Nuclear suppliers clear landmark US-India deal

Posted 09 7 2008 5:01AM

VIENNA (AFP) - The United States finally persuaded supplier nations Saturday to lift a 34-year-old embargo on nuclear trade with India, following weeks of tough negotiations.

The US described the breakthrough on the third consecutive day of talks as an "historic" and "landmark" deal that would boost nuclear non-proliferation, while enabling India to meet its huge needs with low-polluting energy.

India called the agreement an "important step" in normalising its relations with the rest of the world that would help meet the challenge of climate change and sustainable development.

The Nuclear Suppliers Group (NSG), which controls the export and sale of nuclear technology, reached consensus on a one-off waiver of its rules for India, which refuses to sign the Non-Proliferation Treaty.

"This is a historic moment for the Nuclear Suppliers Group, for India, for US-Indian relations, indeed India's relations with the rest of the world," acting US Undersecretary for Arms Control and International Security John Rood, told reporters at the end of around 90 minutes of talks on Saturday.

"Today at the NSG, we have reached a landmark decision to allow for civil nuclear trade with India," Rood said. "This is an important moment also for the strengthening of the nuclear non-proliferation regime.

"This is a critically important moment for meeting the energy needs in India, and indeed dealing with the global need for clean and reliable energy supplies."

The NSG banned nuclear trading with India because it refuses to sign the Non-Proliferation Treaty, having developed atomic bombs in secret and conducted its first nuclear test in 1974.

Washington wanted a special waiver so it can share civilian nuclear technology with New Delhi.

Critics say the deal undermines international non-proliferation efforts and accuse the nuclear powers of pursuing commercial and political gains.

Three countries in particular -- Austria, Ireland and New Zealand -- had been holding out for a clear-cut commitment from India to refrain from nuclear weapons testing.

India finally made a "formal declaration" Friday to stand by its non-proliferation commitments and uphold its moratorium on tests.

Washington was keen to get a deal through so that the US Congress could ratify it before adjourning at the end of September for November's presidential elections.

US President George W. Bush and Indian Prime Minister Manmohan Singh welcomed the "historic achievement" in a telephone conversation between them, the White House said.

"The two leaders congratulated each other on the consensus reached at the Nuclear Suppliers Group meeting in Vienna and expressed appreciation for the joint efforts made there to move forward with civil nuclear cooperation between the United States and India," spokesman Gordon Johndroe said.

"This is a historic achievement that strengthens global nonproliferation principles while assisting India to meet its energy requirements in an environmentally friendly manner," Johndroe said.

As members of his Congress Party danced in the streets in New Delhi, Singh said in a separate statement that the "historic" decision "marks the end of India's decades-long isolation from the nuclear mainstream."

"It is a recognition of India's impeccable non-proliferation credentials and its status as a state with advanced nuclear technology. It will give an impetus to India's pursuit of environmentally sustainable economic growth," he said.

But a senior leader of the main opposition Hindu nationalist Bharatiya Janata Party, Yashwant Sinha, said that "India has walked into the non-proliferation trap set by the US, we have given up our right to test nuclear weapons forever, it has been surrendered by the government."

Energy-hungry India, dependent on oil imports, is seeking to broaden its fuel sources to sustain its fast-growing economy. Nuclear power supplies around three percent of India's fuel needs but it aims to hike this to 25 percent by mid-century.