Friday, 17 August, 2007

by Rod McGuirk
The Guardian

Australia and India have agreed to negotiate a uranium trade pact to fuel burgeoning Indian demand for power, Prime Minister John Howard announced Thursday.

The agreement signals a major shift in the Australian government's policy on global nuclear proliferation.

All of Australia's current uranium customers have ratified an international nonproliferation treaty and have agreed to ensure that radioactive material is not put to any military use or passed on to a third country.

Howard's Cabinet agreed in principle on Tuesday to sell the nuclear fuel to India despite its refusal to sign the nonproliferation treaty. The government argues that nuclear power is key to curbing global warming as the Indian and Chinese economies' hunger for energy grow.

"Our officials will now enter into negotiations regarding the conditions," Howard said. "We want to be satisfied that the uranium will only be used for peaceful purposes."

Indian External Affairs Ministry spokesman Navtej Sarna confirmed that Indian Prime Minister Manmohan Singh had agreed to start negotiations.

Earlier Thursday, Howard 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 United States.

Washington and New Delhi have sealed a technical pact that details how nuclear cooperation between the world's two largest democracies will work.

In Australia, opposition Labor Party leader Kevin Rudd said selling uranium to a country that has not signed the nonproliferation treaty would send the wrong message to the world.