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USA's High Tech Exports to India & China; Cirrus Electronics Employees Arrests f

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  • Ravi Visvesvaraya Prasad
    USA s High Tech Exports to India & China; Cirrus Electronics Employees Arrests for Exports to Vikram Sarabhai Space Centre, Aeronautical Development
    Message 1 of 1 , Apr 30, 2007
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      USA's High Tech Exports to India & China; Cirrus Electronics Employees
      Arrests for Exports to Vikram Sarabhai Space Centre, Aeronautical
      Development Establishment, and Bharat Dynamics

      By Ravi Visvesvaraya Sharada Prasad

      Published in May 2007 issue of Realpolitik Magazine,
      http://www.realpolitik.in

      Copyright 2007, Ravi Visvesvaraya Prasad

      International Publishing Rights in all Media, in all
      Jurisdictions, in all Languages with Realpolitik Magazine,
      http://www.realpolitik.in

      Reproduction & forwarding strictly prohibited, and will be
      prosecuted without any warning

      Written on Wednesday, 25 April 2007

      by Ravi Visvesvaraya Prasad

      CellPhones: {91}(0) 92 12 08 86 00, 99 90 265 822

      Tel: {91}(11) 25 26 54 39, 25 26 42 75

      Fax: {91} (11) 25 26 68 68

      Email: rp at k dot st, p at r 6 7 dot net, r at 50g dot com

      Ravi Visvesvaraya Prasad, an alumnus of Carnegie Mellon and IIT
      Kanpur, is Consulting Editor of Realpolitik. He also heads a group on
      C4ISRT (Command, Control, Communications & Computers Intelligence,
      Surveillance, Reconnaissance & Targetting) in South Asia.

      By Ravi Visvesvaraya Prasad


      It is gratifying that USA has announced that the indictment of top
      executives of Cirrus Electronics, as well as of Indian government
      officials posted at the Indian Embassy in Washington DC, for supplying
      US electronic items to Vikram Sarabhai Space Centre, Aeronautical
      Development Establishment, and Bharat Dynamics, will not affect
      negotiations on the 123 Agreement. US State Department spokesman Sean
      McCormack stated that he did not see any connection between the
      indictments and the US-India nuclear deal, and added: “I expect that
      the Indian Government will continue to negotiate the 123 Agreement in
      good faith. Certainly, the United States will.”

      Following the Pokharan-I nuclear blasts in 1974, USA had placed
      severe restrictions on transfer of high technologies to India,
      especially those having applications in the nuclear and space sectors.
      In May 1992, USA imposed sanctions on Indian Space Research
      Organization due to its deal with Russia’s Glavkosmos for transfer of
      cryogenic rocket engine technologies. In particular, USA had placed
      ISRO on the “US Department of Commerce’s Entity List” consisting of
      “organisations which present an unacceptable risk of diversion to
      developing weapons of mass destruction or missiles used to deliver
      those weapons”.

      On 23 March 2007, a US District Court indicted four officials of
      Cirrus Electronics, with offices in Singapore, Bangalore, India, and
      South Carolina, USA, of violating USA’s International Emergency
      Economic Powers Act and its Arms Export Control Act. Also indicted
      were an unnamed official of the Indian embassy in Washington as well
      as an Indian employee of the Aeronautical Development Establishment in
      Bangalore. This followed a joint investigation by the US Federal
      Bureau of Investigation, the US Department of Commerce, and US
      Immigration and Customs Enforcement, and a 15-count indictment was
      returned by a federal grand jury in the District of Columbia.

      The indictment alleges that Singapore-based Cirrus Electronics
      took orders for electronic components from Vikram Sarabhai Space
      Centre and Bharat Dynamics, both on the US Department of Commerce’s
      Entity List. The Entity List is “designed to inform the public of
      entities whose activities imposed a risk of diverting exported and
      re-exported items into programs related to weapons of mass
      destruction.” The indictment alleges that in coordination with an
      official in the Indian embassy in Washington DC as well as an official
      of the Aeronautical Development Establishment, the US subsidiary of
      Cirrus purchased from US vendors electronic items such as Intel i960
      microprocessors, capacitors, semiconductors, rectifiers, and
      resistors. These purchases were allegedly made without obtaining the
      licenses required by the US Bureau of Industry and Security for
      exports to parties on the Entity List. Cirrus USA would ship these
      items to Cirrus in Singapore which would them reship them to Vikram
      Sarabhai Space Centre, Aeronautical Development Establishment, and
      Bharat Dynamics in India. The indictment alleges that when the US
      vendors requested End-User Certificates for the parts being sold to
      Cirrus USA, its chief executive, Parthasarathy Sudarshan, would lie to
      them and claim that the parts were destined for the Naval Physical and
      Oceanographic Laboratory in Kochi.

      But it is clear that USA has been having double standards in
      dealing with India, China and Pakistan.

      First, USA has already lifted sanctions on Vikram Sarabhai Space
      Centre, Aeronautical Development Establishment, and Bharat Dynamics,
      although such sanctions were in place during most of the time the
      alleged exports took place. USA started relaxing sanctions on India
      since 2004 following several measures taken by India. Under an updated
      End-Use Verification Agreement, India agreed to allow US Department of
      Commerce officials to conduct end-use spot checks at Department of
      Space entities importing US dual-use items. India also agreed to the
      placement of an export-control attaché in the US embassy in New Delhi
      to further monitor end-use verification of US exports to India. In
      addition, India took measures to ensure that indigenous, Indian-made
      dual-use products and expertise are not transferred to potential
      proliferators.

      Second, there are several unexplained loopholes and discrepancies
      in the indictment, which alleges that Cirrus and Sudarshan obtained
      and exported, without obtaining the necessary license from the US
      Directorate of Defense Trade Controls, items on the United States
      Munitions List, such as Intel i960 microprocessors, as well as
      capacitors of model numbers M39014/01-1284, M39014/01-1299,
      M39014/01-1317, M39014/01-1535, and M39014/01-1553.

      The Intel i960 microprocessor was already long obsolete during the
      time of the alleged exports. The i960 was manufactured and utilized
      during the early 1990s. Only one variant, called the i960MX, was
      specifically designed or configured for military use. However, the
      indictment against Cirrus does not allege that the military grade
      i960MX microprocessor was exported, and it refers only to the i960.
      Moreover, even the i960MX was apparently no longer in production by
      Intel during the time frame covered by the indictment. Further, the
      capacitor models mentioned are Commercially-available, Off-The-Shelf
      (COTS) items which are widely used in civilian applications all over
      the world.

      Third, it was hypocritical of the US government to have denied
      much-needed technologies to India’s peaceful space programme for three
      decades, when it was simultaneously permitting transfer of identical
      technologies by US corporations to China, which was transferring
      nuclear and missile technologies to Pakistan.

      A few months after USA placed sanctions on ISRO over the
      Glavkosmos deal, Pakistan bought 34 M-11 missiles from China in
      November 1992, in violation of the terms of the Missile Technology
      Control Regime. These are based at Sargodha air force base, west of
      Lahore, next to Pakistan’s plutonium reactor at Khushab. Pakistan’s
      National Defense Complex’s missile production factory at Fatehgunj (40
      kilometres west of Islamabad) imported gyroscopes, accelerometers,
      on-board computers, and other equipment to manufacture M-11 missiles
      from China Precision Machinery Import-Export Corporation in 1996.

      There have been numerous instances when advanced equipment and
      technologies imported from USA by ostensibly civilian Chinese
      companies have been diverted to China’s People’s Liberation Army. In
      February 1997 Sun Microsystems exported an E-5000 server to ‘Automated
      Systems Limited Warehouse’ in Hong Kong. This powerful computer
      immediately ended up in Changsha Institute of Science and Technology,
      which trains PLA officers in missile and rocket technology, where it
      was used to design the Dong Feng series of nuclear missiles. In
      contrast, the US government hauled up Chyron Corporation of New York
      for exporting a harmless animation system to ISRO.

      While USA insinuated, without any proof, that Indian organizations
      were re-exporting US technologies to Iraq, Chinese companies have done
      so for years. In 1994, AT&T transferred advanced fiber-optic
      communications equipment and encryption software to a Chinese company
      called Galaxy New Technology, mentioning in its export license that
      these were intended for commercial civilian use within China. These
      were immediately incorporated by the PLA’s Electronics Design Bureau
      into a secure air-defense system (NATO code-name Tiger Song), and
      re-exported to Iraq. AT&T officials stated that they saw no reason to
      question Galaxy New Technology’s bona fides, even though it had been
      formed only a few weeks earlier and was headed by Madam Nie Lie, wife
      of General Ding Henggao, who then commanded China’s Commission on
      Science, Technology, and Industry for National Defense. Galaxy’s
      President was Senior Colonel Deng Changru, head of the PLA’s
      Communications Corps, and its General Manager was Senior Colonel Xie
      Zhichao, director of PLA’s Electronics Design Bureau. It was later
      discovered that General Ding Henggao had arranged for political
      contributions to the Democratic Party (the notorious China-gate
      scandal), and that the deal had been facilitated by William Perry and
      Adlai Stevenson III.

      China’s PLA obtained satellite and missile technologies such as
      encrypted radiation-hardened integrated circuits from Loral,
      post-boost vehicle technologies from Lockheed, telemetry systems from
      Motorola, and nose-cone technologies from Hughes. The US government
      denied these corporations permission to transfer similar technologies
      to India’s civilian space programme.

      Hughes also supplied remote-sensing data-acquisition, processing,
      archival and distribution equipment to China’s remote-sensing cum
      real-time secure-communications Feng Ho series of military satellites.
      Other space technologies transferred by Hughes to China included
      anti-jam capabilities, advanced antennas, cross-links,
      baseband-processing, encryption devices, radiation-hardening
      processes, and perigee kick motors, as well as the design and
      manufacture of missile nose cones and electronic missile control
      systems. The PLA incorporated these in its Dong Feng 31 missiles.
      DF-31, with its range of 6000 miles and warhead of three 90-kiloton
      nuclear bombs, poses a serious threat to all of India.

      These US corporations had made political contributions to the
      Democratic Party, then headed by Ron Brown, who later became Secretary
      of the Commerce Department. Sources close to the Chinese government
      had also contributed to the Democratic Party - the notorious
      China-gate scandal. Faced with opposition from the US Departments of
      State and Defense regarding exports of satellite technologies to
      China, Michael Armstrong, then chief executive of Hughes, Bernard
      Schwartz, then CEO of Loral, and Daniel Tellep, then CEO of Lockheed,
      co-wrote a letter to President Bill Clinton in October 1995 stating:
      “We respectfully request your personal support for establishing the
      Commerce Department’s jurisdiction over the export of all commercial
      communications satellites...The US government does not require
      Congressional approval to remove commercial satellites from the United
      States Munitions List, which is under State Department jurisdiction,
      and placing them on the Commerce Control List, which is under Commerce
      Department jurisdiction...” President Clinton granted this request
      quickly without consulting the US Congress.

      A US House of Representatives Committee charged Lockheed, Loral,
      and Hughes with violating national security. Hughes pleaded ‘No
      Contest’ to 123 charges of violating the “US Arms Export Control Act”
      and “International Traffic in Arms Regulations”, and was fined 32
      million dollars. Lockheed paid a penalty of thirteen million dollars
      to settle thirty charges of violating these Acts, and Loral was
      penalized twenty million dollars.

      No official from China or from Lockheed, Loral, or Hughes was
      jailed. In contrast, of the four Cirrus employees indicted,
      Parthasarathy Sudarshan faces a likely sentencing guideline range of
      97-121 months in prison, if convicted of the charges. Mythili Gopal
      faces a likely sentencing guideline range of 63-78 months. A.K.N.
      Prasad and Sampath Sundar face likely sentencing guideline ranges of
      78-97 months, if convicted of the charges.

      In another instance, Boeing sold transport aircraft to China
      United Airlines, a front company owned by China’s People's Liberation
      Army Air Force (PLAAF). These aircraft could be used to quickly
      airlift troops to the Tibetan plateau near India’s borders. In
      response to a request under USA’s Freedom of Information Act, Barbara
      Fredericks, assistant general counsel of the US Commerce Department,
      replied: “Information about export licenses and license applications
      that list China United Airlines as a consignee or end-user are
      protected from disclosure. Disclosure would not be in the national
      interest.”

      In contrast, the US government denied permission to Boeing to
      enter into a joint venture with ISRO to manufacture satellites for the
      international market.

      While negotiating the 123 Agreement, India should emphasize that
      it is high time that USA transferred not only space technologies, but
      even much-needed defence, nuclear, and missile technologies to India.
      India is in particular need of US space technologies in launch
      vehicles, sensors, telemetry, communications surveillance and
      decryption, real-time imagery, and data-mining.


      by Ravi Visvesvaraya Prasad

      Written on Wednesday, 25 April 2007

      Ravi Visvesvaraya Prasad, an alumnus of Carnegie Mellon and IIT
      Kanpur, is Consulting Editor of Realpolitik. He also heads a group on
      C4ISRT (Command, Control, Communications & Computers Intelligence,
      Surveillance, Reconnaissance & Targetting) in South Asia.
      Title: USA's High Tech Exports to India & China; Cirrus
      Electronics Employees Arrests for Exports to Vikram Sarabhai Space
      Centre, Aeronautical Development Establishment, and Bharat Dynamics

      By Ravi Visvesvaraya Prasad

      Published in May 2007 issue of Realpolitik Magazine,
      http://www.realpolitik.in

      Copyright 2007, Ravi Visvesvaraya Prasad

      International Publishing Rights in all Media, in all
      Jurisdictions, in all Languages with Realpolitik Magazine,
      http://www.realpolitik.in

      Reproduction & forwarding strictly prohibited, and will be
      prosecuted without any warning

      Written on Wednesday, 25 April 2007

      by Ravi Visvesvaraya Prasad

      CellPhones: {91}(0) 92 12 08 86 00, 99 90 265 822

      Tel: {91}(11) 25 26 54 39, 25 26 42 75

      Fax: {91} (11) 25 26 68 68

      Email: rp at k dot st, p at r 6 7 dot net, r at 50g dot com

      19 Maitri Apts

      A-3, Paschim Vihar

      New Delhi 110 063
      India
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