``An executive order has been issued by the US president to take appropriate action to enforce laws which prohibit import of goods made by child labour. The order includes provision for preparing a negative list in which Indian carpets could be included,'' Carpet Export Promotion Council (CEPC) chairman Dhar Mishra said.

``Hand-knotted carpets might be included in the list as they have been identified by the US labour department as a product being produced by forced or indentured child labour,'' Mishra told reporters here.

According to some independent survey agencies, the incidence of child labour had come down to 0.93 per cent in India at present against about eight per cent in 1993, Mishra said adding this fact should becommunicated to the US officials for convincing them that child labour from the carpet industry has been nearly eliminated.

He said any such inclusion would severely affect carpet exports and make it difficult to realise the Rs 2,500 crore export target during the current fiscal as the United States was the second largest market for Indian carpets.

The executive order was issued by US president Bill Clinton on June 12 directing executive agencies in the US administration to take appropriate action to enforce the laws which prohibit imposition of goods manufactured wholly or partly by forced or indentured child labour, Mishra said.

The order also instructed the US department of labour to publish, in consultation with other executive agencies, within 120 days a list of products that they believe might be produced by forced child labour, he said.

Mishra said it was unlikely that hand-knotted carpets might be included in the list without a hearing but it was not mandatory to hold hearings, the CEPC chiefsaid.

Once created, there was no provision for review or revision of the list, Mishra said adding that urgent steps should be taken to avoid such a situation.

``It could be a double-edged sword if hand-knotted carpets are included in the list and any review may result in adverse publicity,'' he said.

Mishra said CEPC was doing continuous efforts to eliminate child labour from the carpet industry and was taking steps for their welfare and education but the council was not able to communicate these measures to the US government due to lack of proper communication network.

He said the council was establishing contacts with the US carpet importers and government officials to eliminate the misconceptions about Indian carpet industry.

The CEPC chairman said the council was committed to eliminate illegal child labour from the carpet industry and to achieve the goal, had undertaken several self-regulating initiatives.

The council has launched a major loom registration programme all over India but mostparticularly in the state of Uttar Pradesh where the vast majority of Indian carpets are made, Mishra said.

The main objective of the programme was to create data bank of the names of loom owners and addresses in order to make monitoring of looms possible, he said.

The council also obtains an undertaking from each loom owner that he will not employ child labour in violation of the Child Labour (Prohibition and Regulation) Act of 1986, Mishra said.

The council has also formulated code of conduct which is mandatory for all members of the council.

Members undertake that no child labour is used in the weaving of their carpets, he added.

CEPC has also created a `child welfare fund' for providing education, mid-day meal and health care to the children. To supervise the implementation of disbursements and programmes under the fund, a high powered monitoring committee called the ``national steering committee'' has also been established, he said.