Thursday, 16 August, 2007

Sydney Morning Herald

Australia has struck an in-principle agreement to sell uranium to India after a telephone conversation between Prime Minister John Howard and his Indian counterpart Manmohan Singh.

Mr Howard said the exports would be subject to strict conditions, including guarantees that the uranium would only be used for power generation.

The Nuclear Suppliers Group will also have to approve the agreement, as India is not a signatory to the nuclear non-proliferation treaty (NPT).

"Australia has decided in principle to export uranium to India, subject to India agreeing to very stringent safeguards and conditions," Mr Howard said.

"I spoke to the Indian prime minister a short while ago, he's welcomed the government's decision.

"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."

Mr Howard said the relationship between India and Australia was a vital one which would grow strongly in the future.

"India's energy needs will increase sharply, and as a major supplier of uranium, it has always seemed to us, a logical thing to export uranium to India provided India agreed to stringent conditions," he said.

Earlier, Mr Howard flagged the agreement, saying it did not make sense to sell uranium to China but not to India.

Uranium sales traditionally only take place with countries signed up to the NPT.

But India may get an exemption due to an agreement it is finalising with the United States, opening its civilian reactors to international inspections. Australian negotiations are only likely to start when this deal is concluded.

But doubts have been cast on the extent of inspections after India's chief scientific adviser said New Delhi would decide which of its nuclear plants would be open to inspectors and its military nuclear program would not be quarantined from the civilian program.

Critics complain that Australia will weaken non-proliferation efforts by working outside the NPT, which the government rejects.

India refuses to sign the NPT - aimed at ridding the globe of atomic weapons - because it only recognises France, China, Russia, Britain and the US as nuclear powers.

They were the only countries openly admitting to having nuclear weapons when the NPT came into force in 1970.

Mr Howard said countries needed to find ways to bring India to the table on non-proliferation.

"India does have a very good non-proliferation track record," he said.

"It has indicated that it does not intend to join the nuclear non-proliferation treaty so we think it worthwhile finding practical ways to bring it into the non-proliferation mainstream."

Australia's growing trade and security relationship was another factor.

"It's an influential regional power and a potential strategic partner for Australia," Mr Howard said.

"In those circumstances we think it no longer makes sense to ignore, on proper conditions and in proper circumstances and subject to proper safeguards, ... India in the same way we have contemplated on proper conditions selling uranium to China."

Foreign Minister Alexander Downer stressed there were numerous hurdles to clear before sales could take place, including a satisfactory conclusion of the deal between the US and India, which would have to be ratified by the nuclear suppliers group.

"We (also) wouldn't export uranium now to any country that conducted nuclear tests in defiance of the spirit of the Comprehensive Test Ban Treaty," he said.

Mr Singh told parliament on Monday that the agreement with the US would not affect India's military program or any plans to test nuclear weapons.