The Hindu Business Line : US commits to assurances regarding fuel supplies

Nuclear dawn
US to join India in talks with IAEA
Text silent on what happens if India resorts to nuclear test
Agreement will remain in force for 40 years

Our Bureau

New Delhi, Aug 3

India and the US today simultaneously made public the agreed text of the agreement for co-operation in civilian nuclear energy.

The deal envisages transfer to India of nuclear material, non-nuclear material, equipment and components, sensitive nuclear technology and heavy water production technology as well as production facilities.

The purpose of the agreement is to enable full civil nuclear energy co-operation between the two countries.

It provides for development of strategic reserve of nuclear fuel to guard against any disruption of supply over the lifetime of India’s reactors.

It also commits the US to work with “friends and allies to adjust the practices of the Nuclear Suppliers Group to create the necessary conditions for India to obtain full access to the international fuel market, including reliable, uninterrupted and continual access to fuel supplies from firms in several nations.”

To further guard against any disruption in fuel supplies, the US has committed itself to incorporating assurances regarding fuel supplies in the bilateral US-India Agreement on Peaceful Uses of Nuclear Energy under Section 123 of the US Atomic Energy Act, which would be submitted to the US Congress.

The US will also join India in seeking to negotiate with the International Atomic Energy Authority (IAEA) an India-specific fuel supply agreement.

If despite these arrangements there is a disruption in fuel supplies, the US and India would jointly convene a group of friendly supplier countries, including Russia, France and the United Kingdom, to pursue such measures as would restore fuel supply to India.

Though the agreed text is silent on what happens if India resorts to a nuclear test, the agreement does include a clause for termination on one year’s written notice and giving reasons for seeking such termination.

But before the termination of the agreement, the two countries would consider the relevant circumstances and promptly hold consultations to address the reasons cited by the country seeking termination.

As per the agreed text, the “parties (India and the US) agree to consider carefully the circumstances that may lead to termination or cessation of cooperation. They further agree to take into account whether the circumstances that may lead to termination or cessation resulted from a party’s serious concern about a changed security environment or as a response to similar action by other states which could impact national security.”

Following the cessation of co-operation under the agreement, the US would have the right to seek return of any nuclear material, equipment, non-nuclear material or components transferred under the agreement and any special fissionable material produced through their use.

If either country exercises the right of return, it would compensate the other for fair market value and for costs incurred as a consequence of such removal.

The agreement is to remain in force for 40 years and would continue in force thereafter for additional periods of 10 years each.

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