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Indo-US defence ties : Gates mission: New Delhi’s ‘no’ to lSA agreement
News Behind The News
 
March 03, 2008



Indo-US defence cooperation was discussed at great length at a dinner meeting Robert Gates had with Defence Minister A.K. Antony in New Delhi on Feb. 26.



Gates comments on military trade between the US and India came in the backdrop of the Union Cabinet clearing a major deal for the purchase of six C-130 J transport aircraft for special forces and induction of the landing ship dock USS Trenton into the Indian Navy and the sale of six weapon-locating radars. Two major US companies, Boeing Corp and Lockheed Martin, are among six vying for India’s biggest global tender for purchase of 126 fighter aircraft. Besides this, American companies are also trying to sell missiles, anti-missile systems, heavy and medium helicopters, electronic warfare, UAV’s and other advanced military systems to India.



LSA pact off Indian radar screen

India is keen to further bolster its defence ties with America with more joint combat exercises to build interoperability, procurement of military hardware and pacts to ensure secrecy and end-use verification of American defence equipment. But the Logistics Support Agreement (LSA), proposed by the US over two years ago on the lines of its Access and Cross-Servicing Agreements signed with over 60 countries, is off the Indian radar screen for now. This, in short, is the Indian defence establishment’s message for Robert Gates. With the UPA Government still floundering to propel the Indo-US civil nuclear deal towards a successful conclusion, it does want to further antagonize the Left by signing the LSA. Under the LSA, Indian and American militaries propose to provide each other with logistic support, refuelling and berthing facilities for each other’s warships and aircraft, spares and other services on a reimbursable or equal-value exchange basis. With CPM leader Prakash Karat describing the LSA as “far more dangerous than the nuclear deal” in its implications, the agreement has been stuck in the Cabinet Committee of Security for final approval for quite some time now. India, however, is ready to sign other defence pacts like the Communication Interoperability and Security Memorandum of Agreement (CISMOA) and the End-Use Verification.



Indo-US action plan to step up hi-tech trade

India and the United States have formulated an action plan to step up cooperation in high technology areas. It includes a timetable for reviewing controls on export of high-tech items to India and simplifying US policies.



This was decided at a meeting of the Indo-US High Technology Cooperation Group [HTCG] in New Delhi on Feb 29. The US delegation was led by Under Secretary of Commerce for Industry and Security, Mario Mancuso and the Indian delegation by Foreign Secretary Shiv Shankar Menon. Set up in 2003, the HTCG is working on four areas to step up bilateral trade: defence and strategic trade, biotechnology, information technology and nanotechnology. The effort also involves private sector participation.



India welcomed the US Administration’s announcement of its dual use export control reform initiative. But on the Validated End User [VEU] Programme, notified last year by the US Government, both sides agreed that further discussions were required as “US export control policies should keep pace with the transformed relationship between India and the US”, according to a joint statement.



Under the VEU, the US examines the credentials of a foreign company undertaking high-tech trade with its firms. If it is satisfied with the company’s track record, the US issues a VEU certificate that precludes the need for the foreign firm applying for a licence each time it imports a high-tech product. However, India is unhappy with a clause that calls upon companies to open their sites for inspection. In India, most of the companies in the high-tech sector are State-owned, many contributing to the country’s strategic programme.



On nanotechnology, the two sides agreed to focus on commercial application in the areas of health, energy, potable water and sustainable development. In biotechnology, both Governments agreed to work towards capacity building in life sciences.











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