The US-India
nuclear agreement
US entices
India with nuclear bribe
The US is making a
determined effort to draw India into its
geopolitical orbit. The carrot it is
offering to India is access
to nuclear materials and equipment for the expansion of its nuclear power
programme, access which is at present almost entirely denied. It reverses a 30-year old US policy of
denying nuclear materials and equipment to India, which was
prompted by India’s first
nuclear weapons test in 1974.
This was a key element of an agreement signed by
President Bush and Prime Minister Manmohan Singh in Washington on 18 July 2005. The US is making this offer, but there is
little doubt that other states with nuclear materials and equipment to sell
will follow suit, since to do otherwise would deny their nuclear industries
business in India.
In effect, India is going to acquire the status, and
the privileges, of a “nuclear-weapon” state like the five official
“nuclear-weapon” states (the US, the UK, Russia, France and China) recognised
by the Nuclear
Non-Proliferation Treaty (NPT). This
is going to happen, even though India has never
signed the NPT and isn’t going to sign it now.
Can Israel and Pakistan be far
behind?
This is not to say that the US will be
acting contrary to the NPT in exporting civil nuclear materials and equipment
to India. The NPT does not explicitly forbid such
exports by signatories to a non-signatory state, whether it has nuclear weapons
or not, and nor does any other international treaty to which the US is a
signatory.
Not that India is in a
position to sign the NPT now. A state
has to sign the NPT, in its present form, either as a “nuclear weapon” state or
as a “non-nuclear-weapon” state. India
cannot sign as a “nuclear-weapon” state, even though it has nuclear weapons,
because the NPT itself defines a “nuclear-weapon” state as one “which has
manufactured and exploded a nuclear weapon or other nuclear explosive device
prior to 1 January 1967” (Article IX(3)), and India didn’t explode a device
until 1974. And, it cannot sign as a
“non-nuclear-weapon” state, because it’s not going to give up its nuclear
weapons.
India
a “rogue state”
For nearly 40 years, India has been a “rogue state” in
nuclear affairs, defying “the international community” by refusing to sign up
to the NPT on the grounds that it was discriminatory against states that didn’t
possess nuclear weapons in 1967 (which was manifestly true) and refusing to
accept that the possession of nuclear weapons should be limited to those states. It then proceeded to develop nuclear weapons
of its own and its own delivery systems.
Yet it is now being rewarded for this “rogue” behaviour, by being
allowed to trade freely in nuclear materials and equipment and to continue to
engage in whatever nuclear activities, civil or military, it chooses within its
boundaries – like the five “official” members of the nuclear weapons club.
By contrast, Iran, which signed the NPT in 1968 during
the Shah’s rule and has never withdrawn from it, is not only banned from
developing nuclear weapons under the terms of the NPT, but is also being
pressurised by the US/EU into abandoning uranium enrichment for civil nuclear
purposes, which is its “inalienable right” under the NPT.
It may be that, if the pressure on it continues, Iran
will withdraw from the NPT, as it is allowed to do by Article X(1) of the NPT itself,
and, like India, be free from any international treaty constraints on its domestic
nuclear activities, civil or military.
In which case, if the US applied the same standards to it as it has
applied to India for the past 35 years, Iran would be left alone to develop a
nuclear power programme and nuclear weapons and when it became a grown up
“nuclear-weapon” state like India has now, it would be offered a nuclear deal
by the US, which would make it the 7th member of nuclear weapons
club (or perhaps the 8th or 9th, since by then the US may
have offered Israel and/or Pakistan the same nuclear deal that it has offered
India).
Of course, the US will not apply the same standards to Iran as to India. Iran’s sin is not
its nuclear activities, but that it refuses to bow the knee to the US and is an
avowed enemy of Israel, whereas India is
potentially an ally of the US – so
different standards apply.
Full civil
nuclear energy cooperation
A joint statement
issued by President Bush and Prime Minister Manmohan Singh on 18 July
2005 sets out the agreement. The part
which is concerned with nuclear matters begins as follows:
“Recognizing the significance of civilian nuclear
energy for meeting growing global energy demands in a cleaner and more
efficient manner, the two leaders discussed India's plans to
develop its civilian nuclear energy program.
“President Bush conveyed his appreciation to the Prime
Minister over India's strong
commitment to preventing WMD proliferation [unlike Pakistan - DM] and
stated that as a responsible state with advanced nuclear technology, India should
acquire the same benefits and advantages as other such states. The President
told the Prime Minister that he will work to achieve full civil nuclear energy
cooperation with India as it realizes
its goals of promoting nuclear power and achieving energy security.
“The President would also seek agreement from Congress
to adjust U.S. laws and
policies, and the United States will work
with friends and allies to adjust international regimes to enable full civil
nuclear energy cooperation and trade with India, including
but not limited to expeditious consideration of fuel supplies for safeguarded
nuclear reactors at Tarapur. In the meantime, the United
States will encourage its partners to also
consider this request expeditiously.”
As I have said, there is nothing in the NPT to prevent
the US, or any
other signatory to the Treaty, exporting civil nuclear materials and equipment
to non-signatory states. Under Article
III(1) of the Treaty, “non-nuclear-weapon” state parties to the Treaty (that
is, all signatories bar the US, the UK, Russia, France and China) undertook to
make their nuclear facilities subject to IAEA safeguards to verify that they
aren’t being used for weapons development.
Under
Article III(2), all signatories agreed not to provide nuclear materials or
equipment unless the recipient state has such safeguards in place. Article III(2) reads:
“Each State Party to the Treaty undertakes not to provide:
(a) source or special fissionable material, or (b) equipment or material
especially designed or prepared for the processing, use or production of
special fissionable material, to any non-nuclear-weapon State for peaceful
purposes, unless the source or special fissionable material shall be subject to
the safeguards required by this Article.”
This principle has been applied to the supply of nuclear
material and equipment to India, a non-signatory state with nuclear weapons, even
though it’s not obvious that it falls within the set of importing states
covered by Article III(2).
Nuclear Suppliers Group
Shortly
after the NPT came into force, international guidelines were established (by
the Zangger Committee) specifying a “trigger list” of materials and equipment
falling within the ambit of Article III(2).
In 1975, in response to India’s explosion of a nuclear
device the previous year, a Nuclear Suppliers Group (NSG) of states was set up,
which now has 44 members, including all the major nuclear powers within the NPT
(see Arms Control Association website here).
Under
the auspices of this Group, these states have voluntarily agreed guidelines
regulating the export of nuclear materials and equipment, the objective being
to prevent them being used for weapons development. NSG members are supposed to agree to put these
guidelines into their domestic law on export controls. However, because the guidelines are voluntary
and not enshrined in any international treaty, ultimately they may export any
materials and equipment they wish to whom they wish. Equally, they may refuse to export materials
and equipment permitted under the guidelines.
The
key feature of the latest guidelines agreed in 1995 (see IAEA website here)
is that they require the recipient state to subject their nuclear facilities as a whole, and not just individual
facilities, to IAEA safeguards:
“Suppliers should transfer trigger list items or related technology to a
non-nuclear-weapon State only when
the receiving State has brought into force an agreement with the IAEA requiring
the application of safeguards on all
source and special fissionable material in its current and future peaceful
activities. [my emphasis]” (paragraph 4(a))
India’s nuclear facilities as
a whole are not subject to IAEA safeguards, merely a few isolated facilities, for example,
two Boiling Water Reactors (BWRs) at Tarapur, supplied by the US under an agreement first
signed in 1963. This is why India is unable at present to import
nuclear materials and equipment, except in very limited circumstances.
In
the agreement signed with India on 18 July 2005, the US administration has
committed itself to reverse this, not just in respect of imports from the US, which requires a change
in US law and therefore the
consent of Congress, but in respect of imports from all supplier states. This is what is meant by the following in the
joint statement:
“The President would also seek agreement from Congress to adjust U.S. laws and
policies, and the United States will work
with friends and allies to adjust international regimes to enable full civil
nuclear energy cooperation and trade with India …”
Earlier NSG guidelines
The
NSG guidelines used to be less onerous, allowing the export of nuclear material
and equipment if the receiving nuclear facility, but not all of a state’s
nuclear facilities, was under IAEA safeguards.
The discovery in 1991 that Iraq had a nuclear weapons
programme was the trigger for the tightening of the guidelines.
The
earlier, less onerous, guidelines allowed India to import enriched
uranium to fuel its Boiling Water Reactors (BWRs) at Tarapur, albeit with great
difficulty. These reactors, which are
subject to IAEA safeguards, became operational in 1969. However, because of the Indian nuclear test
in 1974, the US refused to supply
additional fuel when it was required in 1976.
Eventually, France (in 1983), China (in 1995) and later still Russia (in
2001) supplied fuel, the latter after the more comprehensive NSG guidelines
came into force and therefore widely regarded as contrary to these new
guidelines. The new
guidelines have a safety exemption, and Russia tried to
justify its action re Tarapur on the grounds that safety considerations
required the enriched uranium to be supplied.
The new guidelines also have an exemption for exports
under a contract signed before the guidelines came into force. Under this exemption, Russia is
supplying India with a pair
of large Pressurised Water Reactors (PWRs) (aka VVERs), which are being
installed at Koodankulam
in Tamil Nadu. These use enriched
uranium fuel, which is also to be supplied by Russia. This project is said to qualify as an
exemption because it originates from a general agreement on nuclear cooperation
signed between India and the Soviet Union during a visit to India by Gorbachev in 1988.
(India has indigenous uranium
but, unlike its neighbour, Pakistan, it hasn’t developed the
capability of enriching uranium to fuel these reactors. The fissile material for its weapons is
plutonium derived from spent reactor fuel, not highly enriched uranium like Pakistan.)
Importing difficulties
These
examples illustrate India’s difficulties in
importing nuclear materials and equipment in present circumstances,
difficulties which were destined to become impossibilities as exemptions from
the new guidelines can no longer be justified.
Without the deal proposed by the US, India could end up being
unable to import enriched uranium to fuel some of its power plants – which is
an immediate reason why the deal is attractive to India. Part of it is “expeditious consideration”
by the US “of fuel
supplies for safeguarded nuclear reactors at Tarapur”, to quote from the joint
statement, leading, presumably, to a guaranteed supply of fuel for Tarapur from
the US.
It
is true that the bulk of India’s nuclear power
programme is home grown, based on Pressurised Heavy Water Reactors (PHWRs)
using indigenous natural uranium. Two of
these were supplied by Canada in the 70s and early 80s
(and are under IAEA safeguards) and the rest are of Indian design based on the
Canadian model. India has the technical
ability to expand nuclear power generation at will without recourse to the import
of nuclear-related materials equipment, given a sufficient supply of indigenous
uranium. However, there is some doubt if
the quantities of uranium available are sufficient to fuel the proposed, very
large, expansion in India’s nuclear power programme,
which makes the ability to import uranium essential.
Generation
IV & ITER
The
agreement signed on 18 July 2005 will also lead to India’s participation in
international research projects on nuclear and thermo-nuclear energy.
The
first is the Generation IV International Forum on nuclear energy (see here), established by the US Department of
Energy. Argentina, Brazil, Canada, France, Japan, South Africa, South Korea, Switzerland and the UK participate in this, along
with the US. It is seeking to identify more efficient
reactor types, and is therefore of immediate interest to India, as it seeks to expand
its nuclear power generation. In the
joint statement, the US promises to “consult with
the other participants in the Generation IV International Forum with a view
toward India's
inclusion”.
The
second is ITER, the International Thermonuclear Experimental Reactor (see here), which is to be built in Cadarache in France and is
planned to begin operations in 2016. The
entities currently involved are China, the EU and
Switzerland
(represented by Euratom), Japan, South
Korea, Russia, and the US. Obviously, this project is not going to bear
fruit immediately, and maybe won’t bear fruit at all. Of it, the joint statement said “the United
States will consult with its partners
considering India's
participation”. India has the
support of the EU for its participation in ITER: at the India-EU summit on 7 September 2005, it was
agreed that they would “work to secure India’s
membership in the ITER nuclear fusion project” (see joint declaration here).
What India has to do
What has India to do in
order to get access to nuclear materials and equipment? In general terms, it has to separate out its
military and civilian and nuclear facilities and put the latter under IAEA
safeguards. To quote from the joint
statement:
“The Prime Minister conveyed that for his part, India would reciprocally agree
that it would be ready to assume the same responsibilities and practices and
acquire the same benefits and advantages as other leading countries with
advanced nuclear technology, such as the United States. These responsibilities
and practices consist of identifying and separating civilian and military
nuclear facilities and programs in a phased manner and filing a declaration
regarding its civilians facilities with the International Atomic Energy Agency
(IAEA); taking a decision to place voluntarily its civilian nuclear facilities
under IAEA safeguards; signing and adhering to an Additional Protocol with
respect to civilian nuclear facilities; …”
However,
the requirement is not as comprehensive as it seems. The key element of it is India’s expressed willingness
“to assume the same responsibilities and practices ... as other leading
countries with advanced nuclear technology, such as the United States”. Clearly, the arrangements between the IAEA
and India foreshadowed in the
agreement are similar to those the IAEA has with the US and the other official
“nuclear-weapon” states.
The
distinguishing feature of such an agreement is that it is voluntary – the official IAEA name for it is “voluntary offer safeguards
agreements” – and the materials and facilities falling within the scope of the
agreement are chosen by the “nuclear-weapon” state, and can be withdrawn by the
“nuclear-weapon” state at any time. Needless
to say, materials and facilities connected in any way with their weapons
programmes are not offered for inspection.
As the IAEA Safeguards Statement for
2002 explains:
“Voluntary offer safeguards agreements have been concluded with the five
nuclear-weapon States. Each State offers some or all of its civilian nuclear
material and/or facilities from which the Agency may select some for the
application of safeguards.”
This
is a far cry from what Iran is subject to today as a “non-nuclear-weapon”
state, which under Article III(1) of the NPT is required to subject all its nuclear facilities to IAEA
safeguards, and the IAEA monitor all
of them. The purpose of this is supposed
to be to verify that “non-nuclear-weapon” states aren’t developing nuclear
weapons – which makes the implementation of IAEA safeguards a pointless
exercise in states that already possess nuclear weapons.
IAEA safeguards no big deal
Criticism of the agreement with the US has been voiced in India on the grounds that
opening its nuclear industries to IAEA inspection would compromise its nuclear
deterrent. The Indian Express carried a
well-informed rebuttal of this in an article
by C Raja Mohan on 28 July 2005. It began:
“Contrary to assertions here that the separation of India’s civilian and military
nuclear programmes and placing the former under international [IAEA] safeguards
will undermine India’s nuclear deterrent, a
reading of similar agreements by other nuclear weapon states suggests the
government will retain full operational flexibility under any such arrangement.
“Besides choosing which facilities
of the nuclear programme it wants to designate as civilian and place under international
safeguards, India will have the option of
removing facilities from the list it would eventually submit to the
International Atomic Energy Agency.
“In addition, India, like the five
other nuclear weapon states, would also retain the option of withdrawing
nuclear material, if national security reasons so demand, from the facilities
on which it voluntarily accepts IAEA safeguards.”
The article ends:
“To forgo the opportunity
of expansive civilian nuclear cooperation with the world, that the nuclear pact
with US promises, by raising abstract fears about long overdue separation of
civil and military programmes would involve stupendous short-sightedness on the
part of India’s nuclear managers.”
Indian regularisation?
Why do “nuclear-weapon” states enter into “voluntary
offer safeguards agreements”? The IAEA Safeguards
Glossary says that they do so “inter alia, to allay concerns that the
application of IAEA safeguards could lead to commercial disadvantages for the nuclear
industries of non-nuclear-weapon States”.
I can’t judge if that makes any sense.
But my guess is that these voluntary agreements are entered into mainly for
appearances sake – to give the impression that the “nuclear-weapon” states are
prepared to submit their nuclear industries to the same scrutiny as the
“non-nuclear-weapon” states, when in fact they never will, because their
nuclear industries have a military component.
However, it can be guaranteed that India’s
willingness to enter into such an agreement with the IAEA will be trumpeted by
the US as bringing
Indian nuclear facilities under international supervision for the first time. Having denied India access to nuclear
materials and equipment for over 30 years since its first nuclear test, a
plausible reason has to be advanced to Congress and the Nuclear Suppliers Group
for this policy volte face. It’s not
possible to advance the real reason in public – that the US wants to
make India a reliable
ally in world affairs – so a pretence has to be made that what is happening is
a regularisation of India’s position
within the world nuclear order.
This was the theme of the administration’s message to
Congress, when Nicholas Burns and Robert Joseph from the State Department gave
evidence on the agreement to the International Relations Committee of the House
of Representatives on 8 September
2005. Burns, who is Under Secretary of State for
Political Affairs, played a leading role in the negotiating the agreement and
is now overseeing its implementation. He
told
the Committee:
“We sought this agreement because India’s nuclear
weapons program and its status outside the nonproliferation regime has proven
to be a longstanding stumbling block to enhanced U.S.- India relations, as well
as a problem for the global nonproliferation regimes. …
“Although India has
demonstrated a strong commitment to protecting fissile materials and nuclear
technology more generally, it is in both Indian and American interests that New Delhi’s isolation
be brought to an end and that India be made
part of a stable global nonproliferation order.
“The agreement between President Bush and Prime Minister
Manmohan Singh does this in a fair and equitable way. It contemplates both
countries taking serious steps toward achieving the goal of strengthening the
international nonproliferation regime, while also meeting India’s very real
energy needs in a way that contributes to a clean global environment.”
In his opening statement,
Robert Joseph, who is the Under Secretary for Arms Control and International Security
in the State Department, made a similar point:
“… India has agreed to take on
key nonproliferation commitments that will bring it for the first time into the
mainstream of the international nuclear nonproliferation community. This is a
major positive move for India. While more can and will
be done, India's implementation of its
agreed commitments will, on balance, enhance our global nonproliferation
efforts, and we believe the international nuclear nonproliferation regime will
emerge stronger as a result.”
Without
prompting, Joseph specifically denied that Israel and Pakistan were next in line for
this treatment:
“We view India as an exceptional case,
and see civil nuclear cooperation as a mechanism to deepen further India's commitment to
international nonproliferation. Some have asked whether it might be possible to
extend such cooperation to Israel and Pakistan - the only two other
states that did not join the NPT. India, Israel, and Pakistan are each unique and
require different approaches. Neither Pakistan nor Israel has a civil nuclear
energy program that approximates that of India. The United States has no plans to seek
full civil nuclear cooperation with Israel or Pakistan.”
But, if this treatment will bring India “for the first time into
the mainstream of the international nuclear nonproliferation community”, why
not apply the same treatment to Israel and Pakistan and bring them “for the
first time into the mainstream of the international nuclear nonproliferation
community”?
Will deal go through?
Will Congress amend US law to
allow the export of nuclear materials and equipment to India? Will the Nuclear Suppliers Group (NSG)
collectively agree that IAEA safeguards on facilities of India’s choosing
is sufficient to meet NSG guidelines for the export of nuclear materials and
equipment?
To address the latter first, it appears that surprise,
surprise, the UK is already
onside. Robert Joseph told the
International Relations Committee on 8 September 2005:
“Mr. Chairman, many of our international partners have recognized the
need to treat India differently and some
have indicated their outright support. The United Kingdom, for instance, welcomed
the initiative and noted its pleasure at India's willingness to take
these steps as outlined in the Joint Statement.”
To the best of my knowledge, the British Parliament
and people have yet to be told of the UK’s welcome
for this initiative.
A meeting of the NSG took place on 19 October 2005. A Reuters report
in the Indian Express on 21 October
2005 began:
“Key nuclear-supplier
nations have put off action on a U.S. proposal to lift
restraints on transferring nuclear technology to India, U.S. officials said …
“At the meeting, Britain, France, and Canada were generally
supportive, but Sweden asked ‘hard questions’
and Japan seemed wary of the India deal, officials said.”
The next scheduled meeting of the
NSG is in May 2006.
In reality, there is no chance of NSG
member states refusing to sell nuclear materials and equipment to India if the US does, since to do so
would be deny their nuclear industries Indian business. So, the only significant stumbling block in
the way of the deal bearing fruit is the US Congress.
It is not beyond the bounds of
possibility that Congress will block the deal.
Senior foreign policy figures in Congress, both Republican and Democrat,
are miffed that the administration did not follow the usual practice and
consult them before doing the deal on this controversial issue. The Republican chairmen of the House
International Relations Committee and the Senate Foreign Relations Committee,
Henry Hyde and Richard Lugar, and the senior Democrats in the Committees, Tom
Lantos and Joseph Biden, have now formally written to Secretary of State,
Condoleeza Rice, asking that the administration consult with them before
proposing legislation to implement the agreement (see, for example, Reuters
report, Congressmen
press Rice on India nukes deal, 19 October 2005).
It has been widely reported that
many members of Congress are less than enthusiastic about the substance of the
deal also. For example, this Reuters
report says:
“Many members of Bush’s
Republican party, which controls Congress, and also many Democrats fear the
deal excessively benefits India and undermines
international efforts to halt the spread of nuclear weapons.”
It’s a fair bet that if India proved to be a reliable
ally of the US in international
affairs, and particularly over Iran, these objections would
melt away like snow off a ditch.
However, should India maintain its present
public stance that Iran should not be referred
to the Security Council, then Congress may very well refuse to pass the
necessary legislation to implement the agreement.
India didn’t make any commitment
in the agreement, as published, to foreign policy changes that the US would approve of, but
the joint statement on the agreement does say:
“The two leaders state
their expectations that India and the United States will strengthen their
cooperation in global forums.”
Including the IAEA, presumably.
(The statement also said:
“In light of this closer
relationship, and the recognition of India's growing role in
enhancing regional and global security, the Prime Minister and the President
agree that international institutions must fully reflect changes in the global
scenario that have taken place since 1945. The President reiterated his view
that international institutions are going to have to adapt to reflect India's central and growing
role.”
This gives general US support to India in its quest to be
recognised as a heavyweight in world affairs.
But it stops short of specific support for India’s quest for a permanent
seat on the Security Council. Japan is the only state which
enjoys US support for this, though
without a veto.)
Lantos:
reciprocity expected
At the International Affairs Committee
hearing on 8 September 2005, Tom Lantos, the senior
Democrat on the Committee, made it clear what he expected India to do, in order to gain the
approval of Congress for the agreement (see here):
“When the administration
called me asking for my support for the issue we are now about to discuss, I
gave it, and I continue to do so. But there is a degree of reciprocity we
expect of India, which has not been
forthcoming.
“The policy of India towards Iran is a matter of great
concern to many of us, as is the policy of Russia towards Iran. [T]he United Kingdom, France and Germany, along with us, are
prepared to refer the issue to the United Nations Security Council for action. Russia has publicly stated they
will object to that.
“I would not like to see
a similar set of developments with respect to India whereby we agree to
undertake a tremendous range of path-breaking measures to accommodate India,
while India blithely pursues what it sees should be its goal and policy
vis-ŕ-vis Iran. There is quid pro quo in international relations. And if our
Indian friends are interested in receiving all of the benefits of U.S. support we have every
right to expect that India will reciprocate in
taking into account our concerns.
“So to repeat in a nutshell,
I support the policy … but I expect India to recognise that there
is reciprocity involved in this new relationship, and without reciprocity, India will get very little
help from the Congress. If we are turning ourselves into a pretzel to
accommodate India, I want to be damn sure
that India is mindful of U.S. policies in critical
areas such as U.S. policy towards Iran. India cannot pursue a policy
vis-ŕ-vis Iran which takes no account
of U.S. foreign policy
objectives.”
Tom Lantos is not a representative
figure in Congress – he is a holocaust survivor and his support for Israel, and opposition to its
enemies, is visceral – but if India fails to support the US over Iran the deal may come unstuck
in Congress.
The administration is due to make
proposals on the necessary legislative changes in early 2006. Before then, an IAEA Board meeting is
scheduled for November, at which the US/EU will make another effort to have the
Iran issue referred to the
Security Council. If India fails to back the US wholeheartedly on that
occasion, who knows what will happen to the deal.
Domestic
constraints
There are domestic constraints on the
Indian Government shifting its ground to do what the US wants in foreign policy.
The Congress-led Government relies
on a Left Front of parties, including the Communist Parties, to keep it in
power. Congress has only 145 seats in
the 545-member Lok Sabha, not many more than the main opposition, Bharatiya
Janata Party (BJP), which has 138.
After India voted with the US on a resolution in the
IAEA Board on 24 September 2005, which found Iran to be in
“non-compliance” with its obligations under its Safeguards Agreement with the
IAEA, there was an outcry from the leaders of its left allies. Quite reasonably, they interpreted this shift
away from India’s normal independent
position in foreign policy to a quid pro quo for the nuclear deal, and sought a
meeting with Prime Minister Manmohan Singh to seek an explanation for India’s vote and to demand a
reversal of the vote at the IAEA Board meeting in November. After the meeting, they declared themselves
to be unhappy with the Prime Minister’s response. If India votes with the US in November to refer Iran to the Security Council,
there is a possibility that the Government will no longer command a majority in
the Lok Sabha.
When in government, the BJP began
the process which led to the agreement of 18 July
2005. In November 2001, in the wake
of 9/11, the then Prime Minister, Atal Bihari Vajpayee, and President Bush agreed
to expand US-India co-operation on a wide range of issues and develop what was
termed a “strategic partnership”. In
October 2001, the US had removed the
remaining sanctions against India (and Pakistan), imposed as a
consequence their nuclear tests in May 1998.
(Military co-operation, which began
in 1995, was interrupted after these tests.
It was resumed after 9/11 also, under the auspices of the India-US
Defense Policy Group, which meets regularly and, as a result, the US has sold India military equipment and
joint military exercises has been held.)
In January 2004, Bush and Vajpayee
agreed on further co-operation under the banner of “Next Steps in Strategic Partnership”
(NSSP), which came to fruition with the agreement of 18
July 2005. By this time the
BJP had lost power to a Congress-led coalition in an election in April 2004. The US feared that a
Congress-led Government relying on left wing support would be a less
enthusiastic partner, but their fears have been proved groundless.
The BJP’s reaction to the agreement
was guarded, neither supporting it nor opposing it outright (which would have
been difficult given the BJP’s part in the process leading to it), but BJP leader
Vajpaye expressed concern that the splitting of India’s nuclear facilities into
civil and military would reduce India’s freedom to develop its nuclear weapons
(see press statement here).
It also criticised the Government
over India’s vote in the IAEA Board, accusing it of being “surreptitiously
engaged in a major recast of policy on this important issue, which directly
affects our national security, too”, and saying that there was a strong belief
that “this has been done under international pressure, particularly of the US”
and that the “government has effected this major policy shift on the quiet,
without adequate democratic consultations” (see press statement here).
While it is likely that the Indian Government
will survive a vote in the IAEA Board in November in favour of referring Iran to the Security Council,
it cannot be taken for granted.
There remains a doubt as to whether India’s vote with the US in the IAEA Board in
September represented a significant shift in policy or merely a gesture to
please the US. In explaining its vote, India insisted that
its policy hadn’t changed: that it wanted the matter resolved by the IAEA, not
referred to the Security Council, and that declaring Iran to be in
“non-compliance” with its obligations under its Safeguards Agreement with the
IAEA was not justified – having just voted for a resolution declaring Iran to
be in “non-compliance” (see my article The US/EU
fails on Iran at the IAEA). This
sort of ambiguity is unlikely to survive through the November meeting of the
IAEA Board.
Constraints
re Iran
Another
constraint on India blindly siding with the US against Iran is that the latter is a
major supplier of oil and gas to India, and plans are afoot for
this to grow sharply.
For
example, in January 2005 India signed a deal with Iran, said to be worth $40bn
in total, to ship 7.5 million tonnes of liquefied natural gas annually over a
25 year period from 2009 (see BBC report here).
A
plan is also afoot to build a gas pipeline from Iran through Pakistan, supplying both Pakistan and India, as a result of which Pakistan would earn substantial
transit fees. This plan has been around
for a long time, but never came to fruition because of India’s fears about security
of supply via a pipeline through Pakistan. But, now that relations between India and Pakistan have improved, so have
the prospects of the pipeline being built.
On a visit to Pakistan to discuss the pipeline on
6 June 2005, Indian oil minister,
Mani Shankar Aiyar, described the project as a “certainty” (see BBC report here)
The
US is opposed to India (or any other country) having dealings with Iran, but is
particularly opposed to this pipeline, which would bind India (and Pakistan) to
Iran for a generation – and has threatened that parties to the pipeline project
may be subject to sanctions under US law.
In an interview
with The Hindu newspaper on 2 September 2005, the US Ambassador to India, David Mulford, said:
“What we have done with
the Indian government is that we have advised them, when this project became
known, that we have legislation - the Iran-Libyan Sanctions Act – on our books
which requires the administration to look at investments that appear to help
develop and monetise that development of Iranian natural resources. And, to
impose sanctions on parties that participate in that process.”
(The
Libya-Iran Sanctions Act seems to bear a resemblance to the Helms-Burton Act,
which, contrary to WTO rules, attempts to penalise non-US companies that trade
with Cuba.)
With its requirements for oil and
gas growing rapidly, and relatively little indigenous supply, India cannot risk endangering
its oil or gas imports, now or in the future, from any of its suppliers. A political clash with Iran, as a result of
siding with the US at the IAEA, might lead to Iran’s restricting supply now, or
reducing future commitments to supply – since world demand for oil and gas is
high and rising, there are plenty of other customers out there.
This is obviously an outcome India would wish to
avoid. The nuclear deal with the US has the potential to
assist India’s overall energy supply
in, perhaps, ten years time, but Iran has the capability of
affecting India’s oil and gas supply
now. So, India has to think twice about
blindly siding with the US against Iran.
David Morrison
Labour
& Trade Union Review
27 October 2005