China signals support for India-U.S. nuclear deal

By Y.P. Rajesh

NEW DELHI, Nov 21 (Reuters) - China has indicated it will not stand in the way of a controversial Indian nuclear energy deal with the United States, the Indian government said on Wednesday, shedding its ambiguity over a pact which needs global approvals.

Beijing's stance had caused concern in New Delhi until now as the pact needs unanimous backing at the 45-nation Nuclear Suppliers Group (NSG) -- of which China is a member -- although analysts had expected it to eventually support the deal.

The Chinese comments came at talks between Premier Wen Jiabao and Indian Prime Minister Manmohan Singh on the sidelines of the 16-nation East Asia Summit in Singapore.

"The two prime ministers discussed opportunities that exist for furthering cooperation in regional and multilateral forums on global issues such as climate change and energy security," an Indian foreign ministry statement said.

"Premier Wen was forthcoming and supportive of international civil nuclear energy cooperation with India."

On Tuesday, Singh was guardedly optimistic about Chinese support for the deal, which has been slowed by domestic opposition after his communist allies rejected it and threatened to end support to his coalition if he pursued it.

Asked by journalists accompanying him to Singapore about Chinese support at the NSG, Singh, who is expected to visit Beijing early next year, replied: "Well, I think the Chinese have not said that they would not support us."

The deal aims to give India access to American nuclear fuel and reactors -- and eventually from other countries -- by lifting a ban imposed after New Delhi stayed out of the Non-Proliferation Treaty (NPT) and conducted a nuclear test in 1974.