Playing Injured Innocence on Nuke Deal

Blunder, then blame the United States

 

There is nothing new in the latest U.S. statements on key nuclear deal-related issues — from fuel-supply and reprocessing conditions to denial of dual-use technologies and assertion of a unilateral right to suspend cooperation forthwith. Yet, New Delhi now is unfairly accusing Washington of reinterpreting the terms.

 

Brahma Chellaney

Asian Age, September 22, 2008

 

The nuclear deal now on offer creates a Tarapur-style trap of gargantuan dimensions. The deal’s terms are far worse than the agreement under which the U.S.-built Tarapur nuclear power station was set up in the 1960s. Yet, New Delhi is entering into a new deal without resolving the long-festering Tarapur imbroglio, symbolized by the spent fuel that has been accumulating there for 37 years, with the U.S. asserting a veto on Indian reprocessing and refusing to grant consent.

 

Disputes over the latest deal are flaring up even before it has been legalized, with New Delhi starting the blame game in earnest. Through its pet stooges in the media, it has accused Washington in recent days of “unilaterally altering the ground rules”, of “repudiating fuel-supply assurances”, of “introducing a dangerous new interpretation” on reprocessing, and of “robbing the deal of its essence”.

 

Playing injured innocence, however, just doesn’t wash. The fact is that while Washington has been consistent, candid and hard-nosed on the deal since 2005, New Delhi played a game of public deception all along, hoping its charade would not be uncovered. But now that it has run out of covers to cloak its ever-widening field of distortions, blaming America has become easy.

 

The revelations that spring from President George W. Bush’s latest “Hyde Package” to Congress and his administration’s leaked letter to a congressional panel are entirely consistent with earlier U.S. official statements as well as with the provisions of the Hyde Act and the 123 agreement. There is nothing new. Yet, the U.S. today is being accused of seeking to rewrite or reinterpret the deal’s terms. Consider the following:

 

The U.S. gave no guarantee of reactor-lifetime fuel supply or to help India build a strategic fuel reserve. Bush’s recent statement that American fuel-supply assurances are “not legally binding” is no different than past assertions by other U.S. officials. For instance, then U.S. Undersecretary Nicholas Burns clarified in July 2007 that none of the U.S. fuel assurances in the 123 accord “contradicts or conflicts with the legal right of any American President” to terminate supply and demand the return of supplied materials if India breached the U.S.-prescribed conditions.

 

The 123 agreement, significantly, makes no mention of the term, “lifetime”. It offers assured fuel supply only so long as India adheres to the stipulated conditions. Supply assurance, as the Hyde Act decrees, can cover only disruption due to market failure or technical problems, but not sanctions arising from India’s non-compliance. Burns, asked in an August 2, 2007 interview if America was committed to arranging alternative fuel supply if India tested, replied: “That’s absolutely false”. The Hyde Act indeed demands that India be prevented from building any fuel stockpile of a size that would permit its “riding out any sanctions that might be imposed” by the U.S. in the future.

 

Bush’s assertions on no upfront or permanent reprocessing consent to India are in line with what his officials said earlier. Nicholas Burns, for instance, announced the following at a July 27, 2007 news conference: one, there is no timeframe within which the U.S. intends to grant India an operational consent to reprocess; and two, India has first to build a new “state-of-the-art” reprocessing facility to U.S. satisfaction before special “arrangements and procedures” for reprocessing can be worked out.

 

India inexplicably agreed to negotiate a separate Section 131 agreement on reprocessing later — an accord that will need to pass congressional muster — although Washington granted Japan and EURATOM the actual right to reprocess upfront in a 123 agreement. For example, the 1987 Japan-U.S. 123 accord was accompanied by a nine-page “implementing agreement” that gave effect to “advance, long-term consent for reprocessing, transfers, alteration and storage of nuclear material” by spelling out the reprocessing-related arrangements.

 

In fact, New Delhi has gratuitously agreed to route all “foreign nuclear material” through a new reprocessing facility. As a result, even France is unwilling to grant India reprocessing right upfront at this stage.

 

The recent U.S. disclosure that India has agreed to inspections beyond those by the International Atomic Energy Agency is consistent with the Hyde Act’s stipulation for “fall-back U.S. safeguards” and with the 123 agreement’s Article 10(4). The revelation shatters the Prime Minister’s assurance to Parliament that “we will accept only IAEA safeguards” and that “there is no question of accepting other verification measures or … allowing American inspectors to roam around our nuclear facilities”.

 

The U.S. publicized intent to deny India sensitive and other dual-use technologies even under safeguards is no surprise. Washington had made it clear by 2006 that, despite originally committing to “full civil nuclear trade with India”, its cooperation in practice would be less than full. The U.S. indeed concluded a 123 accord with India more restrictive than its existing cooperation agreements with Australia, Japan and South Korea.

 

Piteously, India will not able to import any components for the special reprocessing facility it has agreed to build to U.S. expectations, because its negotiators failed to persuade America to relax civil reprocessing, enrichment and heavy-water sanctions.

 

The Prime Minister had pledged in Parliament: “Before voluntarily placing our civilian facilities under IAEA safeguards, we will ensure all restrictions on India have been lifted”. That pledge he is set to break.

 

The recent U.S. affirmation of an unfettered right to suspend all supplies forthwith meshes with the 123 agreement’s provisions. That accord only demands the serving of a one-year termination notice on any ground, however extraneous. Suspension of supplies can follow immediately.

 

For the U.S., such an unconstrained right was vital to tether New Delhi to the Hyde Act, an India-specific NPT. In congressional testimony last Thursday, the Bush administration again affirmed that “whether it’s a test or an abrogation of a safeguards agreement, our actions will be bound by U.S. law”. Latest U.S. statements on testing (such as, “the Indian government intends to uphold the continuation of the test moratorium”) suggest that New Delhi has given its word to Washington never to test again.

 

Once the deal takes effect, the Hyde Act’s post-implementation conditions will also kick in — from an annual presidential certification of Indian good behaviour to pressing India’s “full compliance” with a non-nuclear, U.S.-led cartel like the Missile Technology Control Regime.

 

Against this background, can the U.S. be accused of leading up the garden path an India that was beseeching to be taken into a blind alley? Shouldn’t New Delhi, in all fairness, acknowledge Washington’s long-held position that a 123 agreement with any state is neither a treaty nor has force under the Vienna Convention on the Law of Treaties (which the U.S. hasn’t even ratified)?

 

Many of the accusations now being hurled by surrogacy are actually part of a public-relations exercise by New Delhi to dissuade the congressional attachment of more conditions during the ongoing ratification process. Despite threats to turn its back on the U.S. and do business only with France and Russia, New Delhi will dare not displease Washington. Continued cooperation under the deal hinges on India meeting its panoply of non-proliferation commitments that extend far beyond a test moratorium. The U.S. could make life difficult for India at any time through an unfavourable assessment of its progress in meeting those commitments.

 

(c) The Asian Age, 2008.

Lessons for today’s India from the 1962 Chinese invasion

The Art of War

 

Jawaharlal Nehru blundered when it came to China. There are serious lessons to be learnt from him — especially today.

 

Review by Brahma Chellaney

The Hindustan Times, September 21, 2008

 

BOOK OF THE WEEK

Are We Deceiving Ourselves Again? Lessons the Chinese Taught Pandit Nehru But Which We Still Refuse to Learn

Arun Shourie

ASA/Rupa
Rs. 395, Pages 214

 

India and China are both adept at playing with numbers. While China invented the abacus, India conceived the binary and the decimal systems. But India, having forsaken the Kautilyan principles, has proven no match to China’s Sun Tzu-style statecraft. As a result, India has found itself repeatedly betrayed. Indeed, it wasn’t geography but guns — the sudden occupation of the traditional buffer, Tibet, soon after the communists seized power in Beijing — that made China India’s neighbour. Jawaharlal Nehru later admitted he didn’t anticipate the swiftness of the Chinese takeover of Tibet because he had been “led to believe by the Chinese foreign office that the Chinese would settle the future of Tibet in a peaceful manner”.

            Shourie’s well-researched, powerfully written book — his 24th in an extraordinary career that has spanned academics, journalism and politics — relies on Nehru’s letters, speeches, notes and other correspondence to bring out the significance, in Nehru’s own words, of the events from the 1950-51 fall of Tibet to China’s 1962 invasion. The author then draws 31 lessons from those developments for today’s India.

After all, there are important parallels, as Shourie points out, between the situation pre-1962 and the situation now. Border talks are regressing, Chinese claims on Indian territories are becoming publicly assertive, Chinese cross-border incursions are rising, and India’s China policy is becoming feckless. Indeed, what stands out in the history of Sino-Indian disputes is that India has always been on the defensive against a country that first moved its frontiers hundreds of miles south by annexing Tibet, then furtively nibbled at Indian territories before waging open war, and now lays claims to additional Indian territories. By contrast, on neuralgic subjects like Tibet, Beijing’s public language still matches the crudeness and callousness with which it sought in 1962, in Premier Zhou Enlai’s words, to “teach India a lesson”.

India’s crushing rout in 1962 hastened the death of Nehru, “a fervent patriot,” according to Shourie, who “misled himself and thereby brought severe trauma upon the country, a country that he loved and served with such ardour”. The defeat transformed Nehru from a world statesman to a beaten, shattered politician.

 

            A classic example of Nehru’s self-delusion cited by the author is the following note he wrote on July 9, 1949, to the country’s top career diplomat: “Whatever may be the ultimate fate of Tibet in relation to China, I think there is practically no chance of any military danger to India arising from any change in Tibet.  Geographically, this is very difficult and practically it would be a foolish adventure.  If India is to be influenced or an attempt made to bring pressure on her, Tibet is not the route for it.  I do not think there is any necessity for our defence ministry, or any part of it, to consider possible military repercussions on the India-Tibetan frontier.  The event is remote and may not arise at all”.

 

            What Nehru naively saw as a “foolish adventure” was mounted within months by China. What Nehru asserted was geographically impracticable became a geopolitical reality that has impacted on Indian security like no other development since the 20th century.

 

            Right up to 1949, Nehru kept referring to the “Tibetan government” and to Tibet and India as “our two countries”. But no sooner had China begun gobbling up Tibet than Nehru’s stance changed. He started advising Tibetan representatives, as Shourie brings out, to go to Beijing and plead for autonomy. By 1954, through the infamous “Panchsheel Agreement”, Nehru had not only surrendered India’s extra-territorial rights in Tibet but also recognized “the Tibet region of China” — without securing any quid pro quo, such as the Chinese acceptance of the McMahon Line.

From Nehru’s grudging acceptance of Chinese suzerainty to Atal Bihari Vajpayee’s blithe acceptance of full Chinese sovereignty, India has incrementally shed its main card — Tibet — and thereby allowed the aggressor state to shift the spotlight from its annexation of Tibet and Aksai Chin to its newly assertive claims on Arunachal Pradesh. The irony is that by laying claims to additional Indian territories on the basis of their purported ties to Tibet, China blatantly plays the Tibet card against India, going to the extent of citing the birth in Tawang of one of the earlier Dalai Lamas, a politico-religious institution it has systematically sought to destroy. Yet India remains coy to play the Tibet card against China.

The sum effect of failing to use Tibet as a bargaining chip has been that India first lost Aksai Chin, then more territory in 1962 and now is seeking to fend off Chinese claims to Arunachal Pradesh. And as Shourie reminds his readers, India has still to grasp that the Chinese modus operandi of promising a peaceful settlement and then employing force to change facts on the ground is an old practice. The lessons he paints — from not running policy on hope to ensuring peace by building capability to defend peace — are words of warning no leadership ought to ignore.

Shourie’s book is a call for a down-the-earth Indian policy which, without pushing any panic buttons, begins to build better Himalayan security and countervailing leverage to ensure that China’s growing power does not slide into arrogance and renewed aggression. After all, China’s dramatic rise as a world power in just one generation under authoritarian rule represents the first direct challenge to liberal democracy since the rise of fascism in the 1930s. But just as India has been battered by growing terrorism because of its location next to the global epicentre of terror, it could bear the brunt from its geographical proximity to an increasingly assertive China.

Brahma Chellaney is a political commentator

http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=cecc03dd-2d15-417e-8817-16cb0ca4b7fa

 


Shanghai Daily on Professor Brahma Chellaney’s speech

Asia’s deep water crisis and elusive solutions

Wan Lixin

OPINION PAGE Shanghai Daily Thursday 11 September 2008

WHILE many wars of last century were fought over oil, the wars of this century will be waged over water.

This vision had been visited several times during the Konrad-Adenauer-Stiftung seminar “The Strategic Importance of Water in Asia,” held in Bali, Indonesia, August 21-23. There cannot be a better place than Asia to hold this seminar.

According to a 2006 United Nations report, Asia has less fresh water than any other continent outside of Antarctica. In his speech “Averting water wars in Asia,” Brahma Chellaney elaborated on the implications of this imminent energy and water crisis, with a strong emphasis on the situation confronting China and India. Chellaney is professor of strategic studies at the Center for Policy Research in New Delhi, India.

It is well known that Asia is emerging as the world’s main creditor and economic engine.

Chellaney said that unlike the past situation, the qualitative reordering of world power now underway is not due to battlefield victories or military realignments but to a peaceful factor unique to the modern world: Rapid economic growth. Economists tend to explain this rapid rise in terms of labor costs and capital inflow. But fundamentally it represents the triumph of consumerism that effectively overcomes our traditional inhibitions and distrust towards unnecessary spending.

When this consumption aspiration manifests itself in such progressive epithets as GDP growth and modernization, the whole nation becomes co-opted into this process. Consuming easily becomes a sweeping force that quickly neutralizes ideological differences, as we usher in the so-called\ “Pax Americana.”

But as Chellaney sees it, Asia’s success is threatened by resource constraints — especially water and energy. “Water shortages in much of Asia are becoming a threat to rapid economic modernization,” Chellaney said. Or maybe more accurately, Asia’s rapid economic modernization is worsening water shortages in much of Asia.

Anyway, in this new game of globalization, the niche assigned to some Asian countries is to export their resources — and clean air and water — for dollars that are becoming cheaper by the day.

Instead of embarking on an uncertain journey of finding a “fix” in Asia for the economy to continue its impressive growth and to head off a slump, the real solution can be conceptual, starting with, for instance, what is implied in “progress.’’

Chellaney noted that in emerging economies there is a growing middle class seeking high water-consuming comforts like dishwashers and washing machines. This can be a very important observation, depending on the moral to be derived from it. If 10 percent of Asian people begin to use airconditioners, 20 percent begin to drive cars and 30 percent begin to use flush toilets, it will be interesting to assess the environmental implications.

As Chellaney pointed out, despite the fact that total consumption of energy in the Asia-Pacific has grown by 70 percent between 1992 and 2005, per capita energy consumption is still relatively low by international standards: 749 kilograms of oil equivalent (kgoe) in 2005, compared with the global average of 1,071 kgoe. According to a UN report, although household water consumption in Asia is rising rapidly, not many Asians can aspire to the lifestyle of Americans who daily use more than 2.5 times the average in Asia. Citing a McKinsey Quarterly article, Chellaney noted that “On the supply side, Asia’s strong demand environment for energy and basic materials, coupled with its low labor costs, mean that the region will increasingly become a global producer of aluminum, chemicals, paper, and steel.”

It becomes apparent that water-related issues will worsen steadily even in the most conservative scenarios.

Many still pin hope for our future on a wonder technology that would magically meet our current needs for resources without further compromising our environment.

Chellaney chimed in by observing, “Human adaptation and technological innovation will increasingly hold the key to dealing with water-related challenges.” Or would the answer lie in a new outlook and a humble perception of the niche assigned to human race in the whole ecosystem?

Both India and China have been grossly neglected in terms of their cultural legacy, and deliberately overestimated in terms of their manufacturing capacity. In an article published on September 4 in Xinmin Evening News, well-known Sanskrit scholar Ji Xianlin, citing accelerating ecological deterioration, compared our plight to “a blind man riding a blind horse in total darkness already teetering on the edge of a precipice.”

“Some people still dream of averting the crisis by resorting to Western sciences, and I think this is totally impossible. This catastrophe has been caused in the first place by nature-conquering Western sciences,” he wrote.

Such flashes of insight, regretfully, are discordant with the all-consuming optimism, boosterism and cheerleading that deafens us. Given this situation, talks of safeguarding energy supplies and maximizing resource conservation and efficiency can easily degenerate into excuses for not taking more drastic actions that the situation urgently deserves.

Both China and India are already water-stressed economies, and both nations have shared cultural legacy and values that can constitute medicine for the spreading cancer of consumerism.  

www.shanghaidaily.com/opinion

Messy terms of U.S.-India nuclear deal to discourage private investors

Hope overwhelms reality on U.S.-India nuclear deal

By BRAHMA CHELLANEY

The Japan Times, September 17, 2008

 

The controversy that has dogged the vaunted U.S.-Indian civil nuclear deal is unlikely to dissipate anytime soon despite the recent rule change by the Nuclear Suppliers’ Group. Deep-seated partisan rancor in India over the deal and the still-needed U.S. congressional ratification will ensure that. But more than commercial nuclear power, it is U.S. arms exports and closer strategic ties with India that the deal is likely to promote.

From the time it was unveiled more than three years ago as an agreement-in-principle, the deal has been anchored in broader strategic objectives — from intelligence sharing and building of interoperability between U.S. and Indian forces, to roping in India as a key player both in the "Global Democracy Initiative" and a disaster-response initiative with military orientation. India has agreed to fully support American nonproliferation initiatives and consider participating in U.S.-led "multinational operations."

As a thank you for the role U.S. President George W. Bush and Secretary of State Condoleezza Rice personally played in getting the suppliers’ group to exempt India from its rules, Prime Minister Manmohan Singh is expected to shortly sign three agreements that U.S. officials say are crucial to forge closer bilateral military ties. One is a logistic support accord, another is to provide for end-use monitoring of transferred weapons systems, and the third is to promote military-communications interoperability.

In addition to the orders it has placed recently for American maritime reconnaissance aircraft and military transport planes, India is gearing up to buy other American weapons systems. If Congress ratifies the nuclear deal, America is likely to clinch the contract — amid intense competition involving several countries — to sell India 126 fighter-jets for $10 billion. In this contest, Lockheed Martin has pitched its F-16 against Boeing’s F/A-18E/F Super Hornet.

As a recently leaked Bush administration letter to Congress states, the deal will also help revive the U.S. nuclear-power industry through exports and "access to Indian nuclear infrastructure," allowing "U.S. companies to build reactors more competitively here and in the rest of the world — not just in India."

With its acute shortage of nuclear engineers, the U.S. intends to tap India’s vast technical manpower. The hype over the deal, however, needs to be tempered by certain realities. India’s growing geopolitical weight, high economic- growth rate, abundant market opportunities and status as a key "swing state" in the emerging international order have helped increase its profile in U.S. policy. But too much is made of America’s desire to use India to hold China in check.

First, a durable U.S.-India partnership cannot be built on strategic opportunism in relation to a third country but rather on shared national interests.

Shared interests mean far more than shared democratic values, which in practice can look very different. For instance, it is a tribute to the vitality of U.S. democracy that Congress is to closely scrutinize the nuclear deal again, after having passed an India-specific legislative waiver — the 2006 Hyde Act. This means Congress will have a second look at the deal.

In contrast, the Indian Parliament has had little role to play in the deal, although its conditions bring India within the constraints of the U.S.-led nonproliferation regime, impinging on the long-term credibility of the country’s nuclear deterrent. New Delhi has agreed to put more than two dozen of its existing nuclear facilities and all its future civilian reactors under permanent, invasive and legally irrevocable international inspections — the kind that only nonnuclear-weapons states accept.

In addition, it has agreed to shut down by 2010 the newly refurbished Cirus research reactor — the supplier of plutonium for India’s 1974 test and now the source of 30 percent of the country’s weapons-grade plutonium production.

Second, it appears unlikely that India will allow itself to be used as a foil against an increasingly assertive China, lest Beijing step up its direct and surrogate military pressures.

In the coming years, India will increasingly be aligned with the West economically. But strategically it can avail itself of multiple options, even as it moves from nonalignment to a contemporary, globalized practicality. In keeping with its long-standing preference for policy independence, India is likely to retain the option to forge different partnerships with varied players to pursue a variety of interests in diverse settings.

That means that from being nonaligned, India is likely to become multi-aligned. Also, even with the deal, nuclear power will continue to play a modest role in India’s energy mix. With the proposed import of eight 1,000-megawatt reactors within the next four years, the share of nuclear power in India’s electricity generation is unlikely to rise above the current 2.5 percent.

Not only is the share of other energy sources rising faster in India, but the first of the new imported power reactors — because of the long lead time required for construction and commissioning — won’t start producing electricity until almost a decade from now. The notion that India can build energy "security" through imports of high-priced, foreign fuel-dependent reactors is an absurdity.

Moreover, just as cheap oil now appears fanciful, cheap nuclear power has long been a mirage. More than half a century after then U.S. Atomic Energy Agency Chairman Lewis Strauss claimed that nuclear energy would become "too cheap to meter," the nuclear power industry everywhere subsists on generous state subsidies.

The current electricity-market liberalization trends spell trouble for the global nuclear-power industry because they threaten the state support on which it survives. As a 2005 International Atomic Energy Agency study by Ferenc Toth and Hans-Holger Rogner warns, "nuclear power’s market share might indeed follow a downward trajectory" if state subsidies abate and more cost-effective reactors are not designed.

Nuclear power reactors also remain very capital-intensive, with high up-front capital costs, long lead times for construction and commissioning, and drawn-out amortization periods that discourage private investors. Three factors are likely to discourage private foreign investment in Indian nuclear power.

The first is the deal’s messy terms. To allay deep-seated nonproliferation concerns and build bipartisan support in Congress and consensus in the suppliers’ group, the U.S. legislative and multilateral waivers for cooperation with nuclear-armed India have come with an array of conditions, some explicit, some implicit. Making matters worse, some issues have not been fully clarified but left hanging to allow the beleaguered Indian government to save face at home.

The second is political uncertainty in India, where national elections are approaching. Several parties have vowed to review or renegotiate the deal if voted into power. Having lost one state election after another in recent years, the ruling Congress Party’s prospects of returning to office are not bright.

If the U.S. Congress is unable to ratify the deal in a rushed process this month, the matter will be left to the next administration in Washington, with a new Indian government possibly seeking to reopen the terms.

Yet another factor is the continuing disarray that marks the Indian electricity market and energy policy. The nuclear-power industry in India is state run and subsists on generous government subsidies. But even the subsidized price of nuclear electricity is higher than the cost from most other energy sources.

It is not clear to what extent the next Indian government will be able to guarantee similar subsidies or provide full accident-liability and regulatory-delay cover to encourage private investment at a time when the country is trying to promote electricity-market liberalization. In fact, to allow private players in the nuclear-power industry, India will have to amend its Atomic Energy Act in a process that would subject the deal finally to parliamentary scrutiny, even if belatedly.

Brahma Chellaney, a professor of strategic studies at the privately funded Center for Policy Research in New Delhi, is the author, among others, of "Nuclear Proliferation: The U.S.-India Conflict."

 

The Japan Times: Wednesday, Sept. 17, 2008
(C) All rights reserved

A slew of distortions over the U.S.-India nuclear deal

Stretching The Truth

The Hindustan Times, September 18, 2008

 

Phoney claims are being repeated to mould public perceptions on the India-U.S. civilian nuclear deal, writes Brahma Chellaney.

 

As if the corrosion of its state institutions was not enough, India is being pummelled by an officially scripted onslaught of half-truths and outright deception over the vaunted Indo-U.S. nuclear deal. Phoney claims are being repeated even after they stand publicly discredited by President George W. Bush’s latest ‘Hyde Package’ to Congress and his administration’s earlier leaked letter to a congressional panel. It is as if truth no longer matters.

 

Can the obsessive deal-peddling take precedence over everything? Has no thought been given to the lasting damage that an unabashedly partisan approach relying on politicized bureaucrats and spin doctors would wreak? If the refusal to hold the traditional monsoon session of Parliament is unprecedented — setting a precedent toxic for the future of democracy — no less ominous is the deliberate spread of a slew of distortions to push the deal-making, without the consensus-building Prime Minister Manmohan Singh had promised. Making false claims without any qualms, especially to cover up broken promises to Parliament, is no mean matter.

 

The U.S. says loudly the deal is fully governable by its Hyde Act, an India-specific NPT. But New Delhi still markets the loosely worded 123 agreement as the only binding document — an accord that actually arms the U.S. with a unilateral right to suspend cooperation “immediately”. Bush publicly asserts that the 123 agreement’s fuzzy fuel-supply assurances do not “transform these political commitments into legally binding commitments”. Recipient India responds by trying to give international-law lessons to supplier America.

 

The leaked letter embarrassingly discloses that “the Indian government shares our understanding” that fuel-supply assurances are not “meant to insulate India against the consequences of a nuclear-explosive test or a violation of non-proliferation commitments”. The letter derides as “a high level of generality” the PM’s claim in Parliament about a linkage between “lifetime” fuel supply and perpetual international inspections.

 

The PM tells Parliament India has “secured upfront” a “permanent consent” to reprocess spent fuel. Bush publicly contradicts him by saying this right “will not come into effect until India establishes a new national reprocessing facility” and agrees to special “arrangements and procedures” with the U.S. in the years ahead. And Bush’s ‘Nuclear Proliferation Assessment Statement’ attests that the reprocessing consent, once granted, can be withdrawn. However inadvertently, Washington has helped bust several other Indian claims, including that New Delhi has accepted inspections only by the International Atomic Energy Agency.

 

Yet, deal-aggrandizing distortions continue to swirl at such a pace that they get picked up and recycled as facts by a pliable media before anyone can controvert them. Flogging fabrications indeed has proven so useful in shaping public perceptions that claims are becoming more brazen. Take the claim that the deal marks the end of the technology-control regime against India.

 

Easing high-technology and civilian-space export controls is not even part of this deal. What the deal seeks to open are lucrative exports for “IAEA-safeguarded” Indian facilities while specifically denying dual-use technologies. In return for being allowed to import commercial power reactors and fuel under tight safeguards, India has been made to accept conditions that no nuclear-weapons state will countenance.

 

Bush’s ‘Hyde Package’ makes clear the U.S. has no intent to allow any sensitive transfers, including of civil enrichment and reprocessing technology. The Nuclear Suppliers’ Group waiver, similarly, is based on an understanding not to export sensitive items to India. This understanding, reflected in the various national statements, part of the negotiating record, should be seen against the Hyde Act’s open call to “further restrict the transfers of such equipment and technologies”.

 

Indeed, Section 3(a) of the NSG waiver explicitly ties exports to India to the NSG Guidelines’ Paragraphs 6 and 7, which incorporate a presumption of denial of sensitive items. This restriction is reinforced by the Guidelines’ Part 2, Paragraph 4. With the NSG nearing consensus to impose an overt ban on sensitive sales to a non-NPT state like India, what is now implicit will become explicit. As for dual-use technologies, the NSG Guidelines already annex an exhaustive list of such items barred for export.

Contrast this with the PM’s July 22 contention in Parliament that the deal frees “trade in dual-use high technologies” and his September 6 claim that the NSG waiver “marks the end … of the technology-denial regime”. All technology controls against India ought to go. But even after the deal takes effect, India will still face barriers to high-technology flow, including the U.S. Commerce Department’s dual-use export controls.  The U.S. Congress, for instance, has cross-linked civil nuclear cooperation to the continuance of U.S. export controls against New Delhi in an unrelated area, with the Hyde Act stipulating that U.S. missile sanctions law (which prohibits dual-use space exports) will still apply to India even after it “unilaterally adheres” (as it quietly did last week) to the Missile Technology Control Regime.

If high-technology and civilian-space trade is to be opened fully, it will require New Delhi to do more than pull the wool on public eyes at home — persuade Washington to apply to India the same standard it does to another non-NPT state, Israel. The partisan rancour springing from the deal’s political mismanagement has done India a great disservice. The truth-stretching threatens to do worse.

Brahma Chellaney is professor of strategic studies at the Centre for Policy Research, New Delhi.

http://www.hindustantimes.com/StoryPage/FullcoverageStoryPage.aspx?sectionName=&id=ed78240b-bff0-4f02-96e5-3ec1b482812bNucleardealimbroglio_Special&&Headline=Stretching+the+truth

Indian leadership pursues deal-making at the cost of deterrent-building

Mortgaging nuclear crown jewels

The Indian leadership’s nuclear deal-making comes at the cost of deterrent-building. If the deal takes effect, India will become another Pakistan to U.S. policy, locked in a dependent relationship, with its nuclear crown jewels effectively mortgaged.

Brahma Chellaney

The Hindu, September 17, 2008

 

Whatever happened to India’s vaunted "credible minimal deterrent?" Despite having Asia’s oldest nuclear programme, India still does not have a minimal, let alone credible, deterrent, as defined by its own nuclear doctrine. Yet to secure a dubious civil nuclear deal, India is allowing the various good-faith declarations it made on July 18, 2005, to be turned into binding, enforceable international commitments. If this deal takes effect, India can forget about being a strategic peer of China. It will become another Pakistan to U.S. policy, locked in a dependent relationship, with its nuclear crown jewels effectively mortgaged.

The idea to build energy “security” by importing high-priced, foreign fuel-dependent power reactors is an absurdity — a money-spending boondoggle that is sure to rake up kickbacks for some but leave India insecure and buffeted by outside pressures. The deal, in effect, will ensnare India in a wide non-proliferation net and undermine its autonomy to build a full-fledged deterrent. India has already paid a heavy international price for its nuclear programme, but its deterrent capabilities remain nascent, thanks to the tentativeness and pusillanimity of those who have led it over the years. But just when it seemed ready to take off, it is being fastened to oppressive non-proliferation constraints whose sum effect would be, as U.S. Democratic vice presidential nominee Joseph Biden said earlier, “to limit the size and sophistication of India’s nuclear-weapons programme.”

With India wedged in a unique nuclear crescent stretching from Israel to China, a deal effectively capping its deterrent capability at the present rudimentary level will be a grievous blunder. Yet, as symbolized by his refusal to celebrate the 10th anniversary four months ago of India going overtly nuclear, Prime Minister Manmohan Singh remains fixated on deal-making, instead of deterrent-building. Dr. Singh’s polarizing single-mindedness on the ballyhooed deal has injected bitter divisiveness into an issue that centres on the future of India’s nuclear programme. Had Dr. Singh done what he had repeatedly promised — “build the broadest possible national consensus” — India would not have undercut its negotiating leverage. By turning it into a matter of personal prestige and desperately wanting a successful outcome, he has allowed the deal to attract, however inadvertently, additional conditions at every stage of its evolution.

Certain give-and-take is inevitable in any deal. But this deal has picked up such onerous conditions that it now threatens to cast a political albatross around India’s neck. To help build a personal legacy, the deal-making threatens to saddle the country with a damaging legacy. This is execrable, given the unparalleled manner India’s internal and external security has come under serious strain on Dr. Singh’s watch. At a time of growing insecurity, India can ill-afford to narrow its future strategic options. Yet, aided by a hundred spin doctors and an impressionable national media, the deal has been parlayed in larger-than-life dimensions, with its benefits liberally embellished and its fetters cloaked.

India’s constantly shifting goalpost can be seen from the manner it went from demanding a “clean and unconditional” exemption from the Nuclear Suppliers’ Group to seeking just a “clean” waiver, and then agreed with the U.S. to one text revision after another in Vienna, rendering the NSG process outcome pretty messy. That is exactly the path it treaded earlier to secure the U.S. legislative waiver (in the form of the conditions-laden Hyde Act), the bilateral 123 Agreement and the safeguards accord. The blunt fact is that the NSG waiver, however cleverly worded, cannot allow India to escape from the U.S.-set conditions by turning to other suppliers, as the publicly released correspondence between the Bush administration and the House Foreign Affairs Committee brings out starkly.

Any material violation of the eclectic non-proliferation commitments India is assuming will trigger a cut-off of cooperation by all supplier-states, leaving its civil power reactors high and dry, yet subject to permanent international inspections. Indeed, the greater the investments it makes in imports-based generating capacity, the greater will be its vulnerability to external penal actions and the constriction of its strategic options. Today, its goal of erecting a credible and survivable nuclear deterrent, as the private intelligence service Stratfor has put it, remains at least a decade away.

The manner a nuclear deal can be employed as a foreign-policy instrument has been underscored by the U.S. action to punish Russia over Georgia by scuppering a key deal with Moscow that was until recently a top Bush priority. That deal would have opened extensive U.S.-Russian nuclear trade, besides allowing Moscow to import, store and possibly reprocess spent fuel from proposed U.S. reactor exports to countries like India. If America can openly invoke a deal as a castigatory instrument against nuclear peer Russia, it certainly would have less hesitation to do so against an India that would become hopelessly dependent on foreign fuel and replacement parts under a patently inequitable deal whose fuel-supply assurances, in Bush’s own words, are not legally binding but mere “political commitments,” ostensibly to help Dr. Singh save public face. After all, didn’t the U.S. invoke that very instrument against India in response to its 1974 test, impeding deterrent-building and instilling the political timidity that has come to epitomize the Indian state?

The latest deal-making ought to be seen as culmination of the process the U.S. set in motion in 1974 to bring India to heel. It imposes on India obligations that no other nuclear-armed state will countenance. The watertight civil-military separation, for instance, will destroy what the then Atomic Energy Commission chairman, R. Chidambaram, in 1996 described as “the lateral synergy which exists between the one and the other … You can’t have one without the other.” It also compels India to shut down its main military-production workhorse, the Cirus reactor — the biggest cumulative contributor of weapons-grade plutonium to India’s stockpile, as a recent U.S. Energy Department-funded study by Paul Nelson et al points out. Given that work on a replacement reactor has not begun to date, the Cirus dismantlement in two years’ time will surely result in a significant shortfall in bomb-grade plutonium production.

In addition, the deal seeks to qualitatively and quantitatively crimp deterrent-building through varied non-proliferation fetters. The deal-tied U.S.-legislative and multilateral review processes will subject to the glare of international scrutiny Indian nuclear actions and activities, including any “significant changes,” as the Hyde Act mandates, “in the production by India of nuclear weapons or in the types or amounts of fissile material produced.”

While inhibiting deterrent-building as per the U.S. goal to keep India’s capabilities regionally confined, the deal would help instil Indian security dependency on America. In fact, more than commercial nuclear power, it is U.S. arms exports and closer Indo-U.S. strategic ties that the deal is likely to promote. Before long, Dr. Singh is expected to sign three agreements that U.S. officials are pressing to forge closer bilateral military ties. One is a logistic support accord, another is to provide for end-use monitoring of transferred U.S. weapon systems, and the third is to promote military-communications interoperability.

Since the deal was unveiled, India has agreed to buy systems the U.S. has already sold Pakistan, including maritime reconnaissance aircraft, military transport planes and Harpoon missiles. This raises the question whether New Delhi is seeking to build a first-rate military with strategic reach and an independent nuclear deterrent, or a military that will remain irredeemably dependent on imports and serve as a money-spinning dumping ground for conventional weapons India can do without. A gas leak this year killed an Indian officer and five sailors on board a 1971-vintage amphibious transport ship junked by the U.S. navy and bought by India months earlier.

Such reckless and wasteful arms purchases at the expense of an indigenous deterrent will become more common, if the nuclear deal takes effect. While offering an immensely lucrative opening for outside vendors, the deal will saddle India with a retarded deterrent. India is being effectively tethered to an India-specific NPT, the Hyde Act, with Bush’s legislative submissions to win congressional ratification labelled the “Hyde Package.” Even the NSG waiver is in harmony with the Hyde Act, mirroring its core conditions. It is still not too late for New Delhi to step back from the precipice of a self-injurious deal and return to the unfinished task of deterrent-building, or else India will remain for the foreseeable future a subcontinental power with global power pretensions.

 

Brahma Chellaney, a professor of strategic studies at the Centre for Policy Research in New Delhi, is the author, most recently, of Asian Juggernaut: The Rise of China, India and Japan.

Controversy over U.S.-India nuclear deal hasn’t done anyone any good

Nuclear Distraction

By BRAHMA CHELLANEY
WALL STREET JOURNAL
September 10, 2008

The U.S.-India civil nuclear deal came one step closer to final approval over the weekend, as the international Nuclear Suppliers Group granted its imprimatur. Yet the controversy over the proposed pact remains as fierce as ever, not least in India. As a result, ironically, it’s still possible the deal could end up distracting both sides from the hard work of deepening their relationship.

This is mainly a consequence of how the deal has been oversold by politicians both in New Delhi and in Washington. From the time it was unveiled more than three years ago as an agreement-in-principle, its backers have framed the deal in terms of broader strategic objectives. Supporters in India have argued it will cement U.S.-India ties and facilitate technology transfers in fields beyond commercial nuclear power. Backers in the U.S. have argued the deal will make it easier for Washington to call on India as a counterweight to China’s influence, and expand commercial opportunities for Americans.

But none of these claims is entirely realistic. In fact, these arguments merely distort the debate. In India, the nuclear deal has become a flashpoint for partisan debates about India’s place in the world and how it should manage its relationship with the U.S. This will make the deal, and possibly the relationship, less stable if power changes hands between parties in a general election in India due at the latest by next April. And it’s created unrealistic expectations in Washington.

In short, the hype over the nuclear deal needs to be tempered by certain realities.

First among these is that a durable U.S.-India partnership cannot be built on strategic opportunism, but rather must grow from shared national interests. In coming years, India will increasingly be aligned with the West economically. But strategically it can avail itself of multiple options, even as it moves from nonalignment to a contemporary, globalized strategic framework. In keeping with its long-standing preference for policy independence, India is likely to become multialigned, while tilting more toward the U.S.

Some clarity on this point from the deal’s backers in New Delhi might have made it easier to secure support. It would also have helped had Prime Minister Manmohan Singh done what he had repeatedly promised: "build the broadest possible national consensus in favor of the deal." He should not have turned the deal into an openly partisan issue, for it will have to be implemented well after his government’s term.

The danger now is that if the opposition wins the national election, it may re-open negotiations on the nuclear deal. That could risk sending the wrong signal about India’s general commitment to maintaining positive relations with the U.S., given the significance this particular deal has assumed in that relationship.

The deal’s backers in Washington have also been guilty of overselling it, albeit in different ways. On the strategic level, they have argued that the deal will bring India into the U.S. camp as a regional counterweight to China’s growing influence. But it appears unlikely that India would allow itself to be used as a foil against an increasingly assertive China, lest Beijing step up military pressure along the long disputed Himalayan frontier and surrogate threats via Pakistan, Burma and Bangladesh. India, as would any country, will continue to craft policy based on its own interests.

The Bush administration is also going overboard in touting the commercial benefits. As Bush administration letter to Congress, released last week, states, the deal is supposed to help revive the U.S. nuclear-power industry through exports and "access to Indian nuclear infrastructure," allowing "U.S. companies to build reactors more competitively here and in the rest of the world — not just in India." With its acute shortage of nuclear engineers, the U.S. intends to tap India’s vast technical manpower.

But not all of this is entirely realistic, especially expectations that India will be a boom market for U.S. nuclear exports. Even with the deal, nuclear power will continue to play a modest role in India’s energy mix. With the proposed import of eight 1,000-megawatt reactors within the next four years, the share of nuclear power in India’s electricity generation is unlikely to rise above the current 2.5%.

The Indian economy will probably not get much of a boost from the deal as a result. Furthermore, private investment in nuclear power will be hindered by many factors. The messy terms of the deal itself, with its many eclectic provisions designed to assuage nonproliferation concerns, will still impose many barriers on the transfer of nuclear fuel and technology, and not all of the conditions are even explicitly spelled out. Political uncertainty in India will also remain given the strong partisan opposition. And time is short to ratify the pact in Washington before elections in the U.S. bring in a new Congress and new administration.

The nuclear deal does play a role in bolstering U.S.-India ties (albeit not as much as politicians would have you believe). India has agreed to fully support U.S. nonproliferation initiatives, for example, and to consider participating in U.S.-led multinational military operations. And as a thank-you for the role President George W. Bush and Secretary of State Condoleezza Rice personally played in securing the suppliers group’s approval, Prime Minister Singh is expected to sign shortly three agreements that U.S. officials say are critical to forge closer bilateral military ties. These will facilitate cooperation on logistical operations, provide for monitoring of the end uses of transferred weapons systems, and enhance communications interoperability. But the two sides could have made progress on all these fronts independent of a civil nuclear deal.

The deal may also benefit ongoing negotiations over sales of military equipment to India. In addition to the orders it recently placed for American maritime reconnaissance aircraft and military transport planes, India — one of the world’s biggest arms importers — is gearing up to buy other American weapon systems. If Congress ratifies the nuclear deal, America is most likely to clinch the intense international competition to sell India 126 fighter-jets in a $10-billion contract. In this contest, Lockheed Martin has pitched its F-16 against Boeing’s F/A-18E/F Super Hornet.

Yet such progress isn’t dependent on a civil nuclear deal. Indeed, that may be the greatest danger of the current discussion. Because it has become such a controversial issue, the nuclear deal is threatening to overwhelm the broader dialogue India and the U.S. need to sustain about their relationship. The raging controversy hasn’t done anyone any good.

Mr. Chellaney, a professor of strategic studies at the Center for Policy Research in New Delhi, is the author, most recently, of "Asian Juggernaut: The Rise of China, India and Japan" (HarperCollins, 2007).

http://online.wsj.com/article/SB122098853203415865.html?mod=googlenews_wsj

Spin overwhelms reality on Indo-U.S. nuclear deal

Nowhere to hide from Hyde

 

As had been pledged by U.S. Secretary of State Condoleezza Rice, the NSG waiver has turned out to be “fully consistent” with the Hyde Act, mirroring its core conditions on India. Yet, New Delhi’s continuing efforts to spin reality betray a consummate contempt for the intelligence of the Indian people.

 

Brahma Chellaney

Asian Age, September 10, 2008

 

What happens when the government of the day refuses to hold the traditional monsoon session of Parliament, lets loose countless spin doctors on a malleable national media and relies largely on information control to thrust a controversial nuclear deal on the nation? The result is what you saw last weekend: orgiastic self-congratulation and breathless newspaper headlines like, “India Enters Nuclear Club”, “Nuclear Dawn” and “From A Pariah To A Power”.

 

It was as if India had finally come of age by testing intercontinental-range nuclear capability. The exultation, however, was over a deal that would cap India’s still-nascent nuclear-weapons capability and turn the country’s nuclear-power industry from self-reliance to imports dependency while leaving the national exchequer poorer by billions of dollars.

 

            The elation over a conditional exemption for India from the Nuclear Suppliers’ Group rules should come as no surprise: the Indian press ran fairly similar headlines less than two years ago when the U.S.-legislative waiver was approved — the so-called Hyde Act. Today that very Act has come to symbolize abominable conditions.

Before long, reality will catch up with the latest spin, too. The NSG exemption indeed conditions exports to India to three layers of riders:

(i)                  New Delhi indefinitely honouring its July 18, 2005, commitments;

(ii)                Foreign Minister Pranab Mukherjee’s September 5, 2008, pledges; and

(iii)               satisfying all the myriad provisions of Parts 1 & 2 of the NSG Guidelines, except the “full-scope” rule calling for international inspections on each and every nuclear facility.

That the Hyde Act represents the mother of all conditions can be seen from the shadow it has cast over the NSG waiver. Consider the following:

 

Despite the NSG exemption, India says it will await the outcome of the U.S. congressional ratification process before signing bilateral agreements with other suppliers, including France and Russia. Why? Because in conformity with the Hyde Act, which stipulates that an NSG exemption for India should not take effect before the final congressional consent, New Delhi reached an understanding with Washington prior to the NSG waiver not to sign contracts with other suppliers until the U.S. Congress had done its part. Mukherjee has gone to the extent of calling that understanding “the procedure”.

 

This is just one example of how New Delhi itself honours the Hyde Act while speciously claiming the bilateral 123 Agreement supersedes that Act. Even after the recently disclosed Bush administration letter made it explicit that America is bound also by the Hyde Act and the 1954 U.S. Atomic Energy Act, New Delhi still claims the 123 Agreement is the only binding document.

 

Mukherjee phrased several of his September 5 pledges to the NSG in language echoing the Hyde Act’s India-specific stipulations. In doing so, he went beyond India’s July 2005 commitments.

 

The Hyde Act wants India to support “international efforts to prevent the spread of enrichment and reprocessing (ENR) technology to any state that does not already possess full-scale, functioning enrichment or reprocessing plants”. Mukherjee obligingly has pledged, “We support international efforts to limit the spread of ENR equipment or technologies to states that do not have them”. The Hyde Act asks for “substantial progress toward concluding an Additional Protocol”, and Mukherjee deferentially assures “early conclusion of an Additional Protocol”.

 

The Act demands efforts to minimize the risk of “regional arms races”, and Mukherjee submits India will stay away from “any arms race, including a nuclear arms race” and temper “the exercise of our strategic autonomy with a sense of global responsibility”. His promise, to work for “the strengthening of the non-proliferation regime”, also echoes the Act’s call.

 

Just as the Hyde Act classifies India as a non-nuclear-weapons state (NNWS) and makes it subject to the U.S.legal provisions valid for NNWSs, the NSG waiver applies nuclear-trade conditions set for NNWSs. Apart from being allowed to retain some nuclear facilities in the military realm, India is being treated, both by the U.S. and NSG waivers, as a NNWS, for all intents and purposes.

 

By linking transfers to India to compliance with the extensive, technically couched conditions in Parts 1 & 2 of the NSG Guidelines — terms applicable only to NNWSs — the US-led cartel has cast a wide non-proliferation net, with India now required to abjure activities proscribed for NNWSs, including testing.

Mirroring the Hyde Act’s bar on the transfer of civil reprocessing, enrichment and heavy-water technologies or equipment (except for a multinational or U.S.-supervised facility in India), the NSG waiver is based on a publicly acknowledged understanding not to export such items to India. This understanding is no surprise in view of the Hyde Act’s open call “to further restrict the transfers of such equipment and technologies, including to India”.

 

Indeed, the NSG waiver explicitly ties sensitive exports to the presumption of their denial contained in NSG Guidelines Paragraph 6 (titled, “Special Controls on Sensitive Exports”) and Paragraph 7 (“Special Controls on Export of Enrichment Facilities, Equipment and Technology”).

While the Hyde Act’s bar on Indian testing is explicit, the one in the NSG waiver is implicit, yet unmistakeable. The waiver is overtly anchored in NSG Guidelines Paragraph 16, which deals with the consequence of “an explosion of a nuclear device”. The waiver’s Section 3(e) refers to this key paragraph, which allows a supplier to call for a special NSG meeting, and seek termination of cooperation, in the event of a test or any other “violation of a supplier-recipient understanding”.

The leaked Bush administration letter has cited how this Paragraph 16 rule will effectively bind India to the Hyde Act’s conditions on the pain of a U.S.-sponsored cut-off of all multilateral cooperation. As Japan has placed on the NSG record following the waiver approval, “the logical consequence” of an Indian test would be “to terminate trade”. Put simply, India will not be able to escape from the U.S.-set conditions by turning to other suppliers.

Yet, even as India’s voluntary test moratorium has been turned into a multilateral legality, New Delhi is still seeking to pull the wool on public eyes.

Like the Hyde Act, the NSG waiver seeks to crimp the Indian deterrent’s space by subjecting Indian actions and activities to the glare of international scrutiny. While the Hyde Act demands that “the President shall keep the appropriate congressional committees fully and currently informed” about “significant changes in the production by India of nuclear weapons or in the types or amounts of fissile material produced”, the NSG is to regularly “confer and consult” with India on its pledges. The NSG waiver even raises the spectre of new conditions but offers India only empty “consultations” on future amendments.

 

Against this background, is it any surprise that, just as they did after the Hyde Act’s passage, the spin doctors have fanned out across the airwaves to claim the NSG waiver as another “victory” for India? Looking straight into the camera, they fib, betraying a consummate contempt for the intelligence of the Indian people.

 

It is worth pausing to remember Abraham Lincoln’s words:It is true you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can’t fool all of the people all of the time”.

 

http://www.asianage.com/presentation/leftnavigation/opinion/op-ed/nowhere-to-hide-from-hyde.aspx

Text of the India-related waiver by the Nuclear Suppliers’ Group (NSG)

NSG Rule-Change Allowing Civil Nuclear Cooperation With India

1. At the Plenary meeting on September 6, 2008, the Participating Governments of the Nuclear Suppliers’ Group decided that they:

a. Desire to contribute to the effectiveness and integrity of the global non-proliferation regime, and to the widest possible implementation of the provisions and objectives of the Treaty on the Non-Proliferation of Nuclear Weapons;

b. Seek to avert the further spread of nuclear weapons;

c. Wish to pursue mechanisms to affect positively the non-proliferation commitments and actions of all states;

d. Seek to promote fundamental principles of safeguards and export controls for nuclear transfers for peaceful purposes; and

e. Note the energy needs of India.

2. Participating Governments have taken note of the steps that India has voluntarily taken with respect to the following commitments and actions:

a. Deciding to separate civilian nuclear facilities in a phased manner and to file a declaration regarding its civilian nuclear facilities with IAEA, in accordance with its Separation Plan (circulated as INFCIRC/731);

b. Concluding negotiations with the IAEA and obtaining approval by the Board of Governors on August 1, 2008, for an “Agreement between the Government of India and IAEA for the Application of Safeguards to Civilian Nuclear Facilities,” in accordance with IAEA safeguards, principles, and practices (including IAEA Board of Bovernors Document GOV/1621);

c. Committing to sign and adhere to an Additional Protocol with respect to India’s civil nuclear facilities;

d. Refraining from transfer of enrichment and reprocessing technologies to states that do not have them and supporting international efforts to limit their spread;

e. Instituting a national export control system capable of effectively controlling transfers of multilaterally controlled nuclear and nuclear-related material, equipment and technology;

f. Harmonizing its export control lists and guidelines with those of the Nuclear Suppliers’ Group and committing to adhere to the Nuclear Suppliers’ Group guidelines; and

g. Continuing its unilateral moratorium on nuclear testing, and its readiness to work with others towards the conclusion of a multilateral Fissile Material Cutoff Treaty.

3. Based on the commitments and actions mentioned above, as reiterated by India on September 5, 2008, and without prejudice to national positions thereon, Participating Governments have adopted and will implement the following policies on civil nuclear cooperation with IAEA-safeguarded Indian civil nuclear program:

a. Notwithstanding paragraphs 4(a), 4(b) and 4(c) of INFCIRC/254/Rev. 9/Part 1, Participating Governments may transfer trigger list items and/or related technology to India for peaceful purposes and for use in IAEA-safeguarded civil nuclear facilities, provided that the transfer satisfies all other provisions of INFCIRC/254/Part 1, as revised, and provided that transfers of sensitive exports remain subject to paragraphs 6 and 7 of Guidelines.

b. Notwithstanding paragraphs 4(a) and 4(b) of INFCIRC/254/Rev .7/Part 2, Participating Government may transfer nuclear-related dual-use equipment, materials, software, and related technology to India for peaceful purposes and for use in IAEA-safeguarded civil nuclear facilities, provided that the transfer satisfies all other provisions of INFCIRC/254/Part 2, as revised.

c. At each Plenary, Participating Governments shall notify each other of approved transfers to India of Annexure A and B items listed in INFCIRC/254/Part 1, as revised. Participating Governments are also invited to exchange information, including about their own bilateral agreements with India.

d. With a view to intensification of dialogue and cooperation with India, the Chairman is requested to confer and consult with India and keep the Plenary informed of these consultations.

e. Participating Governments will maintain contact and consult through regular channels, including the Consultative Group and Plenary, for the purpose of considering matters connected with the implementation of all aspects of this Statement, taking into account relevant international commitments or bilateral agreements with India. In the event that one or more Participating Governments consider that circumstances have arisen which require consultations, Participating Governments will meet, and then act in accordance with Paragraph 16 of the Guidelines.

4. In order to facilitate India’s adherence to INFCIRC/254/Parts 1 and 2 and to remain current in its implementations of the Guidelines, the NSG Chair is requested to consult with India regarding changes to and implementation of the Guidelines and inform the Plenary of the outcome of the dialogue with India. Consultations with India regarding proposed amendments will facilitate their effective implementation by India. 

5. Upon request by Participating Governments, the Chairman is requested to submit this Statement to IAEA Director General with a request that it be circulated to all Member States.

U.S. disclosure puts Indian prime minister on the defensive

Revelations unravel hype and spin

The nuclear deal poses one of the most divisive challenges India has ever faced. The latest U.S. revelations on its conditions point to the manner the deal has been politically mismanaged by the Indian government.

Brahma Chellaney  The Hindu newspaper, September 5, 2008

The Bush administration had imposed a virtual gag order on its January 2008 written responses to congressional questions because their public disclosure, as the state department acknowledged, would contradict the Indian government’s claims and torpedo the nuclear deal. “We’ve handled answers to sensitive questions in an appropriate way that responds to congressional concerns,” the department said last March, ruling out their public release.

Oddly, the House Foreign Affairs Committee kept the administration’s unclassified answers under wraps for nearly eight months until the committee’s new chairman — a known deal critic — made them public this week to help build pressure on the Nuclear Suppliers’ Group to impose explicit conditions on India, too. The pointed questions and the candid replies, contained in the 26-page released letter available at http://www.hcfa.house.gov/110/press090208.pdf, reveal the following:

First, the deal involves no binding U.S. fuel-supply assurance. Prime Minister Manmohan Singh had told the Lok Sabha on August 13, 2007 that “detailed fuel supply assurances” by the U.S. for “the uninterrupted operation of our nuclear reactors” are “reflected in full” in the 123 Agreement. But the letter discloses the U.S. will render help only in situations where supply disruption results “through no fault” of India’s, such as a trade war or market-related conditions. The supply assurances, it states, are not “meant to insulate India against the consequences of a nuclear-explosive test or a violation of nonproliferation commitments.”

What is embarrassing for New Delhi is that the letter reveals that, “We believe the Indian government shares our understanding of this provision.”

Second, the deal is explicitly conditioned to India not testing again. Dr. Singh told the Lok Sabha as recently as July 22, 2008 that, “I confirm there is nothing in these agreements which prevents us from further nuclear tests if warranted by our national security concerns.” The Bush administration letter, however, reveals that India has been left in no doubt that all cooperation will cease “immediately” if it tested.

“As outlined in Article 14 of the 123 Agreement, should India detonate a nuclear-explosive device, the United States has the right to cease all nuclear cooperation with India immediately, including the supply of fuel, as well as request the return of any items transferred from the U.S., including fresh fuel,” it states.

Third, the letter affirms that the 123 Agreement is in “full conformity” with the Hyde Act. In a press release on July 2, 2008, the Prime Minister’s Office made the following claim: “The 123 Agreement clearly overrides the Hyde Act and this position would be clear to anyone who goes through the provisions.” But the Bush administration, in answer to the question whether the 123 Agreement “overrides the Hyde Act regarding any conflicts, discrepancies or inconsistencies,” has stated that the accord is “fully consistent with the legal requirements of the Hyde Act.”

Fourth, the U.S. says it has retained the right to suspend or terminate supplies at its own discretion. The disclosed letter, by affirming an unfettered U.S. right to suspend all supplies forthwith, plainly contradicts Dr. Singh’s assertion in Parliament on August 13, 2007 that an “elaborate multi-layered consultation process” would help protect India from a Tarapur-style fuel cut-off. The letter also reveals the U.S. has the right to suspend or terminate cooperation in response to Indian actions that extend beyond a test, including “material violation” of the 123 Agreement or the safeguards accord with the IAEA.

Even after cooperation has been formally terminated, India — the letter points out — would remain subject to “the application of safeguards (Article 10), reprocessing consent (Article 6) and peaceful use (Article 9),” as per the 123 Agreement.

Fifth, there is no explicit U.S. consent to India’s stockpiling of lifetime fuel reserves for safeguarded power reactors. Dr. Singh had on August 13, 2007 vouched for “U.S. support for an Indian effort to develop a strategic reserve of nuclear fuel to guard against any disruption of supply for the lifetime of India’s reactors.” But the Bush administration’s letter states that the 123 Agreement’s provisions are in no way inconsistent with the Hyde Act’s stipulation — the so-called Obama Amendment — that the supply of fuel be “commensurate with reasonable operating requirements.” It contends that “it is premature to conclude that the strategic reserve will develop in a manner inconsistent with the Hyde Act,” meaning that India will be able to stockpile fuel only for “reasonable operating requirements,” a concept it acknowledged had been left undefined.

Sixth, the letter makes clear the 123 Agreement has granted India no right to take corrective measures. Rather, India’s obligations are legally irrevocable. The issue of what India meant by “corrective measures,” the letter stated, could be clarified only in the safeguards accord. (The recently concluded safeguards accord, however, makes only a passing preambular reference to “corrective measures,” without defining the term.) The letter further indicates there is no link between perpetual safeguards and perpetual fuel supply, with the permanence of safeguards being “without conditions.”

Contrast this with what Dr. Singh claimed August 13, 2007: “India’s right to take ‘corrective measures’ will be maintained even after the termination of the Agreement.” Or Dr. Singh’s assurances to Parliament since March 2006 that India’s acceptance of perpetual international inspections will be tied to perpetual fuel supply. In fact, the Bush administration letter mockingly calls Dr. Singh’s statement on explicit linkage “a high level of generality.”

Seventh, the letter states the “U.S. government will not assist India in the design, construction or operation of sensitive nuclear technologies through the transfer of dual-use items, whether under the Agreement or outside the Agreement.” That rules out the U.S. transfer of civil reprocessing and enrichment equipment or technologies to India even under safeguards. The letter suggests that the hope enshrined in Article 5(2) of the 123 Agreement of a future amendment to permit sensitive transfers was merely intended to help the Indian government save face in public.

Under the 123 Agreement, India has agreed to forego reprocessing until it has, in the indeterminate future, won a separate, congressionally vetted agreement, after having built a new, state-of-the-art, dedicated reprocessing facility. The new facility, as the letter says, will take “many years” to design and build. But the letter also indicates that no U.S. export of items for this facility will be permitted, given that reprocessing is a “sensitive” activity.

Recently, Dr. Singh told Parliament that the deal “will open up new opportunities for trade in dual-use high technologies … to accelerate industrialization of our country.” The letter, however, discloses that the deal is to specifically deny dual-use nuclear technologies and items. Easing high-technology and civilian space export controls is not part of this deal.

Eighth, the letter, contradicting Dr. Singh’s claim in Parliament, acknowledges that the 123 Agreement provides for “fall-back safeguards.” In addition to the Hyde Act mandating “fall-back U.S. safeguards” through Section 104 (d)(5)(B)(iii) in case “budget or personnel strains” in the IAEA render it “unable” to fully enforce inspections, the 123 Agreement provides for fall-back safeguards, the letter states.

Given that international inspections on India’s entire civilian programme will cost millions of dollars annually and entail deployment of many technical experts, the U.S. intent is to ensure that, in the event the IAEA is unable to arrange such resources, India does not escape with less intrusive or stringent safeguards than those applicable to non-nuclear-weapons states.

Dr. Singh has denied that India had agreed to safeguards by any entity other than the IAEA. But the Bush administration letter reveals that, “The Government of India has expressed its view that for the purposes of implementing the U.S.-India Agreement, Agency safeguards can and should be regarded as being ‘in perpetuity.’ At the same time it fully appreciates that paragraph 1 of Article 10 of the [123] Agreement does not limit the safeguards required by the Agreement to Agency safeguards” [emphasis added].

In light of these revelations, is it any surprise that systematic efforts have been made in India to inflate the deal’s benefits and shroud its conditions? The partisan manner the deal has been pursued, ever since it was sprung as a surprise on the nation in July 2005, has only undermined India’s negotiating leverage. Consequently, the deal has attracted additional conditions at every stage of its evolution. The NSG process will be no exception.

Brahma Chellaney, a professor of strategic studies at the Centre for Policy Research in New Delhi, is the author, among others, of “Nuclear Proliferation: The U.S.-India Conflict.”