> India-US Nuclear Deal

VIENNA: Governors of the UN nuclear watchdog approved an inspections plan for India by consensus on Friday, a key step towards finalising the Indo-US nuclear deal, diplomats in the closed meeting said. ( Watch )

The accord would open up to India the world market in atomic materials and technology for civilian use.

With the go-ahead from International Atomic Energy Agency governors, Washington must persuade a 45-nation nuclear supply cartel to grant India a waiver allowing trade with a non-NPT state, then get US Congress ratification, to sew up the deal.

The initial Nuclear Suppliers Group (NSG) meeting on India is expected to be held on August 21-22, diplomats said.

The IAEA's director told concerned agency governors that the inspections scheme met non-proliferation safeguards standards and talks had begun on a system of more intrusive, short-notice checks.

Washington and close allies say the deal ushers giant India towards the non-proliferation mainstream and fights global warming by promoting use of low-polluting nuclear energy in surging developing economies, reducing high oil and gas costs as well.

Some smaller Western and developing nations and disarmament groups are concerned the accord could undermine loyalty to a 40-year-old NPT already strained by a thrust for nuclear power, led by Iran, in the volatile Middle East.

Diplomats had said IAEA board approval of the inspections draft was certain because, despite qualms about vague language, it marks a net gain for non-proliferation by putting the bulk of Indian reactors under UN scrutiny.

The "umbrella safeguards agreement" applies to India's 14 declared civilian nuclear reactors, among the total of 22.

The Bush administration risks the collapse of a U.S.-Indian civil nuclear deal if it fails to push an international nuclear group to accept conditions that would punish India for testing atomic weapons, a Democratic lawmaker says.


Berman wrote Rice that he found it "incomprehensible that the administration apparently intends to seek or accept an exemption from the Nuclear Suppliers Group guidelines for India with few or none of the conditions" in a 2006 U.S. law provisionally approving nuclear cooperation with India.

"Such an exemption," Berman said, "would be inconsistent with U.S. law, place American firms at a severe competitive disadvantage and undermine critical U.S. nonproliferation objectives. It would also jeopardize congressional support for nuclear cooperation with India, this year and in the future."

Berman wants Bush to reject any NSG proposal that does not:

_Immediately stop NSG member countries from conducting nuclear trade if India explodes a nuclear device;

_Prohibit the transfer of enrichment and reprocessing technology to India;

_Include a stipulation that prevents countries from letting India reprocess nuclear fuel in a facility outside permanent safeguards.

Failure to secure approval under Bush would leave the accord to an uncertain fate. Both leading candidates for president, Democrat Barack Obama and Republican John McCain, have indicated support for the deal. But it is not clear that either would consider it a priority as president.

Originally Posted by Safin

I think very recenty i saw a newspaper report that Australia will not sell Uranium to India and i reckon thats after ALP came to power.
With Australia the problem is that they have their biggest market in China and will be a tad influenced by the red power. Having said that once the deal is done, the Aussies will see themselves losing out on a big market and they might well change their mind.