Khatami for closer ties with Germany

By Batuk Gathani

BRUSSELS, JULY 10. A security blanket was thrown over Berlin as the Iranian President, Mr. Muhammad Khatami, arrived in the German capital on a two-day official visit on Monday.

The German authorities braced themselves to face 17 protest marches planned by expatriate Iranians against Mr. Khatami. There are about 116,000 Iranians living in Germany, the vast majority of them having sought political asylum there, after fleeing the theocratic state. However, Iran, under Mr. Khatami, is slowly but surely turning around with democratic and political reforms.

Germany has close trade and political relations with Iran. It has emerged as Iran's largest trading partner in the European Union. German industrial institutions have been carefully monitoring the current economic and political developments in Iran which is rated as the largest market in West Asia.

In the wake of the visit by Mr. Khatami, German security forces have stepped up their vigil on the borders to ensure that Iranians from other E.U. countries do not enter the country. Hundreds of additional police personnel have been deployed in key centres in Berlin to ensure order and security during the planned demonstrations and protest marches. The authorities fear that there could be clashes between pro-reform Iranians and fundamentalists opposed to reforms. Religious fundamentalists have criticised Mr. Khatami's visit. For security reasons, Mr. Khatami will be transported to various appointments in a helicopter.

The E.U. Governments - led by Germany, Italy and France - have strong commercial and industrial interests in Iran. Four years ago, E.U. officials bitterly opposed America's ``hegemonic stance'' on international trade matters, when Washington proposed penalising foreign companies doing business with Libya and Iran. Germany is the leading trading partner of Iran and Italy has strong commercial relations with Libya. Iran and Libya also supply one fifth of E.U.'s oil.

Major Italian, Spanish, Austrian, Belgian and French companies already have substantial investments in the Libyan oil sector and they are eagerly looking towards participating in Iranian industrial and manufacturing sectors.

In November 1998, when international crude oil prices crashed and hovered between $ 11 and $ 13 per barrel (compared with the current $ 25) Iran for the first time, sent feelers to its major trading partners seeking loans to avert bankruptcy.

The Iranian Government was financially handicapped two years ago by record low oil prices and mounting debt. Iran negotiated with Japan, German and Italy for an urgent $ 3,000- million ``injection'' loan to meet its immediate financial obligations and stave off an embarrassing default on debt repayment. Though Teheran did not get the loan, it is still looking for close financial ties with the E.U. to generate more capital and investments for industrial development.

In October 1999, Mr. Khatami made a visit to France after his trip to the Vatican and Italy in March 1999. Since then, Iran is seen as fast mending its diplomatic and commercial ties with major European economic powers. Mr. Khatami's visit to France is the first of its kind since the Iranian Revolution in 1979.

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Section  : International
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