India, Iran discuss trilateral cooperation with Afghanistan; issue of oil payments nowhere near resolution

From left: Nirupama Rao, foreign secretary of India; Mohd Ali Fathollahi, Iran's deputy foreign
minister for Asian and Asia-Pacific affairs; and Ali Akbar Salehi, foreign minister of Iran

New Delhi

6 July 2011

Foreign secretary Nirupama Rao discussed trilateral cooperation among India, Iran and Afghanistan in her talks in Tehran, signalling a movement beyond mere articulation of positions to possibly a structured consultation on the situation in Afghanistan.

Ms Rao called on foreign minister Ali Akbar Salehi on Tuesday and held talks with deputy foreign minister for Asian and Asia-Pacific affairs Mohd Ali Fathollahi. She met with Saeed Jalili, secretary of Iran's supreme

national security council, on Wednesday.

The situation in the Arab world, anti-piracy cooperation and consular issues were among other issues that Ms Rao discussed in her talks with Mr Fathollahi, who first mooted the trilateral cooperation during his visit to India in August 2010.

Ms Rao's visit to Iran followed that of national security adviser Shivshankar Menon in March, on the eve of the Persian New Year.

Prime Minister Manmohan Singh has shied away from visiting Iran but an opportunity could present itself in 2012 when Iran hosts the NAM Summit.

Foreign secretary Nirupama Rao with Saeed Jalili, secretary of Iran's supreme

national security council

Ms Rao's visit comes amid India's continuing search for an amicable solution for crude-oil payments to Iran. Iran has been selling crude to India on credit (the outstandings are over Rs 4,400 crore) since December 2010, when the Reserve Bank of India discontinued the practice of routing payments through a regional clearinghouse called the Asian Clearing Union in view of the US sanctions on Iran.

India switched to the services of the German-Iranian Europaish-Iranische Handelk AG (EIH) bank based in Hamburg but the European Union's sanctions against the bank in May forced Germany to terminate the facility. Petroleum and natural gas minister Jaipal Reddy has said that efforts were being made to ensure uninterrupted oil supplies from Iran. Iran is India's second largest source of imports after Saudi Arabia.

Ms Rao's visit came a year to the day since her July 5, 2010 speech in New Delhi in which she spoke about India pursuing its ties with Iran independent of the US, making accelerated efforts" to complete infrastructure projects, and how India was "justifiably concerned that the extra-territorial nature of certain unilateral sanctions recently imposed by individual countries" could adversely affect India's energy security.

The bilateral ties have remained in disrepair since 2005 when India voted against Iran in the IAEA.

Iran spoils maiden flight of German Chancellor Angela Merkel's new plane

New Delhi

31 May 2011

German Chancellor Angela Merkel's visit to India made headlines even before her aircraft landed in New Delhi Tuesday morning. Iran first refused permission to the Airbus A-340 "Konrad Adenauer", Germany's equivalent of the US' Air Force One, for flying over its airspace but later relented, delaying her arrival in New Delhi by two hours.

She more than made up for the avoidable distraction by immediately plunging headlong into the talks with Prime Minister Manmohan Singh in which she reaffirmed Germany's 10-year-old strategic partnership with India; inked four pacts to expand bilateral cooperation in areas such as vocational education and training, science and technology, and research; and exchanged views on a wide swath of issues such as trade, counter-terrorism, Afghanistan, Pakistan, and reform of the United Nations security council (UNSC), which Germany and India are spearheading along with Brazil and Japan.

While Prime Minister Singh was "in agreement" with Ms Merkel on the need for UNSC reforms and he shared similar views about regional peace and security, some divergences were discernible in their positions on issues such as the way forward in Libya, whether a non-European should head the International Monetary Fund (IMF), and nuclear energy.

Ms Merkel, whose government announced plans Monday to shut down all nuclear power plants in Germany by 2022, wants the focus to shift to renewable sources of energy in the wake of Japan's Fukushima disaster. For his part, Prime Minister Singh insisted that making use of nuclear energy, together with maximum possible emphasis on renewables, was a combination India needed if it was to meet its emission targets.

However, the differences did not dissuade Ms Merkel from offering to partner with India in nuclear safety and green energy. Defence and security dialogue was progressing satisfactorily, too. Indian counter-terrorism officials were expected to meet with their German counterparts in September to discuss operational matters, including, but not limited to, equipment and technologies. Also, external affairs minister SM Krishna would participate in the Bonn conference on Afghanistan in December.

From Germany's perspective, the contract for the sale of multi-role aircraft to the Indian air force will be of considerable significance given that the Eurofighter Typhoon is one of two aircraft on New Delhi's shortlist. Speaking at a joint press conference with Prime Minister Singh, Ms Merkel said, "With the Eurofighter we have made good proposals and want to intensify our relationship with India. The Eurofighter is the best product on offer".

Incidentally, the diplomatic standoff between Iran and Germany over denial of permission to the "Konrad Adenauer", named after post-war Germany's first chancellor, coincided with the visit here by an Iranian delegation for resolving the issue of oil payments. India is seeking an alternative mechanism for making payments for the imports of crude oil from Iran after Germany discontinued the practice of routing the payments through the Hamburg-based Europaisch-Iranische Handelsbank AG (or EIH Bank.)

Iran's relations with Germany, which along with the five permanent UNSC members (the US, the UK, France, China and Russia) had held negotiations over Iran's nuclear programme, has deteriorated of late. Recently the European Union and the United States imposed further sanctions on Iran.

The Iranian ambassador in Berlin was called to the German foreign ministry to explain the snub. Iran is since understood to have blamed "technical [and] organisational events", according to a media report, for the lapse due to which Ms Merkel's aircraft was forced to circle over Turkey for a couple of hours.

Ms Merkel is the second European head of government to have visited India on a refurbished aircraft. President Nicolas Sarkozy of France had used a new official Airbus plane, dubbed Air Sarko One, for his December 2010 visit here, although unlike Ms Merkel, he had already flown on it on its maiden flight to South Korea for the G-8 summit in November.

Germany joins chorus of concern about Pakistan

New Delhi

27 May 2011

Germany added its voice Friday to the chorus of concern over Pakistan's

attitude towards terrorism by asking it to come clean on the extent of its links with

terrorist groups.

Talking to journalists ahead of Chancellor Angela Merkel's visit to India next week,

Germany's ambassador Thomas Matussek said there were worries about possible

collaboration of parts of Pakistan's security apparatus with terrorists.

In Islamabad, visiting US secretary of state Hillary Clinton asked Pakistan to take

decisive steps against terrorists operating from its soil. She said Osama bin Laden is

dead but Al Qaeda and its syndicate of terror remain a serious threat to world peace.

Mr Matussek said defence and security dialogue will be a part of what Germany calls

"inter-governmental consultations" with India. It will be the first of its kind with a non-

European country, with the exception of Israel.

The German ministers of foreign affairs, defence, transport, education, trade, and

environment, will join Ms Merkel in delegation-level talks and hold separate meetings

with their Indian counterparts.

Other bilateral issues such as trade, science and technology, vocational training, and

skills development, and regional and global issues such as Afghanistan, Libya, United

Nations security council (UNSC) reform, can be expected to be an integral part of the

discussions.

Germany and India are members of the Group of Four (G-4), along with Brazil and Japan,

which are jointly pushing for permanent UNSC seats.

External affairs minister SM Krishna was expected to participate in a conference on

Afghanistan to be held in Bonn on December 5.

Mr Matussek said the weakening of Al Qaeda after Osama bin Laden's death and the

reinforced political process provided a realistic chance for the international efforts in

Afghanistan to succeed.