Another New Era

Iran welcomes expansion of ties with countries who pay attention to the realities in the Islamic Republic as well as those who follow an independent policy

The official visit paid to London by the Iranian Foreign Minister Dr. Kamal Kharrazi last January was the first by an Iranian minister since the 1979 Islamic Revolution. The groundbreaking visit came 16 months after Britain and Iran agreed to resume full diplomatic ties for the first time in over two decades. During his visit, Kharrazi met with British high-ranking figures, including Foreign Minister Robin Cook and Prime Minister Tony Blair. The two sides conferred on a number of topics that will shape mutual relations as well as the future of the region. The following account deals in detail with subjects raised in the landmark visit:

Economic relations between the two countries and Iran’s resolve to attract investments were two of the main issues discussed by Iranian and British officials during the visit. Iran welcomes foreign investments based on the law for attraction and protection of foreign investment, covering real and legal entities. These investors can bring their capital in form of cash or machinery into Iran in order to be active in industrial, mineral, agricultural and transportation sectors. They would also enjoy all facilities provided by law and can use the exemptions in the Iranian Free Trade Zones, Iranian foreign minister announced while speaking among British industrialists.
A new era has started in Iran’s economic history with the taking office of President Mohammad Khatami: The main features of this era include the Economic Rehabilitation Plan and the Third Economic, Cultural and Social Development Plan with a great emphasis on export promotion and reduction of government intervention in economy.
As announced by Kharrazi, the main focuses of Iranian economic plans are liberalization of economy and downsizing the government, while improving the efficiency and accelerating the trend of privatization.
Given the ups and downs in Iran-Britain ties, the new chapter opened by recent visit of Kharrazi to that country would be based on mutual respect and preserving bilateral interests in various sectors, including oil, gas, petrochemical, investments and trade partnership.
Iranian foreign minister believes the United Nations, through dubbing 2001 the year of dialogue among civilizations, approved some principles which the proposal embodies: détente, expansion of economic, political and social relations among world nations, trying to foster regional cooperation, promotion of global peace through collaboration and rendering help to the poor nations directly and also through international bodies.
It has been well understood by England that Iran is the focus of many issues of international importance like the Persian Gulf, Middle East, the Caucasus, Caspian Sea and South Asia. This is obvious in Robin Cook’s remarks who termed Kharrazi’s visit as “extraordinarily important” and voiced the British determination to remove the obstacles in the way of promotion of bilateral relations.
The invitation extended to Kharrazi is part of the UK government’s policy of engagement as part of a central strategy. It is to be followed by Cook paying a watershed visit to Tehran in spring, being the first by a UK minister since the 1979 Islamic Revolution. British officials say that Cook is “keen” in engaging in the dialogue among civilizations as proposed by President Khatami. In its step by step approach, Britain is also aiming to develop practical cooperation in such areas as combating drugs and assisting the refugee population.
Britain is determined to open a new change in its relations with Iran and will distance itself from any action that may jeopardize bilateral trade. British officials admitted that Kharrazi’s visit was a turning point in the improvement of Iran-UK relations. They also acknowledged that recent political developments in Iran were positive and that Iran is an important country in the Middle East region and has to play its role in different aspects, according to Prime Minister Tony Blair.
Different political, economic and cultural means to enhance understanding between the two countries should be utilized. The ghosts of the past must serve as a lesson for regulating bilateral ties in the future. Iran welcomes expansion of ties with countries who pay attention to the realities in the Islamic Republic and those who follow an independent policy, Kharrazi announced in his meeting with Blair.
During his visit to Britain, Kharrazi was accompanied by advisor to the foreign minister Kazempour Ardebili and two economic officials. The presence of the two officials was the sign of Iran’s desire to prompt foreign trade with Britain. The British press attached great importance to the visit suggesting that it was a major step toward upgrading relations.
True, both countries have opted to grow bilateral ties in the future, but it should be remembered that promotion of relations would prompt opposition or criticisms in both countries. The first step to overcome sensitivities is to admit this reality that there are always criticisms against promotion of relations between Iran and Britain. Iran and the West should hold dialogue; however, they are not expected to agree with each other in every aspect.
An indication of the mutual understanding emerged between Tehran and London is the remarks by the foreign ministers of the two countries who both stressed on cooperation in the combat against drug-trafficking.

Tehran-London Statement: Foreign ministers of Iran and Britain signed a joint communiqué at the end of their meeting in London where they emphasized on dialogue among civilizations in the international scene and the new millennium. The statement signed by both foreign ministers in British Foreign Office, stressed on improving bilateral cooperation, respecting each other’s cultural identity, combating terrorism and destroying mass-destruction weapons.
Tehran and London in their joint statement called for fostering the two countries’ relations in the field of trade, investments and also scientific and academic ties in line with the interests of both nations.

Developments: Sixteen months ago, an agreement reached between the two countries based on which the Islamic Republic of Iran and Britain decided to resume full diplomatic ties. Following the steps taken by some European countries to improve relations with Tehran, the ties with London also took a new shape despite the cautionary measures taken by the two sides.
Kamal Kharrazi’s visit to London and the upcoming visit by Robin Cook to Tehran are practical steps aimed at development of relations. These steps follow a series of developments in Iran-Britain ties:
September 2, 1998: On the sidelines of the UN General Assembly in New York, the British Foreign Secretary visited his Iranian counterpart and announced that the two sides had reached agreements to resume full diplomatic ties, the first such agreement after the 1979 Islamic Revolution.
October 1: Robin Cook announced in Labour Party conference that Britain would establish a new start in its relations with the Islamic Republic.
October 8: Cook said the West had to cope with Islam as a friend and it was time for the European Union to enter into dialogue with the Organization of the Islamic Conference (OIC), chaired by Iran.
October 23: Britain announced that it would adopt a more flexible policy for guaranteeing Iranian projects.
November 11: A Foreign Office minister said his country decided that Iran should play its role as a major regional power again.
November 14: Officials of 17 British oil companies traveled to Iran.
February 4: Foreign Office Minister Derek Fatchett said England committed itself to exchanging ambassadors with Iran despite a four-month delay.
February 22: The Canterbury bishop announced he accepted an invitation to Iran.
February 28: A delegation from Iranian-British Chamber of Commerce visited London.
March 2: Brian Wilson, British deputy trade minister, told that England was after the expansion of relations with Iran.
March 25: Britain overlooked the arms embargo against Iran by providing the country with 1020 bulletproof vests for anti-narcotics forces of Iran.
April 15: Cook said in an Easter dinner party that promotion of Iran ties would serve as a prelude for better understanding between Europe and the Islamic world.
May 18: Iran and Britain exchanged ambassadors. Diplomatic relations was at charge d’affairs level earlier.
May 20: Foreign Office Minister John Battle held talks with Mehdi Husseini, Iranian deputy oil minister in London, about the prospects of oil projects in Iran.
May 24: Britain announced that the British state-run insurance company would cover some oil projects in Iran.
June 3: An official of Export Credit Guarantee Company visited Imam Khomeini Port in relation with the insurance coverage for the petrochemical project there.
July 30: Robin Cook affirmed British willingness for ‘dialogue among civilizations’ proposed by President Mohammad Khatami.
August 17: Despite the promotion of diplomatic ties between Iran and Britain, trade relations between the two countries reached its lowest level. That was while the British Foreign Office said it would persuade British companies to invest in projects across Iran.
September 16: A delegation comprising 20 British companies visited Iran. The visit came after 30 CEOs traveled to Iran in June and 70 British companies participated in a fair on oil and gas in April.
September 21: Kamal Kharrazi and Robin Cook in a meeting on the sidelines of the UN General Assembly agreed to exchange visits at ministerial level.
Another significant development was the acknowledgment by Robin Cook that London made a mistake in supporting former Shah of Iran before the Revolution.
Foreign Office Minister Peter Hain told Islamic Republic News Agency that during the reign of Shah, Britain played an incorrect role in supporting him.
October 12: The head of Iran-Britain Chamber of Commerce warned the British government in a trade conference that no basic steps were taken to improve ties with Iran.
November 8: Peter Hain told IRNA that exchange of ministers between the two countries would be a great stride toward the improvement of ties.
November 14: Royal-Dutch Shell won a $800-million tender for a project to develop Iranian Nowrooz and Soroush oil fields. A parliamentary delegation comprising MPs from all parties visited Tehran after 12 years.
November 17: Iran-Britain Chamber of Commerce in form of an 18-man group visited Tehran. Export Credit Guarantee Company admitted that it had reached an agreement in principle with Iran regarding the insurance coverage for a project in this country.
November 23: Cook said in the House of Commons that Britain should establish constructive relations with Iran.
November 28: A prominent British diplomat visited Tehran and suggested that mutual cooperation in the field of refugees and drug combat be expanded.
The chronicle of Tehran-London ties speaks for itself. A will on both sides is needed to continue this improvement thereby benefiting many nations.