NZ heading to nuke clash with India

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New Zealand's hardline anti-nuclear policy is threatening to create a diplomatic storm with India.

Wellington later this month will determine whether India can sign it's much yearned for nuclear technology deal with the United States.

In a meeting in Vienna on Friday night New Zealand warned India and the International Atomic Energy Agency (IAEA) not to take its support for granted.

The issue could be awkward for Prime Minister Helen Clark's government which last year touted India as a close friend. 

But to support Delhi would require a climb down from New Zealand's often strident anti-nuclear and non-proliferation beliefs.

The Indian news media has named New Zealand as one of the next hurdles.

Indian Prime Minister Manmohan Singh has invested his political future in a treaty with the United States in which Washington will supply India with civilian nuclear fuel and technology. He narrow survived a confidence vote last month in push through the deal on his side. 

On Friday the IAEA, the UN's atomic watchdog, approved an inspections agreement with India that is key to finalising the nuclear cooperation deal that critics say undermines non-proliferation efforts.

The next step in getting international acceptable is the Nuclear Suppliers Group (NSG), where, despite the name, New Zealand is a key member. Its 45 member states ban trade with states, like India, that have not signed the Nuclear Non-Proliferation Treaty (NPT).

At the Friday meeting the New Zealand Ambassador to the IAEA, Jennifer MacMillan, said New Zealand did not wish to say much about the safeguards agreement with India since it was not a member of the IAEA's board of governors.

She said New Zealand would make its stand on India clear at the NSG.

The key to New Zealand's power at the NSG is that the body insists on consensus.

New Zealand would have to yield on its anti-nuclear credentials to go along with the decision to grant India approval.

Crucially India regards the NPT as "nuclear apartheid" designed to keep it from joining nuclear nations.

NSG meets on August 21 in Vienna.

Comment was not available from Foreign Minister Winston Peters.

Increasing the potential pressure on Wellington is the fact that India is pushing for a decision quickly as the nuclear deal is the product of the outgoing presidency of George W Bush. Any delay at the NSG stage could sink the deal.

The chairman of India's Atomic Energy Commission, Anil Kakodkar, remained confident that New Delhi would get clearance.

"We are of course approaching all friendly countries but we do hope that the NSG will similarly grant a clean unconditional exemption for India," he told reporters in Vienna.

"(The deal) is certainly important for India but it's also important for the world at large because I think it meets the twin objectives of energy security as well as global climate change-related issues and concerns," he said.

The national daily Hindustan Times warned that New Delhi cannot afford compliancy ahead of the NSG.

It said "hardline non-proliferationists" like Ireland, Switzerland, Austria, Norway and New Zealand now faced it.  "The latter will be almost the sole problem in the coming ... (NSG) debate," the newspaper said.

The Hindu noted the reservations expressed by New Zealand at the IAEA.

Reuters reported from Vienna that while big Western powers were pushing India toward the non-proliferation mainstream "sceptics, including smaller European and developing nations, Canada, New Zealand and disarmament groups fear it will fray loyalty to an NPT already challenged by a push for nuclear power, led by Iran, in the volatile Middle East".

Without citing countries, the Times of India noted the NSG was becoming crucial to India. 

The Australian newspaper also noted the problem ahead.

"If Australia had opposed India at the IAEA or at the NSG where, because we have the world's largest reserves of uranium, we are a significant voice, it would have been a savage blow to the Australia-India relationship," the newspaper said.

The United States assistant secretary of state Richard Boucher vowed on Sunday that they would push through "expeditiously" the NSG process.

If and when NSG ratify the deal, it then has to go before the US Congress.