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Economic Outcomes of President Khatami's Visit to Italy
 

Italian president: Italy fully believes in dialogue among civilizations and supports Iranian president's initiative for naming 2001 as the "Year of Dialogue among Civilizations."

 

Iranian president: No doubt, the future world will be more prosperous and promising in the light of joint cooperation between the Islamic world, Europe and Iran.

 

Heads of the commissions for joint cooperation between Iran and Italy signed an agreement to guarantee investment, which will pave the way for investment by both public and private sectors.

 

Italian prime minister expressed confidence that the possibility always exists for improvement and expansion of bilateral political, economic and cultural relations between Iran and Italy on the basis of mutual interest.

 

Italy is capable of making over 3 billion dollars investment in Iranian oil and gas industries.

 

Iran and Italy reached agreement for implementation of projects worth 2 billion dollars.

 

On the sidelines

The first and the second Iran-Italy joint commissions met in Tehran and Rome, in 1988 and 1990, respectively, and meeting of the third commission in Tehran in 1998 has rendered positive results for the two countries.

 

Iran is firm to open new areas of cooperation with Italy for the creation of new job opportunities, improvement of public welfare, and economic, social, humanitarian and civil development.

 

Bilateral cooperation in recent years has proven that Iran and Italy having weathered hard circumstances, are still determined to preserve bilateral relations and maintain a clear understanding of their mutual interests,( as well as the interests of the world).

 

One of the most outstanding achievements of President Khatami's brief visit to Italy was providing suitable opportunities, for the Iranian exporters facing difficulty in finding proper markets. Attracting foreign investments as well as those of the Iranians living abroad and carrying out strategic joint ventures requiring high technology and immense capital with foreign partners, are among other outcomes of the visit.

 

Improvement of Iran's relations with the European countries can nullify U.S. economic sanctions against Iran. the Closer rapprochement between Iran and Europe, resulting in improved economic relations, will exert further pressure on the U.S. government, both from within, and by European countries,to lift the unjust sanctions.

 

meanwhile, impediments on the way of attracting foreign investments should be removed, and laws should become more transparent and in conformity with international regulations. In fact, improvement of economic relations between Iran and the European Union mainly depends on attracting investments,from foreign countries including Italy. This in itself depends on the degree of stability of the Iranian economy, and its regulations towards foreign investors.

 

 

Talks and Outlooks
President of the Islamic Republic of Iran, Mohammad Khatami, paid a three-day state visit to Italy, starting March 9, as the head of a high-ranking delegation, for talks with Italian officials as well as Pope John Paul II. Upon the arrival in Rome, Italian President Oscar Luigi Scarlfaro officially received his Iranian counterpart and the accompanying entourage.

In a welcoming address, the Italian president said that Italy fully believes in the dialogue among civilizations, and supports the initiative for naming 2001 as the year of dialogue among civilizations. Those who inherit rich cultural and historical backgrounds, in fact shoulder the responsibility of dialogue among civilizations, he added.
Pointing to his visit as the first official trip to Europe, President Khatami underlined Tehran-Rome relations to be the basis of mutual respect and understanding. "This visit is an important, effective step towards bilateral friendship," said mr Khatami.
In the continuation of his visit to Italy, the architect of the dialogue among civilizations, addressed a parliamentary session in which he said: "No doubt, the future will be more prosperous and promising in the light of joint cooperation between the Islamic world, Europe, and Iran."

Khatami stressed that in an effort to realize the establishment of democracy,the basis of oppression and discrimination should first be eliminated and replaced by democracy, followed by the creation of a civil society at the world level where civil institutes are consolidated.
He said if today the world speaks of Iran's initiative towards developing a dialogue of civilizations, and a policy of d‚tente, it is due to the Iranian spirit, and principles of its Islamic Revolution.

Elsewhere in his remarks, the president said: "Our people under the leadership of Imam Khomeini and by relying on their rich cultural and historical background, have stepped in a new path and, by voting in favor of the Islamic Republic, have chosen the direction towards Republicanism, without retreating from the main principle of their cultural identity, namely Islam."
He pointed to equilibrium as the main cultural-historical feature of Islam, and further added, "We believe that the world's perspective can be based upon equilibrium, and a balance in the third millennium," adding that the Iranian nation invites the world towards a just and lasting peace.
President Khatami also met and conferred with the President of the Italian Senate, Nicola Mancino and discussed with him bilateral ties, as well as regional and international developments. The two sides also exchanged views on bilateral parliamentary cooperation.

During the meeting, President Khatami told the Italian senator, that the Islamic Revolution has generated important historical developments in Iran.
Pointing to present world trends,mr Khatami said that today the need for dialogue, coexistence and cooperation is being felt more than ever.
Addressing a dinner reception held in his honor by his Italian counterpart, President Khatami stressed that learning from history lays the foundations for an improved future.
He said that the existing common cultural bonds between the two nations has prepared the grounds for mutual understanding and dialogue, adding that proximity of views has enabled both countries to develop a better understanding of each other.
Scalfaro, for his part, said that Italy would always support Iran's policy of d‚tente and dialogue.

He termed Khatami's visit to Italy as a highly important event in Tehran-Rome relations, and announced his country's support for the realization of the initiative for dialogue among civilizations.
On the second day of his visit to Italy, President Khatami held the first round of talks with Italian prime minister, following which, three memorandums of understanding and an economic agreement were signed between the two sides.
Meanwhile, IRNA reported from Rome that Foreign Minister Kamal Kharrazi and his Italian counterpart Lamberto Dini signed an agreement for bilateral cooperation in an anti-drug campaign.

In a separate agreement signed by the two foreign ministers, Iran and Italy agreed to cooperate in the academic and technological fields.
Heads of Iran-Italy joint commissions also signed an accord to guarantee joint investment. Iranian Mines and Metals Minister Eshaq Jahangiri and Italian Foreign Trade Minister Pierro Facino signed the agreement.
Speaking to reporters at a press conference, President Khatami said that since the Iranian and Italian people enjoy an ancient civilization,they are the most appropriate nations to realize the idea of dialogue among civilizations, adding that world scholars and politicians should spare no effort in paving the way for this purpose.
Expressing satisfaction over his first European visit to Italy, the president underscored the need for further expansion of relations between the two countries.
He said the grounds are ready for Tehran-Rome bilateral cooperation and added that in his talks with the Italian prime minister, the two sides have reached agreements in different areas for political, economic, academic, and technical cooperation.
Underlining Iran's potentials, the president said the Islamic Republic is decided in taking steps toward progress and improvement, adding that Iran will welcome any cooperation in this connection.

He said given Italy's position in Europe, and its fair outlooks, grounds are prepared for joint Tehran-Rome cooperation.
Also speaking at the press conference, the Italian Prime Minister termed President Khatami's visit to Italy as further proof to the positive relations between the two countries.
Stressing his country's willingness for the establishment of ties based on mutual respect,mr d'Alema said in his talks with President Khatami, the two sides admitted that Tehran-Rome relations are not based on a colonial background, as some European countries practiced in the Middle East in the past.
He said Italy enthusiastically follows Iran's policy in the contemporary world, reiterating his country's respect for values and principles in its bilateral relations with other countries, especially with Iran.
Expressing confidence in the expansion of bilateral political, economic and cultural relations, d'Alema said his country believes that Iran-Italy cooperation is in the interest of world peace.

President Khatami also received the head and members of the Iran-Italy Friendship Association,where he said the two countries could forge a new strategic relation.
President khatami reminded that Iran, as a country enjoying a rich and dynamic culture, along with noble people of a great civilization, in maintaining its presence at the international scene.
The president considered as positive Iran-Europe relations, as those based on mutual respect, common interest, and respect for each country's independence.
He continued that such positive stands could put an end to the historic animosity between the East and certain Western countries.
In another development, Director General of the Food and Agriculture Organization (FAO) Jacques Diouf, met and conferred with President Khatami who underlined the significance of agricultural development at a time when the Islamic Republic is marching towards full-scale development.

Pointing to Iran's strategic position in the region, President Khatami said the country's geographical location paves the way for effective cooperation with FAO at regional and international levels.
Diouf for his part praised Iran's efforts in the realization of FAO programs, and expressed the hope that "food" will no be misused as a political weapon in the international arena.
President Khatami in reply expressed the hope that the day will come when poverty and deprivation is eradicated in the world.

* A glance at bilateral economic relations

President Khatami's visit to italy, no doubt, opened a new horizon for the development of political, economic and cultural relations between the two countries.
Experts in the international circles believe that President Khatami's visit is a means for the further consolidation of relations between Iran and the European Union, since Iran can serve as a bridge for Italy to gain access to Central Asia and the Caucasus.
Iran-Italy trade transactions amounted to 2.6 billion dollars in 1998, of which 1.78 billion dollars represented Iran's exports to Italy, mainly crude oil. Trade surplus in favor of iran in the same year reached 420 million dollars. Bilateral trade value in 1992-1996, exceeded 13 billion dollars.
The signing of an agreement for the rescheduling of Iran's debts to Italy in February between the Italian insurance company (SACE), and the Central Bank of Iran (CBI), is among the major steps that the two countries have taken towards the further expansion of bilateral trade ties.

According to the agreement, SACE has accepted rescheduling of Iran's 418 million dollars of outstanding obligations.
The CBI governor later announced that negotiations have been held with the French and Italian state insurance companies, as a result of which, the two countries will provide Iran with two to five-year financial facilities for the purchase of items such as machinery and spare parts.

The French and Italian delegations held talks with Iranian officials in Tehran in April last year, following which, they agreed to provide the Iranian private sector with a new insurance-banking facility amounting to 1.6 billion dollars.
However, it appears that Italy is capable of making over 3 billion dollars investments in Iranian oil and gas industries. Therefore, it is expected that the share of Italian oil companies in Iranian oil and gas projects will rapidly increase in the near future as cooperation in the oil and gas fields constituted one of the main axis of talks between Iranian and Italian officials during President Khatami's visit to Rome.
Eni, a major Italian oil company, has participated in large-scale Iranian buy-back projects and negotiations are still continuing on with the company.
Iran and Italy forged significant trade cooperation in the industries and mines sectors,especially during the construction era following the eight-year imposed war.The signing a 660 million dollar agreement with Italy for the implementation of five steel projects has played a major role in the development and expansion of Iranian steel industry.According to the agreement,Italy has cooperated with Iran in the development of Khuzestan steel plant with a capacity of 3.7 million tonnes,and boosting Isfahan Steel Mill's capacity for the production of tin-coated sheets by 700,000 tonnes, increasing its total annual capacity from 2.4 to 4 million tonnes. Mubarakeh Steel Complex in Isfahan is also a product of joint cooperation between Iran and Italy.
President Khatami's visit to Europe will not only leave positive impacts on Tehran-Rome relations but will also play a determining role in relations between Islamic countries and the European Union. Following a lapse of eight years in bilateral cooperation due to financial disputes, Iran and Italy finally signed a new agreement in the summer of 1998, which sets up framework for future cooperation.

* Outcomes
upon his return to tehran, president khatami termed the outcome of his trip as ~positive~.
As for his visit to the vatican, assessed his talks with the world leader of Catholics as "important", and said the visit will bear positive fruits for both countries.
Pointing to the successful talks that the Iranian delegation held with Italian officials, he said the interest that the Italian side showed for broadened trade relations with the Islamic Republic of Iran is a sign of Iran's outstanding status in the world.
Khatami who is also chairman of the Organization of the Islamic Conference (OIC), said that officials of the two countries favor further expansion of Tehran-Rome ties based on mutual respect.

President Khatami's visit received a worldwide welcome with many observers believing that Iran will gain positive outcomes in international politics, trade, and religion.
Mines and Metals Minister Eshaq Jahangiri who is also the Iranian head of the joint Economic Commission, outlined the economic achievements of the trip and said that agreements were reached with the Italian side for the implementation of projects in Iran worth 2 billion dollars.
He said that an Italian firm would carry out the project for development of Bandar Abbas power plant by selling 30 gas turbines to Iran, and transferring its relevant technology, estimated at 1 billion dollars.
Jahangiri said that the two sides also reached agreement for the establishment of two weekly flights by Alitalia to Iran in return for the entry of 2500 trucks carrying goods to Italy, as well as the implementation of the project for the development of Mubarakeh steel plant, worth 250 million dollars.

He also pointed to other areas of agreement such as the implementation of a part of the North highway, worth 120 million dollars, Eni's readiness to invest 3 billion dollars in the Iranian oil industry, and CBI talks with SACE.
Stressing that so far SACE has failed to meet its 1.2 billion dollars commitment towards Iran, he said the issue was raised during President Khatami's talks with mr d'Alema.
The minister said that the agreement signed during the president's visit to Italy for supporting joint ventures further paves the way for increas investments by both the public and private sectors of the two countries.

[Iran Commerce No.2, 1999][Publications]

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