EXTRANCHECK: PRE-LICENSE CHECK: VARIABLE ENERGY CYCLOTRON

UNCLAS NEW DELHI 002741 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: PRE-LICENSE CHECK: VARIABLE ENERGY CYCLOTRON CENTRE, LICENSE NO. D374331 REF: USDOC 03586 ¶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 Pre-license Check (PLC) at Variable Energy Cyclotron Centre (VECC),Kolkata, on June 6, 2007. ¶3. BIS requested a PLC at VECC, an R&D unit of the Department Atomic Energy (DAE),GOI located at 1/AF Bidhan Nagar, Kolkata, Tel: 91-33-2337-1230, Fax: 91-33-2334-6871, email:ndsharma@vsnl.net, Website: www.veccal.ernet.in. VECC was listed as the ultimate consignee; HCL Comnet Ltd. (HCL),Noida, Uttar Pradesh as the Foreign Purchaser; and HCL, Kolkata as the Intermediate Consignee for one Model S384ASK9-12403: Cisco 3845 Advanced Security and one Model Cisco03845-SEC/K9: 3845 Security Bundle, ADV Security, 64F/256D encrypted products controlled under ECCNs 5D002 and 5A002 respectively. The license applicant was Cisco Systems, Inc. (Cisco), San Jose, CA. ¶4. ECO along with FSN Narayan met with N.D. Sharma, Director-Purchase and Stores, DAE's Directorate of Purchase and Stores, Mumbai; S.B. Bose, Administrative Officer, Dr. D. Sarkar, Head-Computer and Informatics Group and N.C. Samanta Indentor, Equipment and Scientific Officer, VECC. Prashant Agrawal (Agrawal), Under Secretary (AMS),Ministry of External Affairs (MEA), facilitated the meeting. Agrawal was also present at the meeting. ¶5. VECC officials were aware of certain BIS regulations. However, this was the first visit by BIS or USG officials to VECC. They stated that HCL is one of several resellers and systems integrators for Cisco in India. In response to a limited tender floated by VECC, HCL submitted the bid on behalf of Cisco for supplying and installing Cisco encrypted products at VECC. HCL was subsequently awarded the bid. VECC officials provided copies of the HCL quotation along with technical specifications of two Cisco routers, VECC Purchase Order issued to HCL and Cisco License Data Submission Form completed by VECC which included VECC End-User Certificate, Enhanced Proliferation Control Initiative Written Assurance and Encryption Written Assurance. ¶6. VECC officials made a comprehensive video presentation detailing the research activities that it undertakes. Sarkar confirmed the stated end-use. The Cisco encryption products on order will be installed in the VECC computer system to provide internet access to VECC employees and future data communication to VECC's second campus at Rajarhat, near Kolkata, which is opening soon. The encryption products will be used for data communication between VECC and their second campus by setting up a VPN connection. The type of data that will be encrypted includes web mail, internet traffic and research and administrative data. Approximately 450 VECC physicists, computer personnel and administrative staff will have access to the data over the network. ¶7. They declined the ECO's request to visit the VECC Computer Center where the Cisco encrypted products will be installed. They stated that the BIS Team had not been cleared to visit the VECC Computer Center. MEA's Agrawal supported their refusal and stated that the End-Use Visit Arrangement (EUVA) does not call for a site-inspection by the USG officials during a PLC. ECO conveyed to VECC officials and Agrawal that it was essential to observe, first-hand, the actual installation site in order to determine if the security arrangements are adequate and the system appropriate for the controlled equipment they have ordered. Samanta stated that access to the VECC Computer Center is highly restricted and is limited to only 15 VECC Computer Center personnel via an electronic card reader. Ultimately, ECO relented and the interview was concluded. ¶8. Established in 1980, VECC is the premier R&D unit of the GOI's DAE. It conducts research in the fields of accelerator science and technology, nuclear science (theoretical and experimental),material science and technology and other related areas. A large Superconducting Cyclotron (SCC) is being built to enable VECC physicists to conduct research in accelerated particle energies. VECC is also constructing Radioactive Ion Beam (RIB) accelerators to conduct experiments in nuclear physics and nuclear astrophysics. The accelerators at VECC are used for experiments in other areas of science such as condensed matter, materials, chemistry, and biophysics. VECC employs approximately 600 personnel including 450 physicists. ¶9. Recommendation: Despite the lack of a physical inspection of the installation site, post recommends Variable Energy Cyclotron Centre as a reliable recipient of the controlled U.S.-origin commodities. All indications are that the listed commodities will be used in accordance with U.S. Export Control Regulations. (PSCUSHMAN/PNARAYAN) Mulford