ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Balance of Payments - The Data Lag

could be expected to welcome the increasing signs of thaw in the economic and political relations between the two countries. The resumption of travel and communications some weeks ago was a major breakthrough: the process has been carried forward by the decision now reached for an immediate resumption of trade in a specified number of commodities. It was truly extraordinary how a short bout of warfare nearly a decade ago between the two countries led to a total interruption of economic and trade relationships. This should not have happened; the cessation of hostilities should have been followed by a resumption of the normal flow of men, goods and communications. But that it had to be otherwise gives rise to the suspicion that the actual fighting was perhaps only an alibi for those who were primarily interested in choking off normal economic intercourse between the two countries for their own private reasons. The process is all too familiar by now. This country's border clash with China lasted hardly ten days, but economic relationships have been frozen ever since. The 1965 war with Pakistan brought about exactly the same kind of development. In this matter, the further war in 1971 had nothing additional to contribute. It merely hardened a situation which was already sufficiently developed.

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