In the letter, the State Department has maintained that US follows a policy of not engaging in ENR transfers, but at the same time recognizes that India has ENR technology and so there would no negative impact on its initiatives to stop ENR trade. “We do not foresee any negative impact on these initiatives (to discourage ENR trade). India already possesses both type of facilities,” the State department wrote.

Further, the response makes it clear that it will not transfer any sensitive nuclear technology “outside” the 123 Agreement. In other words, any future transfer will take place within the confines of the agreement, which is consistent to what India expected. However, on the question of dual use technology to be used in Indian facilities for this purpose, the State Department makes it clear that it will do so under the “exceptions” specified in the Hyde Act. “If India were to develop such facilities, potential dual use transfers could be considered only under exceptions granted in the Hyde Act,” the letter says.

Here again, India is not against individual NSG members choosing like the US to apply conditions to ENR transfer. However, it is opposed to an assertion of this by a multilateral body as that would bind countries unwilling to place such restriction follow the same rules as few others.