S E C R E T STATE 101241

NOFORN
SIPDIS
PLEASE PASS TO SCIENCE COUNSELOR

E.O. 12958: DECL: 09/29/2034
TAGS: PINR AADP IN
SUBJECT: (C) KUDOS FOR NEW DELHI REPORTING

REF: NEW DELHI 003136

Classified By: MICHAEL P. OWENS, ACTING DIR, INR/OPS. REASON: 1.4(C).


1. (S/NF) WASHINGTON ANALYSTS GREATLY APPRECIATED REFTEL.
WE ARE CLOSELY FOLLOWING DRDO ATTEMPTS TO REFORM DEFENSE R&D
AND FOUND THIS REPORT ESPECIALLY VALUABLE. IT PROVIDED
WELCOME INSIGHTS INTO DRDO,S EFFORTS AS WELL AS REGARDING
THE ONGOING CONTEST BETWEEN INDIAN INDUSTRY AND PUBLIC SECTOR
DEFENSE ENTITIES. WE WOULD APPRECIATE ANY ADDITIONAL
INFORMATION POST CAN PROVIDE ON THIS SUBJECT, AS TIME AND
RESOURCES PERMIT, ALONG THE FOLLOWING LINES. MANY THANKS.


A. (S) IF POSSIBLE, PLEASE PROVIDE THE REFERENCED REPORT
FROM THE NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH ON THE
ECONOMIC IMPACT OF DRDO EXPENDITURES OVER THE LAST 15 YEARS.


B. (S) INDIAN INDUSTRY HAS RECENTLY CALLED FOR CHANGING THE
PERCENTAGE OF FOREIGN INVESTMENT FROM 26 PERCENT TO 49
PERCENT. WHAT WAS DISCUSSED ABOUT THIS AT THE CONFERENCE, IF
ANYTHING?

1) (S) WHAT ARE POLICYMAKER AND/OR DRDO VIEWS ON THIS ISSUE?


2. (U) PLEASE CITE C-WP9-00133 IN THE SUBJECT LINE OF
REPORTING IN RESPONSE TO THE ABOVE QUESTIONS.
CLINTON