China premier backs India boosting nuclear energy

CANBERRA, Mar 30 (Reuters) China backs India's peaceful nuclear energy plans but wants nuclear weapon states to honour their obligations under the Nuclear Non-proliferation Treaty, Premier Web Jiabao was quoted as saying today.

''India is a friendly neighbour of China and we do not object to its developing nuclear energy for peaceful purposes and co-operating with other countries in nuclear power generation,'' Wen told The Australian newspaper in an interview.

''At the same time, we take the position that relevant parties should honour their obligations they have undertaken as parties to the non-proliferation treaty,'' he told the newspaper ahead of his visit to Australia.

The NPT obligates the five nuclear-weapon states -- the United States, Russia, United Kingdom, France, and China -- not to transfer nuclear weapons, other nuclear explosive devices, or their technology to any non-nuclear-weapon state and to those which haven't signed the treaty.

China has signed the NPT but India hasn't. Both want to buy uranium from Australia for nuclear energy to fuel their growing economies. Australia has more than 40 percent of the world's known reserves of uranium.

Before Australia will export uranium it not only requires countries to have signed the NPT, but to also agree to a bilateral safeguards deal. China and Australia hope to sign such a deal during Wen's visit to Canberra on Monday.

India signed a deal this month with the United States under which New Delhi has agreed to separate its military and civil nuclear facilities and open the civilian plants to inspections, in return for nuclear fuel and technology.

Australian Prime Minister John Howard has said he supports the U S deal with India, and is sending officials to New Delhi to find out more, but Australia is not considering changing its strict uranium trade policy.

Wen said Beijing is also in talks with Washington on nuclear energy cooperation, but gave no details.

China is expected to build 40 to 50 nuclear power plants over the next 20 years, while India -- which conducted a nuclear test in 1974 and again in 1998 and declared itself a nuclear weapons state -- is looking to boost its nuclear power industry, which currently accounts for only three percent of energy production.

The nuclear issue has highlighted differences between close allies Australia and the United States, with Canberra seen to be embracing Beijing while Washington remains wary and has questioned China's military and economic ambitions.

''It is true that there are differences between China and the U S, but they are not antagonistic or confrontational in nature. There is an extensive fusion of interests between China and the US in many areas,'' Wen told The Australian in Beijing.

''We should be able to resolve the differences through dialogue and consultation on an equal footing and by expanding common ground while shelving difference. When we do this, we can ensure continued steady and sound growth of China-U.S. relations.'' Wen said there were more areas where China and the United States could cooperate like North Korea and Iran's nuclear ambitions, the Middle East, anti-terrorism and non-proliferation.

REUTERS SK RN0744