Friday, 17 August, 2007

by Craig Skehan and Anne Davies in Washington
Sydney Morning Herald

PLANS to sell Australian uranium to India for power generation are in doubt, with controversy on three continents and an apparent unwillingness by India to agree not to conduct future nuclear weapons tests.

The Prime Minister, John Howard, last night announced a series of strict conditions on any uranium sales after a telephone conversation with his Indian counterpart, Manmohan Singh.

Mr Howard said a nuclear agreement between India and the United States would have to be ratified by Congress, and New Delhi would have to agree to International Atomic Energy Agency inspections.

"We want to be satisfied that the uranium will only be used for peaceful purposes," he said.

The possibility of uranium sales to Russia was also floated last night, but Mr Howard's office told the Herald it was unaware of any agreement. However, sources said there had been discussions about transferring Australian nuclear-related technology to Russia.

Diplomatic sensitivities over the Indian deal were underscored when the Pakistani high commission in Canberra issued a statement yesterday criticising the Government for seeking the uranium deal with India.

It said that in the interests of non-proliferation and "strategic stability in South Asia" there should instead be a "package approach" where Australia supplied both India and Pakistan.

There were warnings yesterday that undermining the nuclear non-proliferation treaty, which neither country had signed, could have wider implications for a nuclear arms race in the Middle East.

The Federal Government conceded there were hurdles to overcome before any sales to India could take place.

It was unclear last night whether Australia would require a watertight commitment from India that it would never conduct further nuclear weapons tests, or merely warn that sales would be suspended if such tests occurred.

The former foreign minister Gareth Evans, now president of the International Crisis Group, said it was likely the Government had not imposed suitably strict conditions on India.

With Australia having 40 per cent of the world's known uranium reserves, Mr Evans believes the Government should use this advantage to strike a better deal.

"The real leverage we have is that because of [India's] hunger to acquire these stocks you can in fact impose some [stricter] conditions."

An international nuclear non-proliferation research and advocacy group, the Arms Control Association, accused Australia of "flagrantly contradicting" its stand on nuclear non-proliferation.

"The decision severely tarnishes Australia's otherwise good reputation as a leader in support of nuclear non-proliferation and disarmament by all states," said the association's executive director, Daryl Kimball.

"Australia has had an international treaty obligation not to transfer uranium to India."

Mr Howard said India would need an additional protocol on strengthened safeguards.

Uranium exports to India would create jobs in Australia, he said.