For Immediate Release Office of the Press Secretary September 10, 2008

Message to the Congress of the United States

TO THE CONGRESS OF THE UNITED STATES:

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 123 a.(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 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 123 a.). 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 123 a. of the AEA  except the requirement of section 123 a.(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 123 a. (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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