Bush warned on risks to India nuclear deal

By Demetri Sevastopulo

Financial Times

August 7, 2008

A powerful Democrat on Wednesday warned the Bush administration that its landmark civil nuclear deal with India could be jeopardised by pushing an international nuclear regulatory body to give India exemptions that would breach US law.

Howard Berman, the Democratic chairman of the House foreign affairs committee, said it was “incomprehensible” that Washington would push for exemptions to nuclear rules that did not comply with the Hyde Act, the legislation that authorised the administration to negotiate the nuclear deal.

“Such an exemption would be inconsistent with US law, place American firms at a severe competitive disadvantage, and undermine critical US non-proliferation objectives,” Mr Berman wrote in a letter to Condoleezza Rice, secretary of state. “It would also jeopardise congressional support for nuclear cooperation with India, this year and in the future.”

Washington and New Delhi want the Nuclear Suppliers Group – a 45-nation non-proliferation bloc formed after India’s first nuclear weapons test in 1974 – to provide India with a complete exemption from rules prohibiting the transfer of nuclear technology.

One condition included in the Hyde Act was that the US would halt the provision of nuclear technology to India if New Delhi conducted another weapons test. India is adamant that the NSG exemption not include such restrictions.

“Mr Berman couldn’t make it more clear. The Hyde Act is the standard that he is holding the NSG and the White House [to],” said Henry Sokolski, executive director of the Nonproliferation Policy Education Center. “If they fail to meet this standard, Congressional approval of the deal is in for a rough ride.”

NSG approval is required before Congress can sign off on the controversial US-India nuclear pact. Critics say the deal undermines the nuclear Non-Proliferation treaty, which India never signed. The NSG is expected to meet later this month on the issue. A number of members, including Iraq, Austria, Ireland, Switzerland, Brazil and Japan, have concerns about the India nuclear deal.

Even if the NSG approved the exemptions soon after that, Congress may not have enough time to consider the agreement, which requires 30 days of examination.

Mr Berman said it was unlikely Congress would have time to determine the impact on US and international non-proliferation standards before its planned recess on September 26 ahead of the presidential elections.

“Any effort to consider the agreement outside of the requirements of current law will be impossible if the administration accepts an NSG exemption that fails to include the Hyde Act conditions,” he wrote.

Mr Berman urged the administration to suspend efforts to get an NSG decision this year unless it was willing to reverse its position on seeking a clean exemption.