Asia Times: Tokyo warms to Iran, despite US



	August 14, 1999	atimes.com

Japan

Tokyo warms to Iran, despite US
By Suvendrini Kakuchi

TOKYO - Next week's visit by Japan's Foreign Minister Masahiko Komura to Iran, the first in nearly eight years, is an attempt to further Japanese strategic interests in the Middle East despite concerns in Japan that it will incur the displeasure of the US.

In Tehran, Komura will meet with Iranian President Mohammad Khatami and Foreign Minister Kamal Kharazzi. Tokyo officials say the high-level dialogue between the two countries is in response to Tehran easing its grip on dissident activities, and in recognition of the moderate policies of the Khatami administration formed in 1997.

The potential benefits for Japan of closer ties to Iran are great. With friendly loans and economic backing, Japan may well be able to add Iran to its strategic interests in the Middle East. The Persian Gulf region provides about 80 percent of Japan's crude oil imports. Iran and Saudi Arabia together are the largest suppliers, accounting for nearly 30 percent of the total.

Despite Japan's keen desire to pursue a closer relationship with Iran over the years, ties between Tokyo and Tehran have failed to develop smoothly, largely as a result of American objections. Washington has pursued a policy of ''dual containment'' against Iran and Iraq, accusing Iran of sponsoring terrorism, sabotaging the Middle East peace process and developing destructive weapons. Last year, Washington dropped Iran from its list of countries that produce and traffic drugs and also partially lifted its ban on exports by American companies to the country.

Tokyo viewed easing of restrictions - a legacy of broken US ties with Iran that were broken two decades ago over the hostage-taking of Americans in Tehran - as a green light for its own overtures towards Iran.

Japan's foreign ministry says Komura is expected to pledge the resumption of yen-dominated loans to Iran, which have been frozen since 1993 due to American objections. The last time Japan provided Iran with yen loans was in May 1993, when it extended 38.6 billion yen ($338.6 million) as the first of three installments toward the financing of a dam project in the Karun River in southern Iran. Japan suspended the next loan of 45 billion yen ($421 million) in 1994 under formidable pressure from Washington. The total pledged is 120 billion yen ($1.05 billion).

The foreign ministry has not yet said whether Tokyo will pledge the next installment during Komura's visit. But the Japanese media reports that some 6 billion in yen loans ($52.6 million) will be promised as part of the pledge.

Likewise, trade relations with Iran have been unable to develop over the last few years in the wake of weak diplomatic ties. Exports to Iran between 1996 and 1997 totalled only $800 million, with imports much higher at $3.5 billion.

Suzuki explained that isolated Iran needs greater Japanese private investment in order to boost its economy. ''With the resumption of official yen loans, Japanese private companies will begin investing more in Iran,'' he explained. In fact, Suzuki adds, Japan, the world's largest donor, is ready to go ahead with official development assistance to Iran but there remains ''lingering concern'' about the US reaction.

The economic benefits of a relationship with Iran will, however, most likely outweigh any displeasure voiced by the US. It is in the same spirit of Middle Eastern cooperation that Tokyo is looking ahead to cultivating ties with other countries, including Libya.

In May of this year, after the removal of UN-imposed economic sanctions against Libya, the Japanese government sent a signed letter from Komura to his Libyan counterpart Mustafa Muntasar expressing intention to strengthen political and economic ties.

No doubt, one reason behind the Tokyo government's rapprochement with Libya is recognition of the need for healthy ties given the approximately 23 billion barrels of petroleum reserves held by the North African nation.

(Inter Press Service)

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©1999 Asia Times Online Co., Ltd.