February 26, 2002

'33'

JOINT PRESS STATEMENT AT CONCLUSION OF SIXTH MEETING OF INDO-UK CONSULTATIVE GROUP

    The Sixth Meeting of the India-UK Defence Consultative Group (DCG) was held in New Delhi on 25-26 February 2002. The Indian delegation was headed by Mr. Yogendra Narain, Defence Secretary and the UK delegation by Sir Kevin Tebbit, Permanent Under Secretary.

- Discussions were held at a high level, including with the Defence Minister.

- The excellent atmosphere in which they were held reflects the increased closeness and warmth of the relationship.

- Exchanges covered a wide range of current topics vital to bilateral and global security, including international terrorism, peacekeeping and the current situation in Afghanistan.

- All agreed that cooperation is at a new high.

- A range of important areas of bilateral cooperation were enhanced, including military exchanges, research and technology and defence equipment collaboration.

The last meeting of the Defence Consultative Group had been held in London in July 2000. The Indo-UK Defence Consultative Group holds an annual meeting to review all aspects concerning the defence relationship between the two countries.

    During the current meeting the two delegations discussed a large number of issues relating to military cooperation, defence equipment cooperation and defence research cooperation.

    With regard to military cooperation, the UK has invited Indian observers during four operational exercises in the current year. This is in continuation of India’s participation as observers, on the invitation of UK, to the Joint UK-Oman Military Exercises and the NATO exercises in the Baltic Sea. Discussions have also taken place on the possibility of the UK conducting a joint amphibious exercise with Indian forces. The UK has also agreed to offer a Nimrod aircraft to be deployed at an Indian maritime base for Joint Training. The UK Joint Services Combined Staff Course has also invited Indian observers on two phases of their course viz., Joint Campaign Planning and Theatre War Gaming.

    With regard to Defence Equipment Cooperation, the view was reaffirmed that particular emphasis should continue to be given to encouraging industrial partnerships of a strategic nature, including joint ventures, co-production and joint product development. These areas of cooperation should receive further impetus because of the opening up of the Indian Defence Industry to the private sector, including 26 percent Foreign Direct Investment for joint ventures in India.

    In the area of Defence Research and Technology Cooperation, the two countries agreed to collaborate in hi-tech areas of mutual interest which could thereafter help in the development of new design softwares applicable to both civil and military aircraft. It was also agreed to discuss opportunities for cooperation in the field of High Energy Materials as well as Radars and Thermal Imaging.

    A key aim of the Defence Consultative Group is to facilitate increased defence equipment cooperation between defence industries of India and the UK, under the auspices of the 1997 Defence Equipment Cooperation Memorandum of Understanding. Cooperation on defence equipment remains an important component of the bilateral relationship between the two countries. Particular emphasis is placed on encouraging industrial partnerships at a strategic level, including joint ventures, co-production and joint product development. As part of this facilitation, both countries will monitor closely the progress of export license applications.

    Encouraged by both the Indian and United Kingdom Ministries of Defence, activity in the area of equipment cooperation has accelerated in the recent past and resulted in a series of Memoranda of Understanding on Collaboration between Indian and UK companies. Some 26 MOUs between UK and Indian companies have now been signed and cooperation is progressing well. In addition, enhanced links have been established between the respective trade associations, and there has been an increase in the presence of defence companies and government delegations at exhibitions in both India and the UK. The Defence Consultative Group was pleased to note that a UK Defence Manufacturers Association Liaison Office would shortly be established in New Delhi.

    The Defence Consultative Group looks forward to increased cooperation between India and UK organizations at the Farnborough International Air Show in July this year, at Aero India in Bangalore in February next year and at the Defence Systems and Equipment International Exhibition in London in September 2003.

    The Defence Consultative Group also discussed issues relating to product support for acquisitions by India from UK, relating in particular to the US equipment for Sea King Helicopters and Sea Harrier aircraft. The DCG also looks forward to an early conclusion to the current negotiations with regard to the Indian Air Force requirement for an Advanced Jet Trainer (AJT).

    The DCG reaffirmed the resolve of both countries to eradicate the scourge of terrorism in all its forms. In this context, it wad decided that an expert on Improvised Explosives Devices (IEDs) from UK would shortly visit India.

    It was further agreed that the details of the issues discussed in the Defence Consultative Group would be monitored more closely through frequent interaction between the respective Ministries of Defence, prior to the next formal meeting due to be held in 2003 in London.