EXTRANCHECK: POST-SHIPMENT VERIFICATION: PROGRAMME AD,

UNCLAS NEW DELHI 002594 SIPDIS SIPDIS USDOC FOR 532/OEA/M. NICKSON-D/JAY HATFIELD USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL USDOC FOR 4530/MAC/ANESA/OSA ICE HQ FOR STRATEGIC INVESTIGATIONS STATE FOR EB/ESP E.O. 12958: N/A TAGS: ETTC ETRD BEXP IN SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: PROGRAMME AD, HYDERABAD, LICENSE NO. D319272 REF: USDOC 02904 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem Narayan conducted a Post-shipment Verification (PSV) at the Programme AD, Hyderabad, on May 24, 2007. ¶3. BIS requested a PSV at Programme AD, a Defence Research Development Organization (DRDO) laboratory, Ministry of Defence (MOD),GOI, website: www.drdo.org. Programme AD was listed as the Ultimate Consignee and CMC Ltd. (CMC),Mumbai, for two PIX-515-VPN-3DES: PIX 515E 3DES/AES VPN/SSH/SSL encryption license, Model Number PIX-515-VPN-3D controlled under ECCN 5D002. The license applicant was Cisco Systems, Inc. (Cisco),San Jose, CA. ¶4. ECO along with FSN Narayan met with R.K. Patnayak (Patnayak), Scientist 'F', Programme AD and Dr. A Dasgupta, Additional Director and Scientist 'E', International Cooperation, DRDO. Prashant Agrawal (Agrawal),Under Secretary (AMS),Ministry of External Affairs (MEA),facilitated the meeting. Agrawal was also present at the meeting. ¶5. Patnayak was not aware of the BIS regulations. He did not recall a previous visit by USG or BIS officials to Programme AD. Both Programme AD and DRDO officials were not forthcoming and rather reluctant to share information. CMC is one of the systems integrators in India and purchased the Cisco PIX boxes for installation at Programme AD. The transaction documents were presented for ECO and FSN Narayan to review. Those documents included the Programme AD supply order, CMC invoice, and CMC installation report. Patnayak stated that Programme AD has a procedure in place for releasing copies of their documents to foreign mission representatives. He stated that he would route the documents through the proper channel and send them to MEA's Agrawal. In turn, Agrawal agreed to send the transaction papers to BIS New Delhi. ¶6. Patnayak confirmed the stated end-use of the items in question. He stated that Programme AD is engaged in carrying out research for the Indian air defense program. The two Cisco boxes were installed to provide a secure and reliable network infrastructure. The Cisco products are used to establish a data communication network between various Programme AD workgroups. The high volume of data transmitted over Programme AD's network increased concerns over network security. The PIX boxes are used to set up secure connectivity between the various workgroups within Programme AD. ¶7. Programme AD is involved in general application development of UNIX and Windows platforms. Earlier, Programme AD deployed Cisco switches and other networking equipment. The Cisco PIX boxes in question were installed for extension of the connectivity to various departments such as stores, finance, and administration. Newly built buildings within Programme AD also required additional protected connectivity. The PIX boxes are attached with the computer system which is housed in a lockable room. ECO noted the serial numbers as 88808141142 and 88808141144. ECO and Narayan determined that these serial numbers matched with those appearing on the CMC invoice. ¶8. Established in 1998, Programme AD is one of the fifty-one laboratories/research establishments operated by DRDO. Programme AD is engaged in conducting research and developing new technologies in air defense. Other than this, Programme AD and DRDO officials declined to share information on activities undertaken by Programme AD. There is no reference available on the DRDO website for the Programme AD laboratory. It employs approximately fifty scientists. ¶9. Recommendation: Posts recommends Programme AD as a reliable recipient of the controlled, U.S.-origin commodities. All indications are that the listed commodities are used in accordance with U.S. Export Administration Regulations. (PSCUSHMAN/PNARAYAN) Mulford