BHARAT WINS U.S. DEAL ON NUCLEAR POWER

India wins US deal on nuclear power

By Caroline Daniel and Edward Alden in Washington Financial Times Tuesday, July 19, 2005

President George W. Bush welcomed India into the club of international nuclear powers yesterday, calling it "a responsible state" that "should acquire the same benefits and advantages as other such states".

In a joint statement issued after talks yesterday in Washington with Manmohan Singh, India's prime minister, Mr Bush said he would seek agreement from Congress to end more than four decades of sanctions that barred full US co-operation with India on civilian nuclear energy programmes.

He said he would urge Congress "to adjust US laws and policies", adding that "the US will work with friends and allies to adjust international regimes to enable full civil nuclear energy co-operation and trade with India".

Mr Bush pledged to forge "full civil nuclear energy co- operation", in return for India's agreement to grant oversight of areas of its nuclear programme to international agencies and to agree to help curb nuclear proliferation.

The move is a big step towards full nuclear co-operation between two countries that have frequently been at odds over nuclear issues since India conducted its first atomic weapons test in 1974. It is a reflection of the closer ties between the two, which US officials said were at their strongest since 1947. The agreement was one of more than a dozen initiatives unveiled, from economic reform to space exploration.

In return for the US pledges, India agreed that it was "ready to buttume the same responsibilities and practices and acquire the same benefits and advantages as other leading countries with advanced nuclear technology". That would include voluntarily placing its civilian nuclear facilities under International Atomic Energy Agency safeguards, agreeing to additional measures under the IAEA protocol and co-operating in schemes to prevent the spread of enrichment and reprocessing technologies.

Mr Singh, who was under pressure from his frustrated Communist coalition allies to return with an energy deal with Mr Bush, described the ties with the US as "one of the principal relationships of each of our countries".

The US has agreed to seek the "expeditious consideration of fuel supplies for safeguarded nuclear reactors at Tarapur", an atomic power station near Mumbai under threat because of dwindling stocks of fuel-enriched uranium from Russia.

India has been seeking to ensure access to energy to maintain economic growth of 7 per cent and had been restricted by continued US export controls on dual-use technology and nuclear fuel. It has also been considering the controversial development of a $4.5bn (£2.6bn) gas pipeline to Iran, which is opposed by Washington.

There were few signs of progress, however, on US support for India's campaign for a permanent seat on the United Nations Security Council. Mr Singh said: "In our talks the president and I were of one mind that the contemporary reality must be fully reflected in the central organs and decision-making processes at the UN. India has a compelling case for permanent membership of the Security Council."

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