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2004-11-16 12:47:00
Embassy New Delhi
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						C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007248 



E.O. 12958: DECL: 11/05/2014

REF: A. STATE 226012



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

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
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.