As India and the United States continued intense talks to conclude the nuclear deal, President George W Bush [Images] has expressed hope that an agreement will be reached on the separation issue during his visit to New Delhi [Images] next week, observing that it is not an 'unrealistic request.'

India-US nuclear deal is on track

He emphasised the importance of encouraging and aiding India in the civilian nuclear programme, stating that development of alternative energy sources in the country will enable a check on rising oil prices.

"First thing is to go to India and hopefully reach an agreement on separation, and then bring that agreement back and start selling it to the Congress," Bush, who embarks on a three-day visit to India from March one, told two Indian journalists in Washington.

The real deal on the India-US deal

"But we cannot bring anything back until we have the agreement," he said, adding, "That is happening now."

Appreciating Prime Minister Manmohan Singh [Images] for his 'courage' in 'laying out a way forward' by signing with him the nuclear deal on July 18 last year, the US President said, "There is a spirit of goodwill and cooperation (between the two countries)."

During the interaction, Bush spoke on various issues like the need for a solution to the Kashmir issue that will be acceptable to all, including people of the state, India's candidature for permanent membership of United Nations Security Council, and Iran's nuclear programme.

Special: Bush's security stuns Indians

Talking about the separation of civilian and military nuclear programmes to be undertaken by India, Bush said, "This will be confidence-building measure that we do not believe is an unrealistic request."

Noting that the Nuclear Supplier Group and International Atomic Energy Agency will have to endorse the deal, he said it was in India's interest to do so (separation) as it pertained to civilian nuclear power industry. "It will give confidence to people. It will make it easier for the US to work with India," he said.

'Respect concerns of nuclear scientists'

Asked whether he recognised India as a responsible nuclear nation, Bush said, "I do, particularly when they signed the IAEA safeguards. And they have a separation between their military and their civilian nuclear parts of their government."

It was in America's interest to encourage India and aid it in its development of a civilian nuclear power programme, he told Times of India and Dainik Bhaskar newspapers.

"The American people are beginning to see high prices of energy, but so are the Indian people. And the reason is that there are growing economies - ours, India's, China's - which is adding to global demand for energy," he said, adding, "When demand outstrips supply, you see price."

'The nuclear deal was India's idea'

He said one way to help deal with the price issue in America and India was to develop alternative ways to power homes and businesses, as well as automobiles.

The US President said he was in favour of lifting restrictions on visas for highly qualified persons wanting to come to America but did not mention specifically the H1B programme under which the administration is trying to have the caps set by Congress increased.

Referring to Iran, Bush said with nuclear weapons, the country will destabilise the world and stressed that those who are for peace and stability must work in concert (to prevent it from acquiring the nuclear weapons). He said he will discuss the issue 'carefully' with Dr Singh.

Time to redeem or reject nuclear deal

"There is a consensus in the world and that consensus is that an Iranian government that has declared that Israel should not exist, for example, and if it were to have a nuclear weapon, would be danger to all of us. And I will continue to make that point with the prime minister," Bush said.

Asked about nuclear proliferation originating from Pakistan, particularly A Q Khan, the US President said the network was exposed by the US and Britain. "And we, of course, want to know as much about the A Q Khan network as possible," he said, adding "Had it not been for the US intelligence, coupled with British intelligence, this network never would have been exposed."

Complete Coverage: Dr Singh at the UN

Asked why the US was not backing India's candidature for permanent membership of the UN Security Council, Bush said, "We support a UN Security Council reform. But we think it ought to happen after other institutions within the UN become reformed."

"We have said to all parties concerned, I fully understand the Indian position, just like other nations, that we will take your case under consideration. But first things first."

Also see: rediff's coverage of the Indo-US nuclear tango