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N-deal with India will not trigger arms race

By Condoleezza Rice
Posted: April 5, 2006

Senator Lugar, Mr. Chairman, members of the Committee. Thank you
very much for this opportunity to come and discuss with you this indeed
path-breaking US-India civil nuclear cooperation agreement and it
obviously deserves the support of the US Senate, but we also
understand that it deserves the thorough review of the Senate before
giving that support. So that is why I'm here and I want to note that we   
are prepared to continue our discussions and our briefings to the point
that you feel that you have the information that you need to make  this
determination. Let me note that I have longer -- a fuller testimony that I
would like to have entered into the record.

India's society is open and free. It is transparent and stable. It is
multiethnic. It is a multi-religious democracy that is characterized by
individual freedom and the rule of law. It is a country with which we
share common values. India will soon be the world's most populous
nation and America's exports to India have doubled in only the past four
years. And of course, India is a rising global power that we believe can
be a pillar of stability in a rapidly changing Asia. In other words, in short,
India is a natural partner for the United States.

But for too long during the past half-century, during the Cold War in
particular, because of both domestic policies and foreign policies, India
and the United States were estranged. And one element of this
estrangement was India's complete disregard -- India's complete
isolation from the policies that the United States was concerned about
concerning proliferation of weapons of mass destruction. Now, as a
result of India's decision to have a nuclear program, to test nuclear
weapons, to build a nuclear program, as did Pakistan, India's   
adversary in that region, we adopted nonproliferation policies to try and
constrain and change Indian behavior.

But I think that it is entirely clear now that those past nonproliferation
policies did not achieve their goals. In fact, they had no effect on India's
development of nuclear weapons. They didn't prevent India and
Pakistan from testing nuclear weapons in 1998. They contributed little  
to lessening regional tensions, which brought India and Pakistan
repeatedly to the brink of war. And all of this simply resulted in a more
isolated India, especially isolated from the standards and practices of
the nuclear nonproliferation establishment that had been developing
and maturing over the last decades.

Now, let us consider the future that we could have instead. The initiative
that we are putting before you and asking for legislation to amend the
Atomic Energy Act of 1954 will advance international security, enhance
energy security, further environmental protection, and increase
business opportunities for both our countries. All of these benefits
must be viewed in this larger context, of course, of how the initiative  
itself elevates the US-India relationship to the new strategic level that  
we desire.

The initiative, first and foremost, will deepen that strategic partnership.
The United States and India are laying the foundation for cooperation  
on major issues in the region and beyond, building on and building up
our broader relationship between our peoples and governments. I was
just with President Bush in India and I can tell you that the discussion
was broad and multifaceted. It was a discussion not just between
governments, but between peoples, discussions about how to improve
agriculture in India, much as we helped to spur the Green Revolution in
India of the '60s.

We talked about the ability for India to access the new technologies to
increase its agricultural production. There were discussions about
Indian education and the desire for all of India's people to be able to
access the new knowledge-based economy that is growing so rapidly  
in India. And of course, there were discussions between CEOs of  
Indian companies and American companies, showing that this is a
broad relationship that is not just a government-to-government
relationship, but one that is fundamentally affecting our societies.

Now, in order to fully realize the potential of this vision for India, we do
have to deal with the longstanding impediments associated with civil
nuclear cooperation and we need to resolve them once and for all. We
believe that this initiative will unlock the progress of our expanding
relationship in other areas.

The initiative will clearly enhance energy security. India's a nation of  
over a billion people with an economy growing at approximately eight
percent each year. It has a massive and rapidly growing appetite for
energy. It is now the world's sixth largest consumer of energy.
Diversifying India's energy sector will help it to meet its ever increasing
needs and more importantly, ease its reliance on hydrocarbons and
unstable sources like Iran. This is good for the United States.

Secondly, the initiative will benefit the environment. Nuclear energy is,
after all, clean energy and providing India with an environmentally
friendly energy source like nuclear energy is an important goal. India's
carbon emissions increased 61 percent between 1990 and 2001; that
number is surpassed only by China. This initiative will create
opportunities for American jobs. Nuclear cooperation will provide a new
market for American nuclear firms, as well as assist India's economic
development. The initiative may add as many as three to 5,000 new
direct jobs in the United States and about 10,000 to 15,000 indirect   
jobs in the United States, as the United States is able to engage in
nuclear commerce and trade with India. By helping India's economy to
grow, we would thus be helping our own.

Finally, this initiative does strengthen the international nuclear
nonproliferation regime. I know that there has been a lot of concern
about the Nonproliferation Treaty and India's refusal to join and, indeed,
the view that India should not join as a nuclear weapon state, a view  
that we continue to hold. I want to say to the Chairman and to the
Committee that the United States values greatly the Nonproliferation
Treaty. It is one of the cornerstones of our nonproliferation policy, but of
course there is a broader nonproliferation regime as well. And we
believe that the continued isolation of our strategic partner from that
regime is the wrong policy choice. The initiative is thus a strong net  
gain for nonproliferation in general.

I must just note that the custodian of the nonproliferation regime,
Mohamed ElBaradei, has been from the very beginning a strong
supporter of this initiative and he remains so. I should note also that
Great Britain and France are strong supporters and Russia supports it
as well. Both Prime Minister Blair and President Chirac have  issued
statements in that regard.

Now, I want to take just a moment to take head on, if you will, several
criticisms that have made of the initiative. And let me associate myself
with what the Chairman said, it is a path-breaking agreement. And of
course, one always has to balance the various factors in deciding
whether or not it is worth pursuing.

We believe that the criticisms can be  addressed and I will address
them here.

First, India would never accept a unilateral freeze or cap on its nuclear
arsenal. We raised this with the Indians, but the Indians said that its
plans and policies must take into account regional realities. No one  
can credibly assert that India would accept what would amount to an
arms control agreement that did not include other key countries, like
China and Pakistan.

Second, the initiative with India does not seek to renegotiate or amend
the NPT. India is not and is not going to become a member of the NPT
as a nuclear weapons state. We are simply seeking to address an
untenable situation. India has never been party to the NPT and this
agreement does not bring – but this agreement does bring India into  
the nonproliferation framework and thus strengthen the regime.

Third, civil nuclear cooperation with India will not lead to an arms race  
in South Asia. Nothing we or any other potential international suppliers
provide to India under this initiative will enhance its military capacity or
add to its military stockpile. Moreover, the nuclear balance in the region
is a function of the political and military situation in the region. We are  
far more likely to be able to influence those regional dynamics from a
position of strong relations with India and indeed with Pakistan.

Fourth, this initiative does not complicate our policies toward countries
like North Korea or Iran. It is simply not credible to compare India to
North Korea or to Iran. While Iran and North Korea are violating their
IAEA obligations, India is making new obligations by bringing the IAEA
into the Indian program and seeking peaceful international cooperation.

Iran and especially North Korea are, of course, closed non-democratic
societies. India is a democracy. In fact, India is increasingly doing its
part to support the international community's efforts to curb the
dangerous nuclear ambitions of Iran.

In sum, the US-India civil nuclear cooperation initiative is a strategic
achievement. It's good for America, it's good for India and it's good for
the international community. I know that there is a history that we are
trying to overcome, but the time comes when you must deal with the
realities and indeed overcome that history.

President Bush and I look forward to Congress as a full partner in this
initiative. Your support for this legislation is crucial and we ask you to
lend it. Together we can seize this tremendous opportunity to solidify a
key partnership that will advance American interests, the ideals  of
peace and prosperity and liberty for which we stand.

Thank you, Mr Chairman. I very much look forward to answering the
questions of the distinguished members of the Committee. Thank you.



### ### ###

The above is the opening statement made on April 5, 2006 by US
Secretary of State Condoleezza Rice before the US Senate Foreign
Relations Committe on the US-India Nuclear Civil Nuclear Cooperation
Agreement.