August 02, 2004

Try 867-5309

"I think that a fresh start changes the equation . . . for leaders in other countries who have great difficulty right now associating themselves with our policy and with the United States because of the way this administration has burned those bridges," Kerry said on CBS's "Face the Nation."

Let's see how successful Kerry might be in delivering these "other countries" by examining their relationship with Iran by Googling up a few examples of their business interests and what they might lose by joining the US in Iraq.

France Steps Up Its Investments in Iran

Alcatel, the French telecommunications giant, recently signed multimillion-dollar contracts to provide high-speed Internet service in Iran as well as communications for offshore oil and gas platforms.

PSA Peugeot Citroën, under a licensing agreement, sells kits for several models, including the Peugeot 206, a sports car that has become a status symbol in Tehran's chic sections.

The Total Group, one of the world's largest energy concerns, has long been involved in Iran, a country with 9 percent of the world's oil reserves and as much as 18 percent of its natural gas reserves. This year, it formed a $2 billion venture with the government-owned National Iranian Oil Corporation and Petronas of Malaysia called Pars LNG, which aims to produce eight million metric tons of liquefied natural gas a year, equal to about 15 percent of current world output.

So much for Kerry & Chirac's pillow talk.

Germany's Deutsche Bank To Finance Most Of Iran's Top Petrochemical Projects

London, June 4, IRNA -- The agreement by Deutsche Bank to nearly double a financial package for the National Petrochemical Company (NPC) paves the way for the investment in most of Iran's major projects in the sector.
"The financing underscores and strengthens the long-standing relationship of NPC with European banks in general and Deutsche Bank in particular," said Hans Herold, global head of structured export finance at the German bank.

The decision, announced by Deutsche Bank on May 30, nearly doubles a Euro 500 million (Dlrs 470 m) financing package agreed in June last year to Euro 1,032 m.

Herr Schoeder isn't cooing into Kerry's shell like ear. The EU isn't likely to take Kerry's phone calls as this EU Overview demonstrates.

The EU's relations with Iran

EU is Iran’s main trading partner concerning both imports and exports. Except for 1998, when oil prices were at a record low, the EU has had a negative trade balance with Iran. In 2001 EU imports from Iran totalled 6,7 billion Euro, whereas the value of EU exports to Iran in the same year amounted to 6,6 billion Euro.

Whereas more than 80 % of EU imports from Iran consist of oil products, the exports to Iran are more diversified, with power generation plants, large machinery and electrical and mechanical appliances making-up about 45 percent of the total exports.

Oil? No! I'm shocked! Alert the media!!

Russia seems to screening calls.

Russian Nuke Technicians Flood Iran for Final Push at Bushehr Reactor

Some 600 Russian technicians — with 2000 more expected to arrive by the year's end — have begun assembling heavy equipment that will form a key part of the first reactor at a nuclear power plant in Iran.

Russia is going ahead with the $800 million project — at the Persian Gulf for of Bushehr — despite strong objections from the United States officials who in recent weeks have alleged that the construction of the 1000 megawatt reactor is a cover for Iran's intentions to develop weapons grade plutonium there.

But Russia asserts that the nuclear plant would serve purely civilian purposes and remain under the international supervision of the International Atomic Energy Agency, or IAEA. The plant is scheduled to begin operating in June 2004 with the loading of nuclear fuel into the reactor set for December 2003, Russia's atomic energy ministry said.

"We have reached the stage of assembling our reactor and the turbine," Viktor Kozlov, managing director of Atomstroiexport company — which handles construction projects abroad for Russia's Atomic Energy Ministry, or Minatom —

That was in March of 2003 and Russia continues to flaunt the Nuclear Proliferation Treaty.

RUSSIA AND IRAN: WHO IS STRONG-ARMING WHOM?
Continued Russian support for Iran’s nuclear-energy program despite U.S. objections that this could help Tehran acquire nuclear weapons appears to be a source of great pride to many Russian officials and commentators. Indeed, Moscow’s defiance of Washington feeds into the notion that Russia is still a great power. Moscow’s continued contribution to the Iranian nuclear program may, however, ultimately serve to weaken Russia, not strengthen it.

The U.S. government has long been worried that Tehran is using its nuclear-energy program to develop nuclear weapons, and has therefore repeatedly urged Moscow to halt work on the reactor it is building for the Iranians at Bushehr. The standard Russian response has been that Iran is in compliance with all International Atomic Energy Agency (IAEA) regulations, and thus has the right under the Nuclear Nonproliferation Treaty (NPT) to develop a peaceful nuclear-energy program. But with the revelation that Iran possesses hitherto secret nuclear facilities that it had not declared to the IAEA and that some of the equipment IAEA inspectors have found in Iran bore traces of weapons grade uranium, it has become increasingly clear that Iran is not in total compliance with IAEA regulations

Oh well, maybe tiny Finland will take the call?

Nokia investing in Iran

Nokia is reportedly preparing to set up a joint venture in Iran to build base stations for use with infrastructure deployments in the Middle East. The Managing Director of Iran's Telecommunications Industries, Mohammad-Ebrahim Motalle told reporters on Tuesday that his company had been in talks with Nokia for the joint venture project, IRIB reported.

The project is said to have a budget of US$250 million

Nope, guess they've dropped the signal. Makes one wonder what Kerry intends to trade his imaginary coalition of the newly bribed for their support in disarming Iran and help in Iraq.

Posted by feste at August 2, 2004 02:53 PM | TrackBack
Comments

The EU has a negative trade balance with Iran, despite Iran being practically next door, much less developed, and having few natural resources other than oil and natural gas. Hopefully this will silence anyone who claims the United states will ever make up its accumulated multi-trillion dollar trade deficit with China.

Posted by: Ryan at August 2, 2004 08:03 PM

Obviously all western countries have an interest in expanding their markets in the middle east.

US companies are also trying to expand their reach as well, so let's be fair.

However, one thing that is extremely important that is not really noted here is that if Europe can win the favor of OPEC and get the PetroDollar switched to the PetroEuro the US can kiss their world domination good bye.

The US has to be careful because tides can change pretty fast and allies are a good thing. Foreign policy is always about money, Japan is our friend now, but if Europe becomes a true super power will Japan and other economies be so friendly.

As the saying goes: The bigger you are, the harder you fall.

Posted by: Heath Weaver at August 3, 2004 05:09 AM

Heath: You missed the point of the post, I was demonstrating that Europe has it's own agenda, politically and economically. Kerry is reaching out to the wrong allies. America's future is in the Americas and China, not Europe. The sooner we realize that and cut Europe loose, the better.

Old Europe is no more. That is what Rumsfeld was saying. They are no longer need or want a post-WWII alliance or the US interfering with internal problems such as Serbia. We did ourselves no good in Serbia which was the beginning of the current round of anti-Americanism. The Eu is forming a new entity, which if it succeeds is for the better and we should allow them to stand or fail on their own.

It's time the EU mounts and pays for it's own defense and we left the continent entirely and renegotiated our trade position with the EU.

Kerry thinks he can bribe France with Iraqi oil, that remains to be seen as the Iraqis may have their own ideas. Just as they have fought the occupation so they will fight any attempt to control their oil contracts.

France is simply positioning itself to take advantage of whatever direction the world market tilts, which is what France has historically done, ergo it's cosying up to China by sending the de Gaulle into the Taiwan Straits.

As to switching PetroDollars to EU Dollars, that will not happen in the forseeable future as the EU is finacially unsound, as are many of the individual economies including France and Germany. OPEC money always follows stability.

However, once the US begins to wean itself from Mid-eastern oil, and if another massive attack occurs in the US that may happen very quickly, as Caribou habitat may seem less precious than American lives and livelihoods, then all bets are off.

Japan, like the EU has it's own internal financial and population issues and if world oil prices rise dramatically in response to less US demand, they will be dead in the water for decades.

Posted by: feste at August 3, 2004 09:43 AM
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