Indo-US nuke deal: Fresh trouble as Bush says fuel supply security not “legally binding”

New Delhi: A story full of twists and turns takes another with Indian officials professing to be ''intrigued'' by an observation made by United States president George W Bush in his determination to the Congress that fuel supply assurances made to India under the 123 agreement were "not legally binding." Officials said that the Indian government will now seek clarity from the US on the matter.

President Bush's observation has been made in his determination to the US Congress while presenting the 123 agreement for its consideration. Indian officials are being quoted as saying that the US president's observation interprets the 123 agreement ''differently.''

According to Government of India sources the observation is intriguing as the 123 agreement clearly specifies the responsibility of the US to ensure uninterrupted fuel supplies, even if it terminates its own cooperation with India due to some reason.

The 123 agreement makes it incumbent upon the US to supply fuel by itself and by working with "friends and allies" to enable India to obtain "full access to the international fuel market, including reliable, uninterrupted and continual access to fuel supplies from firms in several nations," the sources said referring to the pact reached last year.

This may be the offending paragraph that has raised eyebrows in New Delhi: ''In Article 5(6) the Agreement records certain political commitments concerning reliable supply of nuclear fuel given to India Agreement does not, however, transform these political commitments into legally binding commitments because the Agreement, like other U.S. agreements of its type, is intended as a framework agreement.''(See: Message to the Congress of the United States)

The fresh controversy arises even as both countries were still basking in their recent triumph at Vienna where they managed to gain an exemption for India from the Nuclear Suppliers Group. The exemption now allows India to resume commerce in  nuclear fuel and technologies with the rest of the world.

In the course of these negotiations a US State Department letter leaked to the media raised doubts whether both countries had similar interpretations with respect to their 123 agreement. The controversy died down after both countries stressed that there were no differences in interpretation.

With the 123 agreement heading to the US Congress for ratification, and the US president required to provide his determination that the agreement will promote ''common defence and security,'' a fresh controversy now appears to be in the making over the wording of his determination.
 
Officials in New Delhi say that clarity will be sought from Washington as the matter has the potential to create uncertainty over the fuel supplies issue.