Australia, holder of the largest known uranium reserves, won't sell the fuel to India because the country isn't a signatory of the Nuclear Non-Proliferation Treaty, reversing a decision by the previous government.

The new Labor administration would stand by its policy of not selling uranium to non-signatories of the treaty, Foreign Minister Stephen Smith told Shyam Saran, a special envoy of the Indian prime minister, at a meeting in Perth today.

"It's a longstanding commitment of the Australian Labor Party that we don't authorize the export of uranium to countries who are not parties to the Nuclear Non-Proliferation Treaty,'' Smith said, according to a transcript of comments provided by his office. "It didn't come as any surprise to Mr. Saran that that was our ongoing policy position.''

Australia's previous government, which lost power in November elections, last year agreed to sell the radioactive fuel to India after setting "strict conditions,'' and on condition a civilian nuclear accord between the U.S. and India is completed. India is trying to increase its nuclear power generation to meet growing energy needs.

Non-Proliferation Treaty members pledge not to develop atomic arms. The 1968 treaty also commits the U.S. and other countries possessing nuclear weapons to eliminate their arsenals in "good faith.''

Saran underlined "India's view that, despite not having been a member of the Non-Proliferation Treaty, that there has been no proliferation of nuclear expertise or materials from India to third parties,'' Smith said. "That was the view put to me by the Indian government and I responded in what I think is best described as our traditional response and our traditional approach.''