American scientists and engineers usually enjoy full access to basic research in the FRG, and also the strong support of the government for cooperative activities. The German government frequently bears the financial responsibility for academic exchanges in both directions, and it often is easier for U.S. experts to gain access to German facilities than it is for German scientists to access American scientific facilities.

HUNGARY

The improved bilateral relationship between the U.S. and Hungary over the past decade augers well for cooperative S&T programs and activities. Many of the cooperative S&T activities with Hungary occur under a bilateral exchange agreement on culture, education and science and technology which was renegotiated in November 1987.

During FY 1988, science exchange visas were issued to more than 300 Hungarian scientists and physicians, and approximately 500 others visited the U.S. at the invitation of American professional associations and universities. These exchanges have accompanied official Hungarian acknowledgment of the importance of U.S. scientific and technological contributions to Hungary's economy and society.

Successful S&T exchanges are continuing in the areas of agriculture, geology, environmental protection, and health. Five Hungarian research institutions and companies are pursuing commercial ventures with American counterparts and eight other projects are under review. In the wake of the Chernobyl nuclear accident, Hungary also has turned to U.S. firms in seeking assistance in safer design and engineering of add-on nuclear reactors at its existing power plants in Pecs. S&T cooperation continues to make a modest, but very positive, contribution to achieving U.S. foreign policy objectives in Hungary.

There appear to be no major outstanding problems between the U.S. and Hungary on the protection of intellectual property rights or access to Hungarian research and facilities. Instances of unauthorized copying of computer software or the use of company logos have arisen in the past, but these generally have been settled amicably. The Hungarian government appears anxious to work out any problems due to the protection of intellectual property in reference to cooperation in science and technology.

INDIA

The U.S. science and technology relationship with India is one of the largest and broadest in the world. Cooperative work is carried out under the auspices of the Science and Technology Subcommission, the Reagan-Gandhi science and technology initiative (STI), the Agriculture Subcommission, and the USAID. The overall science and technology effort is supervised on the U.S. side in New Delhi by the Embassy's science council, chaired by the Ambassador.

Science and technology continued to play a prominent role in Indo-U.S. relations during FY 1988. The range and number of activities under the S&T Subcommission continued to increase, the STI program was extended for three years in October 1988 and work began on the Vaccine Action Program of PHS and USAID. Moreover, progress was made on regulating technology transfer and monitoring S&T developments in India.

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The highlight of FY 1988 was a meeting at Washington in October 1987 between President Reagan and Prime Minister Rajiv Gandhi. The two leaders, recognizing the great success of the Reagan-Gandhi science and technology initiative, called for extension of the program for another three years. visit, Prime Minister Gandhi stressed the importance of S&T cooperation, stating at a White House luncheon that science and technology was at the heart of Indo-U.S. relations. A White House team came to India in July 1988 to work out details of the STI extension agreement.

A review of the STI program by a panel of Indian senior scientists and eminent members of the U.S. National Academy of Sciences, led by Dr. William Gordon, took place at New Delhi in December 1987. The joint panel concluded that there had been excellent progress under STI, particularly in the areas of agriculture, solid state science and engineering, health, and short-term predictability of the monsoon. They noted that the new approach for joint collaboration had proved very successful in speeding approval of projects and increasing the exchange of scientists.

The improved climate for bilateral interaction under the STI program also has facilitated scientific data exchange between the two countries as exemplified by India making INSAT meteorological data available to the U.S. Moreover, the advanced level of cooperation in meteorological research under STI led to Indian purchase of a supercomputer to be installed in the newly formed Center for Intermediate Range Monsoon Forecasting.

The Ninth Indo-U.S. S&T Subcommission meeting was held at New Delhi in November 1987. The delegation included representatives of over a dozen U.S. technical agencies. The past year has seen unprecedented progress in implementating the recommendations of the working groups on materials and physical sciences and marine and atmospheric sciences. Similarly, environment and ecology and disabled persons research programs reached significantly higher levels of activity.

Two major defense research agencies, the Office of Naval Research (ONR) and the Office of Army Research, carry out programs in India. The ONR held four very successful workshops in India during FY 1988 in the areas of signal processing, materials processing and characterization, and solidification principles. Over 150 U.S. and 400 Indian scientists participated. Numerous projects for collaboration were developed and have received GOI technical approval from the government of India. These activities have acted as a catalyst for increasing defense cooperation between the two countries. Of particular interest during FY 1988 were the ONR-supported programs in bioactive substances and biodeterioration. The Office of Army Research continued its significant work in anti-malaria drugs.

During FY 1988, the Materials Science Program became an important and expanding area in Indo-U.S. collaboration. The 11 projects under materials science jointly funded by ONR and NBS have yielded excellent results and generated much interest on both sides.

NSF supported participation of 300 U.S. and 30 Indian scientists in 20 workshops and conferences held in India and the U.S during FY 1988. NSF also supported the international travel of 90 U.S. and Indian scientists for collaborative research in a variety of fields.

The health program continued to play a very prominent role in the Indo-U.S. collaborative S&T program. The first meeting of the Joint Working Group (JWG) for the Vaccine Action Program (VAP) took place in New Delhi March 2-3, 1988. The Joint Working Group agreed on procedures under which the VAP will operate and identified priority areas for initial program activity. These include: hepatitis rotavirus, cholera, shegella, e. coli, typhoid, acute respitatory infections, canine rabies and polio. The JWG agreed to hold a second meeting in Washington D.C. on October 6-7, 1988.

Secretary S.S. Varma from the Ministry of Welfare led a delegation of six Indians to the U.S. to develop a policy for drug abuse control and prevention patterned on the U.S. model. The Indian Health and Human Resources Development, Minister P.V. Narasimha Rao, met with DHHS Secretary Otis Bowen in Washington D.C. in February 1988. The two leaders agreed to increase cooperation in health and family planning and share information on AIDS. The U.S. PHS agreed to support further training in HIV virology of two Indian scientists in the U.S. Other cooperative health projects included a project on rehabilitation of the hearing impaired which began in the spring of 1988, and a three-day bilateral symposium on generic drugs, bioequivalence and pharmacokinetics. This meeting was attended by over 250 scientists and representatives of Indian and U.S. drug companies. In November 1987, a day-long symposium in celebration of the centennial year of the U.S. National Institutes of Health was held at the all India Institute of Medical Sciences in New Delhi. Five prominent American scientists, including two Nobel laureates, and some of the leading figures on the Indian health and science scene took part in the symposium. It was attended by over 750 people and an association of Indian alumni of NIH was formed after the

symposium.

With funding from the U.S.-India funds program, the National Institute on Disability and Rehabilitation Research (NIDRR) is collaborating with the Ministry of Welfare on a project to provide a comprehensive range of rehabilitation services for the disabled in rural India. One-thousand Indian rehabilitation professionals are providing training in rural areas backed up by services at the district level. Three additional projects related to spinal cord injury, and rehabilitation technologies, and information and documentation were established during FY 1988. This program has made a unique contribution in India, which previously had no rural rehabilitation services.

The past year has witnessed a significant increase in the number and diversity of Indo-U.S. cooperative activities in environment and ecology. Under an agreement between the U.S. National Park Service (NPS) and the Ministry of Tourism, two demonstration projects on the development of the Taj Mahal National Historical Park and of archeological sites related to the life of Buddha have been accepted. The Fish and Wildlife Service (FWS) has agreed to assist the Indian government over the next five years in the development of the Wildlife Institute of India, where all wildlife research and management personnel will receive formal training. FWS also supports four major projects in India on wildlife management, including endangered species. In addition, a major cooperative FWS project is producing educational television programs. Smithsonian Institute supported a variety of research projects in ecology, including long standing ornithological studies and crocodile breeding and behavior. The Department of the Interior's Office of Surface Mining has two projects on reclamation of abandoned mines and collaboration in this area is increasing steadily.

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USAID projects have developed according to traditional sectoral needs and the incorporation of science and technology into projects has followed these needs. Examples can be cited from each sector: The agricultural topics of mutual interest have been identified by the Indo-U.S. Subcommission. The vaccine and immunodiagnostics project, a part of VAP, supports collaborative research to develop diagnostics and new or improved vaccines for important diseases in India. Under the Program for Advancement of Commercial Technology (PACT), joint Indo-U.S. commercialization of technology is supported. PACT, and a similar project directed to the energy sector, the Program for Acceleration of Commercial Energy Research (PACER), help underwrite the costs of forming joint ventures, with attendant benefits for U.S. trade and investment.

A major focus of the USAID's new country development strategy statement is the expanded importance of science and technology. USAID will aim to develop a balanced S&T program, which is driven by and responsive to development needs and which views the entire science and technology process from laboratory to end use. Technology transfer is an integral element of this approach. USAID proposes to develop this program by continuing and expanding its sectoral activities as well as establishing activities that will address some

cross-cutting areas and issues. In the Indo-U.S. science and technology relationship, the USAID programs serve the important U.S. foreign policy interest of helping maintain linkages throughout the Indian S&T community, especially in those areas that are essential to development and usually beneficial to both countries.

In general, India grants U.S. entities equitable and reciprocal access to scientific and technological opportunities, facilities and information. India has begun, in the past few years, to open even defense laboratories to U.S. visitors, although the Indian government restricts access to certain information on the basis of national security including meteorlogic, oceanographic and geophysical data. In addition, technical problems involving data collection and reproduction, as wells as professional distrust, continue to impede the free flow of information into the international scientific community.

Lack of adequate and effective protection of intellectual property rights in India threatens to jeopardize expanded collaboration. Negotiations called for in the recently renewed STI agreement are underway to ensure that intellectual property resulting from U.S. Government-sponsored and supported research and development is adequately protected in India, and that there is bilateral on the equitable disposition of intellectual property rights generated from collaboration.

INDONESIA

Indonesian-U.S. peaceful nuclear cooperation is highlighted by the successful nuclear Joint Steering Committee (JSC) arrangement which was created for the purpose of enhancing cooperation in several key nuclear fields, including radioisotope production and application, instrumentation, nuclear safety, and nuclear training. The JSC held its third meeting at Washington on April 18, 1988, and is expected to hold its fourth meeting at Jakarta in March or April 1989. Joint activities, particularly in the field of nuclear safety, are progressing. Nuclear safety and regulatory issues are paramount concerns for the government of Indonesia, and the Indonesian National Atomic Energy Agency (BATAN) is interested in continuing to strengthen ties with the U.S. in both these fields.

Indonesian officials desire to diversify the energy

base in response to growing demand, and therefore nuclear power is viewed as a serious option. The Embassy continues to provide ongoing support for the participation of an American company in an Indonesian nuclear power program.

Geoscience cooperation is a significant element in the bilateral S&T relations between the United States and Indonesia. The Indonesian Directorate General of Geology and Mineral Resources (DGGMR) are successfully implementing a program designed to enhance Indonesian geoscience capabilities. Several major volcanic eruptions in Indonesia during the past year prompted the evacuation of more than 17,000 persons. The USGS advisory volcanologist met with members of the U.S. Embassy at Jakarta, and in June 1988 the Embassy donated $25,000 to assist relief efforts. The USGS advisory volcanologist also has worked with the Volcanological Survey of Indonesia (VSI) to foster prompt responses to these eruptions, and to carry out eruption-related field studies and hazard assessment. These activities included providing briefings to officials at the ministerial and gubernatorial levels in the field and in Jakarta, as well as working with and advising the local relief committees in the field which directly handled disaster relief and evacuation measures. USGS continues to cooperate closely with the DGGMR and the Indonesian coal directorate in peat and coal research projects. The ongoing coal and peat projects offer considerable scope for continuing USGS cooperative efforts in Indonesia with the DGGMR and coal directorate. The Embassy continues to work with the DGGMR and other Indonesian government agencies in an effort to conclude a memorandum of understanding between USGS and the DGGMR which would provide the framework for a broad range of cooperative activities.

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Another area of U.S.-Indonesia cooperation includes medical research and health sciences with projects in entomology, virology, medical bacteriology, immunology and parasitology. U.S. technical agencies carry out projects in oceanographic research, mapping, aviation, wildlife preservation, environmental protection, assessment of mineral resources, agriculture and land reclamation. USAID also conducts an active program with Indonesia. In addition, the U.S. private sector has been very active in a wide range of science and technology developments in aerospace and avionics, telecommunications, energy and natural resources development, computers, electronics, and other fields. The companies have established close relations with the Indonesian private sector and have successfully retained or expanded market shares in several key areas. The companies have also provided technology transfer and training for significant numbers of Indonesian technicians and specialists.

The U.S. Embassy played a strategic role in achieving U.S. concurrence for the scalar upgrade to the IBM 3090 Model 400E vector processor system/supercomputer which is located at the Indonesian aircraft industry (IPTN) in Bandung. This plug-in supercomputer is being used for research, development and production work in engineering and manufacturing as well as administrative support functions.

The effective protection of intellectual property rights will be important to Indonesia as it seeks to encourage foreign investment in key sectors where higher technology is employed, such as computer software design and biotechnology in agriculture. On September 9, 1987, the parliament passed Indonesia's new copyright law. A patent law currently is under development. Effective enforcement of both laws will be important to Indonesia's economic development and, if

successfully carried out over the next decade, will undoubtedly