123 text papers over differences in interpretation: US think-tank

New Delhi
24 August 2007

Bad agreements usually only get worse when implemented and the
proposed India-United States civil nuclear cooperation agreement appears headed in
this unfortunate direction, according to an American think-tank.

In a paper titled "The US-India 123 Agreement: From Bad to Worse", Michael Krepon and
Alex Stolar of the Washington DC-based Henry L Stimson Center write: "The
governments of Manmohan Singh and George W Bush appear to be interpreting key
provisions of the agreement very differently, which can only cause more ill will and
headaches in the future."

"US public law is clear in this regard," they said, "but the Government of India finds
solace in pledges that the Bush administration has given to cushion this potential blow.
One provision in the 123 Agreement pledges to provide India, one way or another, with
an ample fuel bank to guard against disruption caused by nuclear testing. The legislative
intent of the Hyde Act, most clearly spelled out in colloquies among Senators Lugar,
Biden and Obama and Congressmen Lantos, Royce, and Spratt, places clear constraints
on fuel supplies."

Michael Krepon, who is the co-founder of the Stimson Center, and Alex Stolar went on to
suggest that the International Atomic Energy Agency (IAEA) might not link safeguards in
perpetuity to disruption of fuel supply. "New Delhi," they said, "has insisted that this
agreement be 'India specific,' implying that if fuel is disrupted, safeguards can be
dispensed with. In this regard, the 123 Agreement makes reference to India's right to
'corrective measures' if fuel supplies are interrupted. It also includes a clause that the
United States would assist India in its dealings with the IAEA. It is very likely, however,
that the IAEA will insist on safeguards in perpetuity, without conditions or reference to
disrupted fuel supply."

Meanwhile, the US Government has said that it shared the Indian government's
commitment to work towards the fruition of the agreement. The director of the Office of
Press Relations, Mr Gonzalo R Gallegos, in the US Department of State on Thursday told
a news conference: "Both parties -- both the Indian Government and our government -- is
very committed to seeing this through. We're going to be working towards that goal."

He added: "I won't be commenting on internal Indian matters, but that is a discussion
that they are having that the government is serious about holding and continuing working
towards the fruition of this agreement. And we share the same commitment with them."

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