WASHINGTON—President Bush hailed a new era of strategic cooperation with India Monday as he signed a new law that is a major step toward allowing New Delhi to buy U.S. nuclear reactors and fuel for the first time in 30 years.
Three other approvals—by the 45-nation Nuclear Suppliers Group, the International Atomic Energy Agency and a second time by Congress—are still needed before U.S. nuclear transfers to India actually can take place.
But some analysts say winning passage in Congress of the law that Bush signed with fanfare at the White House was the highest hurdle. It was approved overwhelmingly by the legislative body Dec. 9.
"The relationship between the United States and India has never been more vital and this bill will help us meet the energy and security challenges of the 21st century," Bush said at the bill-signing ceremony that included supporters from Congress, the Indian-American community and American business.
"The United States and India are natural partners, the rivalries that once kept our nations apart are no more," Bush said, citing similarities between the two democracies.
"India is an important ally in the war against extremists and radicals," he added.
But critics decried the bill—which makes changes in the U.S. Atomic Energy Act—as a historic mistake that undermines U.S. efforts to curb the spread of nuclear weapons and will fan an arms race with India's nuclear rivals Pakistan and China.
The Bush administration and its allies insisted, however, that civil nuclear commerce for expanded electricity generation in India will foster a broad range of ties with the rising South Asian power and open up billions of dollars in trade for U.S. companies.
Democratic Rep. Tom Lantos of California, a leading sponsor of the bill, said: "This expansion of peaceful nuclear trade will usher in an improved partnership between India and the United States based on our shared objective of preventing the spread of dangerous nuclear technology to countries and groups that will use it for evil purposes."
Proliferation Concerns
The deal reverses 30 years of U.S. policy that, until July 2005, opposed nuclear cooperation with India because it developed nuclear weapons in contravention of international standards and never signed the Non-Proliferation Treaty, or NPT.
A multimillion-dollar lobbying campaign by India and the U.S. Chamber of Commerce was largely successful in preventing Congress from adding non-proliferation requirements that Delhi found too burdensome or unfair.
But congressional sponsors said the legislation does include some restraints, including ensuring that the United States must terminate all export and re-export of nuclear materials to India if New Delhi tests another nuclear weapon.
As lead signatory of the NPT, the United States has been obligated to forswear assistance to the nuclear programs of states that did not sign the treaty.
Experts say India has already produced about 50 nuclear weapons and plans to reach up to 400 in a decade. Many fear selling India U.S.-origin fuel for civilian energy use will free up New Delhi's indigenous uranium stocks for weapons.
Under the deal, India has agreed to allow international inspections at 14 civilian nuclear plants while eight military facilities would still be off-limits.
But before nuclear cooperation can begin, the Nuclear Suppliers Group (NSG), which regulates nuclear trade, must change its rules; India and the International Atomic Energy Agency must agree on an inspection plan; and Congress must approve the technical details of nuclear trade in a so-called 123 agreement, named for a section of the Atomic Energy Act.
One U.S. official said the administration hoped to conclude the 123 agreement and the NSG rules change within six months.
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