Devil's Advocate: 'N-deal India's passport to the world'

DEAL OR NO DEAL? If N-deal is not processed in the present Congress, it is unlikely it will be offered again, says Mulford.

          

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Karan Thapar: So what are you saying in effect is don't worry yourself with the unpredictable and the unknowable because it is not worth worrying about.

David Mulford: Well I just don't think you can predict the future. I think this agreement addresses the major issues, of which reprocessing was obviously one.

Karan Thapar: A fourth criticism made is that the 123 Agreement doesn't necessarily make for full civil nuclear cooperation. They say that India's ability to acquire technologies connected with enrichment, reprocessing and heavy water is dependent upon an amendment. Is there a problem?

David Mulford: I don't think it's a problem because that happens to be US law and it applies to the whole world, including to India. And if there ever to be a change in that it would be a change in the underlying fundamental law, it would not be a India-specific change.

Karan Thapar: So you are saying India is being treated like any other country in the world. It is not being discriminated against.

David Mulford: Yes.

Karan Thapar: Finally, there is a certain amount of concern about America's right to return in the event the 123 Agreement is terminated. In those circumstances would any strategic reserve that India were to develop be secure?

David Mulford: Well, yes, because the language that was agreed—coming back to the fuel supply language—made provisions for the creation of a strategic reserve with the help and assistance of the United States. If that strategic reserve is created in the right way, which is India's business to do, and managed in the right way, which again is India's business to do, there should be absolutely no problem in maintaining the sanctity of that reserve.

We have agreed that in the circumstances you mentioned our fuel might be subject to a right of return—by that time I suppose the fuel would be spent fuel—but the right of return would apply to our fuel. We have limited the application of that to fuel from other sources.

Karan Thapar: There is something very interesting in what you have said. You have said that if India develops its strategic reserve in the right way and then manages it in the right way it would be secure. Would the strategic reserves be secure if they were created with non-US fuel, which is not subject to a right of return?

David Mulford: In my view they would be.

Karan Thapar: So the sensible thing would be to build the reserve with non-European fuel, so that it is secure and use American fuel for actually running the plants.

David Mulford: Well, you could look at it that way, certainly.

Karan Thapar: And that would overcome these concerns and these fears almost completely.

David Mulford: Well it should do.

Karan Thapar: In which case, would you accept that what the 123 Agreement does is to make possible full civil nuclear cooperation with the NSG countries and any perceived deficiencies within the 123 itself could be made up by the rest of the NSG, but the important thing is without the 123 the door to the NSG would remain closed?