Hillary Clinton and his daughter, Chelsea, visited Bangladesh while BNP was in power.

Clinton also recalled that he talked with Khaleda over phone when she was the Prime Minister to request her to send Bangladeshi troops for the peace keeping force in Haiti.

Earlier, Khaleda wished Hillary Clinton success in the ensuing Senate election.

BNP leaders Prof. A.Q.M. Badrudozza Chowdhury, M Saifur Rahman, Abdul Mannan Bhuiyan, Abdul Matin Chowdhury, Nazmul Huda, M. Morshed Khan and M.M. Rezaul Karim assisted Khaleda Zia during the meeting.

Clinton was accompanied by the secretary of state, the chief of national security council, the White House chief of staff, the assistant secretary of state, the U.S. ambassador.

Khaleda presented Clinton with a "sheaf of paddy" made of gold and a "bullock-cart" made of silver.

The meeting took place at the US Embassy, where Clinton also met with the women clients of the Grameen Bank from Joypura, a small village in Dhamrai, 35 kilometres north west of Dhaka.

The women came to meet Clinton after his visit to their village was cancelled for security reasons.

Clinton had a 40-minute meeting with his old friend Dr. Yunus and asked about the progress of his projects.

He also used the mobile phone of a woman from Joypura to place an international call.

Clinton said he was happy to see that the hi-tech mobile phone was being used by the simple village women under Grameen Phone programme in rural Bangladesh.

Under one agreement, Worldtel will implement a project to install 300,000 telephone lines on build operate and own (BOO) basis in the first phase at a cost of US$ 300 million.

Under the other agreement, Tyco Submarine Systems Ltd (TSSL) will install an undersea fibre optic cable system that will give Bangladesh worldwide connectivity at the cost of US$ 150 million.

The government had floated a tender for implementing a project to install 300,000 telephone lines in the first phase. Worldtel participated and won the tender in November 1998.

In the second phase, Worldtel will extend the project for providing another 200,000 telephone lines.

The project includes Broad-band and basic services, high speed internet access.

Tyco Submarine Systems Ltd (TSSL), a wholly-owned subsidiary of Tyco International Ltd, signed a memorandum of understanding with the Bangladesh Telephone and Telegraph Board (BTTB) to design, manufacture and install an undersea fibre optic cable system to be known as the Bangladesh-Singapore Submarine Cable System.

Scheduled for completion in 2002, the system will connect Bangladesh and Singapore and will be about 3,200 kilometers in length. This system will enable Bangladesh to link up with some of the major undersea cable systems that land in Singapore and give it worldwide connectivity.

TSSL is the world's leading supplier of undersea communication systems and services. The company owns and operates one of the world's largest fleets of world class cable ships for installation and maintenance of undersea communication networks.

The itinerary was kept under wraps by both the sides. Details were released by the Bangladesh Ministry of Foreign Affairs and the Internet site of the White House at 'whitehouse.gov' several hours prior to the arrival of the US President.

A major change in the itinerary was made by dropping the visit to a Grameen Bank project and a BRAC school at Joypura. The CNN, quoting White House sources, said in its Sunday night bulletin that the programme was dropped.

It said that the visit to Joypura was cancelled because of security concerns raised by US Secret Service as they could not ensure security at the town (Joypura).

Officials of both BRAC and Grameen said they were informed only hours before the US President's arrival that the programme was cancelled with a request to 'replicate' part of the programme on the US embassy premises.

The visit to Savar National Memorial was also dropped for unknown reasons. No government official could give any reason for this. Everyone said the US President would be going there sometime later in the day.

The US President did not arrive in the special Boeing which is called the Air Force One. His aircraft was kept parked at Delhi. Instead, he arrived in Dhaka in a smaller jet.

For purpose of identification, any aircraft used by the US President is called Air Force One and his helicopter Marine One. The US Presidential fleet to Dhaka also included a.C 17 Globemaster, a C-130 aircraft and a Northwest 747.

On arrival at the Zia International Airport, the President was whisked away by the US Secret Service and was led into a 'land cruiser ' instead of one of the two limousines, all flown from the US. This method of using 'decoy cars' was resorted to more than twice during his visit, sources said.

A surveillance aircraft was kept flying for 12 hours from 10 in the morning. It landed only once for refuelling. Other spotter aircraft and helicopters were kept flying in the air while the US President was moving in the city by road.

Despite such high security measures taken by the US, which engaged several advance teams for many days, the reasons for changes in the programme could not be known. A well placed source said it was not unlikely that wrong information or 'disinformation' by interested quarters may have led to some 'programme casualties.'

A highly placed security official when asked said, "Bangladesh is, security wise, very safe. We can provide absolute security cover in any particular place in the country. It is up to the guest to accept or not."

When asked by a newsman at the joint press briefing yesterday afternoon, President Clinton did not give any direct reply on the issue.

An American reporter asked him: "Sir, can you tell us what security concerns prompted you to cancel your trip to the village (Joypura) today? And are you confident it will not happen again on this trip, particularly in Pakistan?

Clinton replied, "The answer to the first part of your question is, No I won't, because I don't think I can, I should." But let me (tell) that I thought it was very important for me to come here. And I think it's important for the United States to see its friends and to work for a future. I regret that I could not go to the village. And I'm delighted rthat the villagers are coming to see me because it will give me a chance to highlight something the American press has heard me talk about many times, which is that the whole microcredit movement in the world basically began here in Bangladesh with the Grameen Bank nearly 20 years ago--maybe more than that now."

The Committee for Eliminating Killers and Collaborators of '71 hold a rally in protest against the decision.

Clinton was scheduled to pay tribute to the Liberation War martyrs, a tradition for visiting world leaders, but it was cancelled in the last minute due to "security reasons."

He is the first visiting head of state or government not to pay respect at the mausoleum.

Noted artist Hasem Khan chaired the rally held at the Teachers-Students Centre (TSC) at Dhaka University.

Terming the incident as an insult to the three million martyrs, speakers said by not visiting the National Mausoleum, Clinton has proved that the US policy towards Bangladesh has been the same as it was during the country's independence in 1971.

They asked the government to lodge a protest with the US government.

Prof. Muntasir Mamun, Shahrier Kabir, Khusi Kabir, Aroma Dutt, Mosharraf Hossain and Afzal Hossain addressed the rally, among others.

Sammilito Sangskritik Jote, a platform of the country's leading cultural organisations, also condemned cancellation of the visit.

"The mistake the US committed in 1971 by opposing the Liberation War could have been somewhat mended if Clinton had paid tribute at the National Mausoleum."

National Co-ordination Committee also condemned the action.

Syed Hassan Imam and Prof Abdul Mannan Chowdhury, convenor and member secretary of the committee in a statement said even a Pakistan president visited the National Mausoleum.

President Shahabuddin Ahmed and Prime Minister Sheikh Hasina saw him off at the VVIP Tarmac of the Zia International Airport as he flew back to New Delhi.

A smiling Clinton waved to say goodbye to Bangladesh before he stepped into his Sea-20 jet, Air Force One.

The President was accompanied by Secretary of State Madeleine Albright and Secretary of Commerce William Daley.