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This is an archive article published on October 3, 2008

Bush delivers

The Indo-US nuclear deal cleared its last hurdle this morning when the US Senate passed the 123 agreement with an overwhelming two-thirds majority...

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The Indo-US nuclear deal cleared its last hurdle this morning when the US Senate passed the 123 agreement with an overwhelming two-thirds majority 8212; 86 votes in favour, 13 against, 1 did note vote 8212; which puts a stamp of approval for US to start nuclear commerce with India. The agreement is expected to be signed on Saturday when US Secretary of State Condoleezza Rice is in New Delhi.

With the US Administration getting the Congressional green signal and the NSG clearance already in hand, India can now immediately proceed to negotiate uranium imports given the shortage its programme faces. Countries like Kazakhstan, which has 15 per cent of the world8217;s uranium sources, have already approached India to negotiate agreements.

In fact, sources said, a proposal has just been moved for Kazakhstan President Nursultan Nazarbayev to be the chief guest at this year8217;s Republic Day parade. Presently, this is one of the few proposals and the PMO is yet to take a final decision on the chief guest for this year. Nazarbayev8217;s visit has anyhow been pending and it is likely that this may be preceded by an Indo-Kazakh inter-governmental commission meeting, where India would look to take discussions forward on not just importing uranium but even possible joint exploration strategies.

While these negotiations are set to dominate the next course of action on operationalising this deal, India is keenly awaiting the signing statement from US President George W Bush which would address some of its concerns with the Bill HR 7081. This had to be introduced to fast track proceedings in the US Congress, which otherwise requires a 30-day waiting period, but that allowed Congressmen to add elements like those in the declaration of policy segment of the Bill.

It8217;s learnt, however, that the US has assured India that Bush, while signing the Bill into law, will issue a statement which would underline the legal validity of the 123 agreement. The statement is expected to make it clear that nuclear commerce with India will be guided solely by the contents of the 123 agreement negotiated between both countries. New Delhi8217;s hope is that would help address the perceived contradictions created by a range of documents including the letter from the State Department to the House International Relations Committee.

Some of the key issues where India has concerns are:

8226; In understanding the 8220;meaning and legal effect8221; of the agreement, the Congress would go by all communication from the President and his representatives to the Congress prior to September 20, 2008: This was inserted to accommodate Howard Berman8217;s demand for inclusion of the State Department letter as a resolution in the Bill, which he subsequently entered into Congressional record. However, this would also contain Bush8217;s signing statement on the Hyde Act which rejects several provisions as non-binding, making all of this rather self-contradictory.

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8226; If US terminates supplies to India in case it were to test, then US will 8220;prevent8221; other NSG members from doing the same: This was in response to Berman8217;s attempt at amending presidential powers of a waiver in the Atomic Energy Act. India, however, is unhappy with this provision.

8226; A safeguarded fuel reserve in India should be commensurate with reasonable reactor requirements: This was inserted to avoid amendments that would question India8217;s right to build this reserve. But sources say in the end, it would only deter India from routing fuel supplies for the reserve from US.

8226; Nothing in the agreement shall be construed to supercede the legal requirements of the Hyde Act: This was again inserted to prevent amendments on lines of what is already present in the Hyde Act like India8217;s relationship with Iran.

India8217;s contention is that it would only abide by the commitments made under the 123 agreement as that is the only binding document in its view. Berman, for instance, has even identified a special procedure for a future agreement on sale of enrichment and reprocessing technology that give 8220;rights of disapproval8221; to the US Congress.

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For all this, India had conveyed that US too has to abide by its commitments in the 123 agreement including letting India build its strategic fuel reserve for lifetime supply to its reactors.

The hope is US will address this in the President8217;s signing statement.

 

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