Nuclear Suppliers Group Backs U.S.-India Atomic-Trade Deal

By DAVID CRAWFORD, JACKIE RANGE and JAY SOLOMONSeptember 7, 2008 1:32 p.m.

The international body overseeing trade in nuclear materials approved a controversial, U.S.-sponsored nuclear trade agreement with India.

The decision by the Nuclear Suppliers Group permits the sale of civilian nuclear technology and fuel to India, despite the Asian nation's long-standing refusal to sign the Treaty on the Nonproliferation of Nuclear Weapons.
The NSG is a club of 45 nations that export nuclear technology and services. The club is dedicated to ensuring that the fruits of civilian nuclear technology are preserved for nations that have signed and adhere to the nonproliferation treaty.
The decision, which amounts to a one-off waiver, didn't come easy. The NSG was originally founded as a reaction to India's test of a nuclear weapon in 1974. Several nations, including Austria, Ireland and New Zealand, wanted assurances that India wouldn't return to nuclear-weapons testing, according to a diplomat familiar with talks taking place in Vienna.
Washington had lobbied hard for the deal, arguing that it would solidify a strategic partnership with the world's largest democracy, help the subcontinent meet exploding energy demand and open a nuclear market worth billions of dollars.
Indian officials eagerly endorsed the decision. In a statement, Indian Prime Minister Manmohan Singh called the NSG decision "forward-looking and momentous." He added: "It marks the end of India's decades-long isolation from the nuclear mainstream and of the technology denial regime."

Rice Hails NSG Move
U.S Secretary of State Condoleezza Rice hailed passage at the NSG. "It's a very big step for the [global] non-proliferation framework," she told reporters en route to Algeria from Tunis, Tunisia. This "expands the reach of the non-proliferation regime."
Still, America's top diplomat acknowledged that she would "have to see" if both India's parliament and the U.S. Congress will ratify the deal during President George W. Bush's last months in office.
A number of Indian political parties have pledged to block the passage of the deal, as it's seen as impinging on New Delhi's independence in pursuing its national security policies. This opposition has only been fed by the release this week of a secret State Department document that said the U.S would cut off nuclear supplies to New Delhi if the Indian government conducted further nuclear weapons tests.
U.S. lawmakers have also indicated that Congress might not have enough time to fully vet and pass the India nuclear agreement before the current legislative session ends this month. This holds out the possibility that the nuclear accord could be passed on to a new U.S. administration and Congress next year.
Separately, Ms. Rice acknowledged that a similar nuclear cooperation pact Washington was pursing with Russia wouldn't pass during President Bush's second term. The Secretary of State said the White House would formally announce its pulling of support for the deal, given Moscow's military occupation of Georgia. "The time isn't right for the Russia deal," Rice said.
Wrangling Over Resolution Text
The NSG talks Friday began constructively with delegations split between those that would accept a revised draft of a resolution text, and those that wanted tough language that would permit conditional nuclear exports to India, according to a diplomat familiar with the discussion. Additional changes Friday morning and afternoon brought more delegations on board, but not all, the diplomat said.
In the late afternoon the delegates reconvened in an unusual evening session for what they hoped would be one last push to agree on a new revised resolution text, according to a diplomat with knowledge of the discussion.
About 8:00 pm the delegations were still far apart and split into smaller working groups, in the hope of later meeting again in full session for a final decision. During the evening, the U.S. intensified its diplomatic effort in a series of phone calls, one diplomat said.
At 2:00 am and still without agreement, the meeting adjourned until 11:00 am when delegates returned to approve a resolution.
India, although it isn't a member of the NSG, monitored the talks closely. A high-ranking delegation was just minutes from the meeting hall, according to a diplomat with knowledge of the discussion.
Indian officials lobbied intensively for approval of the pact. Indian External Affairs Minister Pranab Mukherjee said India wouldn't spark a new arms race and pledged to uphold a voluntary moratorium on nuclear testing. "India has a long-standing and steadfast commitment to universal, nondiscriminatory and total elimination of nuclear weapons," Mr. Mukherjee said in a statement on the ministry's Web site.
Ultimately it was this assurance that clinched the approval, according to a statement by the Austrian foreign ministry at the conclusion of the meeting.
Intrigue Over Secret U.S. Letter
Adding intrigue to the Vienna talks was a secret Bush administration letter released this week by Rep. Howard Berman (D., Calif.), which said Washington has the right to immediately halt nuclear trade with India if it were to conduct an atomic test blast.
In an Aug. 5 letter to Secretary of State Condoleeza Rice, Mr. Berman said the U.S. Congress needs time to consider the proposed pact before the U.S. Congress begins its election recess in late September.
The deal, if it passes its remaining hurdles, would see the U.S. supply India with nuclear fuel and technology for civilian purposes. Last month, the board of governors of the United Nations' atomic watchdog, the International Atomic Energy Agency, unanimously approved an inspections agreement with India that was a key precondition to completing the deal.
India's Congress Party, which leads India's coalition government, has made better access to nuclear power through this deal a key focus. Although India's economy is slowing, it is still growing fast, and the nation needs to increase power generation.
Some parts of rural India experience 15 hours or more a day of power cuts, and even major towns and cities endure blackouts of several hours a day. The U.S., for its part, sees the nuclear pact as a way to create stronger ties with the giant South Asian nation and provide a counterweight to China's influence in the region.
Write to David Crawford at david.crawford@wsj.com, Jackie Range at jackie.range@wsj.com and Jay Solomon at jay.solomon@wsj.com