World | Updated Sep 09, 2008 at 11:57pm IST

US bound by fuel supply assurances: Mulford

New Delhi: US Ambassador David Mulford has clarified that the Bush administration is bound by fuel supply assurances as laid down in the 123 Agreement.

The clarification came after a letter from the State Department was leaked by Congressman Howard Berman which said that the US would help India deal only with disruption in supply that may result through no fault of its own such as a trade war or market disruption.

"There is nothing new (in the letter) that Government of India did not know. The content in the material was known. The content is what we have discussed (with India)," the US Ambassador said, insisting that there is "no discrepancy" in the letter.

He said the fuel supplies will be governed by the 123 Agreement. New Delhi is agitated over the contents of the letter, saying it gives an impression that the Bush administration is interpreting the 123 agreement differently as the pact makes it clear that the US will ensure uninterrupted supplies.

"It is a straight forward issue... the fuel assurances are contained in the language of the 123 agreement and the discussions that Prime Minister Manmohan Singh and President George W Bush had in March 2006," Mulford said.

"These are the fuel assurances, there is no other fuel assurance," he said, adding "Whatever are the fuel assurances in the civilian nuclear cooperation will be governed by the 123 bilateral agreement."

The fuel supply assurances are not meant to insulate India against the consequences of a nuclear test or violation of non proliferation commitment, the State Department letter said.

The Indian government had reacted immediately saying the letter was at variance with the commitment laid down in the 123 Agreement.

(With inputs from PTI)

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