VZCZCXYZ0002
RR RUEHWEB

DE RUEHNE #2741/01 1640402
ZNR UUUUU ZZH
R 130402Z JUN 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 6228

UNCLAS NEW DELHI 002741 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-D/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: VARIABLE ENERGY CYCLOTRON 
CENTRE, LICENSE NO. D374331 
 
REF: USDOC 03586 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem 
Narayan conducted a Pre-license Check (PLC) at Variable Energy 
Cyclotron Centre (VECC), Kolkata, on June 6, 2007. 
 
¶3. BIS requested a PLC at VECC, an R&D unit of the Department Atomic 
Energy (DAE), GOI located at 1/AF Bidhan Nagar, Kolkata, Tel: 
91-33-2337-1230, Fax: 91-33-2334-6871, email:ndsharma@vsnl.net, 
Website: www.veccal.ernet.in. VECC was listed as the ultimate 
consignee; HCL Comnet Ltd. (HCL), Noida, Uttar Pradesh as the 
Foreign Purchaser; and HCL, Kolkata as the Intermediate Consignee 
for one Model S384ASK9-12403: Cisco 3845 Advanced Security and one 
Model Cisco03845-SEC/K9: 3845 Security Bundle, ADV Security, 
64F/256D encrypted products controlled under ECCNs 5D002 and 5A002 
respectively. The license applicant was Cisco Systems, Inc. (Cisco), 
San Jose, CA. 
 
¶4. ECO along with FSN Narayan met with N.D. Sharma, 
Director-Purchase and Stores, DAE's Directorate of Purchase and 
Stores, Mumbai; S.B. Bose, Administrative Officer, Dr. D. Sarkar, 
Head-Computer and Informatics Group and N.C. Samanta Indentor, 
Equipment and Scientific Officer, VECC.  Prashant Agrawal (Agrawal), 
Under Secretary (AMS), Ministry of External Affairs (MEA), 
facilitated the meeting.  Agrawal was also present at the meeting. 
 
 
¶5. VECC officials were aware of certain BIS regulations. However, 
this was the first visit by BIS or USG officials to VECC.  They 
stated that HCL is one of several resellers and systems integrators 
for Cisco in India.  In response to a limited tender floated by 
VECC, HCL submitted the bid on behalf of Cisco for supplying and 
installing Cisco encrypted products at VECC.  HCL was subsequently 
awarded the bid.  VECC officials provided copies of the HCL 
quotation along with technical specifications of two Cisco routers, 
VECC Purchase Order issued to HCL and Cisco License Data Submission 
Form completed by VECC which included VECC End-User Certificate, 
Enhanced Proliferation Control Initiative Written Assurance and 
Encryption Written Assurance. 
 
¶6. VECC officials made a comprehensive video presentation detailing 
the research activities that it undertakes.  Sarkar confirmed the 
stated end-use.  The Cisco encryption products on order will be 
installed in the VECC computer system to provide internet access to 
VECC employees and future data communication to VECC's second campus 
at Rajarhat, near Kolkata, which is opening soon.  The encryption 
products will be used for data communication between VECC and their 
second campus by setting up a VPN connection.  The type of data that 
will be encrypted includes web mail, internet traffic and research 
and administrative data.  Approximately 450 VECC physicists, 
computer personnel and administrative staff will have access to the 
data over the network. 
 
¶7. They declined the ECO's request to visit the VECC Computer Center 
where the Cisco encrypted products will be installed.  They stated 
that the BIS Team had not been cleared to visit the VECC Computer 
Center.  MEA's Agrawal supported their refusal and stated that the 
End-Use Visit Arrangement (EUVA) does not call for a site-inspection 
by the USG officials during a PLC.  ECO conveyed to VECC officials 
and Agrawal that it was essential to observe, first-hand, the actual 
installation site in order to determine if the security arrangements 
are adequate and the system appropriate for the controlled equipment 
they have ordered.  Samanta stated that access to the VECC Computer 
Center is highly restricted and is limited to only 15 VECC Computer 
Center personnel via an electronic card reader.  Ultimately, ECO 
relented and the interview was concluded. 
 
¶8. Established in 1980, VECC is the premier R&D unit of the GOI's 
DAE.  It conducts research in the fields of accelerator science and 
technology, nuclear science (theoretical and experimental), material 
science and technology and other related areas.  A large 
Superconducting Cyclotron (SCC) is being built to enable VECC 
physicists to conduct research in accelerated particle energies. 
VECC is also constructing Radioactive Ion Beam (RIB) accelerators to 
conduct experiments in nuclear physics and nuclear astrophysics. 
The accelerators at VECC are used for experiments in other areas of 
science such as condensed matter, materials, chemistry, and 
biophysics.  VECC employs approximately 600 personnel including 450 
physicists. 
 
¶9. Recommendation: Despite the lack of a physical inspection of the 
installation site, post recommends Variable Energy Cyclotron Centre 
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 Control Regulations. 
(PSCUSHMAN/PNARAYAN) Mulford