Indian Nuke Deal Gets Senate Nod
PRAMIT PAL CHAUDURI / Hindustani Times (Bhopal, India) 17nov2006
Washington/New Delhi — LAST-DITCH OPPOSITION to the India-US civil nuclear cooperation deal was overwhelmingly rejected, with the US Senate voting 85-12 on Thursday in favour of ending the atomic apartheid against India. Tellingly, each of the six “killer” amendments proposed to the bill, which Delhi had said would compel it to reject the nuclear deal, was easily defeated.
US President George W. Bush welcomed the vote, saying on Friday, "The US and India enjoy a strategic partnership based upon common values. Today, the Senate has acted to further strengthen this relationship by passing legislation that will deliver energy, non-proliferation, and trade benefits to the citizens of two great democracies.”
Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi separately told delegates at the HT Leadership Summit that Delhi welcomed the step forward but suggested that it was still too early to celebrate.
The bill passed by the Senate will now be reconciled with a similar bill passed by the House of Representatives in July. Both chambers will then have to approve the legislation in its final form.
The prime minister said there were aspects to the two bills that were not identical. “We have still a long way to go before nuclear cooperation between India and US becomes a living reality,” said Singh.
He said the final version of the deal should be in line with “mutual commitments” made in last year’s agreement. Sonia made the same point. “All those areas that are not acceptable to us will be excluded (from the final document) and only then will we welcome the bill happily,” she said.
In the US Senate, although US congressional leaders had put aside nearly two days for debate, the senators needed only six hours before going for the final vote. The killer amendments were defeated by wide margins. Though all the “No” votes were by Democrats, the sheer size of the victory margin indicated strong bipartisan support.
This was underlined by Senator Joe Biden, Democratic co-sponsor of the bill. He stressed that the deal was part of the trend begun by former president Bill Clinton and accelerated by Bush. “When we pass this bill, America will be a giant step closer to approving a major shift in US-Indian relations. If we are right, this shift will increase the prospects for stability and progress in South Asia and in the world at large,” he told the Senate.
His Republican co-sponsor, Richard Lugar, said, “This agreement is the most important strategic diplomatic initiative undertaken by President Bush.”
Even optimistic Indian officials had given the bill only a “50-50” chance of success. Analysts ascribed the lop-sided vote to a number of reasons.
One was intense lobbying by the White House, the Indian-American community and a number of US corporate interests. The US-India Business Council hailed the agreement, saying as many as 27,000 high quality jobs each year for the next 10 years will be created by it in the US nuclear industry alone. But diplomats say the US technology and defence industries were among the most effective voices in favour of the deal.
Another reason, says Professor Sumit Ganguly, a University of Illinois political scientist, “is that India does not, for the most part, provoke much adverse reaction in domestic constituencies.” Even those who voted against the bill insisted they supported closer Indo-US relations.
The arguments against were couched in terms of the effect of giving India an exemption from the nuclear non-proliferation regime. They foundered, says Jawaharlal Nehru University physicist and nonproliferation expert R. Rajaraman, “because geopolitics is now more important than nation-state proliferation. The proliferation threat lies in nuclear material getting into the hands of terrorists.”
There were some surprises during the voting. Senator Hillary Clinton, co-chair of the Friends of India caucus, voted in favour of one of the killer amendments which would have restricted US nuclear assistance to India to civilian fields. So did senator Bob Menendez, a long-standing member of the India Caucus. Michael Krepon of the Henry Stimson Centre, and a strong opponent of the deal, explained, “Congress members try to have it both ways, rather than to have to choose between India and nonproliferation.” (With agency inputs)
source: http://www.hindustantimes.com/news/5922_1847278,0015002100000000.htm 18nov2006
India Nuclear Pact May Create A Broad Opening for U.S. Firms
PETER WONACOTT / Wall Street Journal 18nov2006
NEW DELHI — With the U.S.-India nuclear-power deal nearing completion, American business backers long fenced off from India's market are preparing to rush the gates of an economy that is among the world's fastest-growing — and one of the most frustrating for foreign investors.
U.S. officials and business executives on Friday welcomed Senate approval of the nuclear-cooperation bill — both for its potential to transform ties between the countries and to unlock billions of dollars in business for American companies. At the end of this month, the U.S. is leading a massive trade delegation to India that includes several companies that hope to capitalize on a new era of nuclear and defense cooperation, and on an economy with annual growth exceeding 8%.
"We are confident that when this market is opened, American suppliers will do very well," Richard Boucher, U.S. assistant secretary of state for South and Central Asia, told reporters in New Delhi.
The pact is likely to put a fresh spotlight on India and the rising hopes of foreign investors. In coming weeks, big trade delegations from China — including President Hu Jintao — and from France will arrive in the country. Like the U.S., both countries hope to strike a bunch of business deals to herald a new era of closer ties with an emerging economic titan. And like others, the U.S. shares a laundry list of market-access grievances that point to growing pains in this new relationship.
The U.S. nuclear-cooperation pact with India could also test ties with other countries in the region — in particular China, Pakistan and Iran. All three have closely watched the tightening security links between Washington and New Delhi. The Bush administration is trying to keep Iran from developing nuclear weapons and has refused to negotiate a similar deal with nuclear-armed Pakistan, angering India's longtime archrival.
During President Hu's visit to the country in the coming week, Beijing is expected to announce a nuclear pact of its own with Islamabad. It would help Pakistan build more nuclear-power plants, in addition to one that is already operable. Meanwhile, the U.S. is trying to meet the energy needs of Pakistan, too. One project would involve delivering electricity to Pakistan from Tajikistan via Afghanistan, according to Mr. Boucher.
In a sign of the high business stakes involved in the Indian nuclear pact, U.S. companies played an unusually visible role in lobbying for House and Senate approval of related bills, both of which passed by overwhelming margins. The U.S.-India Business Council, part of the U.S. Chamber of Commerce, hired a powerful Washington lobbying firm, while influential Indian-American groups also weighed in to help ensure the two bills' success. They must be merged before President Bush signs off. The Nuclear Suppliers Group, an international body that regulates the trade in nuclear fuels, must also grant clearance to New Delhi.
On Friday, Indian officials praised the bill's advance in the Senate but warned that the final agreement shouldn't veer from the one Mr. Bush and Prime Minister Manmohan Singh signed in March.
Once procedural hurdles are cleared, India is expected to begin soliciting bids to build atomic reactors. The government originally set a goal of generating 20,000 megawatts of nuclear power by 2020 but is expected to sharply expand that target.
Industry executives estimate India's nuclear-energy market will require $100 billion of foreign direct investment in coming years, and companies are starting to line up. Among the more than 160 firms on the U.S. trade mission arriving late this month, several are from defense and nuclear industries. One, USEC Inc., supplies enriched uranium fuel for commercial nuclear-power plants, while WM Mining Co. provides uranium. Defense contractors such as Lockheed Martin Corp. and Northrop Grumman Corp. will also be trying to woo business.
One of the biggest prizes that could flow from the deal: With the nuclear-technology transfer expected to go ahead, U.S. officials are considering the elimination of other barriers to sophisticated military-technology exchanges. That could provide an opportunity for the Indian air force, which is in the market to buy new fighter jets in a deal expected to be worth some $6 billion.
With the trade mission, U.S. officials say their goal isn't just to strike commercial deals. Their broader aim is to clear regulatory obstacles to investment and sales in India. There are barriers to retail investment that are keeping companies such as Wal-Mart Stores Inc. out, for example. Officials have also pushed India to lift an environmental rule that keeps out big-engine motorcycles such as Harley-Davidsons, and health standards that have restricted some U.S. farm products.
"When U.S. companies are allowed to participate in a sector, that brings enormous benefit to India," said Undersecretary of State Frank Lavin, who will lead the U.S. trade mission. "Prices go down, availability goes up, and the economy chugs along."
Indian officials also want the U.S. market to open wider for aviation and finance. On Thursday, Washington granted approval for Jet Airways (India) Ltd., the country's top domestic airline by market share, to fly to the U.S. Indian banks are also lobbying to set up more branches in the U.S.
Rice Welcomes Senate's Approval of U.S.-India Initiative
Xinhua (China) 18nov2006
U.S. Secretary of State Condoleezza Rice issued a statement on Friday welcoming the strong support for U.S.-India civil nuclear cooperation initiative in the Senate.
"We thank the Senate and appreciate its willingness to consider the legislation promptly," Rice said in a statement published on the website of the State Department.
She said "successful implementation of the civil nuclear initiative is a key element of a new strategic partnership between the United States and India.
"This initiative will help India meet its growing enemy needs, enhance cooperation on energy security and nonproliferation, and increase economic investment opportunities."
The United States looks forward to working with India to fully implement the agreement, Rice said in the statement, Rice said.
The India-U.S. nuclear civil cooperation deal, agreed by President George W. Bush in March 2006, will allow New Delhi to buy foreign nuclear technology for the first time in 30 years, despite its refusal to sign the Nuclear Non-Proliferation Treaty.
In addition to the U.S. Congress, the deal must also be approved by the 45-nation Nuclear Suppliers Group.
source: http://english.people.com.cn/200611/18/eng20061118_322801.html 18nov2006
U.S. Senate Vote on Nuclear Deal Draws Guarded Praise by India
AMELIA GENTLEMAN / New York Times 18nov2006
NEW DELHI, Nov. 17 — India expressed both optimism and concern on Friday over the United States Senate’s approval of nuclear cooperation between the countries, noting that major sticking points remained, including a stipulation by the Senate requiring India to help contain Iran’s nuclear ambitions.
Prime Minister Manmohan Singh said Friday that there was “still a long way to go before nuclear cooperation between India and the U.S. becomes a living reality.” He stressed that the final version of the deal should be in line with “mutual commitments” made last year — a comment intended to ease concerns that the government had made too many concessions to the United States during negotiations since the proposal was announced in July 2005.
The House approved its version of the legislation in July, and the final language will have to be reconciled by the two chambers in Congress.
The Senate passed its bill 85 to 12 late on Thursday, in a deal that would allow the United States to ship nuclear fuel and technology to India despite India’s refusal to sign the Nuclear Nonproliferation Treaty. “This undoubtedly reflects the very broad bipartisan support which this initiative enjoys,” India’s foreign minister, Pranab Mukherjee, said in a statement. “We must await the final version before drawing any conclusions on the legislation.”
Sonia Gandhi, the leader of the governing Congress Party, also stressed that she would welcome the final agreement only if it mirrored the original plan. “Nothing will be accepted which is outside the July 18 agreement between the two countries,” she said.
The legislation, as passed in the Senate, contains a new provision that requires the American president to declare that India has joined multinational efforts to contain Iran’s nuclear program before the United States-India nuclear deal moves forward. Iran is among India’s most vital energy partners, and India’s large Shiite Muslim population makes relations with Tehran particularly delicate.
“It makes it appear as though we are being required to gang up with the United States against Iran,” warned Lalit Mansingh, a former Indian ambassador to the United States. “It will be politically difficult for the government to accept.”
A complementary deal between India and the International Atomic Energy Agency must be reached and an exception for India made by the Nuclear Suppliers Group, countries that export nuclear material.
The United States assistant secretary of state for South and Central Asian affairs, Richard A. Boucher, called the agreement “a unique opportunity based on India’s unique circumstances.” He was referring to Pakistan’s position that it should also be accorded civilian nuclear cooperation from the United States.
Reuters reported this week that Pakistan was poised to receive nuclear technology from China. On Friday, the Pakistani Foreign Office spokeswoman, Tasnim Aslam, said that “cooperation with China in the field of nuclear technology is longstanding.”
Mr. Boucher, on a visit here on Friday, said in an interview that the Bush administration was working on expanding Pakistan’s access to other nonnuclear sources of energy.
Somini Sengupta contributed reporting from New Delhi, and Salman Masood from Islamabad, Pakistan.
source: http://www.nytimes.com/2006/11/18/world/asia/18india.html 18nov2006
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