Foreign Correspondence

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Domestic news

Uranium policy 'won't hurt India ties'
20th January 2008, 10:04 WST

Foreign Minister Stephen Smith is confident Labor's strict policy on
uranium sales won't harm efforts to bolster Australia's relationship with India.

The Rudd government signaled stronger ties with the economic
powerhouse were one of its top foreign policy priorities.

Despite this ambition, the government made clear to India it had no intention of changing its
policy of only selling uranium to countries which are party to the nuclear non-proliferation treaty (NPT).

During talks last week with Indian special envoy Shyam Saran, Mr Smith reiterated Labor's
long-standing policy of not allowing uranium sales to countries who wouldn't sign the NPT.

But the minister isn't concerned the setback for India - which comes on the back of the
damaging cricket row between the two nations - could disrupt attempts to strengthen relations.

"India is aware of the government's policy to supply uranium only to countries
which are members of the nuclear non-proliferation treaty," Mr Smith told AAP.

"Australia's relationship with India and further progress
in that relationship does not depend on uranium sales."

Power-hungry India, with its growing middle class, is still in the process of seeking domestic
and international approval for an historic nuclear deal agreed with the United States in 2006.

The pact gives India access to US uranium and nuclear technology
in exchange for opening its civilian reactors to international inspections.

The former Howard government agreed in-principle to sell uranium to India, based upon the landmark agreement.

THE RUDD GOVERNMENT STILL, AT THIS STAGE
NO .. NOT UNLESS INDIA SIGNS THE NPT .. BUT ..

It was contingent upon the deal winning approval from the Nuclear
Suppliers Group (NSG) and the International Atomic Energy Agency.

Uranium-rich Australia, which has 40 per cent of the world's
yellowcake supplies, is an important member of the NSG.

The Howard government was willing to back
India in the international forum but Labor
is still considering its position.

Mr Saran sought Australian support during his meeting with Mr
Smith but was told the new government had not yet made up its mind.

"The Australian government has not come to a concluded view on (this matter)," Mr Smith said.

"We will give consideration to those matters and will do that in an orderly way, having
listened to the views of the Indian government ... (and) the United States government."
AAP

http://www.thewest.com.au/aapstory.aspx?StoryName=452772