San Jose Mercury News
Wednesday, July 20, 2005

Editorial: Closer to India: NUCLEAR DEAL SIGNALS A WELCOME WARMING TREND 

President Bush opened the door to closer relations with India this week, when the administration agreed to allow India to obtain nuclear fuel to meet its growing energy demand. 

Silicon Valley, which is joined at the hip with Bangalore through commerce, will benefit from improved diplomacy between Washington and New Delhi. 

The agreement between Bush and Prime Minister Manmohan Singh is not without risk. India had faced sanctions because it, Pakistan and three other countries had refused to sign the Nuclear Non-Proliferation Treaty, which grants access to peaceful uses of nuclear energy in exchange for relinquishing nuclear arms. Dropping the ban on nuclear fuel for India may signal to other nations that signed the treaty that they too might be able to get away with developing nuclear weapons. 

But foreign policy often involves balancing conflicting goals. Bush made the right priority in recognizing that America's long-term interest is in cementing bonds with an emerging economic power that is also the world's most populous democracy. 

Diplomatic ceremonies underscored the new era of good feelings. Bush, who openly disdains Washington pomp, hosted a black-tie dinner for Singh, the first big social event in nearly two years for a head of state. Tuesday, Singh spoke before a joint session of Congress, a rare honor for a foreign leader. 

The cultural and economic connections between American and India are strong, particularly in Santa Clara County, where Indo-Americans make up 4 percent of the population, one of the largest concentrations in the nation. 

Most major Silicon Valley companies have operations in India. The communications and connections are seamless and growing, with benefits overriding a one-way outsourcing of U.S. jobs. America is the largest investor in India, and Indians represent the largest number of foreign students in U.S. colleges and universities. 

But university and corporate ties aside, frictions between the capitals remain. One is the bomb. 

India isn't yet willing to stop its nuclear-arms program. But under the agreement with Washington, it will permit inspectors to monitor its civilian reactors and pledge to keep its arms technology to itself in exchange for fuel. Assuming that stipulation satisfies Congress, which also must give its consent, other barriers will soon fall, including the ban on another valley export: supercomputers. And stable relations will attract U.S. venture-capital investment for large-scale infrastructure development that India needs to capitalize on its educated workforce. 

Singh had sought Bush's blessing on India's pursuit of permanent membership on the U.N. Security Council. He didn't get it. The administration opposes India's plan to build a gas pipeline through Pakistan to Iran. India isn't budging. Looking ahead, the administration would like India to serve as a counterweight and an ally to a potential threat of China. India steers clear of alliances. 

But both nations understand that mutual interests will outweigh differences in the long run. And that will mean even stronger ties in Silicon Valley.