PEKING: China has written off four loans amounting to 110 million dollars outstanding against Pakistan with a promise of fresh loans to help build Pakistan’s economy, according to the Sino-Pakistan joint communique. The interest-free loans given in 1965 were due for repayment in 1974 but China turned them into grants in view of the tremendous setback to Pakistan’s economy following events of last year. Regarding the 200 million dollars loan pledged in 1970, an official spokesman said its repayment had been postponed by a period of 30 years. — News agencies

[Meanwhile, as reported by news agencies in New Delhi,] The Indian Defence Minister, Mr Jagjivan Ram, said today [Feb 2] the Kashmir cease-fire line would have to be adjusted and made into an international frontier in peace negotiations with Pakistan. He also told a meeting of the Foreign Correspondents Association that while India would not request withdrawal of the United Nations Observers on the line they really had no role to play now. “What have they to observe since the whole line has been distorted by the war,” he said in reply to questions. … Mr Ram added, turning it into a frontier would remove much of the bitterness between India and Pakistan arising from complaints of violations. …

Published in Dawn, February 3rd, 2022