US embassy cable - 04NEWDELHI7248

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007248 
 
SIPDIS 
 
PASS TO NRC 
 
E.O. 12958: DECL: 11/05/2014 
TAGS: PARM, PREL, KNNP, ETTC, IN, Export Control Initiatives, NSSP 
SUBJECT: INDIA UNDERSTANDS US EXPORT PROHIBITIONS, BUT 
WRESTLES TO UNDERSTAND POSSIBILITIES 
 
REF: A. STATE 226012 
 
     B. NEW DELHI 7013 
     C. NEW DELHI 7061 
 
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 
 
SIPDIS 
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 
Kapoor 
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. 
BLAKE