Whether to risk status quo environment- an appetite for it or an aversion to it- is a meaningful way to explain crisis decision making since it links the strategic and the psychological conceptions of choice. It portrays leaders as calculating goal-seekers while allowing them to have different personal decision making styles.

Wrapping up his three-day India sojourn, US President George W. Bush reiterated that the relationship between India and the United States was 'closer than ever before' and India is a natural ally for the US. Ally or not, after months of intense deliberations and days of hard bargaining, India and the US have inked a landmark civilian nuclear cooperation agreement in New Delhi in early March which allows India to access U.S. nuclear fuel and technology to meet its growing energy requirements.

The US Congress has approved a $ 300 million military aid package for Pakistan in November last year, the biggest military aid package to Pakistan since the events of 9/11. President Bush has thus begun his second term by deciding to dole out ‘arms bonanza’ to Pakistan. The $300 million is a part of the foreign military financing programme (H R 4818 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005) totaling more than $4.7 billion, a major chunk of which goes to Israel ($2.2 billion) and Egypt (1.3billion).

The US President George W. Bush’s re-election poses at least one major question with regard to his foreign policy initiatives in his second term—whether the administration will see an overhaul in foreign policy-making or not. The President’s involvement with India-Pakistan has not been a major foreign policy priority for the administration during his first term. The issue, nevertheless, is an important strategic concern for the US. Both Bush and his Democratic rival John Kerry, sidelined the two South Asian countries in their election debates except over the issue of outsourcing.