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    China Business
     Apr 4, 2006
Australia, China ink uranium agreement

CANBERRA - China will only use Australian uranium for peaceful purposes, Chinese Premier Wen Jiabao said as Australian Foreign Minister Alexander Downer signed two agreements April 3 with China's Foreign Minister Li Zhaoxing on supplying uranium to China. The agreements, signed following a meeting between Wen and Australian Prime Minister John Howard, cover nuclear transfer and nuclear cooperation.

"[The uranium purchases are] solely for peaceful purposes," Wen told a media conference. "China and Australia are both members of the International Atomic Energy Agency [IAEA] and therefore



when we proceed with our nuclear cooperation we must observe the principles of the Non-Proliferation Treaty (NPT). The agreement we entered has provided safeguards for the peaceful purposes of our nuclear cooperation. We must proceed with our cooperation in this field on the basis of mutual respect, mutual benefit and equality."

Howard said he was satisfied safeguards would be enforced. "It is on that basis that the agreements have been signed," he said. "In relation to the capacity constraints, the supply constraints, there are signs that the three mine policy [intended to limit uranium mining in Australia to no more than three mines] is already crumbling. We will examine that and watch developments in that area with great interest."

The government will also in time examine what other capacities it had to expand supply, if that became necessary, he said. "It's a little early to be contemplating that."

No difference to weapons programs: Downer
Supplying Australian uranium to China would make no difference to China's nuclear weapons program, Downer said in an ABC Radio interview. It was nothing more than a scare campaign to claim that supplying uranium from Australia would free up other uranium for use in China's nuclear weapons, he said.

"Honestly, China has a nuclear weapons program whether we like it or not. It's not going to make the slightest difference whether we have this agreement with China or whether we don't to their nuclear weapons program, absolutely no difference at all," he said.

"But it is going to make a difference to their capacity to develop energy. At the moment China is the world's second-largest user of energy after the US. The prospects for Chinese consumption of energy over the next 20 years are simply massive. The more they use nuclear power, the more they will be using cleaner energy and the better that won't just be for the Chinese people. That will be better for the international community including in the contest of greenhouse emissions."

Downer noted that the April 3 agreement meant Australia would have the capacity to track uranium produced in Australian mines. "If it's to be used for a purpose other than the purpose defined in the treaty, then that will be clear to us and that would be of course a clear breach of the treaty," he said. "I don't have any worries about [diversion of uranium for non-civilian purposes]. It's just the same as the other agreement we have with a raft of other countries in that respect."

The foreign minister rejected arguments from environmental groups that say nuclear power is no answer to climate change. "Some of these green groups are getting left behind in the argument. What they want is China to continue to increase its use of coal-fired power stations," he said. "Now, 80% of [the] energy in China is generated from coal-fired power stations. They are incredibly dirty. Anybody who has been to Chinese cities knows that pollution is a major problem. It just stands to reason that nuclear power is great deal cleaner. Nuclear waste can be stored safely."

The community was beginning to grow out of this kind of "scare campaign", arguing that the use of nuclear energy would blow up the world, he said.

Agreements signed in other fields
In addition to the uranium agreement, China and Australia signed various other agreements and documents designed to strengthen economic and trade relations and bilateral cooperation in other fields.

The documents included a treaty on mutual legal assistance in criminal matters, a statement of intent regarding an agricultural technical cooperation program, a program for young scientists' exchanges and three memorandums of understanding on establishing high-level economic cooperation dialogues - on coal mine safety and in education and training.

The relevant ministries or departments from both sides also signed several protocols or cooperative documents concerning issues including Australia's exports of citrus fruits and edible deer products to China. Meanwhile, a number of commercial contracts and deals on mineral products, natural gas and electric power were also signed.

Wen calls for free trade deal
While in Australia, Wen reiterated China's desire for a free trade deal with the South Pacific nation, saying China wants a breakthrough on a free trade deal with Australia within two years.

After a meeting with Howard on Monday, Wen said talks on a free trade agreement (FTA) should be fast-tracked. "On this issue, the prime minister and I reached an important consensus ... on the timetable for this negotiation," Wen told reporters.

"In the next one or two years, China and Australia should work together to strive for breakthroughs on major issues related to the FTA negotiation so as to lay the foundation for the arrival of an overall agreement in that field. China and Australia should work together to enhance economic cooperation on all fields and, at present, what is more important for the two countries is to expedite a negotiation process for the establishment of a free trade area between the two sides."

Last year, during a visit by Howard to Beijing, the two countries began negotiations on a free trade agreement that would help give Australian exporters access to China's 1.3 billion consumers. However, Australian negotiators have acknowledged the agreement could take years to finalize.

(Asia Pulse/XIC/AAP)


Australia's discriminatory uranium policy
(Apr 1, '06)

No special treatment for Chinese uranium miners
(Nov 2, '05)

China wants a slice of the uranium cake
(Sep 28, '05)

 
 



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