Review 21.16
01 December - 31 December, 1996

MAHATHIR MACARENA:

Malaysia's ruler, Dr Mahathir Mohammed has always displayed a penchant for annoying Western nations. Maybe he despises them, maybe he just likes to keep them on their toes. Perhaps it also explains the increasingly warm ties with Teheran. Iranian Vice-President Dr Hamid Mirzadeh took a tour of Kuala Lumpur in September, visiting the attractive shrines and meeting local officials. He was so impressed that he suggested the reactivation of the Malaysia-Iran Joint Commission, first held in 1992. That must have impressed Mahathir, because only a month later, there were more Iranians, back doing business with Kuala Lumpur. On November 13, at the fourth meeting of the Commission, the Malaysians even offered to act as facilitators for Iranian expansion in the region and Foreign Minister Datuk Abdallah flagged increased Malaysian exports to Iran of electronic and manufactured products. The regionally networked Malaysians are promoting themselves as the perfect business partners for Iran, and will help grease the wheels for further Iranian trade and cooperation with ASEAN and its member countries.

FOOLS RUSH IN...:

In late August, the Malaysian state oil company Petronas took a 30 percent stake, via its subsidiary Carigali, in Iran's Sirri A and E offshore oil fields. The investment, worth US$600 million is part of a joint venture with Total of France, and replaces the vacancy left by the pull-out of the US Conoco oil company following the institution of US boycott legislation covering energy sector investments in Iran.

Malaysian Prime Minister Mahathir Mohammed criticised US concerns, saying that the Clinton Administration had no right to choose Malaysia's trade partners. US government officials denied that Petronas faced imminent sanctions. "No 'sanctions committee' has been established, and the US government has not taken or recommended any action against Petronas," said a US embassy statement. Malaysia signalled that it would push for the discussion of the American Iran/Libya Sanctions Act at last week's APEC summit in Manila.

INDO-JOINTED:

Meanwhile back in Indonesia, on November 5 Iran and Indonesia concluded the fourth meeting of a bilateral joint commission on economic and trade cooperation. These joint commissions seem to be all over the region at the moment. They called for all the usual things like expanded Indonesian-Iranian technology sharing and development. Indonesia also called on Iran to expedite the purchase of six Puma helicopters from Indonesia's state-owned aircraft maker IPTN. The Iranians already use a dozen or so of these choppers to carry their troops around.

The agreement from the meeting, signed by Iranian Minister of Trade, Post, Telegraph and Telephone Sayyed Mohammad Gharazi and Indonesian Industry Minister Tunky Ariwibowo, included commitments towards joint investment in the chemical industry, mining, steel, textiles, celluloid, and natural rubber sectors.

Iran agreed to continue its imports from Indonesia, and Jakarta agreed to import cement and clinker from Iran. (And to think that cement exports went out with Eastern Bloc aid programs). Both countries will also begin joint marketing of their products into Central Asia and other former Soviet states. "We expect the two-way trade to reach $1billion in the near future", said Gharazi after meeting Indonesian President Suharto. Hasan Basri, Chairman of the Indonesian Council of Ulemas, got a little excited by the Iranians' visit. He told the Jakarta Post that "What we need to do here is ban (alcohol). Otherwise we won't be able to rescue our community from that satanic drink." It sounds like they've got trouble, right there in River City. With a Capital T and that rhymes with B and ...

SINO-MULLAH:

China has always been an interesting land. Mystique, tradition, walls, little red address books, house-size pictures of Mao Zedong. China has it all, including increasingly good relations with Teheran. On November 12, Chinese leader Qiao Shi, chairman of the Standing Committee of the Chinese National People's Congress (NPC), arrived in Iran on a three day visit. During the visit Qiao praised the Iranian leadership, and said that his visit would contribute to the strengthening of Sino-Iranian relations, including cooperation in various fields. Iranian President Rafsanjani said that "Iran is ready to deepen its cooperation with China which is higher than ever." For his part Qiao noted that China appreciates Iran's role in the Middle East and the Gulf Region. Qiao also expressed his appreciation to Iran's stand of a one-China policy on the Taiwan issue.

TEHERAN'S AXIS:

Visits to Malaysia, Indonesia and with the Chinese had to lead somewhere. By November 10 it was becoming clear where Iran's Asia policy was heading. The Mullahs called for the establishment of a regional body, with Iran at its core, to promote security and cooperation in the Indian Ocean. President Rafsanjani made the call in Teheran while opening an international conference about the Indian Ocean community on November 10.

"The strategic importance and broadness of the Indian Ocean region necessitates that regional states join hands to preserve security and boost cooperation by setting up a powerful forum," Rafsanjani said. Rafsanjani argued that "Iran is a reliable anchor for the ship of peace in the region." So much for a cruise to Club Med Mauritius.

SAYYAFA YOUR FACE:

Reports from the Philippines indicate that the Abu Sayyaf terrorist group, funded and supported by Iran, has joined forces with the larger Moro Islamic Liberation Front. The MILF has an estimated 10,000 fighters and is currently engaged in heavy fighting with the Philippines Army in the Mindanao region.

Abu Sayyaf was organised from a relatively small group, responsible for some kidnappings, into a lethal terrorist group by the man charged with the World Trade Center bombing Ramzi Yousef. The Iranian's are continuing to use them as a clear message to the rest of Asia: either help us in regional ambitions or some of those restive Muslim extremists in your countries may find themselves receiving Iranian cash and training. Oh, only for Allah of course.