*Unfolding Obama Presidency: Indian Worries over Changing Profile of
Bilateral Relations*

[The Indo-US nuclear deal is no longer just "Indo-US nuclear deal". The
45-member Nuclear Suppliers Group (NSG) having eventually granted the hard
fought for waiver in last September with the Bush Administration, and the
government of India, pulling out all the stops, India is now free to have
nuclear trade with any member of the group, subject to its readiness, once
the whatever remaining issues with the International Atomic Energy Agency
(IAEA) are settled.
 Here the worries are apparently more fundamental. The signals of Indian
preeminence in the US foreign policy having been eroded with the change in
US regime.
Given the station of the commentator, he is evidently worried about its
commercial and other implications.]

http://www.upiasia.com/Politics/2009/06/19/indo-us_nuclear_deal_in_jeopardy/4139/
 Indo-U.S. nuclear deal in jeopardy
By Hari Sud
Column: Abroad View
Published: June 19, 2009
*
Toronto, ON, Canada, — The much-heralded Indo-U.S. nuclear deal, which was
one of the few successes of former U.S. President George W. Bush and Indian
Prime Minister Manmohan Singh, is in danger of being shelved. U.S. President
Barack Obama’s administration in the last three months has delivered one
piece of bad news after another, from India’s point of view.

The “change” promised by Obama last fall, prior to his election, is visible
in U.S. policy toward South Asia. His lukewarm attitude toward India, and
now his go-slow tactic on the Indo-U.S. nuclear deal, is disappointing.

Obama needs to be reminded that India is not Pakistan and does not privately
sell nuclear technology to rogue states. He needs to be reminded that India
exited the Iranian gas pipeline deal as a price for the Indo-U.S. nuclear
deal. Also, the building of nuclear power plants by India will be one less
factor in the climate catastrophe that has been magnified by coal-based
power plants.

Obama has said nothing about India policy publicly; he has merely exchanged
letters of goodwill with the Indian leader. His advisors, however, are busy
upsetting the apple cart. First, a no-confidence move by a minor State
Department official to withhold the commissioning of a GE engine for a
finished Indian naval ship was a rude shock to India. Then, India’s Reliance
Industries was threatened with the withdrawal of a US$900 million loan over
its ties with Iran, which included selling gasoline from its refinery. Early
this month, the Indian government conveyed its objections to a U.S. travel
advisory against India, which warned of a terror threat in the country.

On top of all this, Undersecretary of State William Burns visited India
recently to try to cement growing India-U.S. relations, but carrying a
letter from Obama that essentially asked India to unconditionally restart
talks with Pakistan and forget about the Mumbai massacre. Restarting such
talks would enable Pakistan to withdraw troops from its border with India
and redeploy them in its troubled tribal region. A few days ago, at the
behest of the U.S. administration, US$1.5 billion in annual aid for Pakistan
was voted into law.

All of these acts in the last few months are illogical, designed to
downgrade India-U.S. relations.

As if this were not enough, Obama has been looking to the past and
appointing a few anti-Indian diplomats who had been shown the door by Bush
in 2001. One such appointment is of Robert Einhorn as advisor to U.S.
Secretary of State Hillary Clinton on nonproliferation matters.

Einhorn is well known for his opposition to the Indo-U.S. nuclear deal. He
spent 30 years with three U.S. administrations opposing India and putting
together the infamous laws banning nuclear-related exports. None of these
prevented Pakistan, North Korea or Iran from gaining access to nuclear
technology, however.

The appointment of Ellen Tauscher as undersecretary of arms control is also
bad news for India. She is a well-known hardliner and opponent of the
Indo-U.S. nuclear deal, but has been mostly ineffective in her nuclear
technology control efforts.

These two appointments are a matter of grave concern to both India and the
U.S. nuclear power hardware and technology industry. The deal could generate
US$100 billion in business, which would benefit both sides. The Obama
administration’s go-slow approach will be detrimental to both.

Jointly, Tauscher and Einhorn could shelve the nuclear deal and reopen the
subject of India signing the Nuclear Proliferation Treaty, which was not the
subject of discussion during lengthy negotiations.

The U.S. Congress passed the India-specific bill, making India a full
partner in nuclear commerce with the United States. The Indian Parliament
did the same. Since both governments have ratified the treaty and agreed on
123 nuclear trade agreements there is no reason to reopen discussions on
this.

Concurrent with the passage of the nuclear commerce bill in the U.S.
Congress, the Nuclear Suppliers Group granted India an exemption on the NPT
issue – which applies to all 40 group member states. Even if the United
States backs down on the deal, India can source uranium supplies from
France, Russia or Kazakhstan and proceed with building nuclear power plants
with French and Russian aid.

The thinking of Obama’s inner circle with regard to nuclear nonproliferation
is not very clear. If the appointments of Tauscher and Einhorn are any
indication, banning nuclear tests and capping production of nuclear fissile
materials are their objectives.

The NPT, signed in 1968, became effective in 1970 – making China exempt by
default. It is reviewed every five years; the next review is due in 2010.
The Bush administration had cold-shouldered any moves on the NPT, giving
India the opportunity to sign the Indo-U.S. nuclear deal.

Now the Obama administration is looking to resurrect the NPT, the
Comprehensive Test Ban Treaty and the Fissile Material Cut-off Treaty into a
major non-proliferation regime. So the 2010 review conference will make or
break the proponents of the nonproliferation lobby.

The NPT in 1968 defined countries as nuclear weapons states and non-nuclear
weapons states. But in the past 40 years much has changed. Three more states
– India, Pakistan and North Korea – have tested nuclear weapons, threatening
the monopoly of the nuclear weapons states that depend on those weapons for
their security.

With the end of the Cold War, although the number of nuclear weapons has
decreased, their quality, reliability and accuracy have improved. The 2010
conference will strive to stop the development of nuclear materials, which
the current regime is unable to do. The purpose will be to strengthen the
monopoly of the nuclear weapons states.

Another issue that has not been dealt with effectively is the nuclear fuel
cycle. There are no proliferation-proof fuel cycles. Not even the
International Atomic Energy Agency can prevent the theft or misuse of
nuclear materials. This is another issue the 2010 conference will address.

As for the Indo-U.S. nuclear deal, India has already placed its few nuclear
facilities under IAEA supervision. It is unlikely that India will give in to
any additional demands by the old stalwarts of the anti-proliferation regime
that have been brought into the Obama administration. If the deal falls
through, U.S. participation in India’s nuclear power plant business will be
sorely missed.

The future of nuclear energy worldwide is bright, though it must be handled
with care, especially the spent fuel. However, there are not many
alternatives. The past 60 years have seen uncontrolled emissions of
greenhouse gases, which must be curbed.

If the United States stands in the way of India in producing nuclear fuel
for civilian purposes, then India can revert back to coal as its main source
of energy, while building nuclear plants with French and Russian aid.

--

(Hari Sud <http://www.upiasia.com/columnist/Hari_Sud/> is a retired vice
president of C-I-L Inc., a former investment strategies analyst and
international relations manager. A graduate of Punjab University and the
University of Missouri, he has lived in Canada for the past 34 years.
©Copyright Hari Sud.)


*

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