Dermot Ahern (Louth, Fianna Fail)

I propose to take Questions Nos. 2 and 4 together.

In July 2005, President Bush and Prime Minister Singh agreed to establish a new strategic partnership between their two countries. One element of this partnership was a proposed agreement on civil nuclear co-operation. In March 2006, the two leaders announced that agreement had been reached. On 9 December 2006 the US Congress adopted the Henry J. Hyde United States-India Peaceful Atomic Energy Co-operation Act, which was subsequently signed into law by President Bush. The Act effectively gives India a waiver from current US legislation prohibiting the transfer of nuclear material and technology.

A number of further steps remain, however, before civil nuclear co-operation can commence between the US and India, including the conclusion of a formal bilateral agreement between the two countries which must also be approved by the US Congress, negotiation by India of a safeguards agreement with the International Atomic Energy Agency, IAEA, and a decision in the Nuclear Suppliers Group, NSG, to exempt India from its export guidelines. We expect the decision by the NSG will be the final step in this process.

We have been closely following developments in the US-India proposed agreement and have had useful contacts with both countries on the issue. Three separate discussions on the proposed agreement have been held at the NSG since the March 2006 announcement and Ireland has played an active role, with several other countries, in seeking to clarify a number of issues. The concerns raised have included the potential impact of the deal on the global nuclear disarmament and non-proliferation regime established by the Treaty on the Non-Proliferation of Nuclear Weapons, NPT, the type of safeguards agreement which will eventually be agreed with the IAEA, the issue of possible future nuclear tests and whether the contentious question of enrichment and reprocessing is to be included.

In the margins of the NSG meeting last October, representatives of the Indian Government briefed NSG participants. On 18 October, I received the Prime Minister of India's special envoy on civil nuclear co-operation, Mr. Shyam Saran. In the course of our discussions I conveyed to him Ireland's deep-rooted commitment to the NPT and reiterated our disappointment that India remained outside it. While recognising India's energy needs and its great and growing economic and political importance, I stressed Ireland's concerns about the potential impact of the US-India deal on the NPT. Useful technical discussions were also held at official level. Mr. Saran also met the Joint Committee on Foreign Affairs during his visit.

I am aware of the position taken by the Joint Committee on Foreign Affairs on this matter and have taken careful note of it. I have met with the committee to discuss this issue, most recently last November. At that time, I explained that we were carefully analysing the proposed US-India agreement in the context of Ireland's commitment to the NPT and the global nuclear disarmament and non-proliferation regime. I indicated that the issue of whether nuclear co-operation with India would undermine its core principles and obligations would be a fundamental consideration for us. I also made clear that this is not a simple process and it is made more difficult by the fact that all the elements of the proposed agreement are not yet in place. I indicated that we are consulting like-minded countries. These consultations are ongoing.

The next NSG plenary meeting is scheduled for mid-April in Cape Town. The timing of any decision by the NSG will be determined by the pace and outcome of India's negotiations with the IAEA on safeguards and the US on the bilateral agreement. Our current sense is that these two elements are unlikely to have progressed to the extent necessary for the plenary in Cape Town to take a decision. Such a decision is likely to be delayed until a meeting of the NSG later in the year.

As to the position we will take, not all elements are yet clear and we would wish to have the fullest possible information in order to make a considered judgment when the time comes. Ultimately, our final view will depend on our assessment of the potential impact of the deal on the global non-proliferation regime, the approach taken by normally like-minded countries and the overall balance of views within the NSG.

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