Indian PM proposes nuclear energy cooperation with China

BEIJING, Jan 15, 2008 (AFP) - With a controversial nuclear deal with the United States now in limbo, India held out the possibility Tuesday of civilian nuclear cooperation with China.

Indian Prime Minister Manmohan Singh, on the last day of a visit to China, said the world's two most populous nations -- who have a decades-long history of mistrust -- should work together to develop their nuclear energy programmes.

"India seeks international cooperation in the field of civilian nuclear energy, including with China," Singh said, noting such cooperation could help the two countries meet their skyrocketing energy needs.

"The rapid growth of India and China will lead to expanding demand for energy. We have no choice but to widen our options for energy availability and develop viable strategies for energy security," he said in a speech at the Chinese Academy of Social Sciences.

He did not go into further details.

Singh's visit, the first here by an Indian premier in five years, comes as the two rising Asian giants try to strengthen ties and put their history of animosity behind them.

The prime minister made an appeal to what he called "the Asian way -- avoiding confrontation and building trust, confidence and consensus".

India has already agreed a deal for the United States to provide nuclear fuel and technology, but that has been on hold -- in part because of opposition within Singh's own administration.

China has expressed reservations over the deal, citing concerns about the proliferation of nuclear materials.

Singh, who was to meet President Hu Jintao later in the day, noted that the two nations had agreed to set a target of 60 billion dollars in bilateral trade in 2010, up from nearly 40 billion dollars last year.

"We should harness our complementarities and synergies in the areas of trade and business," he said.

"India's growing consumer market, skilled human resources, and software excellence together with China's own large market, its manufacturing prowess and cost competitiveness provide the platform for exponential growth in our economic ties."

Singh and Chinese Premier Wen Jiabao on Monday signed a broad agreement that they said would push an often testy relationship to a new level of cooperation.

The pact included a pledge to make a renewed effort to solve a Himalayan border dispute over which they fought a brief war in 1962.

"Our prime minister has stated on a number of occasions that there is enough room for the rise of both India and China," said Nirupama Rao, India's ambassador to Beijing, according to the China Daily.

Nuclear energy cooperation between the two countries could help slow the depletion of world energy resources, said Xu Liping, an international relations expert at the Chinese Academy of Social Sciences.

"The populations of India and China constitute one-third of humanity. The energy consumption of these two engines is very great, so joint development of nuclear power can help reduce resource consumption," he said.

"This could have a positive significance."