
As India tries to wrap up the nuclear deal with the United States before President George Bush arrives here early this year and regain access to the international nuclear fuel market, China is already out there cornering the world8217;s uranium resources. Jousting with China for a sustained and reliable supply of natural uranium might soon be as real as the competition between the two countries for oil fields around the world.
India8217;s uranium ore, or 8220;yellow cake8221; as it is called, is of limited quantity and poor quality. One of the biggest gains from the implementation of the nuclear deal with the US, unveiled last July, would be India8217;s new freedom to import high quality uranium from abroad.
Meanwhile, driven by a rapidly expanding programme for generating nuclear electricity, China is aggressively firming up uranium contracts for the 27 new nuclear plants it hopes to build by 2020.
The pressure from China has already boosted the price of natural uranium to 35 per pound. Market studies say it could touch 40 per pound in 2006 and 50 in 2007. As demand for uranium grows, the main producers of uranium 8212; Canada, Australia, Russia and Africa 8212; are reconsidering the current restrictive production polices.
The bounty Down Under
The Chinese proposal last year to acquire uranium mines in Australia has opened up a big nuclear controversy in Canberra. Australian environmentalists have always opposed uranium mining. Peaceniks reject the very idea of uranium exports. Conservatives want to know why Australia would want to beef up Chinese nuclear capabilities.
But the size of potential trade with China, as always, must be expected to prevail over other sentiments. Having tied up, a couple of years ago, a 19 billion deal on Australian natural gas, Beijing is salivating at Australia8217;s uranium riches that account for nearly 40 per cent of world reserves.
In August 2004, Zhang Guobao, the vice chairman of China8217;s National Development and Reform Commission, Beijing8217;s super ministry that generates long-term strategies for China8217;s economic security, popped the question on conducting its own uranium exploration and mining in Australia to Foreign Minister Alexander Downer.
Even as opposition to the deal has increased, the federal government in Canberra has moved quickly to ease domestic laws to facilitate uranium exports to China when the political decision is taken. Canberra, however, is insisting on a strong safeguards agreement that would prevent China from diverting imported uranium to the nuclear weapons programme. China is unlikely to demur; its objective is to ensure a secure supply of uranium.
While Beijing ties down Australia in an intensive political engagement and resource diplomacy, Delhi hardly pays much attention to Australia. Fewer than 20 million Australians have a gross domestic product larger than that of the ten-nation Asean with a population of nearly 300 million. Yet, India devotes Australia barely a fraction of the diplomatic energy it expends on Asean. As the Department of Atomic Energy seeks reliable supplies of natural uranium, the foreign office should be focusing like a laser beam on Australia.
Differences in the east
The unprecedented public sparring between Beijing and Tokyo has been among the biggest diplomatic stories from Asia in 2005. The stronger the Chinese protests against Japanese problems on coming to terms with history, the more nationalist has the Japanese leadership become. Despite growing economic interdependence 8212; China and Japan are each other8217;s largest trading partners 8212; political rivalry between the two is expected to intensify in 2006. After all, neighbours rarely love each other.
As the other Asian power, India should be concerned about the potential dangers from Sino-Japanese friction. This month, India will have an opportunity to enage both countries. Taro Aso, the nationalist foreign minister of Japan who has repeatedly got himself into controversy with the Chinese with his statements, will be among the first foreign visitors to Delhi this week. Foreign Secretary Shyam Saran will be heading to Beijing in early January for the second round of strategic dialogue with China. Both sets of talks will inevitably focus on the rapidly evolving security politics in Asia.
Sex, camera, diplomacy
Indian politicians have just discovered the brutal power of the hidden camera. In diplomacy and espionage, the invisible camera has always been an important tool of the trade. Coupled with the honey trap, the camera could have deadly consequences.
A diplomat8217;s death is at the heart of yet another Sino-Japanese political controversy. Last week the Tokyo media broke the story of Japanese diplomat who committed suicide in May 2004 when he apparently found himself being blackmailed by the Chinese. He worked in the cipher department 8212; that encodes sensitive messages between embassies and the headquarters 8212; in the Shanghai mission. But his alleged love affair with a Chinese barmaid put him in a spot.
Rather than part with sensitive information that flowed through his hands, the diplomat is said to have killed himself. The Japanese government had kept the gruesome episode secret, while launching protests with Beijing. Once the story broke, outrage spilled over. Tokyo said China8217;s actions 8220;would seem to run counter8221; to its obligations under the Vienna convention, which guarantees that diplomats are inviolable in the course of their duties. A Japanese spokesman said: 8220;The host country is expected to treat a consul with due respect and to take every measure to prevent any breach of the consul8217;s physical freedom and dignity.8221;
As Japan blamed Chinese agents for the death of its diplomat, China reacted equally ferociously by branding the allegation as 8220;a vicious act by Japan to intentionally smear China8217;s image8221;.