NEW DELHI. Feb 1: India will sign the nuclear test ban treaty in exchange for the unfreezing of international lending, senior US and Indian officials Said Monday, reports. AP.

The officials, speaking on condition of anonymity, stopped short of declaring a breakthrough after eight months of nuclear negotiations. but applauded significant progress.

The senior US administration official said US nuclear negotiator Strobe Talbott was to meet later Monday with the ambassadors of the world's seven other leading industrialised nations to discuss progress in talks with India and propose lifting the economic sanctions.

In response to India’s nuclear tests last May. Britain. Canada. France. Germany. Italy. Japan, Russia and the United States — known collectively as the G-8 — In June froze

development loans to India as well as Pakistan. Pakistan had responded to India's tests with its own tests.

The Indian official, who also spoke on condition of anonymity Monday, said India had long made it clear it could not sign the Comprehensive Test Ban Treaty while under sanctions. Now, he said, there was movement toward the resolution outlined by the US official.

Jasjit Singh, director of New Delhi's independent Institute for Defence Studies and Analyses, said signs did appear to point to a clearer-than-ever Indian pledge to sign the CTBT. which successive Indian governments have said unfairly favours the major nuclear powers. Singh said he was concerned that India appeared ready to sign without an assurance it would have access to nuclear technology for its energy programmes that it has been

denied because the systems also have military uses.

What is the incentive for India to do all this? I think the (leaders of the) government of India should also make sure the people of India feel good about this. Otherwise, they can't get elected/iSlngh said.

Prime Minister Atal Blhari Vajpayee leads a shaky, multi-Earty Coalition whose fall has een predicted repeatedly since it took power last March. US negotiators appear to be preparing for any possible change in government — Talbott has met with opposition leaders such as Congress party president Sonia Gandhi during his visits to India.

The CTBT-for-sanctions formula recalled a breakthrough last September.- Vajpayee declared then at the United Nations that he wanted to see the CTBT come into force by this September, and Pakistani Prime Minister Nawaz

Sharif said he would sign the treaty when India did. Weeks after the UN statements, US President Bill Clinton lifted some unilateral economic sanctions against both India and Pakistan.

Last month, the International Monetary. Fund, the World Bank and other global donor agencies resumed fresh lending to Pakistan, whose already struggling economy had been much harder hit by the nuclear sanctions than had India's.

Talbott heads late Monday to Pakistan, where officials have reportedly promised new. tough legislation to control the spread of sensitive nuclear technology.

In their comments Monday, neither the US nor the India source could say exactly when India would sign the CTBT or when the sanctions would be lifted. But the US official said it could be as early mid-1999.