VZCZCXYZ0007
RR RUEHWEB

DE RUEHNE #0488/01 0320712
ZNR UUUUU ZZH
R 010712Z FEB 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 2559

UNCLAS NEW DELHI 000488 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-DORSEY/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: COMBAT VEHICLE RESEARCH AND 
DEVELOPMENT ESTABLISHMENT, MINISTRY OF DEFENSE, AVADI, CHENNAI, 
LICENSE NO. D366417 
 
REF: USDOC 06617 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Acting Export Control Officer (ECO) David Nardella and BIS FSN 
Prem Narayan conducted a Pre-license Check (PLC) at the Combat 
Vehicle Research and Development (CVRDE), Avadi, Chennai, on January 
24, 2007. 
 
¶3. BIS requested a PLC at CVRDE, a Defence Research Development 
Organization (DRDO) laboratory, Ministry of Defence (MOD), GOI, 
website: www.drdo.org.  CVRDE was listed as the Ultimate Consignee; 
CMC Ltd. (CMC), Mumbai as the Foreign Purchaser and CMC Ltd., 
Chennai as the Intermediate Consignee for one PIX-515-VPN-3DES: PIX 
515E 3DES/AES VPN/SSH/SSL encryption license and one 
PIX-515E-R-DMZ-BUN: PIX 515E-DMZ Bundle (CHAS, restricted SW, 64MB, 
3 FE Ports) controlled under ECCN 5D002 and ECCN 5A992, 
respectively.  The license applicant was Cisco Systems, Inc. 
(Cisco), San Jose, CA. 
 
¶4. ECO along with FSN Narayan met with S. Sathyamurthy 
(Sathyamurthy), Additional Director; G. Kannan (Kannan), Scienntist 
'G'; Usha Narayanaswami (Usha), Scientist 'F' and G. Harinarayanan, 
Senior Manager-Customer Services, CMC, Chennai.  CMC is the 
marketing agent, after sales support provider and systems integrator 
for Cisco in India. Prashant Agrawal (Agrawal), Under Secretary 
(AMS), facilitated the meeting.  Agrawal was also present at the 
meeting. 
 
¶5. CVRDE officials were not aware of the BIS regulations.  This was 
the first USG or BIS official visit to CVRDE.  They were cooperative 
and forthcoming.  They produced the documents before ECO and FSN 
Narayan to view pertaining to the proposed transaction.  Those 
contained the CVRDE Supply Order and Cisco questionnaire which was 
completed by CVRDE concerning the BIS export license compliance. 
Kannan stated that CVRDE has a procedure in place for releasing 
copies of their documents to foreign mission representatives.  He 
stated that he would route the documents through the proper channel 
and send them to MEA's Agrawal.  In turn, Agrawal greed to send the 
transaction papers to BIS New Delhi.  The ECO and FSN reviewed the 
proposed transaction documents and determined that the CVRDE Supply 
Order number matched the Purchase Order number provided in reftel. 
CVRDE officials were asked by ECO if the products were going to be 
used in any Nuclear Weapon, CBW, or Missile Applications.  ECO was 
advised no, and told them that such a use would be prohibited. 
 
¶6. CVRDE floated a limited tender for replacing the existing LAN 
system.  CMC on behalf of Cisco submitted the quotation for 
supplying the equipment for the new LAN system to be installed at 
the CVRDE campus.  The Cisco LAN system at the CVRDE facility is 
fully installed and awaiting the Cisco PIX box.  Kannan stated that 
the PIX box on order is a hardware product that will be integrated 
in the LAN system. 
 
¶7. Kannan and Usha confirmed the stated end-use of the products on 
order.  Kannan stated that CVRDE is engaged in designing and 
developing of infantry combat vehicles.  Once the designs are 
approved the MOD's different ordnance factories produce these 
vehicles.  CVRDE will use Cisco technology to provide a secure and 
reliable network infrastructure.  The Cisco equipment will be used 
to support the creation of a campus wide LAN for providing internet 
services for CVRDE Scientists.  Kannan further stated that the 
secured internet access using VPN firewall technology is required to 
safeguard the research and development that CVRDE undertakes.  The 
type of data that will be encrypted using Cisco technology is email 
and internet traffic.  The PIX box on order will also protect the 
system from receiving junk mail, viruses and software hackers.  Only 
CVRDE will have access to the data over the network.  Kannan stated 
that in the earlier system CVRDE used broadband dial up process that 
was unsafe for email and internet traffic.  Kannan confirmed that no 
remote access is permitted.  The systems can be accessed only in the 
CVRDE campus.  Approximately 100 scientists will use the system. 
 
¶8. ECO and FSN Narayan were given a brief tour of the CVRDE Data 
Center where the Cisco equipment will be installed.  Only 12 CVRDE 
employees will have access to the Data Center.  ECO and FSN Narayan 
noted the Cisco CPU serial number with which the PIX box will be 
connected.  CVRDE building is guarded 24 hours a day. 
 
¶9. Established in 1975, CVRDE is one of the 51 laboratories/research 
establishments operated by DRDO. CVRDE is responsible for designing 
and development of armored fighting vehicles.  CVRDE's Mechanical 
Systems Laboratory caters facilities for testing, evaluation and 
 
 
analysis of major and sub-systems of armored fighting vehicles.  It 
has various facilities for evaluating high speed output engines, 
fuel injection systems, power packs of armored fighting vehicles, 
automatic transmission, hydro gas suspension, road wheel and air 
cleaner.  The test facilities help in evaluation of automotive 
systems in simulated field conditions for their performance before 
integration in armored fighting vehicles for field trials.  CVRDE 
employs approximately 1,500 personnel including 200 scientists. 
 
¶10. Recommendation: Post recommends the Combat VehiclesResearch and 
Development Establishment as a reliable recipient of the controlled 
U.S. origin commodities.  All indications are that the listed 
commodities will be used in accordance with U.S. Export 
Administration Regulations (DNARDELLA/PNARAYAN) Mulford