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In the context of the ongoing international debate concerning the efficacy or otherwise of the NPT and IAEA in preventing or managing nuclear proliferation, Australia's undertaking to enter a nuclear cooperation agreement with the People's Republic of China (PRC), once identified as a “strategic competitor” of Australia's major alliance partner the United States (US), suggests that Australia's approach to proliferation issues is being re-evaluated. This paper argues, utilising an analysis of the relationship between the evolving US approach to nuclear issues and Australian policy, that the Howard government's evolving approach to nuclear issues can be characterised as an attempt to balance the competing imperatives of maintaining Australia's reputation as a nuclear non-proliferation standard bearer, regional strategic and economic considerations and the weight of the Australia-US alliance. [ABSTRACT FROM AUTHOR]