Thursday, July 3, 2008

We need the deal

The Indo-US nuclear deal is being called the biggest breakthrough in years. Tough negotiations between Indian and American diplomats that took place, and lobbying by NRIs led to draft this deal, even as the deal battled its way through Parliament in Delhi and the US Congress.Many have consistently raised concerns that this make-or-break deal might be bad for India but here is a look at more of the fine prints of the deal that has a life span of 40 years.The 123 agreement is a civil nuclear deal, therefore, it will have no bearing on India's strategic and military programme and India can make a bomb. It is completely out of the ambit of the deal.In the text of the deal there is a clause that says that the agreement will in no way be a hindrance to India's strategic programme. Therefore,India can continue to make a bomb with its own fuel.What is clear from the draft of the 123 agreement is that there is no legal binding commitment on India to never test again. India, if it wants to, can choose to conduct a nuclear test.If India does conduct a nuclear test, it will not be violating any international treaty or agreement because there is no mention of testing or detonation in this bilateral agreement.Essentially, what the controversy has been over is whether if India conducts a test the Americans under their own laws would have the right to take back all the fuel that they give us.

Right of return

The deal interestingly says that the right of return that the Americans have does not automatically comes into effect. It is something the US administration chooses to do. They would have to stop cooperation with India. But whether or not they take back fuel is something they would have to choose to do.Even after the US chooses to do that, there are about seven to eight barriers before the right of return actually comers into play.What the agreement says that that it will take into account the circumstances in which India conducts a nuclear test.These include a ''changed security environment'' or action, which could impact national security.Essentially what it boils down to is that the right of return may not be invoked if Pakistan or China conduct nuclear tests and India responds to that by conducting a test of its own.In a way, this is the first international agreement, which would justify the circumstances in which a nuclear test is conducted. So India is not giving up its right to test and right of return of nuclear fuel does not automatically comes into play. Under Secretary of State Nicholas Burns has told earlier before he retired that India retains the “sovereign right” to explode a nuclear device but hopes that such a situation will not arise. “India retains its sovereign rights, but the U.S. retains its legal rights as well.

These assurances that the US would ensure that there is a lifetime supply of fuel for India's nuclear reactors and that they help India build its strategic fuel reserve.If the US is unable to fulfill this commitment, it will convene a group of countries like Russia, France and the UK to ensure supply.Even if, for some reason, they were to take back nuclear fuel, India retains the right to seek alternate sources of fuel for itself. India will have to build strategic reserve so that it does not go out nuclear fuel.

Highlights of the Deal

* The agreement not to hinder or interfere with India's nuclear programme for military purposes.

* US will help India negotiate with the IAEA for an India-specific fuel supply agreement.

* Washington will support New Delhi develop strategic reserves of nuclear fuel to guard against future disruption of supply.

* In case of disruption, US and India will jointly convene a group of friendly supplier countries to include nations like Russia, France and the UK to pursue such measures to restore fuel supply.

* Both the countries agree to facilitate nuclear trade between themselves in the interest of respective industries and consumers.

* India and the US agree to transfer nuclear material, non-nuclear material, equipment and components.

* Any special fissionable material transferred under the agreement shall be low enriched uranium.

* Low enriched uranium can be transfered for use as fuel in reactor experiments and in reactors for conversion or fabrication.

* The ambit of the deal include research, development, design, construction, operation, maintenance and use of nuclear reactors, reactor experiments and decommissioning.

* The US will have the right to seek return of nuclear fuel and technology but it will compensate for the costs incurred as a consequence of such removal.

* India can develop strategic reserve of nuclear fuel to guard against any disruption of supply over the lifetime of its reactors.

* Agreement provides for consultations on the circumstances, including changed security environment, before termination of the nuclear cooperation.

* Provision for one-year notice period before termination of the agreement.

* The US to engage Nuclear Suppliers Group to help India obtain full access to the international fuel market, including reliable, uninterrupted and continual access to fuel supplies from firms in several nations.

* The US will have the right to seek return of nuclear fuel and technology.

* In case of return, Washington will compensate New Delhi promptly for the "fair market value thereof" and the costs incurred as a consequence of such removal.

* Both the countries to set up a Joint Committee for implementation of the civil nuclear agreement and development of further cooperation in this field.

* The agreement grants prior consent to reprocess spent fuel.

* Sensitive nuclear technology, nuclear facilities and major critical components can be transferred after amendment to the agreement.

* India will establish a new national facility dedicated to reprocessing safeguarded nuclear material under IAEA safeguards.

* Nuclear material and equipment transferred to India by the US would be subject to safeguards in perpetuity.

No comments: