WASHINGTON, July 19: The American non-proliferation police has struck again. Not satisfied with putting Indian scientific establishments like the Bharat Electronics Ltd (BEL) and Bhabha Atomic Research Centre (BARC) on its watchlist, the Clinton administration has now begun prosecuting US firms doing business with Indian entities.

In one of the first cases of its kind a Philadelphia-based firm was fined $ 50,000 last week for illegally exporting electronic components in 1992 and 1993 to an unnamed Government of India entity. According to federal prosecutors, the company, IGG Corp, shipped $ 461,000 worth of integrated circuits, transistors and other equipment to an Indian space agency, presumably the Indian Space Research Organisation (ISRO).

The firm pleaded guilty in a federal court on Thursday and agreed to pay a $ 400,000 civil penalty in addition to the fine. The firm was also placed on probation for five years.

The latest action is in tune with the threat by US Under Secretary of Commerce William Reinsch who said last week that the Clinton administration would now ``pursue and prosecute'' US firms violating the ban on export of dual-use technology.

Sources say the administration has stepped up its scrutiny of outflow of what the Bureau of Export Administration mandarins call ``choke point technologies'' without which a weapon or missile cannot be built, and ``which can be controlled because of their special qualities, small number of producers, or limited alternative uses.'' IGG supplies to India apparently came in this category.

IGG initially argued that the parts supplied to the Indian space research agency were for civilian use and did not involve missile or other hostile technology. Besides, export of the items did not previously require a license, it said.

However, prosecutors countered that the Commerce Department had advised the firm in a letter that the situation had changed and the terms of restriction had been revised from September 1992 to November 1993, when the exports were made. IGG knew that fresh licenses were required but still proceeded to export the items through England, where the parent company IGG Component Technology Limited is based.

IGG Corp and its attorneys did not immediately return calls seeking comment.

The United States has tightened its export control procedures after the enforcement of the Wassenaar Arrangement on dual-use technologies. Unlike its predecessor regime COCOM, the new arrangement also targets conventional technology, making even routine procurement difficult.

However, Indian officials say that the US zeal in cracking down on the so-called violations seems selective. China for instance appears to get away with the most brazen transgressions including diverting powerful supercomputers to military use.

The new wrinkles between Washington and New Delhi appear to stem mainly from the Commerce Department which administers export controls. India has also been hauled to the WTO by the US Trade Representative over its import restrictions.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.