KEY POINTS:
The Government says India dealt with its most serious concerns to a "significant degree" before New Zealand gave its approval towards lifting a ban on nuclear trading.
However, it clearly had reservations and will be watching what happens closely.
India got a one-off waiver from the Nuclear Suppliers Group, which controls the export and sale of nuclear technology, in Vienna yesterday. New Zealand is a member of the NSG, which makes its decisions by consensus.
New Zealand had received praise for previously holding out - the New York Times ran an editorial headed "Let's Hear it for New Zealand".
It said what Wellington demanded was admirable given the nuclear deal itself was "deeply wrong", and that India refused to sign the nuclear Non-Proliferation Treaty and the Comprehensive Nuclear Test Ban Treaty, yet wanted a waiver from the NSG.
New Zealand had come under strong US pressure to give India a waiver, with US Secretary of State Condoleezza Rice pushing it on a recent Auckland visit.
The United States wanted the waiver to advance a 2005 US-India nuclear co-operation deal.
The US Government said the deal would forge a strategic partnership with the world's largest democracy, help India to meet exploding energy demand in an environmentally friendly way and open a nuclear market worth billions of dollars.
Prime Minister Helen Clark last night confirmed that she had spoken to US President George W. Bush about the matter on Thursday, while visiting a Paraparaumu rest home.
She had also spoken to India's Prime Minister, Manmohan Singh, about two weeks ago.
New Zealand was one of three hold-outs in the 45-member group along with Ireland and Austria. Minister for Disarmament and Arms Control Phil Goff said the decision to allow the ban to be lifted followed three days of protracted talks.
New Zealand had wanted:
* Action to be taken should India resume nuclear testing;
* For India to sign up to an International Atomic Energy Agency protocol extending its monitoring powers;
* A review of the exemption.
New Zealand also raised concerns about transfer of sensitive technologies related to enrichment and reprocessing.
Mr Goff said India had, "to a significant degree", dealt with concerns.
India repeated that it was committed to a voluntary unilateral moratorium on nuclear testing.
It also indicated support for international efforts to limit the spread of enrichment and reprocessing, and agreed to increased monitoring of civil nuclear facilities.
The NSG also said there would be constraints on transfer of sensitive exports and the exemption could be reviewed if concerns were raised.
- NZPA
