Prime Minister Manmohan Singh [Images] on Wednesday addressed a national level press conference where he fielded questions on issues as diverse as national security to India's foreign policy. This is his second national press conference in the 20 months since assuming office.

NATIONAL ISSUES:

ON NATIONAL SECURITY

He said the government has improved the national security environment. "We have brought peace and security to the northeastern states, to Jammu and Kashmir and to various troubled regions," Singh said, adding that the government was talking to all sections of people with a view to bringing them around to a peaceful resolution of the problem.

"We have done this without compromising on our national interests," the prime minister said.

He added that the government will continue to fight all anti-national and disruptive forces.

"We will defeat terrorism," he said.

He said the people had time and again shown that political power in India 'flows only from the ballot box and not from the barrel of the gun'.

ON NAXAL VIOLENCE

Asserting that the various state police units will combat Naxal violence, the prime minister said the government will address the root causes of the alienation.

Recognising that Naxalism was a problem in many parts of the country, the prime minister said, "While violence is to be condemned and will be faced boldly by our police forces, we will also address the root causes of this alienation -- chronic poverty, illiteracy and landlessness."

ON BOFORS

Dr Singh said the decision to unlock the London [Images] bank accounts of Italian businessman and Bofors accused Ottavio Quattrocchi was not taken at the behest of the government.

"The act of freezing or defreezing was not undertaken at the behest of the government. It was a functional decision of the Central Bureau of Investigation," he said.

The decision was taken as per the legal advice given to the CBI, he said.

ON NATWAR SINGH

He also did not rule out the return of Natwar Singh, who had stepped down as the external affairs minister in the wake of the Volcker controversy, to the Union Cabinet.

"I do not rule out anything. The Volcker issue is being inquired into. The commission is still to complete its probe," he said when asked whether Singh will make his return to the Union Cabinet. Dr Singh said the results of the probe will also be reviewed by the government.

Asked whether the Congress party did not have able persons to head the external affairs ministry and the portfolio will continue to remain with him, he said, "This is not the first time that the portfolio is being held by the prime minister. Jawaharlal Nehru had held the portfolio for a long time."

"To conclude that there is shortage of able persons to hold the post is wrong," he asserted.

ON THE STATES

"Our policy on Jammu and Kashmir [Images] is clear. We want to create an environment where all people of all shades of opinion can feel a sense of belonging and participation," the prime minister said.

Dr Singh also reminded that the state had an elected government, and it had been recognised internationally that the elections were free and fair. He also stressed on improving the quality of governance in the state.

To a question about carving out new states like Vidarbha and Telangana, he said, "We have to evolve a consensus on the issue and efforts are on."

ON THE BUTA SINGH CONTROVERSY

The prime minister asserted that the decision to dissolve the Bihar Assembly was the right thing on the basis of material available to the Centre and pointed out that even the Supreme Court did not have one opinion on the issue.

He said whatever action the government had to take in the wake of the Supreme Court judgment had been taken, virtually ruling out the resignation of Home Minister Shivraj Patil [Images] or any one else in his government.

ON ALIGARH MUSLIM UNIVERSITY

On the Allahabad high court order quashing the minority status of Aligarh Muslim University, the prime minister said the government was thinking of ways to restore the minority character of the educational institution.

"The government is contemplating measures for ensuring that the minority character of AMU is restored," Singh said.

FOREIGN POLICY:

ON PAKISTAN

Ruling out any transfer of Indian territory, the prime minister said the United Progressive Alliance government was committed to a pragmatic and practical solution to all outstanding issues between India and Pakistan, including Kashmir.

Dr Singh told reporters that he could not do certain things, such as negotiate on transfer of the Indian territory.

He added that there was movement forward in the Indo-Pak relations, noting changes such as enhanced people-to-people contact, the bus services between the two countries and the opening of five points along the LoC for the divided families on the two sides to meet.

ON INDIA'S NEIGHBOURS

Observing that the government had taken many new initiatives with regard to foreign policy and national security, Dr Singh on Wednesday said India's relations with many of its neighbours, including China and Pakistan, is improving.

In a televised press conference in New Delhi [Images], he said his government had also improved the country's relations with all major powers, especially the United States, European Union, Russia [Images] and Japan [Images], with whom India has entered into new strategic partnerships.

"Our government has taken important steps to make the world adopt a more friendly approach to us," Singh said.

"We have been able to improve our relations with many of our neighbours, including our biggest neighbour China," the prime minister said.

He noted that India was pursuing a composite dialogue with Pakistan with the 'understanding that in South Asia we have not just a shared past, but a shared future and a shared destiny'.

Singh said that the development and well being of all our neighbours was 'in our interests'.

Referring to the improvement in relations with all the major powers, the prime minister said in the next few weeks, he will be hosting the presidents of France [Images] and the US.

"I am looking forward to these visits."

Singh asserted that India will 'benefit greatly from the many new initiatives our government has taken in the field of foreign policy and national security'.

• Also see: rediff.com's South Asia coverage

ON FOREIGN AFFAIRS

Talking about Iran's nuclear programme, the prime minister said India's position on Iran's controversial nuclear programme will not be affected by any pressure.

He added that New Delhi's stand in the crucial International Atomic Energy Agency meeting will depend on the draft resolution on the issue but asked Tehran to fulfill its international obligations.

India and the US will review various bilateral initiatives, including the agreement on civilian nuclear cooperation, during President George W Bush's [Images] upcoming visit, Dr Singh said.

"It will be a time for us to review the status of our relations with the US. Some initiatives were taken with regard to cooperation in civilian nuclear power, science and technology, agriculture and between business communities of the two countries. It will a time for us to review where we stand," Dr Singh said.

Asked whether the US president will address a joint session of Parliament as his predecessor Bill Clinton [Images] had done, the prime minister said Bush's tour schedule has not been finalised so far.

He also said that India will have a Free Trade Agreement with ASEAN by the end of the current year as it has with Thailand.

With Singapore, he said India had signed the Comprehensive Economic Cooperation Agreement.

About China, Dr Singh said the two countries had established active strategic partnership during the visit by Chinese Prime Minister Wen Jiabao. Strategic partnership has also been established with the European Union, he said.

ABOUT INDIA'S PLACE IN THE UN

Regarding India's long drawn battle for a place in the United Nations Security Council, the prime minister asserted that India had a legitimate claim for a permanent seat.

Dr Singh said there was a growing recognition worldwide about this but admitted there could be 'some difficulties on the way'.

India is one of the fastest growing economies in the world and has been reaching out to various countries in terms of establishing linkages, he said.

Singh referred to India's growing relations with countries across the world, particularly the US, ASEAN countries, China, Singapore, Thailand, South Africa [Images] and Brazil [Images].

"There is growing recognition by virtue of our commitment, potential and performance," he said.

ON INDIA'S N-POWER

The prime minister said India will maintain a credible minimum nuclear deterrent and will not yield to any pressure.

"There is no question of bending... we have clear objectives... we will maintain a critical minimum deterrent and there is no question about that," he said.

He said the government was very keen to have international cooperation to 'promote trade in nuclear materials so that nuclear security gets an added cutting edge'.

Singh referred to the ongoing negotiations with the Nuclear Suppliers Group but did not furnish any details on the talks. He, however, made an assurance that the country will be fully involved through Parliament on the matter.

"There will be complete transparency... I will take the first opportunity to make a statement in Parliament on India's negotiations with the United States on the issue," he said.

The joint statement issued by the P-5 (five permanent members of the UNSC) and Germany [Images] was significant and efforts were on in Vienna [Images] to resolve the issue through dialogue, Singh said.

"I still believe that this is a matter which should be resolved through diplomacy and dialogue," he said.

The prime minister said whatever decision his government takes will be in national interest and will not be affected by any pressure. He declined to comment on remarks made by US Ambassador David C Mulford with regard to India's possible position on the Iran issue.

Referring to his visit to the US in July, Singh said the 'quality of relations' between the two countries since then has been 'upgraded'.

ON SONIA GANDHI [Images]

"She is a source of strength for me."

That is how Dr Singh described UPA chairperson Sonia Gandhi saying she had 'legitimate influence' on the functioning of the government. Dr Singh said the current system of Sonia being the UPA chairperson and he being the prime minister has had a positive impact on the functioning of the government.

"As UPA chairperson, she has a legitimate influence on the functioning of the government," Singh said.

He also said without her being there, it will not have been possible for him to achieve some things which he otherwise did.

"She is a sources of strength for me", he added.

ON HIMSELF AND THE GOVERNMENT

Saying that the 'taste of the pudding lies in its eating', the prime minister rubbished the statement of BJP leader Lal Kishenchand Advani that he is the weakest premier the country has seen and said that people will judge him by his works.

"The taste of the pudding lies in its eating. I would like to be judged by my work and not by what BJP leader L K Advani [Images] is saying," he said in a cryptic answer to a question on the suggestion that he was the weakest premier.

"Our record is credible," he said, pointing out several 'revolutionary' measures that had been initiated after the first ever Congress-led coalition came to power at the Centre in May 2004.

Dr Singh also said his government will complete its full five-year term despite differences with the Left parties on certain economic and foreign issues.

"There may be differences within the coalition but whenever a decision is taken it is through consensus. Our government will not fall. It will last the full five years," Dr Singh said, adding that some opposition gives scope for introspection. "I do not think they [Left Parties] will do so in the long run", Singh said, adding, "in a democracy some pressure does perform a useful function."

In reply to another query on pressure from Left parties ahead of the assembly polls in Kerala [Images] and West Bengal, the prime minister said some tension can be expected as a prelude to the elections.

"We are on different sides in Kerala and West Bengal and it is a fact that as elections draw nearer, political parties want to go all the way to improve their prospects," he said.

True to the saying once bitten, twice shy, the prime minister refrained from rating the performance of his government on a scale of one to ten. "Last time, when I made a comment, I was largely criticised by our own party people. This time I am wiser," he said when asked whether there was any change from his earlier rating of six out of ten.

Addressing a press conference in 2004, the prime minister had given a rating of six out of ten on the performance of his government. "It is for you people to tell how well we have fared," Singh said.