Reuters article (29 AUG 05):
U.S. exempts India jet order from no-fly policy -paper
MUMBAI, Aug 29 (Reuters) - The United States has agreed to let India purchase jets from a Brazilian maker, which had held up the sale until New Delhi agreed to abide by a U.S. "no-fly" list for jets equipped with special electronic instruments, a newspaper reported.
India had signed a 7-billion-rupee ($160-million) contract in 2003 for five jets from Brazil's Embraer, the world's fourth-largest commercial airplane maker, the Times of India reported on Monday.
In June, Embraer added a condition to the sale in line with new U.S. guidelines, requiring countries purchasing aircraft fitted with certain integrated electronic instruments to agree not to fly to designated countries, including China, North Korea, Iran, Libya, Syria, Cuba and Haiti.
The report did not indicate the specific nature of the instruments but said the jets would be used by senior government officials.
Brazil's Embraer had refused delivery of the jets after Indian defence and air force officials, who will use the planes, refused to abide by the restriction. They told Embraer the order would be cancelled.
Indian defence officials then asked the U.S State Department for a waiver, according to the report.
"The ministries of defence and external affairs are said to have worked overtime to avert a possible diplomatic embarrassment on the eve of Prime Minister Manmohan Singh's U.S. visit," the paper said, referring to Singh's visit last month.
Indian defence and air force officials could not be reached, but an industry expert said two countries doing business with each other should not have to follow U.S. policy.
"You can't tell a sovereign government where to fly, where not to fly. And you can't tell a sovereign government it can sell its aircraft to a country only if it agrees to certain conditions," said Kapil Kaul, head of the Centre for Asia-Pacific Aviation in India.
"There is a compelling economic need to do business with India today, and therefore India has the ability to lobby more effectively," he said. ($1=43.8 rupees)
A/c being delivered.
I agree with the industry expert here, why does the U.S. have a say on what goes on between two other independent and soverign nations?