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US puts out blacklist of Indian firms

In a sweeping punitive move, the Clinton administration has publicly identified almost all of India's nuclear installations, defence research institutions and some private companies with a view to denying them right to import goods from the United States, expecting a crippling effect on their activities.

The list, which has been under preparation for the last five months and released in Washington yesterday, covers every single major Indian entity even remotely linked to defence or military related functions.

A similar action has been taken against about 100 Pakistani government and private companies. They include Kahuta's Khan Research Laboratories, the Pakistan Atomic Energy Commission, Centre for Nuclear Studies, Islamabad, Chasma Nuclear Power Plant and Khushab reactor.

The action was in pursuance of the Glenn Amendment, an American law under which the administration had slapped economic sanctions on India and Pakistan in protest against their nuclear tests in May.

The US commerce department, which issued the list, said the announcement specified Indian and Pakistani entities believed to have been involved in Indian or Pakistani nuclear, missile and military programmes. It would facilitate implementation of the sanctions by helping US exporters to conduct trade in a transparent environment.

Under the sanctions, the identified agencies and companies would be barred from buying goods that might have nuclear or military applications, it adds.

Last week the US had ordered a relaxation in the sanctions against the two countries, acknowledging progress in the non-proliferation dialogue that US Deputy Secretary of State Strobe Talbott has been having with representatives of India and Pakistan since the first week of June.

The next round is scheduled for November 19 in Rome in which Planning Commission Deputy Chairman Jaswant Singh will participate as special envoy of Prime Minister Atal Bihari Vajpayee. Talbott will represent the US.

US officials maintained that naming of the agencies and companies did not mean fresh sanctions. The action mandated by the Glenn Amendment would clarify the situation for American businesses so that non-lethal trade activities could continue unhindered following the lifting of economic sanctions.

''The list will make it clear to our companies what kind of trade is prohibited so that they won't apply for licences which will be denied,'' a senior administration official said.

He was, however, unable to clarify the position of the US offices of these companies and people working for them. Some of the entities like the Indian Space Research Organisation maintain offices in New York.

''We know this list will stir fresh controversy, but we have no choice but to implement the law. It is not a hit list or a black list. This should not derail or present an obstacle in the progress of the non-proliferation dialogue that the US has been having with the two countries,'' he added.

Meanwhile, officials clarified that under the sanctions lifted last week, the US private banks would be permitted to lend to both government and non-government agencies and companies.

The entity list has about 20 nuclear-related agencies. Prominent among them are Atomic Energy Commission and Atomic Energy Regulatory Board (both in Bombay), Indira Gandhi Centre for Atomic Research, fast breeder test reactor, fast reactor fuel reprocessing plant, Kalpakkam reprocessing plant, Kamini research reactor and prototype fast breeder reactor (all in Kalpakkam in Tamil Nadu), Nuclear Fuel Research Complex (Hyderabad) and Saha Institute of Nuclear Physics, Calcutta.

The department of space and ISRO (Bangalore) have also been singled out for denial of US goods.

Almost all the defence-related installations figure in the list. These include Defence Research and Development Organisation (New Delhi), Defence Laboratory (Jodhpur), Defence Research and Development Establishment (Gwalior) and Missile Development Complex and Defence Research and Development Laboratory (Hyderabad).

India's private and public sector entities involved in nuclear or missile activities have also been included in the US list. Prominent among them are: Baroda Ammonia Plant, Gujarat Fertilisers, Bharat Dynamics, Bharat Earth Movers Ltd, Bharat Electronics Ld, Fertiliser Corporation of India Ltd, who would no more be able to buy goods of their choice from the United States.

Kirloskar Brothers, Larsen and Toubro, Mishra Dhatu Nigam, Godrej and Boyce Manufacturing Ltd, Ramakrishna Engineering Works are also placed on the entities list.

Also affected are Indian government entities involved in conventional military activities. These include ordinance factories and equipment factories.

UNI

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