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Ackerman Wants Further Review Of 'Entities List'

J M Shenoy

Congressman Gary L Ackerman, who has returned from a visit to India, welcomed the administration's move to trim the 'entities list', created in response to the detonations of nuclear explosive devices by India and Pakistan last year.

In a letter to President Clinton, Ackerman, the co-chairman of the Congressional Caucus on India and Indian Americans, hailed India's continuing economic liberalization and urged the President for a further review of the entities list and sought an increase in the products that can be exported to India.

"In recent months, India has made important overtures to the US. We have seen significant progress toward economic liberalization in several key sectors, creating important new export opportunities for US companies," his letter said.

"India today has one of the highest rates of growth and lowest rates of inflation in the world. The Bombay Stock Exchange is at an all-time high, and investors around the world are taking a closer look at India.... It will help in our endeavor to build closer relations with India," he said.

On December 15, the Commerce Department removed 51 Indian companies and institutions, including the Institute of Mathematical Sciences, from the ban list sanctioned in 1998.

Removal of the entities will make it easier for them to obtain American goods and technology -- especially non-sensitive products that ordinarily to do not require an export license for India, a Commerce Department spokesperson said.

The action is based on a consensus decision by the administration to more tightly focus the sanctions on those Indian entities most directly involved in proliferation activities, the spokesperson said.

Ackerman, a leading member of the House International Relations Committee, added in his letter, "I urge you to direct the Commerce Department to press ahead with its review of the 'Entities List' and not only cut the numbers in the list but also review and refine the scope of products in the export curbs."

Ackerman also told the President that his visit to India was "exhilarating and productive" and that he met people from all walks of life in New Delhi, Mumbai and Calcutta. He also met Indian political and business leaders, including with Prime Minister Vajpayee.

"The ongoing dialogue between leaders of Indian industry, US industry, lawmakers and officials from both the United States and India is, I believe, one of the most vital components in our joint endeavor to build better US-India relations. We need to encourage this development and the Commerce Department's decision to pare the 'Entities List' is a move in the right direction," he said.

He urged Clinton to direct the Commerce Department to press ahead with its review of the list and not only cut the numbers in the list but also review and refine the scope of products in the export curbs.

Earlier, William A Reinsch, undersecretary, Bureau of Export Administration, had explained one of the rationales for trimming the list.

"Close a market and we will create viable competition where there is very little now," he said.

"And that competition, as we have learned in so many other sectors over the past 30 years, will not stop with China or India but will move on to compete head-to-head against us elsewhere to the long term detriment of our global leadership."

Ackerman could not agree more with the above assessment.

EARLIER REPORT:
N-Ban on 51 Indian Organizations Removed

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