Source:
The HinduA day after Secretary of State Hillary Clinton reversed U.S. policy by telling a press conference here last month that “clearly we do not” oppose the transfer of enrichment and reprocessing (ENR) technology to India, the State Department quietly issued a “press guidance” contradicting her remarks.
But curiously, the guidance was never publicised in India, where America’s attempts to block ENR sales at the G8 and NSG had triggered a huge political controversy and where the confusion caused by her remarks was the greatest.
“U.S. policy on restricting transfers of enrichment and reprocessing (ENR) technology, equipment and facilities has not changed,” the State Department noted on July 21 in guidance made available to The Hindu on August 4, one day after The Washington Times first reported the existence of this clarification.
Read more:
http://www.hindu.com/2009/08/05/stories/2009080560601000.htm
This is one reason why India will never be comfortable with US as a partner. Hillary spent most of her India visit in drumming up support for the nuclear & defense deal rather than engage in foreign policy diplomacy.
The issue of ENR is key to the Indian government and it was ready to sacrifice the US nuclear deal on the ENR issue. Instead, the US has played a trick on India - remove it from the NSG & IAEA agreements and using the G-8 summit as a backdoor entry into this issue. As i understand, US legislation doesn't allow ENR whereas there is nothing in French & Russian law that prevents them legally on ENR. By introducing ENR through G8 Statement, US wants to provide level playing field for US companies.
IMHO, the constant flip-flop from the US government will not aid them in winning any key Defense or Nuclear deals (expected to be around $200 bn over the next 10 years!) as India cannot be certain as to when US can turn around and slap binding restrictions on equipment usage.