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Thursday, Jun 29, 2006

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National

Nuclear fuel supplies issue still remains

Special Correspondent

Government determined not to allow deal to become an "albatross" around the neck

— PHOTO: PTI

RALLYING FOR SUPPORT: Indian-Americans from New York and New Jersey join Frank Pallone (second from left) for a rally on the steps of Capitol Hill in Washington DC to show their support for the U.S-India civilian nuclear deal.

NEW DELHI: As the India-United States nuclear agreement enters the home stretch, senior officials say the Government is determined not to allow the deal to become an "albatross" around the neck of the country's foreign policy.

They were responding to the preambular language in the proposed new U.S. law on nuclear cooperation with India that is a virtual washing line of dirty linen the American side would like to peg on to the nuclear deal. "There is a reference to isolating Iran, joining the Proliferation Security Initiative, the Australia group, Wassenaar agreement. None of this is in the operational part of the Bill, but the language used for these add-ons is just not acceptable," a senior official said here on Thursday. "If there is a reference to Iran and what the U.S. wants us to do along with them, this is just not going to happen."

Conscious of the criticism that the Government had already diluted the independence of its foreign policy in pursuit of the deal, the official said: "Just let the Bill be passed first."

Even if there was a "predilection" to go along with the U.S. on major issues of foreign policy, the official said, "it cannot be sustained domestically given the nature of our political system." Indeed, by raising the PSI and other issues in this manner, "they have made it even more difficult for us to accept something that we might otherwise have accepted ourselves in due course." If India were to join the PSI now, everyone would say this was an additional condition of the nuclear deal.

About the sequencing of the next steps, the official said, "we have clarity in our mind about what follows what," although conceding that the U.S. may not be on the same page.

"123 Agreement"

India believes that having presented its separation plan, the next step to follow will be the actual change in the U.S. domestic law. "If all goes well, the current Bill will be law by August," the official said. Then, India and the U.S. will conclude a `123 Agreement' (named after the numbered section of the U.S. Atomic Energy Act) to operationalise the precise cooperation envisaged in the nuclear field, including guaranteed uranium supplies over the lifetime of any reactor that is placed under in-perpetuity safeguards with the International Atomic Energy Agency. Parallel to this, the Nuclear Suppliers group will amend its guidelines to allow nuclear commerce with India, following which India will conclude a safeguards agreement with the IAEA.

At this point, Congress will look at the 123 Agreement and the Safeguards Agreement and, on the basis of the Presidential waiver already authorised, clear the way for U.S. companies to sell India reactors and civilian nuclear technology.

The official said there were still differences with the U.S. side on the 123 Agreement. One round of technical discussions had produced convergence on the basic text, but there were a number of "bracketed" portions yet to be resolved. Among these, the thorniest issue was the guarantee of nuclear fuel supplies in exchange for in-perpetuity safeguards.

While India was willing to reiterate its unilateral moratorium on conducting any further nuclear explosive tests, it was opposed to the insertion of a no-test condition in the 123 Agreement since this would give a unilateral commitment the character of a binding legal agreement. The next round of technical talks would be held some time in July.

As for the India-specific safeguard agreement, the official said a delegation from the IAEA would be arriving in the country next week for a further round of discussions.

Presidential waiver

The main Bill in its current form makes only an implicit reference to the consequences of an Indian nuclear test by noting that the Presidential waiver will lapse if India were to undertake such an action. But this, say senior officials, amounts to a reiteration of existing U.S. policy and is not an obligation India is committing itself to in legal terms.

Under the present U.S. law, the Atomic Energy Act bans nuclear commerce with countries other than NPT-complaint nuclear weapon states that have not placed all their nuclear facilities under the so-called full-scope IAEA safeguards, which have detonated a nuclear device, which have a nuclear weapons programme, or which are developing enrichment technology.

The proposed presidential waiver will exempt India from this omnibus ban on the basis of a one-time "determination" by the President that New Delhi has separated its civilian and military nuclear facilities and placed the former under permanent IAEA safeguards, has in place robust export controls, is assisting the U.S. in negotiating a fissile material cut-off treaty, and is making progress towards the implementation of an Additional Protocol with the IAEA.

This "determination" or certification, officials stressed, will not be annual or periodic.

Once made, it will lapse only if India were to detonate a nuclear device, or abrogate or be in material breach of its safeguards agreement.

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