Wednesday, 17 October, 2007

by Sarah Smiles, Canberra
The Age

THE Howard Government's plan to sell uranium to India is in jeopardy following a breakdown in talks between India and the US to seal a precursor nuclear deal.

Plans for a US-India nuclear pact, which would open India up to inspections by the International Atomic Energy Agency, paved the way for Australia's uranium deal with India.

Following reports that the US-India pact negotiations appeared to have collapsed, a spokesman for Foreign Minister Alexander Downer said Australia would need to consult the Indian Government on Australia's nuclear deal with Delhi.

Lowy Institute international security director Rory Medcalf said there was "no way" he could see Australia selling uranium to India "unless the US-India deal is finalised".

Indian Prime Minister Manmohan Singh told US President George Bush this week that "certain difficulties" prevented India from moving ahead with the nuclear pact.

He faces fierce domestic political opposition to the pact, including from leftist parties that oppose a closer alliance with Washington.

The pact, known as the "123 Agreement", would enable the US to provide nuclear technology and fuel to India in exchange for IAEA safeguards and inspections of civilian reactors. The proposed pact is controversial because India is not a signatory to the Non-Proliferation Treaty.

A spokesman for Labor environment spokesman Peter Garrett reiterated Labor's opposition to the Federal Government's plan to sell uranium to India.

"Deal or no deal between India and the US, Labor won't support the sale of uranium to a non-NPT signatory," the spokesman said.

Mr Medcalf said the US decision to work with India on nuclear issues triggered the Howard Government's policy change to also engage with India. "It was really only when the US turned around … to accepting India's nuclear status, that most of the rest of the world could contemplate having a civilian nuclear relationship with India," he said.

Mr Medcalf said that if Labor won the federal election, the stalling of US-Indian nuclear pact negotiations could "forestall any possible rift in the Australian-India relationship" over Labor's pledge to abandon uranium sales.