123 Agreement silent on Pokharan-III

The text of the 123 Agreement between India and the US was simultaneously released by the two countries today without any mention of further testing and a promise of uninterrupted fuel supplies for nuclear commerce.

Nuclear fuel is to be transferred only for the lifetime of the reactor. As a reactor's life is just 25 years, what happens after this period is raising questions in government.

The text speaks of periodic inspections by the International Atomic Energy Agency (IAEA) inspectors to ascertain that India was not diverting fuel meant for civilian purposes, something that is bound to raise hackles in Parliament when it is discussed.

It says that if India tests another weapon, the US will be within its rights to demand return of fuel, technology and equipment. Six months notice of termination will have to be given by either party.

However, the two nations can discuss whether the violation was inadvertent or whether it was a result of the circumstances that led to termination (or cessation) of the agreement because of "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". Clearly, this is a reference to Pakistan in case of India and Iran in case of the US.

The scope of co-operation between India and the US following the agreement is immense. For a long time, Indian scientists were not permitted to visit US laboratories. The agreement actively encourages this exchange now. Full civil nuclear co-operation is assured and the US has pledged the development of strategic reserves so that there is no disruption of supplies.

The agreement is specific: it is mean to provide for peaceful nuclear energy, and independently developed nuclear resources created by India are outside its purview.

To the hawks in the US establishment and the US bureaucracy, there is a signal: that authorisations for technology cannot be held up beyond 60 days. If there is more than a four-month delay in authorisation of any technology, either party can give notice to hold discussions within 30 days of giving such notice. This is meant to clear thehurdles for companies which have interests in dual use technology.

In the future, sensitive nuclear technology can be transferred under this agreement, after an amendment. Till then it stays outside its purview, thus affording a measure of protection to India's military nuclear programme. What is more, ban on technologies placed on India after the 1974 nuclear tests will be removed after an amendment of domestic US laws by its Congress, the text of the agreement says.

The agreement guarantees full access to international fuel supply. However, India has to negotiate India-specific safeguards with the IAEA. This means a special exception for India which is not a Nuclear Weapons State (that are not open to safeguards) but a state with nuclear weapons. Civil nuclear facilities are to be safeguarded in perpetuity, the agreement says.

IAEA safeguards will also kick in for the separate facility for reprocessing that is to be set up in one year.

If there is a dispute, a notice of cessation is to be given. However, the agreement notes that snapping ties will have profound implications for relations between them.

All obligations will cease. India will have to return all equipment, technology and fuel. The duration of the agreement is 40 years, but can be terminated at a six-month notice.

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IN A NUTSHELL

Nuclear fuel to be transferred only for the reactor's lifetime

Periodic inspections by IAEA inspectors to ascertain India is not diverting fuel meant for civilian purposes

If India tests another weapon, the US will be within its rights to demand return of fuel, technology and equipment

Six months noticE of termination will have to be given by either party

The agreement actively encourages exchange of scientists

The duration of the agreement is 40 years