U.S. Cites Indian Government Agencies in Weapons Conspiracy

[EagleEyes]

U.S. Cites Indian Government Agencies in Weapons Conspiracy
By MARK MAZZETTI and NEIL A. LEWIS

WASHINGTON, April 2 — The Justice Department, in an indictment disclosed Monday, charged that agencies of the Indian government participated in a conspiracy to sidestep United States export regulations and obtain secret weapons technology from American companies over several years.

The indictment charges that a private electronics firm, Cirrus Inc., operating in Singapore, South Carolina and Bangalore, India, was working as an agent of the Indian government to obtain sensitive missile and weapons technology for its military programs.

It lists four company officials, including the founder, Parthasarathy Sudarshan, and a number of unidentified co-conspirators who were not charged, including one mentioned only as an Indian government official who worked in Washington. The indictment indicates that the defendants were buying equipment for three Indian government agencies.

The charges, coming just months after Congress approved President Bush’s plan to ship American nuclear reactors and fuel to India, could prove to be a diplomatic embarrassment for the administration, which has made cementing closer ties with India a top foreign policy priority.

The indictment suggests that India broke a pledge to the Bush administration more than two years ago not to flout American export laws and secretly seek weapons technology from the United States.

Although Congress has signed off on the nuclear deal, India must still reach a separate agreement on nuclear inspections with several international organizations before the deal is complete.

In a letter to the State Department in September 2004, Shyam Saran, then the Indian foreign secretary, wrote, “The Government of India shall not obtain or use U.S. origin licensable items in contravention of U.S. export control laws and regulations.”

The weapons sales detailed in the indictment occurred between 2003 and 2006 and were shipped to government agencies that were part of the Indian Ministry of Defense and Department of Space.

The defendants were charged with violating the United States Export Administration Act, which prohibits the export of dual-use technologies, those with both military and nonmilitary uses, without approval from the Commerce Department attesting that the technology will be used only for nonmilitary purposes.

The indictment charges that Cirrus officials sometimes forged certificates to show the vendors in the United States that the sales had Commerce Department approval.

Officials at the Indian Embassy in Washington declined to comment except to say that government officials in New Delhi have pledged to look into the allegations.

Some critics of the nuclear deal reacted angrily to the indictment, and criticized the administration for pressing Congress to approve the agreement at the same time that the Justice Department was investigating an alleged conspiracy involving Indian government officials.

“This is not only an indictment of individuals for breaking export control law, it is also a blistering indictment of the Bush administration’s judgment,” said Representative Edward J. Markey, the Massachusetts Democrat who was one of the leading Congressional opponents of the nuclear deal.

Tom Casey, a State Department spokesman, said, “This is a law enforcement matter that began before our efforts to conclude a civilian nuclear cooperation agreement.”

He added, “The arrests of these individuals are not connected to our efforts to conclude an agreement.”

http://www.nytimes.com/2007/04/03/world/asia/03india.html