FOREIGN Minister Alexander Downer will ask cabinet to approve the export of Australian uranium to India in a submission to be considered by the Government within weeks.
The Australian reports that cabinet's National Security Committee will shortly consider a submission from Mr Downer that would allow Australia to sell uranium to India despite the nation not being a signatory to the international Nuclear Non-Proliferation Treaty.
The move, which has been strongly backed by John Howard, will almost certainly be opposed by federal Labor and create a wedge between John Howard and Opposition Leader Kevin Rudd ahead of the federal election.
Labor has traditionally argued that selling uranium to India would undermine the NPT.
The Government believes the politics of this position will become increasingly difficult for Mr Rudd, who will be seen as standing against India, the US and the Australian uranium industry, which would profit from the burgeoning Indian market.
The Prime Minister is reported to have told colleagues that the public cannot understand why Australia exports uranium to China but refuses to export it to India.
India has an impeccable record of never having proliferated nuclear technology to anybody else, but China has been accused of complicity in the exporting of nuclear technology.
India desperately needs assured supplies of uranium to provide fuel for nuclear reactors that will generate energy to drive its economic boom.
The 14 nuclear power plants used for peaceful purposes in India contribute only four per cent a year to the country's electricity needs.
But there are plans for a massive increase in atomic power generation aimed at reducing India's reliance on polluting fossil fuels and generating electricity to drive factories.
The Australian reports that Mr Downer's submission has been finalised but has been awaiting the outcome of long-running negotiations on a nuclear co-operation deal between the US and India, which were concluded yesterday.
Under the US-India deal, India's nuclear power stations, which are designated as part of the peaceful energy program, will come under the supervision of the International Atomic Energy Agency.
US officials regard this as a great step forward in the cause of countering potential nuclear proliferation.
The US-India nuclear negotiations, first mooted by US President George W. Bush and Indian Prime Minister Manmohan Singh in March last year, yesterday received approval from India's cabinet.
The agreement would pave the way for civilian nuclear co-operation with the US and give India access to US nuclear fuel and equipment for the first time in 30 years.
The pact now has to be approved by US Congress, while India needs to get clearances from the Nuclear Suppliers Group of nations that govern global civilian nuclear trade and also conclude an agreement to place its civilian reactors under UN safeguards.
But Canberra will not need to wait for full ratification by the US Senate and Indian parliament to proceed.
In March last year, just before Mr Howard visited India, Mr Singh, in an exclusive interview with The Australian, signalled he would seek Australian support for the US-India deal.
In a separate development the Howard Government has failed to have India admitted to APEC at this year's meeting in Sydney. Canberra argued strongly for India's inclusion, but Washington opposed it.
The US believed that if India joined it would be necessary to allow one other Southeast Asian nation, probably Cambodia, and one other Latin American, probably Colombia, to join as well to maintain the regional balance and secure broad acceptance for APEC's expansion.