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Trade
Pact to be Signed
Soon
Australia
to Sell Uranium
to India
India
is an Influential
Regional Power
and a Potential
Strategic Partner
for Australia.
- Prime Minister
John Howard
In a major departure
from its previous
policy, Australia
has decided to
sell uranium to
India, a significant
development that
could further
forge the bilateral
relations between
the two countries.
“I wish
to announce that
the Australian
Government has
decided to allow
the export of
uranium to India,
subject to strict
conditions. I
have today informed
Prime Minister
Singh of this
decision, which
he welcomed,”
said Australian
Prime Minister
John Howard on
August 16 one
day after India
celebrated the
60th anniversary
of her Independence.
"Australia
has decided in
principle to export
uranium to India,
subject to India
agreeing to very
stringent safeguards
and conditions,"
Howard said in
Canberra shortly
after he had a
telephonic conversation
with Prime Minister
Singh.
"I spoke
to the Indian
prime minister.
He has welcomed
the government's
decision,"
he said, noting
that India had
"a very good
non-proliferation
track record".
Australia's decision
to sell uranium
to India will
no doubt act as
a shot in the
arm for the Indo-US
civilian nuclear
treaty, called
the 123 Agreement.
Prime Minister
Howard described
India as an influential
regional power
and a potential
strategic partner
for Australia
and said the two
countries would
negotiate a uranium
trade pact soon.
Prime Minister
Howard's announcement
came even as Australian
government's chief
nuclear adviser
Ziggy Switkowski
said he would
expect a ban on
nuclear testing
by India to be
part of any deal.
"Our officials
will now enter
into negotiations
regarding the
conditions. We
want to be satisfied
that the uranium
will only be used
for peaceful purposes,''
he said.
Australia holds
40 percent of
the world's reserves
of the nuclear
fuel. Prime Minister
Howard's cabinet
recently agreed
in principle to
sell the nuclear
fuel to India
despite its refusal
to sign the Nuclear
Non-Proliferation
Treaty. Earlier,
he told Parliament
that India would
have to agree
to international
inspections of
its nuclear power
plants and complete
the details of
its nuclear partnership
pact with the
US. He said safeguards
to prevent the
use of the nuclear
fuel in weapons
would be put in
place.
Prime Minister
Howard, a strong
supporter of US
President George
Bush also said
the sales to India
would depend on
the implementation
of a landmark
civilian nuclear
deal between New
Delhi and Washington.
"It has indicated
that it does not
intend to join
the nuclear NPT.
So we think it's
worthwhile finding
practical ways
to bring it into
the non-proliferation
mainstream,"
he said.
According
to Prime Minister
Howard, the change
in Australia's
policy is subject
to:
• conclusion
of a suitable
safeguards agreement
between India
and the International
Atomic Energy
Agency (IAEA)
covering all designated
civil nuclear
facilities;
• conclusion
by India of an
Additional Protocol
on strengthened
safeguards;
• a consensus
decision by the
Nuclear Suppliers
Group to make
an exception to
its guidelines
enabling international
civil supply to
India;
• conclusion
of a bilateral
civil nuclear
co-operation agreement
between India
and the United
States; and
• satisfactory
progress in implementing
India's commitment
to place designated
civil nuclear
facilities under
IAEA safeguards
in perpetuity.
Australian uranium
supply to India
would also be
conditional on
the conclusion
of a bilateral
Australia-India
safeguards agreement
providing assurances
that Australian
uranium would
remain in peaceful
uses at all times,
supported by satisfactory
verification arrangements
to ensure that
no Australian
nuclear materials
supplied to India
would contribute
to any military
purpose.
India is the world's
largest democracy,
an increasingly
influential regional
power and an important
potential strategic
partner for Australia.
This decision
is one key element
of a comprehensive
package of measures
the Government
is taking to strengthen
this important
relationship.
Contingent on
the conditions
above being met,
it will be of
significant economic
and strategic
advantage to both
countries.
In Australia it
will create increased
exports and jobs
over the longer
term. The industry
already generates
$658 million annually
in exports, and
India will be
a large and growing
market. India's
requirement for
reliable, clean
sources of energy
is growing rapidly.
India will build
11 new reactors
to triple her
energy generation
from nuclear power
and is projected
to need up to
12,000 tonnes
of uranium per
annum to 2032.
Assisting India
to meet her rapidly
growing energy
needs using low
emission energy
sources such as
nuclear power
will make a huge
contribution to
reducing global
greenhouse emissions.
The use of nuclear
power today already
reduces global
emissions by more
than 2 billion
tonnes a year.
As well as assisting
India to pursue
economic development
while addressing
environmental
challenges, the
decision recognises
India's strong
non-proliferation
record and will
help to bring
India more fully
into the non-proliferartion.
In New Delhi,
Prime Minister
Singh has had
tough time facing
opposition political
parties, including
the left parties
that support the
ruling coalition,
which say that
the Indo-US agreement
in its present
form is detrimental
to India's interests.
The nuclear deal
has come in for
criticism even
in the US.
Meanwhile, the
Heritage Foundation
-- the leading
conservative think
tank in Washington,
DC, with close
links to the Republican
leadership in
Congress -- has
warned lawmakers
against torpedoing
the 123 Agreement.
In a report titled,
'US Nuclear Agreement
with India: An
Acceptable Deal
for Major Strategic
Gain,' the think
tank noted that
"two years
in the making,
this deal has
tested the strength
of the bond between
India and the
United States
as well as the
institutional
flexibility on
both sides necessary
to usher in a
new era of cooperation
on nuclear issues.”
It predicted that
the 123 Agreement
would "greatly
strengthen the
US strategic position
in Asia by solidifying
a partnership
with a one billion-strong,
economically booming
democracy bordering
another - and
less predictable
-- rising power:
China.”
The report said
that "Congress
should support
this historic
effort,"
once the administration
submits the agreement
for approval by
the lawmakers
after India's
safeguards agreement
with the International
Atomic Energy
Agency and the
45-nation Nuclear
Suppliers Group
comes to a consensus
decision that
allows civil nuclear
transfers to India.
The think tank
acknowledged that
"members
of Congress who
were adamant about
denying India
reprocessing rights
may be reluctant
to accept the
compromise,"
whereby India
committed to stand
up a dedicated,
safeguarded reprocessing
facility to ensure
that US-origin
nuclear fuel is
not diverted to
its weapons programme,
but argued that
lawmakers "should
consider the fact
that India's construction
of a new reprocessing
facility under
international
safeguards will
actually bring
India's nuclear
program into greater
conformity with
the international
non-proliferation
regime.”
The report also
contended that
"Congress
should also bear
in mind that,
after the 123
Agreement is passed,
it can guide the
subsequent negotiations
on the arrangements
for reprocessing.”
"No doubt
US Congressional
monitoring of
the construction
and implementation
of the new dedicated
reprocessing facility
will be necessary
to ensure that
no corners are
cut," it
acknowledged,
and that "beyond
merely ensuring
that the fuel
is not used for
weapons development,
Congress will
have to take care
that less obvious
violations of
the spirit of
the agreement
do not occur,
including application
of US technology
to any other facility,
whether it is
civilian or military.”
The report noted
that "if
India goes against
the spirit of
the 123 Agreement,
Washington will
have the right
to demand back
the plutonium
that is stripped
out through reprocessing.”
This, it said,
is a critical
element of the
agreement to ensure
that the US cannot
be accused of
violating its
NPT obligations.;
The report appreciated
the Congress'
concern, however,
about related
clauses in the
agreement that
say the US will
help India develop
a 'strategic reserve'
of nuclear fuel
for the entire
lifetime of the
reactors.
Also, that the
US has agreed
to 'create conditions'
for India's 'assured
and full access'
to the international
fuel market.
It conceded that
on the surface,
"this language
may appear at
odds with the
non-bonding provisions
of the Hyde Act
that urge Washington
to limit India's
access to fuel
supplies from
other countries
in the event of
a termination
of the bilateral
agreement.”
However, the report
argued that the
123 Agreement
language does
not violate the
Hyde Act "since
the fuel access
provisions are
part of the agreement
itself and would
terminate along
with the agreement
if, for example,
an Indian nuclear
detonation triggered
Section 106 of
the Hyde Act terminating
US-India civil
nuclear cooperation.”
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