US proposes to exempt India from N-trade ban

[LRE]

US proposes to exempt India from N-trade ban

* Draft to lift 34-year embargo on nuclear trade with New Delhi
* Several NSG nations unlikely to approve exemption

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 website of the US-based Arms Control Association (http://www.armscontrol.org) late on Wednesday, will effectively lift a 34-year embargo on nuclear trade with India without tying New Delhi 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 the US Congress for final ratification. If approved, the deal will let India trade on world markets in nuclear fuel and technology for civilian use. India has not signed the Nuclear 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, said diplomats in Vienna.

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

The draft states that 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.

Last week, Indian media reported 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 atomic bomb.

A powerful congressional leader wrote to US Secretary of State Condoleezza Rice last week, saying if the waiver did not spell out such minimum conditions, the Bush administration should not bother seeking NSG approval before it left 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 the NSG Germany chair 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. “We are hopeful the deal will make it to US Congress by September 8,” said the official. reuters

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