• the US will take the following additional steps in incorporating assurances regarding fuel supply in the bilateral US - India Agreement on peaceful usage of nuclear energy under section 123 of the Atomic Energy Act of 1954, which will be required to be submitted to the US Congress because that would be an exception under the said act.

• US will join India in negotiating with IAEA an India-specific fuel supply Agreement.

• The United States will support India’s effort to develop a strategic reserve of nuclear fuel to guard against any disruption of supplies over the lifetime of Indian reactors.

• In the event, despite this, if there is disruption, then India and US are committed to jointly convene a group of friendly supplier countries to restore fuel supply to India.

Article 5 incorporates the assurance of the PM of strategic reserves which we can fall back on in the event of disruption of fuel supplies. As far as references to section 102(13), section 103(4) and section 103(6) are concerned, they either relate to policy statements or to situations arising consequent upon violation of the 123 Agreement. There can be no assurance, under any valid contract, of supplies, in the event of a violation of the Agreement by a party, which seeks such supplies. However, the assurance of strategic reserves enables India to store strategic reserves for the lifetime of the reactors, mitigating any disruption of supplies.

5. The fifth objection relates to reference to the Hyde Act under which non- proliferation of nuclear weapons remains a vital objective. Mr Shourie perhaps has overlooked Article 2(4) of the 123 Agreement, which stipulates that nothing in this Agreement shall be interpreted, affecting the rights of the parties to use for their own purposes, nuclear material, non-nuclear material, equipment, components, information or technology produced, acquired or developed by them independent of any nuclear material, non-nuclear material, equipment, components, information or technology transferred to them pursuant to this Agreement. This Agreement shall be implemented in a manner so as not to hinder or otherwise interfere with any other activities involving the use of nuclear material, non-nuclear material, equipment, components, information or technology and military nuclear facilities produced, acquired or developed by them independent of this Agreement for their own purposes.

... contd.