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And with its greater economic weight, it is going "all out in its cheque-book diplomacy", says Mr Holslag, with India struggling to compete.




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"It wants to be on top, maybe not to dominate territory, but to have veto power over any of its neighbours' policies it doesn't like."



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While playing down the chances of real conflict, a senior Indian diplomat admits: "There is a trust and a perception deficit" between the two.




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He said that though the text of the Durban agreement "provides a loophole for China and India", it represents "the way forward".




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He said that despite this cost, greenhouse emissions would continue to rise as two of the world's largest polluters - the US and China - had not signed the Kyoto agreement.



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Peter Kent said the protocol "does not represent a way forward for Canada" and the country would face crippling fines for failing to meet its targets.




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She said that despite numerous "provocations" from Iran, the US would continue to pursue a "diplomatic approach".

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Mr Obama said he would not comment on classified intelligence matters, but confirmed: "We have asked for it back. We'll see how the Iranians respond."


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Many analysts here believe that Pakistan in particular has come under increasing international pressure for sheltering militants on its soil, and particularly the leadership of the Afghan Taliban.




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Analysts believe the regional players of old still have a stake in Afghanistan's instability. Unity between Shias and Sunnis, and unity between ethnic groups and between



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