The Hindu : Opinion / News Analysis : India, U.S. close to deal on high-technology transfers

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Wednesday, Sep 15, 2004

Opinion

Opinion - News Analysis

India, U.S. close to deal on high-technology transfers

By C. Raja Mohan

NEW DELHI, SEPT. 14. In what could be a major diplomatic triumph for the Congress-led coalition, the Government is close to clinching a deal with the United States on the liberalisation of high-technology transfers to India.

Senior officials from both sides who have been working hard to resolve the outstanding differences in recent days are expected to deliver on the deal by the time the Prime Minister, Manmohan Singh, and the U.S. President, George W. Bush, hold their first meeting next week on the margins of the United Nations General Assembly.

Consolidation of ties

The agreement would mark the further consolidation of Indo-U.S. relations as well as the first substantive breach in the high-technology blockade that India had to confront for three decades.

In his talks this week in Washington, the Foreign Secretary, Shyam Saran, is expected to tie up the loose ends in the bilateral agreement on advanced technology transfers and non-proliferation.

As a result, cooperation in the area of civilian uses of space technology is expected to get a big boost. The flow of so-called "dual-use" technologies that could be used for military and civilian purposes is also expected to accelerate.

This is the first significant movement in the "Next Steps in Strategic Partnership" (NSSP) between the two countries that was announced last January by the then Prime Minister, Atal Bihari Vajpayee, and Mr. Bush.

Glitches

While the two leaders settled the broad framework, the negotiations on finalising the first phase of the NSSP ran into a number of glitches. Resistance from the non-proliferation bureaucracy in Washington had been part of the problem.

Within weeks after taking charge, the Manmohan Singh Government embarked on some intense engagement with the Bush Administration and is now all set to finalise the deal.

All doubts expressed about the future of bilateral relations following the recent change of Government in New Delhi are now likely to be set at rest.

The NSSP was conceived as a framework to reconcile, in a phased manner, India's interest in high-technology transfers and U.S. concerns on non-proliferation. In every phase, both sides are expected to take matching steps.

Under the first phase, the U.S. agrees to loosen controls over space and dual use technologies while India tightens its regulations on the transfer of sensitive items to third parties.

The second phase of the NSSP negotiations could see some tougher issues on the table and Dr. Singh would want a strong political commitment from Mr. Bush to accelerate the process with greater vigour, if he does come through the polls in November.

A major milestone

The conclusion of the first phase of the NSSP marks a major milestone in the Indian effort over the last three decades to break out of the isolation from international high-technology commerce after the first nuclear test in May 1974.

As a series of sanctions buffeted India after Pokharan I, Indira Gandhi, and later, Rajiv Gandhi, explored a way out. The 1984 Indo-U.S. Memorandum of Understanding was a product of their intense efforts.

A dead letter

But the renewed international concerns on proliferation after the first Gulf War of 1991 made the 1984 MoU a dead letter. After the 1998 tests, the talks between the External Affairs Minister, Jaswant Singh, and the U.S. Deputy Secretary of State, Strobe Talbott, attempted to break the deadlock.

But the Clinton Administration was not willing to loosen its grip on high-technology trade. Nor was India willing to accept the non-proliferation benchmarks set by it. The advent of the Bush Administration in 2001 saw a more favourable climate for the resolution of Indo-U.S. nuclear differences.

In his meeting with Mr. Vajpayee in November 2001, Mr. Bush promised a new look at technology controls against India. The then National Security Adviser, Brajesh Mishra, and his American counterpart, Condoleezza Rice, tried to hammer out an agreement. But what came out was a general statement of intent to cooperate that was issued by Mr. Vajpayee and Mr. Bush in January 2004.

While an agreement on the details eluded the Vajpayee regime, the Congress Government seized the moment to clinch the deal.

The breakthrough on accessing the high-technology market in the U.S. will help showcase the first visit to America by Mr. Singh as an important moment in the history of Indo-U.S. relations and a major step towards recasting India's position in the global nuclear order.

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