PDF Department of the Army Historical Summary Fiscal Year 1985

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Investigators have established that Narain was the key to the entire operation and that the Hailey Road office was its nerve-centre. Narain, according to intelligence sources, had recruited most of the key members of the ring through Gopalan, whom he had known earlier, having worked with him in the commerce ministry in the '50s.

They used to pay frequent visits to Narain's office which was ideally located. Hailey Road is a quiet street with mainly residential buildings. Narain's office consisted of three rooms located on one side of the building which was not visible from the main road. Says S. Aggarwal, the building's owner: "I used to observe vehicles coming to and fro till all hours of the night but I never paid any real attention.

The documents brought by the visitors were photocopied at a shop in the basement of Rohit House in nearby Tolstoy Marg. The shop owner, a Mr Sharma, refused to comment beyond saying: "I have given my statement to the police".

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But his is just one of the many photostat shops that have sprung up in the area which stay open till late at night. However, the documents seized - almost in number according to one source - would seem to indicate that the spy ring was operating on the wafer-thin line that separates the acquisition of a nation's secrets for straight espionage and inside knowledge acquired for business dealings and the selling of expensive and competitive weaponry. According to the investigating authorities, the documents seized represent a smorgasbord of information, some utterly valueless and misleading while others are stamped with the highest secret classification "Not To Go Out of office" in red.

Investigating sleuths believe that the network was told to lay their hands on anything marked Secret but that could also include information that could prove irreparably damaging for the country's security, both internal and external. As principal secretary, Alexander's office was privy to every move of any importance taken by any of the various ministries.

All major decisions and every major deal was sent here for clearance. Compared to this case, the Larkins brothers the earlier spy network busted last year resemble a couple of erring schoolboys," says a top intelligence source. As one of the ubiquitous "liaison officers" who have sprung up like weeds in every crack of the Government edifice, Narain's basic job for Maneklal was to cultivate influential government contacts. He was hired by them in The firm has collaborations with firms in Switzerland, West Germany and Japan as well as with two French companies - Tecalemit Flexibles for manufacturing flexible hoses, Burton Corblin for making piston-type compressors and also represents the French firm of PCM Pomp Moineau.


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The firm's present head, Yogesh Maneklal told India Today that Narain's job was solely liaison work "and to organise the visits of our foreign collaborators visiting Delhi to help them in meeting people in government, and he also helped the firm in following up on industrial licences applied for".

Narain, like others of his calling, operated in that twilight world also inhabited by arms dealers where the activities are not strictly above board as in, for instance, the finding out of bids and specifications of rival competitors. In the process, what started off as industrial information-gathering gradually got diverted into espionage at the urging, for hitherto unknown considerations, of Colonel Alain Bolley.

Surveillance photographs offer conclusive proof that Bolley and Narain used to meet clandestinely at tourist spots like the Qutab Minar where the information Narain had obtained from his carefully-cultivated network of government contacts was passed on. But that brings up the puzzle of the intriguing French Connection. Who were Bolley's masters? French intelligence? Or was he a maverick moonlighting for the CIA as some reports have suggested?

In an interview with French television from New Delhi just before leaving, Bolley flatly rejected the charge that he was working for the CIA. The immediate suspect is the Soviet Union, which, according to this theory, was concerned at Rajiv Gandhi's ostensibly reflexive pro-West tendencies and is striving to sabotage his plans of unbolting protected Indian markets to western suppliers.

The theory goes that the Soviets specifically wished to wreck the massive Rs 2, crore mm gun deal which the French were hopeful of bagging. Bolley had played a key role in the negotiations. But what is equally obvious is that, considering the "special relationship" built up between India and France in the last couple of years, the Indian Government would hardly declare Bolley persona non grata unless there was incontrovertible evidence of his involvement.

Defense Spending in Historical Context: A New Reagan-esque Buildup? | CSBA

Till the current controversy, Bolley's credentials were impeccable. In , he completed a course in higher military studies which qualified him for foreign assignments. In , he became an air force colonel and was posted to New Delhi in July, as deputy defence attache. Since the socialist government took over, the agency's brief has been towards gathering more economic, financial and scientific information.

France's arms sales pitch is legendary and a military attache has a pivotal role to play in a client country. Bolley fits the frame to perfection. He had done invaluable groundwork for the French in their major arms deals with India in the last four years, including those for the Mirage fighter, and the Matra Magic and Milan missiles. It is also in the last four years that the French need for defence-related information has escalated dramatically. France has become the world's third largest supplier of conventional arms largely because of its laissez faire attitude to arms sales.


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  7. With most of the lions of the French arms industry having been nationalised, it is far more accurate to speak of the existence of a "military-industrial complex" in France than it is in the US. Indian intelligence sources also say that one of the reasons why the French had been so successful with their arms sales to India was because they had access to crucial information on what Indian defence requirements and specifications were in advance.

    The successes include:.

    Defense Spending in Historical Context: A New Reagan-esque Buildup?

    In addition, the defence forces have been buying crores worth of smaller components like electronic aids, radar equipment, precision ammunition and surveillance equipment including that sought to be used to convert Air India Boeing s into AWACS aircraft. In the light of the successes in the past, it is obvious that Bolley was being pressed for more new information when at least two major orders, involving close to Rs 3, crore, were in the final stages of decision.

    Last fortnight, Lt-General J. Malhotra, who heads the Corps of Artillery in the Indian army. The French firm ofema was competing for the Rs 2,crore order with the Austrians and Swedes. In fact in such a sensitive stage was the deal now that, in spite of the panic in the wake of the arrests. Along with the artillery guns, at stake now was the sale of a Rs 1,crore integrated computer system for the joint use of the three services. But even against that background, intelligence sources are unable to explain the wide range of confidential information that Bolley was getting which was quite unconnected to his, or his country's requirements.

    In fact, when Indian counter-intelligence first realised that highly classified information was being leaked out, it was in connection with Pakistan. In September last year, prominent US newspapers reported Indian plans to stage a pre-emptive strike against Pakistan's nuclear facility at Kahuta.

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    The reports were based on leaks from a US senate sub-committee meeting. The Indian intelligence sensors were quick to pick up the trails of the international campaign as Khan went around giving off-the-record interviews to the American Press, complaining about the Indian designs on Kahuta and the Pakistani plans for retaliation.

    And then Madam Gandhi will face the prospect of having to evacuate 10 million people out of Bombay. To Indian officers it was clear that there was an obvious design to the campaign and both the Pakistanis and the Americans had access to confidential information. Other clues had also surfaced. Defence officers going abroad for negotiations reported surprise at the extent of information prospective western manufacturers, specially the French, seemed to have on Indian defence requirements, information that was highly classified and could only have come from informants in highly-placed Indian circles.

    The clincher came when Sri Lanka produced secret reports about the involvement of raw in the training camps set up by separatist guerrillas in Tamil Nadu. By late September, it was obvious that the leaks were emanating from the prime minister's secretariat as well as the defence ministry.

    Surveillance had already indicated the involvement of Narain. Qualified recruits are channeled into schools to train them for specific jobs. The Services can reduce the number required to recruit by reducing the number of voluntary losses and attrition, or increasing retention, or both. However, there is a limit to this strategy.

    The military requires a constant influx of new young people, and therefore it is as important to bring in new young men and women as it is to keep an optimal number of trained and experienced military members. The desired retention rate differs for each Service on the basis of its mission i.

    Since the end of the Cold War, the U. Some of these situations have required war fighting, others have involved peacekeeping, and still others have focused on humanitarian aid.


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    In many situations, there has been uncertainty concerning whether, how, or at what level U. It can, however, be changed significantly by uncontrollable events during the year e. In response to the terrorist attacks, President Bush and his administration have established a new Office of Homeland Security, obtained international agreements to freeze the assets of terrorist organizations, obtained support from U.

    In June , the President asked that the Congress join him in creating a single, permanent department the Department of Homeland Security with an overriding and urgent mission: securing the homeland of America and protecting the American people. Indications are that this new department will have little impact on the size or shape of the DoD or the military. The war against terrorism continues on many fronts and will be a long one, requiring all national security tools, including the military.

    It is difficult to predict what the demands for military forces will be at any given time.