Saturday, September 27, 2008

House of Reps to vote on Indo-US nuke deal tonight


The House of Representatives has wrapped up the 40 minute debate on the bill on the Indo-US nuclear deal since the voting on the bill will take place later tonight.


Meanwhile, Senate Majority leader Harry Reid has indicated that the legislation on the subject in the upper Chamber will be taken up and passed only next week.

However, support for the nuclear deal came from House Foreign Affairs Committee Chairman Howard Berman.

A known opponent of the deal, Berman, supported the Senate version of the Bill saying the deal is a positive step as it will bring India into the non-proliferation regime.

House Foreign Affairs Committee Chairman Howard Berman, a known opponent of the deal, supported the Senate version of the Bill saying the deal is a positive step as it will bring India into the non-proliferation regime.

Fellow Democrat Edward Markey, who lead the charge on behalf of those opposed to the Bill, insisted on a recorded vote at the end of the debate following which the voting was postponed and it is now expected to be taken up on Sunday.

"I'm a strong advocate of closer US-India ties, including peaceful nuclear cooperation. I voted for the Hyde act which established a framework for such cooperation. The bill before us today will approve the US-India agreement for peaceful nuclear cooperation," Burman said.



"Integrating India into a global nonproliferation regime is a positive step," he said, adding Bush Administration has assured him they will push for an NSG decision prohibiting the export of enrichment and reprocessing equipment and technologies to states that are not party to Non-Proliferation Treaty (NPT).



Fellow Democrat Ellen Tauscher, however, disagreed maintaining that the Bill flies in the face of decades of American leadership to contain the spread of the weapons of mass destruction.



"The India deal would give a country with a dismal record of nonproliferation all the benefits of nuclear trade with none of the responsibilities. India has been denied access to the market for three decades and for good reason."



"India is not a signatory of the nonproliferation treaty and has not agreed to disarmament or signed the treaty," Congresswoman Tauscher said.



The debate on the House floor brought out law makers along expected lines in supporting and opposing the revised Bill introduced by Chairman Berman, who had reservations over the deal and is understood to have brought the second version after senior Bush Administration officials talked to him on the need for early nod to the civil nuclear initiative.



However, the Congressman said he still has concerns about ambiguities in the agreement and that several documents should be inserted to clarify these.



"These documents constitute key and dispositive parts of the authoritative representations described in section 102 of this bill which gives the right to disapprove a presidential decision to resume civil nuclear cooperation with any country, not just India, that tests a nuclear weapon.



"It will also ensure that India takes the necessary remaining steps to bring its IAEA safeguards agreement fully into force and include an additional protocol...I will be voting for H R 7081," the senior Democrat said at the end of his opening statement.



Ranking Republican on the House Foreign Affairs Committee Ros Lehtinen also voiced support for the legislation.



"The US-India nuclear cooperation agreement is not one we would offer to just any nation. It is a venture we would enter into only with our most trusted, democratic allies. I believe that stronger economic, scientific, diplomatic and military cooperation between the US and India is in the national interest of both countries," the Florida Congresswoman said.



"... this nuclear cooperation agreement is essential in continuing to ensure India's active involvement in dissuading, isolating, and if necessary sanctioning and containing Iran for its efforts to acquire chemical, biological and nuclear weapon capabilities," Ros-Lehtinen said.



A strong supporter of India and currently the Chair of the Sub Committee on Middle East and South Asia Democrat Gary Ackerman strongly supported the Bill.



"It (the approval of the deal) means the IAEA will be able to inspect two-thirds of India's nuclear facilities because those will be under safeguards and all civilian nuclear facilities will also be under safeguards. For the first time ever India will commit to guidelines and will adhere to the NSG guidelines," Ackerman said.



The deal will send a clear message to "rogue states" that responsible nuclear powers are welcomed by the international community, the former Co-Chair of the Congressional India Caucus on India and Indian Americans said.



"India would pursue its national interests as it's been doing outside of the nonproliferation mainstream and we get to inspect nothing. The other is to make a deal with India and the US and the international community will get a window in perpetuity into two-thirds of India's nuclear facilities...”



"The choice is clear, it's time for 21st century policy toward India and encourages India's growth as a nuclear power and solidifies our relationship for decades to come," the New York Democrat said.


But another Democrat from California Lynn Woolsey cautioned the agreement will permanently undermine decades of nonproliferation efforts.



"It sets a frightening precedent. If a country is unhappy about the rules of nuclear possession, it can simply go around them, breaking them."

"And what does it matter India ignored the international agreement? Any sanction? Any punishment? Nope. Just a lucrative deal with the US. If we approve this deal, we lose our moral high ground," she added.





For most part of the debate, the support for the Bill came along bi-partisan lines.



Massachussetts Democrat Markey, the top opponent of the Bill, questioned not only the judgement of Bush administration in going for the deal but also the non-proliferation gains.



"Most people think this is a debate about India. It is not. This is a debate about Iran, North Korea, Pakistan, Venezuela, about any other country in the world that harbours the goal of acquiring nuclear weapons. With this vote, we are shattering the nonproliferation rules, and the next three countries to march through the broken glass will be Iran, North Korea, and Pakistan," Markey said in closing comments.



"This is an all out nuclear arms race. Pakistan will respond. That is what President Bush should be working on, not fueling it, but trying to negotiate an end to it," he said.



A prominent supporter of India South Carolina Republican Joe Wilson argued a vote in favour of the nuclear deal will be a "giant step forward" in strengthening America's partnership with the people of India.



"... the two nations have a vested and shared interest in expanding opportunities to compete in the global economy. US chamber of commerce has estimated that this civilian nuclear agreement will create as many as 250,000 high-tech jobs right here in America," Wilson said.



California Republican Ed Royce called the Hyde Act as a tremendous foreign policy achievement of the 109th Congress but added the "failure by this congress to push this agreement across the finish line would be foreign policy malpractice".



"The Indian nuclear industry will overcome international restrictions and will reach their full potential to do this. Opposing this won't effect India. It will only hurt our relationship with India and US interests... other countries, notably France and Russia, can enter the Indian nuclear market with a potential USD 100 billion investment," he said.

Sensex plunges by 940 pts on global financial crisis






The delay in passage of a US bailout package for ailing financial markets and shut down of America's second largest bank caused a global meltdown with Indian bourses crumbling by a huge 940 points, biggest point-wise fall in the last 25-week, in the week under review.


Even as the US administration continued its debate on a USD 700-billion rescue package for the shattered financial system, the on-going credit crisis claimed yet another victim leading to across the board sell-off in the stock markets.



The US regulators on Thursday seized the 119-year-old Washington Mutual Inc, a leading savings and loan bank in the US, and sold its banking operations to JP Morgan Chase for 1.9 billion dollars.



In the week to 27th September, the Bombay Stock Exchange 30-share barometer tumbled by 940.14 points or 6.70 per cent to end the week at 13,102.18 against its last weekend's close.



Similarly, the broader 50-share Nifty of the National Stock Exchange nosedived by 260 points or 6.12 per cent to close the week at 3,985.25 from its last weekend's close.



Analysts said political squabbling blocked the potential deal on a bailout proposal, on which investors globally have pinned their hopes for revival in the markets.



Domestic markets witnessed a relief rally on Wednesday as the bellwether Sensex recovered by about 122 points on some short-covering of positions ahead of the expiry of derivatives series on Thursday.



Investors looked unwilling to carry forward their long positions in the light of lingering worries about an imminent US economic slowdown even as the first-time jobless data in America jumped to its highest in seven years, pointing to a recession.



IT and realty sectors were under tremendous pressure on concerns about the US recession leading to a global slowdown.



The equity markets witnessed heavy capital outflows as Foreign Institutional Investors pulled out nearly 2.0 billion dollars in September following the on-going credit crisis.



Ranbaxy Lab registered a large fall of 23.67 per cent on reports that the Canadian drug regulator expressed caution about the company's drug marketing applications after the US drug regulator blocked sale of more than 30 generic medicines.



Heavy-weights such as Wipro, Satyam Computers, DLF, TCS, Infosys Tech, HDFC, Hindalco, SBI, Maruti Suzuki, BHEL, Tata Motors, ICICI Bank and Jaiprakash Associates tumbled by about nine to 18 per cent.



Except the BSE FMCG index, which closed in the green, all other indices on the BSE and NSE registered losses in a range of 4.0 to 12 per cent.



The broad-based BSE-100 Index tumbled by 451.63 points or 6.20 per cent to end the week at 6,834.14 from 7,285.77.



The BSE-200 Index and the Dollex-200 were also quoted sharply lower at 1,590.58 and 569.61 at the weekend compared to last weekend's close of 1,695.81 and 611.44 respectively.



On the NSE, the S&P CNX Defty slumped by 224.30 points or 7.03 per cent to close the week at 2,965.50 from 3,189.80 last weekend and the CNX Nifty Junior also finished the week sharply lower by 428.85 points or 6.51 per cent to 6,162.70 from 6,591.55.

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