INDIA: US NUCLEAR FUEL TO TARAPUR

Created: 1/17/1980

OCR scan of the original document, errors are possible

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SUBJECT: INDIA: US Nuclear Fuzl to Tarapur

ecision in tho near future to provido enriched uraniumuilt reactorsrapur would not moderate India's adverse reaction to the resumed supply of US arms to Pakistan and night providrs Indiaenats question cur overall non-proliferation objective*. ^BsU

Pritw Minister Candhi would probably interpret any quick authorization to proceed with two delayed uranium ship-Monts as an attempt by the US to assuage Indian sensitivities over the resumption of arms deliveries to Pakistan. Release of these shipments would simply be viewedop and an insult. Moreover, it would be argued that tho US action is simply the fulfillmentinding contractual obligation, valid--as far as India is In uhort. Hew Delhi would not b< mollifiedecision in Washington to make what would appuar to be an exceptionto established non-pr"literation policy ro<;jrding India.

j. Further, ard porhsps more importantly, Indianand editorial writers might point to the "inconsistency" of American nuclear policy. Attention would be directed toward tho "selective implementation" of US non-proliferation In the aftermath of resumed fuel shipments, the Indians are likely to begin to wonder aloud whether the shift in US nuclear policy toward India might not presage an even more generous relaxation ofUSpolicyis its ally Pakistan.

4. We thus appear to bano win" jltuation. The US will be roundly denounced if it fails to live up to the terms of its fuel supply agreement with India. If we release the

fuel at this juncture, however, wc will be suspected of having ulterior motives and will be castigated for lifting our embargo of military supplies to Pakistan which has already demonstrated

its determination touclear capability. Resumption of Tarapur fuel shipments should, perhaps, not be pogged--or