US proposes waiver on nuclear trade ban

Vienna: The United States has proposed to waive a ban on critical nuclear trade with India in a draft circulated among member nations of the Nuclear Suppliers Group (NSG) and unveiled by an arms control advocacy group.

The draft, published on the web site of the US-based Arms Control Association late on Wednesday, would effectively lift a 34-year embargo on nuclear trade with India without tying it to explicit conditions.

A green light by the 45-nation NSG, which operates by consensus, is necessary for the 2005 US-India deal on nuclear trade to proceed to US Congress for final ratification.

If approved, the deal would let the Asian nuclear power trade on world markets in nuclear fuel and technology for civilian use. India has not signed the Non-Proliferation Treaty.

The NSG meets in Vienna next week to discuss the draft but is not expected to reach a consensus immediately, due to concerns from several member states. A second meeting is likely to follow in early September, diplomats in Austria capital Vienna said.

Several NSG nations are unlikely to approve an exemption unless it makes clear certain events - such as India testing a bomb or not allowing inspections at its nuclear facilities - would trigger a review.

The draft states the NSG members "have taken note of steps that India has taken voluntarily," including its unilateral moratorium on nuclear tests and its commitment to allow inspections by the UN nuclear watchdog.

But it does not mention any consequences or sanctions in case India were not to adhere to those measures.

Under pressure

Indian media reported last week that Washington, under pressure from India, had removed a paragraph from an earlier draft that would have given NSG member states a right to suspend the deal if they felt India had reneged on its promises. The draft falls short of demands stipulated in US legislation regarding the US-India deal - known as the Hyde Act - which requires permanent, unconditional inspections in India and says trade must stop if it tests another atom bomb.

A powerful congressional leader wrote to Secretary of State Condoleezza Rice last week saying if the waiver does not spell out such minimum conditions, the Bush administration should not bother seeking NSG approval before it leaves office in January. The deal faces indefinite limbo if not ratified by the end of September, when Congress adjourns for November elections.

The US draft was sent to NSG chair Germany on August 6 to forward it to all of the 45 NSG members, according to ACA.

The Indian government did not make an official comment, but a senior foreign ministry official said they were happy with the draft circulated to NSG members.