[Congressional Record (Bound Edition), Volume 154 (2008), Part 13]
[Senate]
[Pages 18546-18547]
[From the U.S. Government Publishing Office, www.gpo.gov]




PROPOSED AGREEMENT FOR COOPERATION BETWEEN THE GOVERNMENT OF THE UNITED 
STATES OF AMERICA AND THE GOVERNMENT OF INDIA CONCERNING PEACEFUL USES 
    OF NUCLEAR ENERGY, RECEIVED DURING ADJOURNMENT OF THE SENATE ON 
                       SEPTEMBER 10, 2008--PM 63

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Foreign Relations:

To the Congress of the United States:

[[Page 18547]]

  I am pleased to transmit to the Congress, pursuant to section 123 of 
the Atomic Energy Act of 1954, as amended (42 U.S.C. 2153) (AEA), the 
text of a proposed Agreement for Cooperation Between the Government of 
the United States of America and the Government of India Concerning 
Peaceful Uses of Nuclear Energy. I am also pleased to transmit my 
written determination concerning the Agreement, including my approval 
of the Agreement and my authorization to execute the Agreement, and an 
unclassified Nuclear Proliferation Assessment Statement (NPAS) 
concerning the Agreement. (In accordance with section 123 of the AEA, 
as amended by title XII of the Foreign Affairs Reform and Restructuring 
Act of 1998 (Public Law 105-277), a classified annex to the NPAS, 
prepared by the Secretary of State in consultation with the Director of 
National Intelligence, summarizing relevant classified information, 
will be submitted to the Congress separately.) The joint memorandum 
submitted to me by the Secretary of State and the Secretary of Energy 
and a letter from the Chairman of the Nuclear Regulatory Commission 
stating the views of the Commission are also enclosed.
  The proposed Agreement has been negotiated in accordance with the AEA 
and other applicable law. In my judgment, it meets all applicable 
statutory requirements except for section 123a.(2) of the AEA, from 
which I have exempted it as described below.
  The proposed Agreement provides a comprehensive framework for U.S. 
peaceful nuclear cooperation with India. It permits the transfer of 
information, non-nuclear material, nuclear material, equipment 
(including reactors) and components for nuclear research and nuclear 
power production. It does not permit transfers of any restricted data. 
Sensitive nuclear technology, heavy-water production technology and 
production facilities, sensitive nuclear facilities, and major critical 
components of such facilities may not be transferred under the 
Agreement unless the Agreement is amended. The Agreement permits the 
enrichment of uranium subject to it up to 20 percent in the isotope 
235. It permits reprocessing and other alterations in form or content 
of nuclear material subject to it; however, in the case of such 
activities in India, these rights will not come into effect until India 
establishes a new national reprocessing facility dedicated to 
reprocessing under IAEA safeguards and both parties agree on 
arrangements and procedures under which the reprocessing or other 
alteration in form or content will take place.
  In Article 5(6) the Agreement records certain political commitments 
concerning reliable supply of nuclear fuel given to India by the United 
States in March 2006. The text of the 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.
  The Agreement will remain in force for a period of 40 years and will 
continue in force thereafter for additional periods of 10 years each 
unless either party gives notice to terminate it 6 months before the 
end of a period. Moreover, either party has the right to terminate the 
Agreement prior to its expiration on 1 year's written notice to the 
other party. A party seeking early termination of the Agreement has the 
right immediately to cease cooperation under the Agreement, prior to 
termination, if it determines that a mutually acceptable resolution of 
outstanding issues cannot be achieved through consultations. In any 
case the Agreement, as noted, is a framework or enabling agreement that 
does not compel any specific nuclear cooperative activity. In the event 
of termination of the Agreement, key nonproliferation conditions and 
controls would continue with respect to material and equipment subject 
to the Agreement.
  An extensive discussion of India's civil nuclear program, military 
nuclear program, and nuclear nonproliferation policies and practices is 
provided in the Nuclear Proliferation Assessment Statement (NPAS) and 
in a classified annex to the NPAS submitted to the Congress separately.
  The AEA establishes the requirements for agreements for nuclear 
cooperation, some of which apply only to non-nuclear-weapon states (see 
AEA, section 123a.). The AEA incorporates the definition of ``nuclear-
weapon state'' from the Treaty on the Non-Proliferation of Nuclear 
Weapons (NPT), which defines it to mean a state that has manufactured 
and exploded a nuclear weapon or other nuclear explosive device prior 
to January 1, 1967. Therefore India is a non-nuclear-weapon state for 
NPT and AEA purposes, even though it possesses nuclear weapons. The 
Agreement satisfies all requirements set forth in section 123a. of the 
AEA except the requirement of section 123a.(2) that, as a condition of 
continued U.S. nuclear supply under the Agreement, IAEA safeguards be 
maintained in India with respect to all nuclear materials in all 
peaceful nuclear activities within its territory, under its 
jurisdiction, or carried out under its control anywhere (i.e., ``full-
scope'' or ``comprehensive'' safeguards).
  The Henry J. Hyde United States-India Peaceful Atomic Energy 
Cooperation Act of 2006 (the ``Hyde Act'') established authority to 
exempt the Agreement from the full-scope safeguards requirement of 
section 123a.(2) of the AEA, as well as certain other provisions of the 
AEA relating to supply under such an agreement, provided that the 
President makes certain determinations and transmits them to the 
Congress together with a report detailing the basis for the 
determinations. I have made those determinations, and I am submitting 
them together with the required report as an enclosure to this 
transmittal.
  Approval of the Agreement, followed by its signature and entry into 
force, will permit the United States and India to move forward on the 
U.S.-India Civil Nuclear Cooperation Initiative, which Indian Prime 
Minister Manmohan Singh and I announced on July 18, 2005, and 
reaffirmed on March 2, 2006. Civil nuclear cooperation between the 
United States and India pursuant to the Agreement will offer major 
strategic and economic benefits to both countries, including enhanced 
energy security, an ability to rely more extensively on an 
environmentally friendly energy source, greater economic opportunities, 
and more robust nonproliferation efforts.
  The Agreement will reinforce the growing bilateral relationship 
between two vibrant democracies. The United States is committed to a 
strategic partnership with India, the Agreement promises to be a major 
milestone in achieving and sustaining that goal.
  In reviewing the proposed Agreement I have considered the views and 
recommendations of interested agencies. I have determined that its 
performance will promote, and will not constitute an unreasonable risk 
to, the common defense and security. Accordingly, I have approved it 
and I urge that the Congress also approve it this year.

                                                      George W. Bush.  
  The White House, September 10, 2008. 

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