Geography Reference
In-Depth Information
arms production in France must be considered as well. A sizeable share of the
production is now in the hands of the private sector. While these private
companies depend heavily from the State, which places the most important
orders, the government cannot define their entire production line. Faced with the
prospect of declining defence budgets, a part of this production has turned to
civilian customers, a process which may drive up the cost of defense equipment.
On the other hand, the fact that a part of French avionics fits as well on Russian
planes, as on French ones is useful to the Indian market.
Third, the European dimension is bound to interfere more and more. For
defence equipment which is not one hundred per cent French, the co-producing
countries have to be consulted before sales are decided. Among its priorities, the
European Common Foreign and Security Policy addresses the question of
'Armaments Europe', and France would like to see a European Armament
Agency promptly established. The growing cooperation between European
countries in defense production, including through new European corporations,
implies that the clearance for export defence contracts will more and more
involve several European countries.
The Dual Technology Issue and the Nuclear Energy
Conundrum
Besides defense production per se, the international context affects the Indo-
French relationship, particularly as far as dual technologies are concerned. Of
prime interest here is India's quest for nuclear energy. As noted above, the
French Commission for Atomic Energy had been in close touch with its Indian
counterpart, since the heroic days of the first Indian leader in the field, Dr Homi
Bhaba. France later on supplied heavy water to Indian nuclear plants, substituting
herself to American or Canadian providers. French expertise in nuclear energy,
which produces today 75 per cent of France's requirements, adds to India's
interests in technology transfer.
The French President revived India's expectations in 1998 when he stated that
the bilateral cooperation could also, 'in due time, address the production of
nuclear based electricity'.
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In clear words Paris would consider selling India
either nuclear plants and/or the know-how and/or important components.
Expecting 'returns from the French connection' after the first strategic dialogue
meeting had been held, an Indian commentator noted: 'While America has
walked away with the cream of the Chinese nuclear market, France now has a
chance to make a big breakthrough in India.'
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But no firm commitments were
made, for India does not fully adhere to the safeguards and verification
procedures set up by the International Atomic Energy Agency and by the
Nuclear Suppliers Group (NSG), which Paris finds binding.
