Vienna: Nations that supply nuclear material and technology overcame fierce obstacles on Saturday and approved a landmark US plan to engage in atomic trade with India - a deal that reverses more than three decades of American policy.

The Nuclear Suppliers Group, which governs the legal world trade in nuclear components and know-how, signed off on the deal after three days of contentious talks and some concessions to countries fearful it could set a dangerous precedent.

"Today we have reached a landmark decision to allow for civilian nuclear trade with India," John Rood, acting US undersecretary of state for arms control issues, told reporters.

"This is a historic moment for the NSG, for India and for India's relations with the rest of the world," he said.

Isolation ends

India hailed the agreement as "a forward-looking and momentous decision." "It marks the end of India's decades-long isolation from the nuclear mainstream," Indian Prime Minister Manmohan Singh said in a statement.

But Daryl Kimball, executive director of the Washington-based Arms Control Association, denounced yesterday's move as a "profound setback to the nuclear nonproliferation and disarmament system that will produce dangerous ripple effects for years to come."

"By establishing a 'good guys' and 'bad guys' set of rules, the decision will make it far harder to curb the South Asian nuclear and missile arms race," Kimball said.

He said the deal would "undermine efforts to contain Iran's and North Korea's nuclear programme."

Officials said Saturday's breakthrough came after US President George W. Bush personally intervened to lobby allies at the nuclear group to approve the trade waiver.

They said Bush and Singh spoke by telephone yesterday and congratulated each other.

"The US government engaged in an intense diplomatic effort," Rood said.

Waiver: What next

  • The US Congress is likely to take up the India-US civil nuclear cooperation pact when it convenes tomorrow. The Congress has to approve the pact before the Congressional session ends on September 26.
  • The Bush administration will ask Congress not to insist on the mandatory 30-day session period required to present a pact for its approval As this will technically allow senators to move amendments, the Bush administration has to ensure that the Congress approves the text of the pact without a re-look.
  • The two countries are expected to formally sign the pact when Manmohan Singh goes to Washington towards the end of September.

Nuclear Suppliers Group

  •  It is a 45-nation cartel that controls trade in "dual-use" nuclear fuel, materials and technology to ensure they are applied only to civilian nuclear energy programmes, not diverted into clandestine nuclear weapons work.
  • The NSG was formed in reaction to India's shock 1974 nuclear test explosion, using reactor technology provided by Canada in the 1950s supposedly for peaceful energy development.
  • Group policy has been to do business only with countries belonging to the nuclear Non-Proliferation Treaty - the only outsiders are India, Pakistan and Israel - and permitting "full-scope" inspections by the UN nuclear watchdog.
  • The NSG website says: "[We seek] to contribute to the non-proliferation of nuclear weapons through the implementation of guidelines for nuclear exports and nuclear related exports. NSG guidelines are implemented by each participating government in accordance with its national laws and practices. Decisions on export applications are taken at the national level in accordance with national export licensing requirements."
  • In 2002, NSG export controls were updated to help prevent the threat of nuclear terrorism as well.
  • NSG members are: Argentina, Australia, Austria, Belarus, Belgium, Brazil, Britain, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Turkey, Ukraine and the United States.
  • The cartel normally has one annual plenary meeting and decisions are made by consensus only. Members can also hold consultative sessions. The NSG has no permanent office and details of its deliberations are kept confidential.
  • The 2008-09 NSG chairman is Germany.

- Reuters

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