No pressure to sell uranium to India: Rice. 16/03/2006. ABC News Online

Visiting US Secretary of State Condoleezza Rice says the Bush administration will not be exerting pressure on Australia to supply uranium to India.

The US has agreed to provide nuclear technology to India to allow it to meet its growing energy needs.

But Foreign Affairs Minister Alexander Downer says Australia will not be supplying uranium because India has not signed the Nuclear Non-Proliferation Treaty.

Dr Rice, who held talks with Mr Downer in Sydney this morning, says the US respects Australia's stance.

"I think the issue of whether or not one decides to participate in fuel supplies is a quite separable issue," she said.

"It's one for the Australians to determine but not one that is at issue with the United States by any means."

China

Dr Rice also says the US has concerns about the possibility China will increase its defence budget by 14 per cent.

She says China needs to be transparent about what its increased military spending means.

"US policy on China has been consistent for the extent of this administration," she said.

"It is to try and encourage an environment where China grows, and as it grows in importance and influence, responsible in international affairs, more open towards its own people and toward the international system."

Dr Rice has also questioned China's undervalued currency and the speed of China's economic opening.

"There are reasons to be concerned about whether that really reflects an open trading policy."

Mr Downer says Australia does not believe that the US is using a Cold War-style containment policy on China.

He says China has to work with the rest of Asia.

"China as it's a growing power, as it's [an] emerging power in the region, is a country that needs to understand that brings with it a lot of responsibilities," he said.

Dr Rice will have talks tomorrow with Prime Minister John Howard, and on Saturday she will attend security talks with the foreign ministers of Japan and Australia.

In other developments:
Sydney police have arrested five people outside the Conservatorium of Music during a protest against an appearance by the US Secretary of State, Condoleezza Rice. (Full Story)
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