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By Andrea Shalal-Esa

WASHINGTON, Sept 19 (Reuters) – U.S. Deputy Defense

Secretary Ashton Carter this week proposed ways to deepen

defense ties between the United States and India, including

co-development of the next version of the Javelin anti-tank

missile now built by Raytheon Co and Lockheed Martin

Corp.

Carter, speaking at a news conference in India, said the two

countries were already expanding military relations through

exercises and increased trade in weapons. But he said it was

time to unleash what he called the “enormous untapped potential

between our private sectors in the defense field.”

The Pentagon’s No. 2 official said the United States was

trying to remove bureaucratic hurdles impeding technology

transfer between the two countries, and was giving priority

funding to researchers working with Indian partners in key areas

of science and technology.

The Obama administration, mindful of declining U.S. defense

spending levels, has tried to expand partnerships with many

countries, including India, on military sales, and has

dramatically stepped up its advocacy for U.S. arms sales abroad.

India and the United States announced a Defense Trade and

Technology Initiative, or DTI, one year ago during a visit to

India by then-Defense Secretary Leon Panetta, a joint effort to

streamline bureaucratic processes and expand defense trade.

One new initiative, Carter said, involved seeking

anticipatory approvals of some weapons projects even before

India finalized its military requirements.

A text of his remarks was released in Washington by the

Pentagon.

“We on our side have already reached out to U.S. industry to

start identifying more transformative co-production and

co-development projects that we can undertake together,” Carter

said. “We’re going to keep reaching out and keep pushing.”

He said he had proposed one specific project during his

meetings in India this week – co-development of the next

generation of the Javelin anti-tank missile.

“Rather than simply buying this generation of Javelin, India

would be able to … also co-develop and co-produce the next

generation of Javelin for international buyers,” Carter said.

“That’s an entirely new proposal intended to reflect the DTI,

and it’s being offered to no other country but India.”

Asked about India’s response, Carter said Indian officials

had said they needed time to consider the proposal.

He said U.S. government and industry needed to overcome

decades of segregation from their counterparts in India. “We

don’t have the history that Russia does here, and we’re trying

to replicate that,” he said.

Washington was also offering a new electromagnetic

technology for catapulting fighter jets off aircraft carriers

called EMALS and built by privately held General Atomics to

India, Carter said. Other possible areas of cooperation included

counter-terrorism to maritime security.

“There are no boundaries from the U.S. point of view, and as

far as I know from the Indian point of view,” he said.