Australia poised to sign nuclear deal with US

by Maireid Sullivan | July 22, 2007 at 01:55 am

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Anne Davies, Washington
July 20, 2007

AUSTRALIA is negotiating a major deal with the United States to co-operate on development of a nuclear energy industry.
According to draft plans seen by The Age, Foreign Minister Alexander Downer and Resources Minister Ian Macfarlane want the deal announced when US President George Bush comes to Australia in September for the APEC leaders' summit.

The deal could advance Prime Minister John Howard's push for Australia to embrace nuclear power, including providing access to the latest technological advances.

"The proposed action plan would help to open the way for valuable nuclear energy co-operation with the United States," a briefing note says.

"It would also be consistent with the Government's strategy for the nuclear industry in Australia. An action plan on nuclear energy would also have bilateral advantages further broadening our relationship with the United States.

"While the US has not raised the possibility, the action plan
may be a possible 'announceable' for President Bush's visit in
September."

But the proposal appears to stop short of recommending Australia
sign up with the controversial club of nuclear nations, the Global
Nuclear Energy Partnership (GNEP), being championed by Mr Bush.

An initiative of Washington, the GNEP is seeking to control the
distribution, reprocessing and storage of nuclear fuel around the
world. Member nations include Russia, China, the US, Japan and
France.

Mr Bush has said the initiative is central to tackling climate
change, and that its aim is to ensure the safe growth of the
nuclear industry while limiting the risk of proliferation of
nuclear material for weapons.

US officials have indicated that Australia's status as a
"totally reliable and trustworthy" nation could allow its inclusion
in the plan as a fuel supplier.

But the proposal is controversial for Australia partly because
storage of nuclear waste by GNEP partners is an integral part of
the arrangement.

The Federal Government has repeatedly said Australia will not
take other countries' waste.

The GNEP countries met in Washington in May and agreed to work
on plans that control the supply of all nuclear fuel and its
reprocessing and waste disposal. Non-partnership countries would be
leased fuel only if they complied with the nuclear
Non-Proliferation Treaty.

Australia, the world's biggest exporter of unprocessed uranium,
and Canada, another big supplier, have expressed interest in
GNEP.

But GNEP is seen by some developing nations as highly divisive,
and Australia's membership could alarm neighbours including
Indonesia.

It would also rekindle heated debate in Australia over the
development of nuclear power, and would inevitably raise the
spectre of a nuclear waste dump.

Officials working on the US-Australia initiative flag this
concern in their note, saying that signing "a joint nuclear energy
action plan would be on the basis that this would not limit
possible future choices regarding Australia's nuclear industry. It
will be important also to ensure there is no misperception on the
United States' part that conclusion of an action plan could have
implications for the Government's policy of not taking other
countries' radioactive waste or spent nuclear fuel."

A US Energy Department spokeswoman, Angela Hill, said: "The
vision of GNEP is something we would hope Australia and other
countries can support."

A spokesman for Mr Downer confirmed that discussions on an
agreement were under way, focusing on safeguards and research and
development.