INDIA UNDERSTANDS US EXPORT PROHIBITIONS, BUT

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007248 SIPDIS PASS TO NRC E.O. 12958: DECL: 11/05/2014 TAGS: PARM PREL KNNP ETTC IN NSSP SUBJECT: INDIA UNDERSTANDS US EXPORT PROHIBITIONS, BUT WRESTLES TO UNDERSTAND POSSIBILITIES REF: A. STATE 226012 ¶B. NEW DELHI 7013 ¶C. NEW DELHI 7061 Classified By: Charge Robert O. Blake, Jr., Reasons 1.4 (B,D). ¶1. (C) Summary: As instructed in Ref A, in a separate meeting at the conclusion of the Next Steps in Strategic Partnership (NSSP) Implementation Group on October 21 (Refs B and C),Commerce Deputy Assistant Secretary Borman, and State Acting Office Director for Regional Affairs, Bureau of Non-Proliferation Russell delivered orally to MEA Joint Secretary (Americas) S. Jaishankar and other GOI officials SIPDIS from MEA and the Departments of Space and Atomic Energy, language about specific activities that would contravene US export laws and our understandings under the Phase One assurances. Jaishankar acknowledged the language, adding, "We're all on board with that." GOI officials also sought clarification about the implications of lifting various licensing requirements from the Indian Space Research Organization (ISRO) and its subsidiaries, and asked for more information about items that may be available to India over the course of the next phases of the NSSP. End Summary. ¶2. (C) Drawing on points in Ref A, DAS Borman briefly outlined the crafting of the NSSP Letter of Assurances signed by Commerce U/S Juster and Foreign Secretary Saran on September 17. Because the GOI found certain language about prohibited activities to be redundant, both USG and GOI experts agreed not to include the language in the final letter. Seeking formal acknowledgement that the GOI understands what activities would contravene US export laws, Borman identified certain specific activities that U.S. and Indian experts had acknowledged would contravene U.S. export control laws and regulations, unless specifically authorized by the USG. These include the use of US-origin licensable items in: nuclear weapons or unsafeguarded nuclear activities or in ballistic missile programs, including any rocket or unmanned air vehicle system capable of delivering a payload of at least 500 kilograms to a range of at least 300 kilometers or any ballistic missile systems. In addition, U.S. export control laws and regulations impose certain limitations on re-exports or retransfers of such items. Admitting that US export regulations can be complicated, Russell added that the US could provide experts to clarify any issues that may arise regarding potential restrictions. After Borman presented points in Ref A, Jaishankar responded, "We're all on board with that." ¶3. (C) In response to Jaishankar's questions about the implications of easing Export Administration Regulation (EAR) 99 restrictions, Borman stated that in the case of space cooperation, for example, some 250 exports of EAR 99 items that previously required licenses would now be available to the seven subsidiaries of the Indian Space Research Organization (ISRO) without a license, except if an item will be used for prohibited activities. Such license-free items would include dual-use items for satellites, e.g., electronic equipment such as sensors. Borman offered to provide a list of items that previously required licenses and to highlight the items for which license requirements would be lifted under the remaining Phases of the NSSP. ¶4. (C) Dr. S.D. Misra of the Department of Atomic Energy (DAE) asked about the implications for licensing requirements, using oscilloscopes as an example. Because oscilloscopes are used in televisions and are available on the local market, Misra questioned what would be the effect of lifting the licensing requirements for this item. Borman replied that the US had approved 223 license applications for oscilloscopes in FY 04 and the license requirement for them would be lifted entirely in Phase Three. ¶5. (C) GOI officials pressed further regarding items that may be licensable in Phases Two and Three of the NSSP. Jaishankar asked about the difference between EAR 99 items, Export Control Classification Numbers (ECCNs),Commerce Control List (CCL) items, and Missile Technology Control Regime (MTCR) items. Borman explained that EAR 99 is for items not specifically controlled by ECCNs, and that if an item is not on the CCL, it can generally be exported without a license, provided it is not used for banned activities. All items on the MCTR list, however, must have licenses, he stressed. In response to Misra's query about why some items that are only used for safety purposes are controlled by EAR, Borman responded that such items may have a dual-use beyond safety measures. ¶6. (C) Turning to the time limitations of controls, Misra asked if end-user verification would expire when an item reached the end of its practical working life. Jaishankar concurred that it would be useful to have an agreement on an expiration date for end-user verification on applicable items. Borman replied that the US would require documentation to show that the item had been properly disposed of. ¶7. (C) At the conclusion of the meeting, Jaishankar gave Borman a GOI-drafted list of items for follow-up from the NSSP Implementation Group meetings (Ref C). Jaishankar reiterated the request for a non-paper or list clarifying which items may now be considered for export to India. ¶8. (U) USG Participants: Commerce Deputy Assistant Secretary for Export Administration Matthew Borman State Acting Office Director for Regional Affairs, Bureau of Non-Proliferation Caroline Russell Embassy PolMilOff Stacy Gilbert (notetaker) GOI Participants: MEA Joint Secretary (Americas) S. Jaishankar MEA Director (Americas) Renu Pall MEA Deputy Secretary (Americas) Santosh Jha MEA Under Secretary (Disarmament and Int'l Security) Nutan Kapoor Dept of Atomic Energy, Dr. S.D. Misra Dept of Atomic Energy, Scientific Officer, Dr. A.B. Awati Dept of Space, ISRO Director, Dr. Rajeev Lochan ¶9. (U) Commerce DAS Borman and State/NP/RA Russell cleared this cable. BLAKE