Pure & Simple....
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According to Indian officials, the nuclear agreement breaches three red lines for Indian national security.
First, it would limit India's future ability to produce fissile material for the development and expansion of India's nuclear arsenal. India currently has some 70 nuclear warheads, and senior security officials have told UPI that the country needs "at least 300 warheads" to guarantee its future deterrence against Pakistan and China, its two nuclear-armed neighbors.
The current agreement would include India's next generation of fast-breeder nuclear reactors, which are said to be essential to the future production of fissile material. If they are brought within the IAEA system, this could limit India's capability to produce a larger arsenal. The Bush administration has agreed to leave outside the IAEA control system India's existing reactors that produce fissile material for military use. But these reactors are almost at the end of their working life and can produce enough fissile materials for only 20-30 more nuclear weapons.
Second, the agreement would bring Indian nuclear research laboratories under the IAEA's inspection and control regime. This has produced a revolt among India's nuclear scientists. They are prepared to allow IAEA controls over those parts of India's nuclear program that depend on international cooperation, but insist that India's homegrown nuclear research programs have to remain outside the IAEA system.
They fear in particular that India's pioneering and top-secret work on thorium as a nuclear fuel would be compromised under the IAEA regime, and that their researches would become available to potentially hostile countries. They claim they are close to a breakthrough on thorium technology which would make India independent of uranium supplies, and suspect that the U.S. draft of the agreement is really designed to block India's lead in this new area of nuclear technology.
Third, they oppose the U.S. insistence that the nuclear agreement be binding "in perpetuity."
"In a democracy, no government can be bound in perpetuity by decisions of its predecessors," one senior security official told UPI. "Everybody knows this. So there is a suspicion that this clause has been inserted to provide a justification for sanctions if a future Indian government decides to scrap the agreement. It looks like a trap."
http://www.upi.com/InternationalIntelligence/view.php?StoryID=20060223-064857-9002r