US tightens dual use exports to India

"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% of the value of US’ 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 expandedby publishing 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 that he did not believe that more entities would be added to the present list "but certainly it will not help in the review process as far as licences go. It would make it more difficult for companies to obtain licences for which they might have got the benefit of thedoubt".

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