Rice praises India nuclear trade waiver

ALGIERS (Reuters) - Secretary of State Condoleezza Rice hailed a decision to lift a global ban on nuclear trade with India but said time was short to get a U.S.-India nuclear accord approved by Congress.

The 45-member Nuclear Suppliers Group (NSG), meeting in Vienna, adopted a one-off waiver proposed by the United States allowing atomic business with India even though it has not signed the Non-Proliferation Treaty and has tested nuclear devices.

The waiver was crucial for the Bush administration to seal an atomic energy deal with India before a new president enters the White House in the New Year.

"The India deal is landmark," Rice told reporters traveling with her on a tour of North African countries.

"It's a really very big step forward for the non-proliferation framework," she said, adding it was also a "huge step" for U.S.-Indian relations.

The waiver follows tough negotiations in which several small NSG states agreed under heavy U.S. pressure to weaker language than they had sought to ensure India does not test atom bombs again.

Rice said she had made a lot of calls in recent days to try to get the NSG to issue the waiver. A senior U.S. official said Rice had called China early on Saturday to seek to convince its government to sign on to the waiver.

The U.S. Congress must now ratify the deal with India before adjourning later this month for elections, or it will be left to an uncertain fate under a new U.S. administration.

Rice said she hoped Congress would approve it.

"The Congressional calendar is short. The main thing is that the international work is now done," Rice said. "I certainly hope we can get it through."

She said more work was needed to get the backing of Congress and she planned to speak to the relevant committee chairs to help smooth the way.

"We understand that time is very short," she said.

"We will just have to see whether it is possible for Congress. In any case we will have left a very good package and I hope it would be taken up (by the next U.S. administration)."

Washington says the fuel and technology deal would forge a strategic partnership with the world's largest democracy, help India meet rising energy demand without aggravating climate change and open a nuclear market worth billions of dollars.

(Reporting by Sue Pleming; Editing by Janet Lawrence)