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The Silicon Tong

The Silicon Tong

Author: Ashok Parthasarathi
Publication: The Times of India
Date: January 21, 2002

Introduction: Crouching Dragon, Hidden Tiger

A while ago, several national dailies carried reports about the government having "discovered" that the Bangalore-based Chinese company Huawei Technologies may have helped Pakistan and the Taliban upgrade their telecom network with both hardware and software during 2000 and 2001. The reports go on to state that, according to intelligence sources, all the company's 300 software professionals are Chinese and that the chief executive of the company was formerly an officer of the People's Liberation Army of China. There are conflicting reports as to whether the cabinet committee on security discussed this matter on the basis of a report from the Intelligence Bureau.

The spokesman of the company has confirmed that the firm had indeed supplied communication equipment to Pakistan but "was never involved with the Pakistan armed forces". While he also ruled out diversion of this equipment to the Taliban early this year, Taliban media reported that it had an agreement with the same Chinese company for the supply and installation of 12,000 digital telephone lines in Kabul. This directly contradicts the assertion of the company's spokesman. It may also not be widely known that the entire telecom system of Afghanistan under the Taliban was merely an extension of the Pakistani telecom system.

The whole issue tragically reflects the naivety of a country which aspires to be a major power in South Asia and which has made a pitch to be a permanent member of a restructured Security Council. Should the "automatic foreign investment approval policy and procedure" through the RBI even for 100 per cent foreign equity companies not have had built into it a proviso that such "automaticity" would not apply to proposals from our neighbours, including China, and in industry sectors sensitive from a security point of view, such as IT and telecom and several dual use technology-based products.

The case of China is particularly important because of the track record of its 20-year, across-the-board, broad and deep scientific, technological and industrial assistance to the nuclear weapon missile and military programmes of Pakistan. What is more, one presumes that the government is aware that China signed an MoU with the Taliban itself for "economic and technological cooperation" of all days on September 11, 2001.

The Chinese stance on all such assistance has the distinctive feature of the Chinese government blandly and often vehemently denying any role by China in such activities. In this case also, the Chinese company has denied that it was developing and supplying telecom and telecom surveillance equipment to the Taliban via Pakistan. This is despite the company having admitted that it markets all its IT and telecom products to world markets from an office in Pakistan.

And it is not as if the government does not perceive China as a threat or is not taking measures to face this. To take but one example, recently there was a high visibility press release by the Indian Air Force along with photographs showing our frontline air superiority aircraft, the MiG-29, at Leh, the highest airbase in the world. The press release stated that the capacity of the MiG-29s to operate from Leh had now been built up to deal with "western and northern threats". Another indicator is the development and recent operational deployment by ISRO of a "technology evaluation satellite" which is really a military reconnaissance satellite, that gives us excellent coverage not only of Pakistan but also of China with a one-metre resolution.

Another remarkable aspect of the case of Huawei Technologies is how our embassy in Beijing issued tourist visas to 180 Chinese software professionals without first ascertaining where they were going to in this country and for what purpose or activity.

If our embassy had issued such visas after prior consultation with the ministry of external affairs in New Delhi, the lapse would be even more serious as no clearance from the Intelligence Bureau seems to have been taken at that stage. The reported desire now of the MEA to at least hereafter have all potential FDI investment applications from China and Sri Lanka subjected to clearance by the IB, prior to issue or otherwise of approvals, is a tragically belated measure.

Do the proponents of 'push all foreign investment applications through fast' in the government know that even in the US existing laws would require a company like Huawei Technologies to obtain prior security clearance for establishment of a 100 per cent Chinese-owned company and prior export clearance of sensitive software and hardware before shipment to Pakistan, let alone the Taliban.

The other trend is to not say anything which will annoy the Chinese. Successive governments since 1988 have adopted this policy and conveyed this in Parliament and to the media. That despite such conditioning, the Huawei Technologies case has received so much press coverage, is reassuring.

Finally, this case reflects a serious lack of sensitivity to threats to national security as opposed to threats to national defence of the kind indicated above and even more to security threats which relates to, or derive from high-tech and hi-science products, technologies and services particularly so-called dual use versions. What is more, even where such sensitivity or awareness exists at the political, administrative, military or intelligence levels, they are largely confined to explicitly military science and technology.

That there are serious potential security threats in many "civilian" sectors of industry, transport, communications, energy and public health of which there was awareness in the 70s and even in the 80s, is not recognised today. If that were not so, the Huawei Technologies case or the dredging of Mumbai harbour by a Chinese firm or supply of X-ray baggage inspection machines by other Chinese companies to Leh, Kargil and Jorhat just would not have arisen at all, to then be rejected by the Navy and the IB.

Let us hope the government will not just plug this particular hole but undertake a comprehensive review of its policies relating to the often subtle and indirect security threats that emanate from technological and scientific activities, both governmental and commercial. The government must then undertake the much-needed tightening of policies and procedures and then put in place regulatory monitoring and reporting and quick response action mechanisms which are relevant to such threats which will become more and more frequent in the 21st century.

(The author is professor and chairperson, Centre for Studies in Science Policy, JNU, New Delhi)
 


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