Sources said Burns understood the Indian point of view and discussed fresh ideas in his meetings with Shyam Saran, the Prime Minister’s special envoy on the N-deal, and Foreign Secretary Shiv Shankar Menon. In all these meetings, several ways were discussed through which both sides can resolve this matter without hurting the domestic constituency.

“We have managed to remove some of the issues that divided us, but some distance still remains to be covered... the agreement must reflect fully the statement in July 2005 and the one in March 2006,” said Menon after three days of what he described as “intense, productive and constructive” talks.

The US Embassy described the talks as “useful”, adding that “some progress” was achieved.

Burns is understood to have expressed doubt on whether Congress will vote positively on an agreement that grants India this “politically sensitive” right to reprocess.

India’s response was that the Hyde Act does not legally bind the Bush Administration to refusing India this right and since it is a policy decision, all effort must be made by the White House and the Department of State.

More so, New Delhi also pointed out that the July 18, 2006 joint statement promises “full” civil nuclear cooperation and without reprocessing rights, the US falls short of its commitment. Besides, as Menon recalled: “The US has said that nothing in the Hyde Act prevents them from meeting the commitments it made on July 18 and March 2.”

In this backdrop, Burns returned to Washington this evening with ideas worked upon jointly with his Indian counterparts. He is now expected to work the back channel with key Congressmen besides convincing White House to use its influence to see the conclusion of the agreement. “While there has been good cooperation, more work remains to be done to complete arrangements,” stated the US embassy.

... contd.