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Not only uranium

Julia Gillard is inviting India to think strategically about Australia

From New Delhis perspective,Australian Prime Minister Julia Gillards decision to seek an end to the longstanding ban on uranium sales to India could not have come a day too soon. Australias policy had made no sense after the 46-nation Nuclear Suppliers Group carved out an exception for India from the international rules of nuclear commerce in September 2008. Delhi,however,will better appreciate Gillards boldness if it sees her move in the context of Australias domestic politics,especially the near religious opposition of the ruling Labour Party to any nuclear trade with India. Kevin Rudd,who is now Gillards foreign minister and preceded her as prime minister,had upturned a decision by the earlier Liberal government led by John Howard to consider uranium sales to India in 2006. The tensions within Labour between Rudd and Gillard,who ousted him from leadership last year,are well known. Nevertheless,Labour is expected to endorse Gillards appeal in its annual conference next month. That alone will not clear the path for uranium sales to India. Delhi will have to negotiate a stringent safeguards agreement to prevent the misuse of imported uranium for weapons purposes. Given the federal nature of Australia,its state governments too will have a say in uranium sales.

As India prepares to deal with the remaining obstacles to buy uranium from Australia,it will be unwise for Delhi to view the relationship with Canberra through the narrow nuclear prism. For resource-poor India growing at 8 per cent per annum,mineral-rich Australia is an indispensable economic partner. Despite a small population of 23 million,Australia has the worlds 13th largest economy with a GDP of 1.2 trillion. This years award of the Nobel Prize in Physics to an Australian scientist highlights the nations advanced knowledge infrastructure. Australias Indian diaspora is rich and growing fast. As a medium-sized power,Australia punches way above its weight on all regional and global issues.

Gillards nuclear embrace of India must be located in the larger context of Chinas rise and the new Asian scramble to construct a stable system of regional balance of power. Canberras decision to host 2,500 American marines on its soil must be seen in tandem with its persistent efforts to build a strong maritime security partnership with Delhi in the Indian and Pacific Oceans. In breaking the mould of Canberras uranium policy,Gillard is inviting India to think strategically about Australia. Delhi must end its prolonged political neglect of Australia and respond vigorously to the unprecedented opportunity Down Under.

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