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Thursday, April 15, 1999

US tightens curbs on dual-use items' exports 

TV Parasuram  
Washington, Apr 14: The US commerce department, which has been rejecting 90 to 95 per cent of the applications for dual-use items from India, has further tightened the restrictions after the Agni-II test.

The restrictions cover high- and low-tech products freely available from any electronic shop in the US or other countries, commerce department's missile technology division director Raymond Jones said here on Wednesday.

"The restrictions, if persisted, will have a long-term impact on the future of Indo-American economic relations and will harm American companies with long-standing business relationships with India," Jones said.

He estimated that 10 per cent of the value of US's total exports to India are covered by the licensing requirements under presumption of licence denial.

"Curbs on hi-tech exports to India relating to nuclear and missile technology were already there before the nuclear tests. These were expanded after the tests as mandated by congress. They were still further expanded bypublishing an "entities list" of 200 companies for political reasons by the administration's discretionary authority. Now there is still further tightening after the Agni-ii test," he said.

The Agni-ii test was "not a helpful development" for lifting the post-nuclear sanctions against India, Jones said. This is the first time that a key government official has disclosed that the Clinton administration went beyond the mandated requirements by publishing the entities list by using its discretionary authority for plitical reasons--a charge made earlier at a press briefing by Naresh Chandra.

"The Agni-ii test adds fuel to the argument that we are not making progress (in the Talbott-Jaswant Singh talks)," Jones said.

However, Jones said he did not believe that more entities will be added to the present list because of the Agni-ii test "but certainly it will not help in the review process as far as licences go. It will make it more difficult for companies to obtain licences for which they might have got thebenefit of the doubt."

Unless some of these sanctions were removed, he said, companies with long-standing business relations with India will lose their business.

The reasons why the administration decided to "cast the net wider" for restricting licences to the 200 entities. Of the 10 per cent of the total exports covered by licence denials, he said 5 per cent was high-tech and the rest low-tech easily obtainable in commercial outlets off the shelf.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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