On Monday, India announced it had set off three nuclear explosions underground. This in turn has set off a global outcry. Pakistan, India's uneasy neighbor, has promised to conduct its own tests, and the U.S. has promised to implement sanctions. After this background report, Ambassador Naresh Chandra explains his country's actions.

SPENCER MICHELS: On Monday, India announced it had conducted three underground nuclear weapons explosions--the first such tests in 24 years--in the desert State of Rajasthan, close to the border of Pakistan. Nuclear testing has been a major political issue inside and outside India for decades, but word of yesterday's tests caught the world by surprise and drew criticism from world leaders, including President Clinton.

PRESIDENT CLINTON: I call on India to announce that it will conduct no further tests and it will sign the comprehensive test ban treaty now and with no other conditions. I also urge India's neighbors not to follow suit--not to follow down the path of a dangerous arms race. As most of you know, our laws have very stringent provisions signed into law by me in 1994, in response to nuclear tests by non-nuclear weapon states, and I intend to implement them fully.

SPENCER MICHELS: U.S. law orders the president to impose economic penalties and sanctions against non-nuclear nations that begin testing and/or selling nuclear weapons. India's neighboring arch-enemy, Pakistan, reacted harshly and threatened to conduct nuclear tests of its own.

GOHAR AYUB KHAN, Foreign Minister, Pakistan: On this issue, Pakistan is one. There is no one voice against it. And such threats will be matched.

SPENCER MICHELS: India, with its 968 million people, likes to call itself the world's largest democracy, but it is no stranger to turmoil. It became an independent nation in 1947 out of communal strife between its majority Hindus and minority Muslims--millions of whom fled and became citizens of the newly created Pakistan--a nation with a population of 132 million. India has since fought four wars--or border skirmishes--with Pakistan and China. Unresolved claims over Kashmir remain a flash point between India and Pakistan and almost brought the two to war in 1990.

As a result, South Asia is one of the world's more heavily and lethally armed regions. India has armed forces of more than one million and a defense budget of more than $8 billion. Pakistan's military is more than half that--500,000 armed forces and a defense budget of more than $3 billion. And both countries continue to buy and develop and test aircraft and missiles capable of attacking deep into the other's territory. In 1974, India announced it had tested a so-called nuclear device for the first time. Pakistan has never formally admitted having nuclear weapons. Even so, since 1990, the U.S. Congress has embargoed sales of high-tech aircraft to Pakistan because the President could not certify Pakistan did not have a nuclear device. India has split with the world on nuclear issues before. It refused to sign the 1970 Nuclear Non-proliferation Treaty--along with Pakistan and Israel--and as a "non-signer," India has no obligations to open its nuclear facilities to international inspection. In 1996, India also refused to sign the comprehensive test ban treaty.

Though both India and Pakistan appeared to have been working to reduce tensions in recent years, Indian domestic politics took a nationalist turn in elections two months ago. A coalition headed by Hindu Nationalist Atal Bihari Vajpayee won the election. And Vajpayee became prime minister. His Bharatiya Janata Party says that India will take all steps to protect its territory--including building nuclear weapons to counter Pakistan. But just last week, the defense minister said India's major threat no longer comes from Pakistan but from China--a full fledged nuclear power. And late today, the Chinese government said it was seriously concerned about the tests, which it called a detriment to the peace and stability in South Asia. By going ahead with these nuclear tests the Clinton administration says India could face sanctions from the U.S.