US Laws VS 123 Agreement: Inconsistencies

The US must halt all nuclear exports if India resumes nuclear testing

No mention of nuclear testing, though it allows termination for any reason, after one year’s notice. The parties agreed to consider whether the triggers for cessation stem from a changed security environment.

The Atomic Energy Act (AEA) prohibits any nation from reprocessing nuclear materials obtained from the US without America’s prior consent. The Hyde Act, however, is silent on this issue.

Grants consent in principle. India to establish a new national reprocessing facility under IAEA safeguards; arrangements for reprocessing to be decided in the future

The Hyde Act bans such transfers except to a multinational facility
under IAEA safeguards, or a national facility involved in the development of new proliferation-resistant fuel cycle techniques

Allows transfers pursuant to an amendment to the agreement

The AEA requires that an agreement must ensure the return of nuclear materials if a cooperating party tests a nuclear weapon, or terminates/violates IAEA safeguards

Does not specify what
circumstances allow the US right of return

The Hyde Act of 2006 says the US should (a) not facilitate nuclear exports to India by any other state if such exports are halted by the US; (b) get the Nuclear Suppliers Group to stop exports if the US terminates exports; (c) restrict India’s strategic fuel reserve for "reasonable reactor operating requirements"

Help negotiate with IAEA an
India-specific fuel supply agreement; support development of a strategic nuclear fuel reserve to guard against any disruption of supply over the lifetime of India’s reactors; in the event of a fuel disruption, convene with India a group of friendly supplier countries to restore fuel supply to India