Monday, 26 November, 2007

IndiaTimes

With the Labour Party coming to power in Australia, the fate of the Australian Cabinet decision to supply uranium to India is now under question.

Labour Party chief, and the new prime minister, Kevin Rudd has gone on record that a Labour government will allow the sale of uranium only after India signs the Nuclear Non-Proliferation Treaty. Mr Rudd had pledged to overturn the Cabinet decision calling it a ‘bad decision.’

If the Labour government sticks to its stance, it could mean the reversal of the Cabinet decision. Sources said that the Indian government has been working over-time to save the situation. It is learnt that India’s high commissioner to Australia has been meeting key Labour Party members in a bid to soften the party’s stance.

Political analysts believe that the Labout Party might change its stance once it assumes office. But that remains to be seen. The Indian government will be closely watching developments in Australia to see if there is a general shift in its foreign policy. Mr Rudd is seen to be more inclined towards China. Australia watchers say that under Labour, Canberrra might also take a position away from the quadrilateral grouping of Australia, India, US and Japan, which has gained the reputation of a grouping that could restrain China.

Even as some experts predicted a slowdown in bilateral ties, diplomatic sources here said that Canberra cannot ignore India, which is Australia’s fastest growing trading partner. Education ties between the two countries are also strong with 54,000 Indian students studying in Australia. Also, around 2,34,000 Indians reside in Australia.

Australia has 40% of the world’s uranium reserves and outgoing prime minister John Howard had looked at India as a potential market for increasing exports. The decision to sell uranium to India had actually reversed Australia’s long-standing policy to supply uranium only to NPT countries.

The non-proliferation lobby had sharply criticised the decision, and had accused the government of violating international nuclear non-proliferation commitments.

Australia will start supplying uranium to India only after the negotiation of a bilateral agreement where contentious issues like nuclear testing needed to be thrashed out.