[extropy-chat] China/Iran developing mutual defense deal.

[Mike Lorrey]

http://www.bloomberg.com/apps/news?pid=10000087&sid=aFAFgtkElY7Y&refer=top_world_news

Iran, China Eye Military Cooperation After Oil Deals (Update1) 
Aug. 18 (Bloomberg) -- Iran received a military delegation from China,
paving the way for cooperation in the defense field, Iran's Mehr News
agency reported, citing Brigadier General Nasser Mohammadi Far, the
commander of the Iranian army's ground forces. 

The Chinese delegation is in Iran for talks on ``developing military
relations, deepening bilateral ties and paving the way for military
cooperation,'' the state-run Iranian news agency said. The press office
of China's Ministry of Defense in Beijing declined to comment on the
delegation's visit. 

``Our mutual enemies possess advanced military technology, and
undoubtedly they would rely on this technology in any possible future
wars,'' Mehr News quoted Mohammadi Far as saying. ``Therefore, it seems
necessary that both Iran and China upgrade their defense and military
technology.'' 

China is Iran's third-largest export market for crude oil, and ties
between the two countries have strengthened in recent years as Iran
started granting stakes in the development of its oil and gas fields.
Iran, under U.S. economic sanctions and at odds with both the U.S. and
the Europe Union over its nuclear program, is increasingly turning to
the East for new markets, opening its economy in return. 

Energy Contracts 

Iran, holder of the world's second-largest oil and gas reserves, has
given Chinese state oil company Sinopec a 50 percent stake for the
development of the Yadavaran oil field, one of the Iran's largest
undeveloped field. 

In March, China agreed to buy more than 110 million metric tons of
Iranian liquefied natural gas over 25 years in a contract which may be
worth more than $20 billion. The two countries said a month earlier
they may set up a tanker venture to carry liquefied natural gas to help
Iran ensure deliveries of its gas to the world's second-largest energy
consumer. 

China is also involved in the construction of the Iranian capital's
metro and plans to invest $220 million to help finance a new highway
linking Tehran with its Caspian Sea coast. 

Chinese President Hu Jintao was among the first to congratulate Iran's
new president Mahmoud Ahmadinejad on his election victory in June, and
said Chinese leaders looked forward to working with him, Foreign
Ministry spokesman Liu Jianchao reported at the time. 

The Asia country also took a softer stance than the U.S. and EU on
Iran's nuclear ambitions. ``We support resolution of this issue through
dialog,'' Liu said on June 28. 

UN Resolution 

Iran last week rejected a resolution from the United Nations nuclear
watchdog agency urging it to freeze a uranium processing program, and
vowed to become a nuclear fuel exporter within the next decade. Iranian
officials on Aug. 10 removed UN seals on equipment used in uranium
enrichment at a facility in Isfahan, the site of Iran's largest nuclear
research center. 

In response to the Iranian decision, U.S. President George W. Bush told
Israeli television he wouldn't rule out a military response against
Iran, saying ``all options are on the table.'' 

The EU has been negotiating with Iran to limit the program, and Iran
implemented a voluntary freeze on its uranium processing in November. 

The U.S., in contrast, severed ties with Iran in 1979 after radical
students stormed the U.S. embassy in Tehran, holding 52 people hostage
for 444 days. The U.S. accuses Iran of sponsoring terrorism and has
imposed unilateral economic sanctions on the country of 70 million,
forbidding U.S. companies to invest or sell goods such as drilling
equipment, computers or aircraft. 
 


To contact the reporter on this story:
Marc Wolfensberger in Tehran at  mwolfens at bloomberg.net
 


Mike Lorrey
Vice-Chair, 2nd District, Libertarian Party of NH
Founder, Constitution Park Foundation:
http://constitutionpark.blogspot.com
Personal/political blog: http://intlib.blogspot.com


		
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