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India, Russia, China to boost economic ties

India, Russia and China vowed to boost trade and investment with each other after a one-day meeting that saw officials and businessmen from the three countries gather in New Delhi this weekend.

A top Indian foreign official admitted that the three countries needed to do much more to further economic links.

"Investment between these three countries is quite insignificant," said Nalin Surie Saturday, according to a Press Trust of India agency report.

"India, China and Russia have huge raw material and energy reserves. All three of us should come together to form a India-China-Russia business partnership."

The Russian ambassador to New Delhi, Vyacheslav I. Trubnikov, said he looked forward to further investment in his country's energy resources by the energy-hungry Asian nations.

"The three of us can work together to promote joint ventures that could infuse more investments in oil exploration and production blocks in Russia, ensuring energy security in India and China," said Trubnikov, according to PTI.

But the countries vowed to work together in other arenas as well, including technology, pharmaceuticals and services, according to a statement from the Federation of Indian Chambers of Commerce and Industry.

Chinese delegate Bu Jian Guo said efforts needed to be made to surpass the three-way trade of 39-billion dollars, the statement from FICCI, one of the conference organisers, said. Bilateral trade between China and India stands at 25-billion dollars while trade between China and Russia is double that.

Trade between India and Russia is at a mere four-billion dollars, much of it focused on military spending.

Saturday's meeting marked the first joint gathering by the three nations on strengthening economic cooperation.

The next three-way conference will take place in China in 2009.

AFP

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Tibet to see record high tourists in 2007

A record four million tourists will have visited Tibet this year thanks to a new railway linking the Himalayan region to the rest of China and another airport, state press reported Monday.

The number of tourists will have jumped over 60 percent from last year, bringing in an expected 4.8 billion yuan (650 million dollars) in tourism revenues, or 73 per cent more than last year, Xinhua news agency said. "The golden era of Tibet tourism has come," Xinhua quoted Tibet's top Communist Party official, Zhang Qingli, as saying.

Zhang attributed the rapid growth mainly to the opening of the Tibet railway the highest in the world with sections surpassing 5,000 metres (16,500 feet) in elevation and a third civilian airport in the region.

The Tibetan railway opened last year, linking the region with the rest of China and offering affordable tickets to many Chinese that previously shied away due to expensive airfares, or horrendously long and dangerous bus rides. The region received 2.5 million tourists last year and reaped 2.77 billion yuan in total tourism earnings, which accounted for 9.6 per cent of the region's gross domestic product (GDP).

Tibet's GDP grew by 13.4 per cent in 2006, the highest level of growth since 1995. But exiled Tibetans have raised fears the rail line is being used as a tool to strengthen Beijing's hold over Tibet and further endanger the region's unique Buddhist culture.

They argue the rail line is allowing the region to be flooded with more ethnic Han Chinese, who are dominating business and eroding Tibetan traditions.

"It is a source of deep concern that ever since the railway line became operational, Tibet has seen a further increase in Chinese population transfer," exiled Tibetan leader the Dalai Lama said in March.

China's army sent troops in to "liberate" Tibet in 1950, one year after the current communist government in Beijing took control of the country.

AFP

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Wheat crosses $10 first time as US exports surge

US wheat futures surged more than three percent on Monday and surpassed $10 a bushel for the first time as strong US export numbers amid dwindling world supplies prompted funds and investors to rush to cover positions.

Industry officials added that wheat prices, which have nearly doubled this year on crop worries in Australia, the United States and Europe and strong global demand, are likely to remain firm until a clearer picture emerges about US plantings in January.

"I would expect wild swings in the market until things become clear about plantings," said Mark Samson, vice president for South Asia of US Wheat Associates, a body representing US wheat farmers and exporters.

The bellwether Chicago Board of Trade March wheat contract rose by the 30-cent-per-bushel daily trading limit to $10.09-1/2 per bushel.

However, deferred contracts representing new-crop wheat fell on an improved outlook for the 2008 crop, especially in the southern US Plains.

"People just want to keep buying wheat after they checked last week that concerns over credit market and global economy did not hit demand for grains," said a trader at an international grain house.

With world wheat stocks seen dwindling to 30 year lows by the end of the 2007/08 marketing year, and India and Pakistan scouting the market for large volumes of wheat, traders said there was very little chance for a big correction in prices.

In addition, Australian wheat exports are likely to be nearly halved as stocks run out after two successive years of drought.

"It's a scramble everywhere and there will be a lot of rationing in the market," said one Singapore-based trader.

The US Agriculture Department reported on Thursday weekly export sales of US wheat at 516,800 tonnes, above trade estimates for 300,000 to 400,000 tonnes.

On the supply side, Argentina's Agriculture Secretariat halted wheat exports early December for several days to assess cold-weather damage.

Reuters