IAEA consensus spurs Indo-US nuclear deal to suppliers group

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

The accord would open up to India the world market in atomic materials and technology for civilian use, but is controversial since New Delhi has conducted nuclear test explosions and never joined the global Non-Proliferation Treaty (NPT).

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 - which would boost confidence in India's intentions.

Mainstream

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. Al Baradei touched on diplomatic concern that parts of the draft blur divisions between civil and military atomic sectors, with a possible loophole allowing India to transfer bomb-grade fuel separated from civilian stocks to its military programme.

"These are not comprehensive or full-scope safeguards [unlike with NPT member states]...," he said. "[But] it satisfies India's needs while maintaining all the agency's legal requirements," he told the closed Vienna meeting.

US ambassador to the IAEA Gregory Schulte had urged the board to approve the agreement, saying it was "little different" from those between the IAEA and other countries "which have invariably been adopted by this body swiftly, and by consensus".

Canberra (Reuters) Australia will back an India-US nuclear agreement at an International Atomic Energy Agency (IAEA) meeting in Vienna, Australian Foreign Minister Stephen Smith said yesterday.

However, Smith said Australia would not reverse its policy of refusing to sell uranium to countries, such as India, that have not signed the Nuclear Non-Proliferation Treaty (NPT).

Australia is one of 35 members of the IAEA board, that was meeting yesterday to decide whether to endorse the India-US agreement to share nuclear fuel and technology for India's civilian power plants.

"After careful consideration, the Australian government has formed the view that the safeguards agreement is a positive step which will strengthen nuclear non-proliferation efforts and is consistent with the non-proliferation objectives of the Nuclear Non-Proliferation Treaty," Smith said in a statement.

"The Australian government's position remains very firmly that it will not supply uranium to countries that are not a party to the NPT," he added.

Australia has 40 per cent of the world's known uranium reserves, but has consistently rejected India's pleas to be allowed to buy the nuclear fuel from Australia for its growing energy needs. Australia is also a member of the Nuclear Suppliers Group.