INDIA DENIES UNLAWFUL IMPORT OF CONTROLLED

C O N F I D E N T I A L NEW DELHI 003220 SIPDIS E.O. 12958: DECL: 04/27/2015 TAGS: PREL MNUC KNNP TSPA ETTC PK IN GOI SUBJECT: INDIA DENIES UNLAWFUL IMPORT OF CONTROLLED EQUIPMENT FOR SPACE PROGRAM Classified By: PolCouns Geoffrey Pyatt, for Reasons 1.4 (B, D) ¶1. (C) Following several articles in the international and Indian press, PolCouns queried MEA Director, Disarmament and International Security (DISA),Venu Rajamony on April 26, about the GOI investigation of the case of Asher Karni, an Israeli businessman recently indicted in the US for unlawful exports to Pakistan and India. Rajamony stated that he did not have any information to share beyond that which was included in the April 21 MEA press briefing (see text in para 3),but confirmed that various Indian agencies have been investigating the Karni allegations. ¶2. (C) PolCouns raised concern about an April 24 article by a Tribune reporter close to MEA that stated that the GOI believes media reports of linkages between Karni and India's space program are a "smokescreen for Pakistan's nuclear proliferation and an attempt to deflect attention from Pakistan." Rajamony dismissed the article, stating that he did not know to whom the article's author had spoken about the case. ¶3. (U) In an April 21 press briefing by MEA Spokesperson, the government specifically denied any linkages between this case and the Indian civilian space program, stating that the GOI have found no evidence of any procurement as reported in the press. Full text follows: Question: There have been some reports in the US media that an Israeli has been arrested for supplying some nuclear equipment to India? Answer: We have seen those reports which are regarding prosecution of Asher Karni, an Israeli national in the US. There is a reference in these reports that Asher Karni may have sold advanced electronic equipment to government agencies in India. It has also been mentioned that one Humtek Communications of Bangalore had sought to buy electrical components for the Space Applications Center through Asher Karni. We have examined these reports and have found no evidence of any procurement as reported in these news reports. Space Applications Center has confirmed that no item has been procured from Humtek Communications. Furthermore, the Space Applications Center is responsible for civilian space applications and does not work on rockets as mentioned in these reports. I may also reiterate that India's indigenous multi-dimensional space program has been developed in a transparent manner in order to utilize various space applications such as satellite communications, TV broadcasting, weather prediction and management of natural resources as well as disasters, so as to facilitate the overall social and economic development of India. End GOI text. Ongoing Investigations -------------- ¶4. (C) Stressing that the US and India have a shared interest in preventing proliferation, PolCouns suggested to Rajamony that Indian investigators work with Mission's Export Control Attache to facilitate their investigation about the matter. According to the Export Control Attache, there is still an ongoing investigation of the parties involved. BLAKE