Delivering a lecture on globalisation here on Tuesday, he said clear distinction between equity capital and speculative capital is the difficult question, which should be addressed in the emerging scenario. While equity capital goes hand in hand with the local interests-best exemplified by Enron's major presence in India--speculative capital is not compatible with stability, he added.

Gone are the days when International Monetary Fund offer a single window prescription like austerity measures but the individual nation, depending on the population, should have long-term and short-term economic programmes which are universal in nature, he added.

The US is quite confident of a acceptablesolution to the Kashmir problem and restraint on our part is a wise move, he said, While dealing with Pakistan, India must not tread the adventurous path it had pursued during the 1971 Bangladesh war. India should handle the situation tactfully, he warned. Responding to a question, he said the US had moved its seventh fleet of aircraft carrier into the Indian ocean during the 1971 war because the then Indian prime minister Indira Gandhi did not give any assurance on her intentions towards west Pakistan, said Kissinger, who was advisor to former American president Richard Nixon.

"It was not at all done under anti-India mood," he added. He said world experience during the last 15 years has given rise to a global realisation that the events in one country had repercussion in every other country. The Thailand financial crisis which happened a few years ago had a ripple effect on other parts of the world, he added. How to develop a confluence of global interests is the political task of globalisation, he said.The death of communism and disintegration of Soviet Union has redefined the conduct of foreign policy, he said, The conduct of foreign policy has become less dangerous and more complicated, he said adding that crux of the American foreign policy is to build common interest with global powers. "I believe in very close relationship with India and countries like China."