Prime Minister, Mr Atal Behari Vajpayee underlined the need for constant vigil against terrorism and alerted against unexpected targets and tactics while addressing the Combined Commanders' Conference of Armed Forces in New Delhi. He said that we must sharpen our intelligence capabilities and build up our defence with the Armed Forces being an integral part of the multi-disciplinary effort. The technology has now created chemical and biological weapons of great diversity, which are difficult to detect. Many of the techniques and weapons can fall into hands of non-state actors. Complimenting the Armed Forces, the Prime Minister said that the defence and national security apparatus should be fully prepared to face these challenges.

Referring to the recent mobilisation of troops on the Line of Control and international border with Pakistan, Mr Vajpayee said that the international community has now publicly recognised the fact of cross-border terrorism and openly called upon Pakistan to halt it. Our military mobilisation sharply focussed international attention on the ravages of terrorism. The international community has now acknowledged that the brutal killing of men, women and children in J & K is not a freedom struggle but naked terrorism driven by Pakistan. "With this realisation also came the understanding that we would not talk with Pakistan while the terrorists’ guns are held to our heads. Most countries have accepted the validity of our position that we can have a meaningful dialogue only if cross-border terrorism ends," he added.

Mr Vajpayee further said that country's engagement with the international community over the past year has also made it absolutely clear that while the world should come together either to pursuade or coerce Pakistan to stop cross-border terrorism, it is for India and Pakistan to sit together bilaterally to resolve all issues between them including Jammu and Kashmir.

Referring to continuance of cross-border terrorism, the Prime Minister said that the physical threat to voters and candidates in J & K has now been transformed into death threats to elected representatives. The threat to security from terrorism is no longer restricted only to Jammu & Kashmir, its presence is felt everywhere in the country. Every democratic society is vulnerable to this threat. Its targets vary from a temple in Gujarat to nightclubs in Bali and a theatre in Moscow.

After the J & K elections, even foreign observers admitted that the residual insurgency in the state is foreign in conception, participation and execution, but there was no hint of a genuine desire on the part of Pakistan to substitute terrorism with dialogue, Mr Vajpayee added.

As regards the next SAARC Summit to be held in Pakistan, the Prime Minister said that it has always been India's position that regional cooperation in South Asia should not be held hostage by bilateral political differences between member countries. India has consistently advocated economic cooperation and cultural exchanges as a means of preparing a climate conducive to political reconciliation. "But we have reached a strange situation where every worthwhile proposal for economic cooperation is being systematically sabotaged on irrational fears and political considerations. Then we are told we are dragging our feet on dates for the Summit," he said. SAARC has a potentially historic role to fulfil in the equitable development of the 1.5 billion people of the sub-continent. "We do not want to trivialise the Association through a Summit without substantive content. Let us therefore first talk of substance before we start focussing on dates", the Prime Minister said.

In his address, Defence Minister Mr George Fernandes spoke of the importance for the Armed Forces to operate with a high degree of jointness and synergy with one another in the conduct of various tasks. He referred to a series of measures including establishment of joint structures such as the Integrated Defence Staff, the Defence Intelligence Agency and Andaman & Nicobar Tri-Services Command. Mr Fernandes also stressed the need for a speedier acquisition, production and development of the capital equipment. The structural changes made in the Ministry of Defence in the past year, especially the setting up of Defence Procurement Board with a dedicated team of officers for this purpose, has started showing results.

Referring to military cooperation with friendly countries Mr Fernandes said that joint exercises with advanced countries like the US have provided valuable first-hand experience of observing and interacting with a group of experienced professionals trained on modern systems/designs to achieve similar goals and also a better understanding of security concerns of each other.

The Defence Minister pointed out that allocation for defence in the budget estimate has been increased to Rs 65,000 crore in the current financial year. This presents both challenge and opportunity. He expressed the hope that the budget allocation would be utilised to the full extent. He referred to various welfare measures for ex-servicemen. The Government has recently approved a new contributory health scheme, which would cover over 90% of the ex-servicemen in the country. Nearly two lakh dwelling units are being built for the serving defence personnel.

Addressing the Combined Commanders’ Conference, Deputy Prime Minister Mr L K Advani said that India has to fight the cross-border terrorism on its own even if the international community is not forthcoming with any help. Referring to Pakistan as an epicentre of global terrorism, he said that the Armed Forces deserve praise for their excellent role in not only defending the borders but also in extending help to civil authorities. The External Affairs Minister, Mr Yashwant Sinha also addressed the conference and gave an overview of the security scenario and various diplomatic initiatives of the government.