India nuclear deal faces new hurdles

UNITED STATES: President George W. Bush's vaunted nuclear cooperation deal with India is facing new difficulties which may prevent it taking effect this year, U.S. officials and experts said.

Caught up with defense and homeland security issues, the U.S. Congress may not give final approval to the agreement before ending its legislative session, leaving the deal's fate to a new Congress that will take office in 2007, they said.

Also, India has objected to key provisions, causing some U.S. officials to question New Delhi's commitment. The deal would allow nuclear-armed India to buy American atomic fuel and reactors for the first time in 30 years even though it has not signed the nuclear Non-proliferation Treaty.

U.S. Senate leaders plan to meet to discuss a possible timetable for action but the hurdles are considerable, congressional sources said.

"It's unlikely to get done. We have limited legislative days left and much to do," a congressional aide said.

Congress could adjourn as early as Sept. 29 but there are plans for a "lame duck" session after the November election.

A senior U.S. official said the administration still hopes the Senate will act. "There is strong bipartisan support for the legislation but their calendar is complicated," he said.

The nuclear agreement was announced by Bush and Indian Prime Minister Manmohan Singh in July 2005. It cannot take effect until the U.S. Senate and the House of Representatives change U.S. law banning nuclear cooperation with India and approve technical details in a separate cooperation agreement.

Also, the Nuclear Suppliers Group, an international body which controls nuclear exports, must change its rules and India must agree with the U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), on inspecting civilian nuclear facilities. The House in July overwhelmingly approved the nuclear deal. It requires the rising South Asian power to forgo future nuclear testing and cooperate with the United States in curbing nuclear exports.

The Senate has not acted partly because of a jammed work schedule. Congressional sources said despite Bush's rhetorical commitment, there is little sign he is expending political capital to win passage.

Another complication is unrelated legislation attached to the Senate India bill. It would formally have Washington implement a long-delayed commitment to expanded IAEA inspections of American civilian nuclear facilities.

Congressional sources said Republican senators blocked action because of concerns the new inspections would give the IAEA too much access to U.S. facilities.

Even if the Senate votes soon, its bill differs from the House version so the two bills must be reconciled, then approved again.

Meanwhile, Indian officials have rejected elements of the deal that Washington considers essential and called off plans for a U.S. negotiating team to visit New Delhi this week for talks on the technical cooperation agreement.

Washington, Wednesday, Reuters