Thursday, June 29 2006 10:17 Hrs (IST) - World Time -

Washington: A key US Senate panel will consider a bill today (June 29, 2006) to 'mark up' the Indo-US civilian nuclear deal, a second major hurdle to cross for the approval of the landmark agreement.

The 18-member Senate Foreign Relations Committee will vote whether to make exemptions in the 1954 Atomic Energy Act to enable US to sell nuclear fuel and technology in return for non-proliferation and safeguard committments from India.

In his opening remarks to the Senate Committee, released hours before the sitting, its chairman Richard Lugar said the landmark deal was the 'most important strategic initiative' undertaken by the Bush administration which provides the country 'new diplomatic options' to ensure global stability.

He said by concluding this pact and the far-reaching set of cooperative agreements that accompany it, US President George W Bush has 'embraced a long-term outlook' that seeks to enhance the core strength of US foreign policy in a way that will give them 'new diplomatic options and improve global stability'.

The Republican Senator also outlined provisions of the bill which in his view significantly strengthened the proposals that were first advanced by the administration especially as it related to Congressional oversight and procedures.

Noting that the deal allows India to access nuclear fuel, technology and reactors from the US, which were previously denied as New Delhi did not ratify the NPT, Lugar said Washington will ensure that the civilian nuclear agreement would not "undercut" its responsibilities under the Treaty.

"The agreement can be a lasting incentive for India to abstain from further nuclear weapons tests and to cooperate closely with the United States in stopping proliferation," Lugar said.

The Senator said the deal has resulted in the improvement of relations between the two countries and the US was strategically benefitted by it.

"India's votes at the IAEA on the Iran issue last September and this past February demonstrate that New Delhi is able and willing to adjust its traditional foreign policies and play a constructive role on international issues," he said.

The bill is being introduced in the Senate Committee by Lugar and Ranking Member Joseph Biden.

"The Lugar-Biden bill gives important authorities to the Administration to negotiate with India, but our legislation does not restrict or predetermine Congressional action on the forthcoming 123 Agreement. Congress will have to approve this subsequent agreement before it goes into force," Lugar said.

"The Lugar-Biden mark, unlike the Administration's original legislative proposal, preserves Congressional prerogatives with regard to the 123 Agreement.

"Under the Administration's original proposal, the 123 Agreement would have entered into force 90 days after submission unless both houses of Congress voted against it and then overcame a likely Presidential veto. I am pleased the Administration changed course on this matter and agreed to submit the 123 Agreement with India to Congress under normal procedures," he said.

"This means that both the House and the Senate must cast a positive vote of support before the 123 Agreement can enter into force. In our view, this fully protects Congressional role in the process and ensures Congressional views will be taken into consideration," the Chairman said.

Lugar also pointed out that the Senate legislation has sought to ensure that important export control and non-proliferation efforts remain strong and consistent.

The Lugar-Biden bill gives voice to a set of important policy issues involving bilateral relations, democraticvalues, nuclear non-proliferation regimes, fissile material production in South Asia, and support for IAEA safeguards and the Nuclear Suppliers Group.

The Bill also provides the waiver authority from provisions in the Atomic Energy Act and removes the prohibition on cooperating with India imposed after its 1998 nuclear tests.



At the same time, Section 129 of the Atomic Energy Act, which is preserved under the Lugar-Biden bill, terminates nuclear cooperation if India conducts a nuclear test, proliferates nuclear weapons or materials, or breaks its agreements with the IAEA or the United States.

Lugar has maintained in his statement that the bill adopts all of the administration's requirements to ensure that India is meeting its non-proliferation commitments.

"In addition, we require that decisions in the Nuclear Suppliers Group enabling nuclear trade with India are made by consensus and consistent with its rules. Our aim is to guarantee that this multilateral organization will continue to play a vital role in global non-proliferation efforts," he said.

Another provsion of the bill supports timely consideration of nuclear export applications, but prohibits exports of equipment, materials or technology related to the enrichment of uranium, the reprocessing of spent nuclear fuel, or the production of heavy water.

The provision allows narrow exceptions for the export of these items to India from the United States if they are for proliferation-resistant activities that involve the United States or have the sponsorship of a recognized international body like the IAEA.

"This provision is consistent with the Administration's policy regarding such transfers. It would allow cooperation in sensitive nuclear areas only if such cooperation could be implemented with no risk of proliferation," he said.

The bill also envisages the creation of a system to ensure that no items exported to India are diverted to any uses that are not peaceful. This section seeks to ensure US compliance with our NPT obligations.

Another section of the bill talks about the requirement of annual Presidential certifications that India is meeting its commitments under the July 2005 Joint Statement, its separation plan, New Delhi's safeguards agreement and additional protocol with the IAEA, the 123 Agreement, and applicable US laws regarding US exports to India.

Lugar has pointed out that the Senate legislation on Thursday will be debated in the Committee will require hat no action be undertaken pursuant to peaceful cooperation with India that would violate any U.S. obligation under the NPT.



"There will be the explicit stipulation that if India conducts a nuclear test, US-India civilian nuclear cooperation will be terminated," he said.

The provision allows narrow exceptions for the export of these items to India from the United States if they are for proliferation-resistant activities that involve the United States or have the sponsorship of a recognized international body like the IAEA.

"This provision is consistent with the Administration's policy regarding such transfers. It would allow cooperation in sensitive nuclear areas only if such cooperation could be implemented with no risk of proliferation," he said.

The bill also envisages the creation of a system to ensure that no items exported to India are diverted to any uses that are not peaceful. This section seeks to ensure US compliance with our NPT obligations.

"There will be the explicit stipulation that if India conducts a nuclear test, US-India civilian nuclear cooperation will be terminated," he said.

"The US-Indian agreement resulted from a delicately balanced negotiation. Neither side got everything it wanted. Nevertheless, the Bush Administration and the Indian Government came to the conclusion that the agreement was in the national security interest of both countries. I agree with this assessment and urge Senators to vote in favor of this legislation without conditions that would kill the agreement," Lugar has said.

Along with the Bill pertaining to the civilian nuclear cooperation between India and the United States Senator Lugar and have added another piece of non-proliferation legislation as Title II.