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    South Asia
     Aug 5, 2008
Delhi risks a stumble at the finish line
By Sudha Ramachandran

BANGALORE - The India-United States civilian nuclear agreement passed its first international hurdle on Friday, when the 35-member governing board of the International Atomic Energy Agency (IAEA) unanimously approved the India-specific safeguards agreement.

Under the safeguards agreement, India will open 14 of the 22 existing and planned civilian nuclear reactors for IAEA inspections. Of the 14, six are already subject to inspections. The agreement provides for uninterrupted fuel supplies for the lifetime of safeguarded reactors and acknowledges India's right to build a

 

strategic reserve of fuel and to take corrective action in the event of disruption of foreign-sourced fuel and technologies.

With the nod from the IAEA, India has moved another step closer towards accessing nuclear fuel and technologies. But two important hurdles remain in the marathon run to end India's 34 years of nuclear isolation. It will have to first get the 45-member Nuclear Suppliers Group (NSG) to waive restrictions on nuclear trade with India, then the agreement will have to be ratified by the US Congress.

India was expected to get IAEA approval. If it hadn't been approved by consensus, it would have been put to vote, where all it needed was a simple majority. The international mood indicated that it would get that backing in the United Nations' nuclear watchdog agency.

India, however, was keen that the safeguards agreement be approved by a consensus rather than by vote. For one, most IAEA decisions, especially those concerning safeguards agreements, have usually been taken by consensus and it is only controversial issues, such as Iran's nuclear program, that have been voted on. India was anxious that the message the IAEA sent out on the India-specific safeguards agreement be one of global consensus, rather than signaling controversy.

Besides, India was worried that if any of the 19 members of the IAEA board that are also in the NSG opposed the safeguards agreement in the event of a vote at the IAEA, there was every chance of them carrying this opposition to the NSG, which is expected to meet on August 21.

In the run-up to the IAEA meeting, India had some anxious moments as it did seem that Pakistan would press for a vote. However, US pressure on Pakistan is said to have stayed Islamabad's hand. In the end, the hard negotiations that Indian and American diplomats engaged in with the IAEA board's members and the strong endorsement that IAEA director general Mohamed ElBaradei extended to the safeguards agreement ensured that the agreement sailed through without a vote.

With the IAEA nod, India and the US will now shift their attention to the NSG, the 45-member cartel that oversees nuclear trade. Diplomats from both countries have been criss-crossing world capitals in the past year lobbying NSG members.

India is not a member of the NSG and will have to depend on the US to argue its case. The US will ask the NSG members to waive restrictions on nuclear trade with India, a nuclear weapon power that has not signed the nuclear Non-Proliferation Treaty (NPT).

Unlike the IAEA, where there is provision for a vote in the event of the absence of consensus, NSG decisions are by consensus only. Even one dissenting voice against India at the NSG will kill the deal. Delhi and Washington will therefore have to win over every NSG member.

This is not expected to be easy. As Pallava Bagla reported from Vienna for NDTV, "If getting a nod from the world's nuclear watchdog [the IAEA] is like climbing a mountain, the next stride of getting a 'yes' from the global cartel that controls nuclear commerce [the NSG] will be like climbing a vertical cliff."

The NSG, originally called the London Suppliers Group, was set up in response to the Indian nuclear test in May 1974. But none of the seven countries - the US, Russia, Britain, France, Japan, Canada and Germany - that founded the NSG will oppose waiving restrictions on India. At the recent Group of Eight (G-8)summit at Hokkaido, Japan, these countries, as members of the G-8, endorsed the India-US agreement and the inclusion of India in the global non-proliferation regime by waiving NSG restrictions. Once at the forefront to contain India's nuclear program, these countries will now be out batting for India.

Opposition to waiving nuclear trade restrictions on India is likely to come from smaller countries, those that have little stake in India or in nuclear trade with India and which have strong non-proliferation positions. These include the Scandinavian countries, Austria, Ireland, Switzerland and New Zealand.

Pointers from the IAEA meeting provide reason for India to worry. Ireland put forward strong reservations at the IAEA meeting. Its ambassador at the IAEA is reported to have said that if the matter had been put to vote he would have been forced to abstain. As for Austria, "even hardened veterans of the nuclear watchdog's politics were taken aback by the vehemence with which Austria railed against the draft", observed The Hindu, an influential English daily. Both Ireland and Austria are members of the NSG. They, as well as Japan and Brazil, have said that their going along with the IAEA consensus should not be taken to mean that they will not object in the NSG. Their support cannot be taken for granted.

And then there is China, which went along with the consensus at the IAEA but is yet to reveal its position at the NSG. China has not said it will support India's case, but Chinese President Hu Jintao has conveyed to Prime Minister Manmohan Singh that it will not create problems. It seems Beijing might not be the spoiler at the NSG, but it will not be unhappy if New Zealand or Ireland opposes India's case.

The questions raised at the IAEA do not necessarily spell bad news for India. When the nuclear deal went through US congressional committees, it came up against strong criticism from legislators who raised questions on individual clauses and railed that the NPT regime was being weakened. Still, the agreement passed both committees, the House of Representatives and the Senate, with strong support. At the IAEA, too, questions were raised not over India's record as a responsible nuclear power but over whether the agreement would set a precedent that would open the doors to less responsible powers. So as in the US Congress and the IAEA, in the NSG members will put India through a wringer, but eventually will come around to supporting it, say optimists.

Several NSG members are expected to attach conditions to their support, such as insistence that India sign the NPT and the Comprehensive Test Ban Treaty, the exemption provides for periodic review, reimposition of the ban on trade if India tests again and so on.

But India has repeatedly said it wants a "clean, clear and unconditional exemption" from the NSG. Experts warn against this unreasonable and inflexible position.

"Our repeated demand that there should be a 'clean and unconditional' exemption from NSG guidelines cannot but prejudice the minds of the NSG members and even of the US," points out T P Srinivasan, a former ambassador to the United Nations at Vienna and a former governor for India at the IAEA.

"The whole exercise of exemption is based on certain conditions, which did not exist before, like the 123 agreement and the IAEA safeguards agreement. Is it realistic to expect that the NSG would grant the exemption without reference to any of these documents? Would such references be considered conditional or not? The whole exercise of the deal is based on certain conditions that India put forward in the joint statement of 2005. How can the NSG not take note of those conditions?" Srinivasan asks.

By taking a forceful position that no conditions will be acceptable, India is boxing itself in a corner, with little wriggle room. "If India takes the position that no conditions will be acceptable, a situation may arise when India will have to walk away from the deal at that stage," warns Srinivasan. "Hopefully, India has its own understanding as to what unconditional exemption means. A certain flexibility in this position is essential to carry the deal through."

After running a successful marathon to bring itself out of its nuclear isolation, India would be foolish to shoot itself in the foot as it approaches the finish line.

The victory at the IAEA is reason for quiet satisfaction. But India will have to wait a while before it can pop the champagne corks.

Sudha Ramachandran is an independent journalist/researcher based in Bangalore.

(Copyright 2008 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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