A Landmark Deal

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[NUCLEAR DEAL SAILS THROUGH The US Senate on October 1 overwhelmingly approved a legislation on the landmark Indo-US nuclear deal, paving the way for its operationalisation, four days after the House of Representatives gave its nod for it. The Berman Bill H R 7081, named after Howard Berman, a Democrat strongly opposed to the deal on non-proliferation grounds and who converted only a couple of days back, was adopted with 86 voting for and 13 against.The Senate also rejected the killer amendments introduced by Democratic Senators Byron Dorgan and Jeff Bingaman to ensure that the US nuclear exports to India do not help boost New Delhi's nuclear weapons programme. With the 100-member Senate approving the Bill, the Indo-US civil nuclear deal is now ready for signing between the two countries. Some Of The Key Developments During The Making Of The Deal The Hyde Agreement Package &amp; 123 Agreement The Bush administration worked on the Hyde Amendment Package and submitted to the US Congress. The 123 agreement between India and the US refers to Section 123 of the US Atomic Energy Act. There is a ban on transfer of nuclear technology to other countries under this Act. The Hyde Act was passed by the US to make an exception for India, to enable transfer of technology for civil nuclear energy. The next step was to enter into agreement with the IAEA (international atomic energy agency) for safegaurds of the civil nuclear reactors to be set up under the 123 agreement and to enter into an agreement with the NSG ( nuclear suppliers group) for supply of nuclear fuel i.e uranium for the civil nuclear reactors. Once India completes the agreements with IAEA and NSG, then the US Congress will vote on the 123 agreement. Once it is approved by the US Congress, the deal is complete and India and the US can enter into nuclear commerce i.e supply of nuclear reactors, transfer of technology, supply of nuclear fuel, etc. The Controversial Letter A 26-page letter, released in Washington on the eve of the crucial NSG meeting in Vienna, created a furore in India and led to complications in deliberations of the 45-nation Nuclear Suppliers Group which, however, subsequently granted the coveted waiver to New Delhi. New Delhi took up with the Bush Administration the State Department's controversial letter to US Congress which stated that it would be denied fuel supplies if it conducted a nuclear test. The letter released by a well-known opponent of the deal, Howard Berman, Chairman of the House Foreign Affairs Committee, contained an assertion by the Bush Administration that its assurances of nuclear supplies to India were not meant to insulate it against the consequences of a nuclear test. Berman made public the State Department's responses to 45 questions on the deal posed by his predecessor Tom Lantos way back in October last year. The answers were given on January 16 but for nearly nine months the document was kept under wraps at the request of the State Department. Agreement Within 6 Months India and US will commence work on a reprocessing agreement within six months after the 123 agreement is passed by the US Congress, Atomic Energy Commission Chairman Anil Kakodkar said on 12 September. Consultations on arrangements and procedures with the US on reprocessing will begin within six months and will have to be completed within a year as per the 123 agreement, Kakodkar said. According to Article 6(iii) of 123 agreement, &quot;with a view to implementing full civil nuclear cooperation as envisioned in the Joint Statement of July 18, both parties (India and US) grant each other consent to reprocess or otherwise alter in form or content nuclear material, transferred pursuant to this agreement and nuclear material and by-products material used in or produced through the use of nuclear material, non-nuclear material or equipment so transferred.&quot; PM Seeks A Clean Deal With conditions cropping up in the Congressional legislation on the Indo-US nuclear deal and in the Administration's views, Prime Minister Manmohan Singh sought an agreement that will satisfy India, a plea that was strongly reciprocated by President George W.Bush. The two leaders, who met in Washington on 25 September for the last time during Bush's Presidency, put behind their disappointment over not being able to ink the agreement they had reached three years ago and praised each other's leadership in bringing about a strong strategic relationship between the two countries. &quot;One such sign of that leadership is the India-US civil nuclear arrangement. This has taken a lot of work on both our parts, a lot of courage on your part... And of course, we want the agreement to satisfy you and get out of our Congress. So we are working hard to get it passed as quickly as possible,&quot; Bush said in his remarks at the end on an hour-long meeting. Key Highlights Of The Deal * No interference with India's nuclear programme for military purposes * US will help India negotiate with the IAEA for an India-specific fuel supply deal * Washington will support New Delhi develop strategic reserves of nuclear fuel * In case of disruption of fuel supply, US and India will jointly convene a group of friendly supplier countries * Both countries will facilitate nuke trade in the interest of respective industries * There will be transfer of nuclear and non-nuclear material, equipment * Any special fissionable material transferred shall be low enriched uranium * The deal include research, development, design, construction, operation, maintenance, etc, * The US will have the right to seek return of nuclear fuel and technology * India can develop strategic reserve of nuclear fuel to guard against any disruption of supply * There will be consultations on the circumstances before termination of the N-cooperation * Provision for one-year notice period before termination of the agreement * The US will engage NSG to help India obtain full access to the international fuel market * Both countries will set up a Joint Committee for implementation of the civil nuclear deal * The agreement grants prior consent to reprocess spent fuel * Sensitive N-technology, facilities and components can be transferred after deal amendment * India will establish a new national facility for reprocessing safeguarded nuke material See Also The Nuclear Chronology (Complied By BW Online Bureau)