India gains, US doesn’t lose

Right to test: Does India have the freedom to conduct a nuclear test in the future?

Yes. Under the 123 Agreement, India has neither given up its right to test nor agreed to sign the Comprehensive Test Ban Treaty, which prohibits all nuclear testing. To be sure, the US law demands a suspension of nuclear cooperation in the event of an Indian test.

The text of the 123 agreement (Article 14.2), however, offers immediate bilateral consultations in the event of an Indian test and commits the two sides “to take into account whether the circumstances that may lead to termination or cessation resulted from a party’s serious concern about a changed security environment or as a response to similar actions by other states which could impact national security”.

Put another way, India reserves the right to test if other countries do the same. The formulations of the 123 Agreement on India’s right to test are far superior to those of the NDA government, which had imposed a unilateral moratorium and agreed to bring the CTBT into force.

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Fuel supply assurances: Does India have credible assurances on uninterrupted fuel supply under all conditions?

Yes. After its bitter experience with the Tarapur nuclear power station, when Washington cut off fuel supplies after the 1974 test, New Delhi has insisted on getting iron-clad guarantees on fuel supplies. It has successfully got them written into the 123 Agreement.

Sections 2.2 (e), 4.1, 5.6, 14.5, and 14.8 deal with various dimensions of fuel supply guarantees. They fully commit the US to help India develop a “strategic reserve” of nuclear fuel for the entire lifetime of the reactors. The US also promises to “create conditions” for India’s “assured and full access” to the international fuel market.

Unlike the non-binding provisions of the Hyde Act, which urges Washington to limit India’s access to fuel supplies from other countries in the event of a termination of the bilateral agreement, the 123 Agreement places no such restrictions.

It also ensures that the US commitment to facilitate fuel supplies is absolute and is not defined by the circumstances of the termination of the bilateral agreement.

Section 5.6 (b) (iv) of the 123 Agreement states: “If despite these arrangements, a disruption of fuel supplies to India occurs, the United States and India would jointly convene a group of friendly supplier countries to include countries such as Russia, France and the United Kingdom to pursue such measures as would restore fuel supply to India.”

... contd.