The statement non applicability of internal laws to India is a red herring. The reason is clear to see. The technology, knowhow to run civil nuclear plants, implementing the safeguards and supplying fuels, spares etc all will be done by US firms who have to abide by the internal laws of the US. These companies will not violate the laws even the contract may go against it. As such the contractual terms will definitely be governed by the US Laws. Of course violation of contractual terms and the application of local penalties will be covered by the laws of India. However, the purchaser of such contracts is inevitably the loser.