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July 1, 1997

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India protests against US export curbs on BEL

Cabinet secretary says Washington's allegations against PSU are based on hearsay

A B Mahapatra in New Delhi

Washington's decision to penalise Bharat Electronics Limited is based on mere allegations.

That is what Cabinet Secretary T S R Subramaniam told several US officials in Washington on his recent visit. Lodging India's protest against the US action, he said the decision to impose export curbs on BEL was based on misleading newspaper reports. The newspapers had alleged that BEL was involved in India's missile programme.

In a note to Under Secretary of State Thomas Pickering, India said the decision was taken without proper investigation. Besides, no effort was made to understand the public sector undertaking's work, it added.

The US newspapers claimed BEL, which works under the defence ministry's direct control, had sold some solid fuel spare parts and a rocket ''propelled-launched-pad'' to the Defence Research and Development Organisation which is involved in producing seven different types of missiles.

Washington said BEL had supplied the imported items to a third party without informing the US, thereby dishonouring a commitment.

However, India denies such an agreement was signed. ''Even if such a deal exists, India is one country. The company is not selling or supplying these items to a party which is hostile to the US. That is exactly what the US law does not permit,'' an external affairs ministry official told Rediff On The NeT.

Ministry sources said the US has been suspicious of India's indigenous missile development programme since its first medium-range missile -- the Agni -- was testfired seven years ago.

''The US mounted pressure on Russia and France, asking them not to help India in building nuclear reactors and satellite-launching rocket systems,'' said a senior MEA official. Last year, as India geared to sign a deal for the import of cryogenic engines from Russia, the US unleashed another round of arm-twisting. The cryogenic engines could be used for developing polar and geo-synchronic launch vehicles, Washington claimed.

But the facts seem to militate against US apprehensions. Of the 17,000 items, worth over $ 50 million, BEL imported from the US last year, only nine items needed a licence. BEL is merely assisting the defence laboratories in manufacturing communication equipment and has never been associated with any missile development programme.

Moreover, DRDO develops various spare parts used in rocket propelling units and nuclear research without any external help. It also makes missiles on its own with the little expertise it borrowed from France and Russia.

''Considering the facts, 'mere protests' won't be enough. India will tap other sources if Washington is adamant,'' seems to be the mood in the MEA. India now proposes to send a detailed report on how the items imported by BEL have been used for peaceful purposes.

RELATED STORY:
US slaps export curbs on three Indian institutions

EARLIER STORIES:
India 'concerned' about US exports curbs on BEL
Indian electronics firm faces US export sanctions

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