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DATE=7/14/98 TYPE=CORRESPONDENT REPORT NUMBER=2-235425 TITLE=INDIA/DEFENSE (L-O) BYLINE=ANJANA PASRICHA DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: INDIAN DEFENSE AUTHORITIES HAVE ORGANIZED AN EXHIBITION IN NEW DELHI DISPLAYING WEAPONS WHICH THEY SAY WERE SUPPLIED BY PAKISTAN TO KASHMIRI SEPARATISTS. ANJANA PASRICHA REPORTS THE EXHIBITION IS PART OF A STEPPED-UP PUBLICITY CAMPAIGN BY INDIA TO BACK OFFICIAL CLAIMS THE KASHMIRI INSURGENCY IS SUPPORTED BY ARCH-RIVAL PAKISTAN. TEXT: PRIME MINISTER ATAL BEHARI VAJPAYEE INAUGURATED AN EXHIBITION TUESDAY IN WHICH INDIAN SOLDIERS LINED UP STACKS OF RIFLES, ANTI-TANK MINES, EXPLOSIVES AND OTHER WEAPONS. AUTHORITIES SAY THE ARMY SEIZED THESE WEAPONS FROM KASHMIRI SEPARATISTS DURING THE PAST DECADE. SENIOR CABINET MINISTERS, DIPLOMATS, AND LAWMAKERS WERE INVITED FOR THE EVENT. DEFENSE MINISTER GEORGE FERNANDES SAYS THE EXHIBITION IS MEANT TO SHOW THE THREAT INDIA FACES FROM PAKISTAN IN KASHMIR. /// FERNANDES ACT /// I FELT THAT LAWMAKERS IN DELHI AND THE PEOPLE OF INDIA, AND ALSO THE REST OF THE WORLD SHOULD GET TO SEE, GET TO KNOW,M THE KIND OF SITUATION THAT PREVAILS IN KASHMIR. /// END FERNANDES ACT /// NEW DELHI ACCUSES PAKISTAN OF AIDING THE KASHMIRI REBELLION BY TRAINING AND ARMING MUSLIM SEPARATISTS. PAKISTAN DENIES THIS -- AND SAYS IT OFFERS ONLY MORAL AND DIPLOMATIC SUPPORT TO THE KASHMIRI PEOPLE. // OPT // A DOCUMENT DISTRIBUTED AT THE EXHIBITION BY THE ARMY SAYS PAKISTAN'S STRATEGY IN KASHMIR IS TO BLEED INDIA THROUGH A "THOUSANDS CUTS", REDUCE INDIA'S CONVENTIONAL ARMS SUPERIORITY AND EXPAND MILITANCY TO OTHER STATES. // END OPT // BUT, DEFENSE MINISTER FERNANDES ALSO SAYS THE SEPARATIST INSURGENCY IN THE KASHMIR VALLEY IS WANING. /// INSERT FERNANDES ACT /// IN SO FAR AS THE (KASHMIR) VALLEY IS CONCERNED, MILITANCY IS NOT ONLY ON THE WANE, BUT I THINK IT IS NOW ON ITS LAST LEGS. IN AS MUCH AS THE NORMAL PEOPLE'S LIFE IS MORE OR LESS NORMAL. I WAS IN SRINAGAR RECENTLY, NOT ONCE BUT TWICE, THERE WERE TOURISTS IN THEIR THOUSANDS THERE, INDIAN AS WELL AS FOREIGN TOURISTS, AND OVERALL THE SITUATION I FOUND IN THE VALLEY WAS -- IMPROVING IS NOT THE WORD -- IN CERTAIN AREAS IT WAS A VERY NORMAL SITUATION. /// END FERNANDES ACT /// INDIA AND PAKISTAN HAVE FOUGHT TWO WARS OVER THE DISPUTED KASHMIR REGION, WHICH IS CLAIMED BY BOTH COUNTRIES. HOSTILITIES BETWEEN THE NATIONS HAVE COME BACK INTO SHARP FOCUS AFTER THEY EACH CONDUCTED NUCLEAR TESTS. (SIGNED) NEB/RAE 14-Jul-98 9:16 AM EDT (1316 UTC) NNNN Source: Voice of America .