India tries to break civilian nuclear deal deadlock
Thursday, 26 June 2008
NEW DELHI, June 25 (Reuters): India's government and its communist allies will try to break a deadlock on Wednesday over a civilian nuclear deal with the United States, with the ruling coalition split on an issue that could force snap elections.
The communists prop up the ruling coalition in parliament and say they will bring down the government if it goes ahead with a deal criticized by leftists for making India a pawn of the United States.
But Prime Minister Manmohan Singh, who has invested much of his personal reputation in a deal seen as forging a closer trade and diplomatic ties with Washington, has appeared eager to go ahead with the deal despite opposition from within the coalition.
It's a deadlock at the moment and we hope there is going to be some breakthrough in the talks," Nilotpal Basu, a senior communist leader told Reuters Tuesday.
The deal, which gives India access to US nuclear fuel and technology, is potentially worth billions of dollars to US and European nuclear technology companies and would give India more energy alternatives to drive a booming trillion-dollar economy. Sonia Gandhi, the ruling Congress party head and India's most powerful politician, has been meeting non-communist allies of her coalition over the past few days to discuss the government's stance.
Many of these allies are worried a 13-year high inflation rate and signs a booming economy was slowing could destroy their re-election chances in a snap poll. They would prefer an election in early 2009.
The Congress too sought to play down the crisis, saying its allies would not sacrifice the government over the agreement.
"There is no reason to press the panic button," Veerappa Moily, Congress spokesman, said. "The deal is important, but that should not be the cause for withdrawing support."
Communist and Congress leaders were locked in meetings with their allies as both sides furiously lobbied for support ahead of Wednesday's crucial meeting.
The deal still needs clearances from the International Atomic Energy Agency (IAEA) board of governors and the 45-nation Nuclear Suppliers Group. Then the deal would have to go to the US Congress for final approval.
But it might already be getting too late as the United States gears up for presidential elections. US Ambassador to India, David Mulford, was reported to have met top government officials on Tuesday to discuss the deal.
Some analysts say the communists could allow the government to negotiate an India-specific safeguards agreement with the IAEA, and not let the deal go any further. That would buy the government time and avoid early elections but leave the deal in limbo.
The communists prop up the ruling coalition in parliament and say they will bring down the government if it goes ahead with a deal criticized by leftists for making India a pawn of the United States.
But Prime Minister Manmohan Singh, who has invested much of his personal reputation in a deal seen as forging a closer trade and diplomatic ties with Washington, has appeared eager to go ahead with the deal despite opposition from within the coalition.
It's a deadlock at the moment and we hope there is going to be some breakthrough in the talks," Nilotpal Basu, a senior communist leader told Reuters Tuesday.
The deal, which gives India access to US nuclear fuel and technology, is potentially worth billions of dollars to US and European nuclear technology companies and would give India more energy alternatives to drive a booming trillion-dollar economy. Sonia Gandhi, the ruling Congress party head and India's most powerful politician, has been meeting non-communist allies of her coalition over the past few days to discuss the government's stance.
Many of these allies are worried a 13-year high inflation rate and signs a booming economy was slowing could destroy their re-election chances in a snap poll. They would prefer an election in early 2009.
The Congress too sought to play down the crisis, saying its allies would not sacrifice the government over the agreement.
"There is no reason to press the panic button," Veerappa Moily, Congress spokesman, said. "The deal is important, but that should not be the cause for withdrawing support."
Communist and Congress leaders were locked in meetings with their allies as both sides furiously lobbied for support ahead of Wednesday's crucial meeting.
The deal still needs clearances from the International Atomic Energy Agency (IAEA) board of governors and the 45-nation Nuclear Suppliers Group. Then the deal would have to go to the US Congress for final approval.
But it might already be getting too late as the United States gears up for presidential elections. US Ambassador to India, David Mulford, was reported to have met top government officials on Tuesday to discuss the deal.
Some analysts say the communists could allow the government to negotiate an India-specific safeguards agreement with the IAEA, and not let the deal go any further. That would buy the government time and avoid early elections but leave the deal in limbo.