Nuclear Suppliers Group resumes talks on US-India deal

Posted 08 23 2008 5:35AM

VIENNA (AFP) - Nuclear supplier nations gathered here Friday for a second day of talks over a US-India nuclear cooperation deal, with some countries setting conditions for giving approval.

The Nuclear Suppliers Group, which controls the export and sale of nuclear technology worldwide, is trying to decide whether to amend its rules and allow India -- which refuses to sign the Nuclear Non-Proliferation Treaty (NPT) -- to share US knowhow.

A US proposal for a rules waiver for India ran into resistance on the first day of talks on Thursday, with diplomats saying consensus was unlikely to be reached this week.

The highly secretive 45-member NSG looks likely to convene again in September before it can reach a final decision, diplomats said.

Bilateral discussions were held Friday morning with a full plenary session set to begin again at around 1:00 pm (1100 GMT).

A number of countries have openly expressed reservations about the so-called 123 Agreement signed by the United States and India in 2005, but US Under Secretary of State for Arms Control and International Security, John Rood, remained optimistic on Thursday.

"We continue to believe that this is a very important initiative and we remain committed to achieving an outcome that is both a net benefit for the non-proliferation regime and that meets India's energy needs," he said.

"I think there is a lot of support for this internationally. And so I remain optimistic that we're going to be able to be successful in this process," Rood said.

Under NSG rules, all nuclear trade with India is banned because it refuses to sign the NPT.

The United States argues that the deal will bring India closer into the NPT fold after 34 years of isolation and help combat global warming by allowing the world's largest democracy to develop low-polluting nuclear energy.

Critics argue that the deal undermines international non-proliferation efforts by providing US nuclear technology to a non-NPT state that developed atomic bombs in secret and conducted its first nuclear test in 1974.

They accuse the nuclear states supporting the deal of ignoring the proliferation dangers in pursuit of commercial and political gains.

The deal must clear three major hurdles before it can come into effect.

The first came earlier this month when the the International Atomic Energy Agency approved an India-specific safeguards agreement.

The NSG represents the next obstacle before the deal must finally be approved by the US Congress. Unanimous approval is required from the NSG.

Diplomats said that a number of countries had tabled conditions before the NSG would give its green light.

India insists that "clean, unconditional" waiver must be granted.