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July 20, 2009 

U.S. and India Reach Agreement on Defense End-Use Monitoring Arrangements and Space Technology Safeguards

Following meetings between U.S. Secretary of State Hillary Rodham Clinton and India's External Affairs Minister, S.M. Krishna, the two governments today issued a joint statement indicating that the two countries had reached an End-Use Monitoring Agreement on U.S. defense articles that are exported to India.

Section 40A of the Arms Export Control Act (22 U.S.C. 2785) requires the U.S. to implement a program whereby recipients of defense articles and services to agree to end-use monitoring arrangements. The Department of Defense's Defense Security Cooperation Agency (DSCA) is responsible for conducting end-use checks on government-to-government transfers of defense articles. The Government of India has long resisted the end-use monitoring requirements on purchases of U.S. defense articles on grounds that such restrictions violated its sovereignty and such resistance has held up approval of some very large transactions.

In addition, the government of the U.S. and India announced that they have signed a Technology Safeguards Agreement and associated side letters pertaining to the use of U.S.-licensed components on spacecraft launched from Indian facilities. The agreement will facilitate the launch of U.S.-licensed spacecraft components and safeguard protected technologies and data of both countries. The side letters commit the U.S. and India to enter into consultations regarding the market for commercial space launch and satellite services.

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