2. The second argument of Mr Shourie relates to the Agreement falling short of the PM’s assurance in Parliament regarding all aspects pertaining to the nuclear fuel supply cycle. All aspects of cooperation and technology transfers pertaining to a complete nuclear fuel supply cycle comprises three aspects, which are set out in Prime Minister’s assurance in Parliament on July 18. They will help ensure supplies of nuclear fuel, which is guaranteed under the 123 Agreement, supply of nuclear reactors, which India is free to buy pursuant to the 123 Agreement and the right to reprocess the spent fuel, which is also granted under the 123 Agreement. What Mr Shourie is talking about is with reference to Article 5(2) of the 123 Agreement. This stipulates that sensitive nuclear technology, heavy water production technology, sensitive nuclear facilities, major critical components of such facilities and the like may be transferred under this Agreement to India including transfer of dual use items, which could be used in enrichment, reprocessing or heavy water production facilities subject to applicable laws and which would entail a further amendment to the 123 Agreement. This is beyond the assurance given by the PM. In fact, the PM should be applauded that his team has been successful in persuading the US to consider amending the Atomic Energy Act of 1954 in order to make an exception for India by considering the transfer of sensitive nuclear technology, heavy water production technology, sensitive nuclear facilities, heavy water production facilities and major critical components thereof. This is a major achievement considering that no other nuclear weapon State or non-nuclear State has had the benefit of such an assurance by the United States of America. Consequently the 123 Agreement delivers much more than the PM’s assurance.

... contd.