OTTAWA - The Conservative government has tarnished Canada's longstanding stature as a non-proliferation advocate in its pursuit of the rich commercial possibilities of nuclear trade, say critics.

Now it must ensure it doesn't compound the problem.

Having lost the main battle over allowing India back into the global nuclear fraternity, peace activists hope Canada drives a hard bargain on sales to the nuclear-armed state.

"Given that Canada is going to pursue nuclear co-operation with India - and that's now inevitable - there are some very basic non-proliferation conditions that I think should still be put on those arrangements," Ernie Reghr of Project Ploughshares said Friday.

International Trade Minister Stockwell Day wrapped up a four-day trade mission to India this week and announced the two countries are very close to a formal deal on nuclear transfers.

Atomic Energy of Canada Ltd., the government-owned Crown corporation, has already signed a memorandum of understanding to explore reactor sales. Saskatchewan-based Cameco Corp. is poised to sell uranium to India.

The trade possibilities opened up when the 45-member Nuclear Suppliers group - of which Canada is a member - agreed last September to lift a 34-year moratorium on nuclear transfers to India.

But before any Canadian commercial transactions can go ahead, Day said in interview this week, "we will have a nuclear co-operation agreement in place and everything that India does has to comply with the International Atomic Energy Agency."

Day, who served as public safety minister in the Conservative government until Oct. 30, said he put "safety and security first" in the trade negotiations.

But activists argue that no matter what safeguards Canada puts in place, civilian nuclear aid to India, by definition, frees up domestic Indian capacity for its military program.

"That's the battle that we lost when the (Nuclear Suppliers Group) agreed to the exemption," said Regehr, echoing sentiments expressed by governments from New Zealand to Sweden.

"And it's a very serious loss."

Regehr would like to see a written commitment that India won't test another nuclear bomb, verifiable limits on India stockpiling uranium and airtight, forward-looking bans on enrichment technology transfers.

"There's no implication that Canada's uranium would go to the weapons program," said the non-proliferation expert. "It would go only to safe-guarded facilities. But there's nobody monitoring where the domestic (Indian uranium) goes."

Under the international moratorium, India had to choose between feeding civilian energy or military programs.