Tuesday, 16 October, 2007

by South Asia correspondent Peter Lloyd
ABC News Online

The Prime Minister's hopes to sell uranium to India may have been dashed, with India backing out of its nuclear cooperation deal with the United States.

India's demand for Australian uranium for civilian nuclear power stemmed from a landmark treaty with the Americans for the supply of nuclear technology and fuel in July 2005.

The agreement was signed even though India has tested nuclear weapons and not signed the Nuclear Non-Proliferation Treaty.

Labor was always opposed to uranium sales to India and initially so was Foreign Minister Alexander Downer, but John Howard saw a commercial opportunity in support of an important alliance partner.

There was domestic political opposition in India too, mainly from Communist allies in the coalition Government.

Now Indian Prime Minister Manmohan Singh has signalled to the Americans the deal is off, if not for good then at least for the time being.