DOW JONES NEWSWIRES

Thursday, October 21, 2004

India, US Make 'Substantial Progress' In High-Tech Talks

NEW DELHI (AP)--India on Thursday reported "substantial progress" in talks with a senior U.S. official on cooperation in advanced technology, weeks after Washington lifted curbs on high-tech defense exports to New Delhi.

The two countries have identified four sectors for potential collaboration: biotechnology, nanotechnology, advanced information technology and defense technology. Nanotechnology is the manipulation of atoms and molecules to create microminiature equipment.

Christina Rocca, the U.S. assistant secretary of state for South Asia, was set to discuss the scope of the planned cooperation with S. Jai Shankar, a joint secretary in India 's External Affairs Ministry, and other officials, said David Kennedy, a U.S. Embassy spokesman. Rocca is head of the U.S.-India implementation group, Kennedy said.

Since January 2004, the two sides are pursuing what they call the Next Steps in Strategic Partnership, or NSSP. That includes expanding cooperation in civilian nuclear activities, civilian space programs, and high-technology trade. The two countries have also agreed to expand dialogue on missile defense.

"The group made substantial progress on the implementation of Phase-I of NSSP and held discussions on Phase-II," India 's External Affairs Ministry said in a statement. It said the group would meet again "shortly."

On Wednesday, Rocca met with India 's Foreign Secretary Shyam Saran shortly after she arrived from Pakistan where she encouraged Pakistani leaders to continue peace negotiations with India .

Earlier this month, U.S. Under Secretary of Commerce Kenneth Juster said the U.S. was working to give India greater access to advanced technologies, including nuclear know-how for nonmilitary use.

In September, Washington removed the Indian Space Research Organization, India 's equivalent of NASA, from a list of institutions barred from receiving U.S. technology.

Worries over missile and nuclear weapons proliferation prompted the U.S. to clamp down for years on exports to India of so-called "dual use" technology -items Washington believes could be diverted from civilian to military use.

India has promised to comply with strict export controls on such equipment.

India 's space agency has said its removal from the U.S. export restriction list could result in a threefold increase in high-technology imports from the U.S.