Steps for economic tieup with Iraq

By K.K. Katyal

NEW DELHI, NOV. 29. Measures to enhance economic cooperation with Iraq, finalised during the current discussions of the visiting Vice-President, Mr. Taha Ramadhan, are seen here as demonstrating a pragmatic approach by India, that had been evident of late - among other cases, in dealings with the military regime of Mayanmar (despite obvious differences in the two cases).

Mr. Ramadhan is the first top-level dignitary from Baghdad to have come here in the last ten years. Because of the groundwork already done, there was no difficulty in achieving results - private entrepreneurs, under the auspices of FICCI, signed memoranda of understanding with the Iraqi side, apart from agreed decisions at the official level. Mr. Ramadhan was the guest at a formal dinner hosted by the Vice-President, Mr. Krishan Kant, met the Prime Minister, Mr. A.B. Vajpayee, and held talks with the External Affairs Minister, Mr. Jaswant Singh - all suggesting a high protocol rating of the visit.

Because of the Security Council sanctions against Iraq, its contacts with India, both political and economic, had been limited. India, like most other countries, supports removal of the embargoes which had continued far too long and caused acute sufferings to the people of Iraq. Meanwhile, New Delhi has chosen to augment economic dealings with Iraq within the framework of the sanctions. In two ways - in the ``food for oil'' programme, under which Iraq could buy foodgrain, medicines and other essential items against the sale of its crude, and, two, under a provision of the U.N. Charter, which entitles any other country, adversely affected by sanctions, to approach the Security Council for relief. In the first case, Iraq has been asked to increase its imports from India, which are a mere three per cent now and, in the second case, a package has been given shape which, with clearance from the U.N. Council, could help ease pressures on India because of the ever-increasing cost of oil in the world market.

Under Art. 50 of the U.N. Charter, ``If preventive or enforcement measures against any state are taken by the Security Council, any other State, whether a member of the United Nations or not, which finds itself confronted with special economic problems arising from the carrying out of those measures shall have the right to consult the Security Council with regard to a solution of these problems''. New Delhi faces a serious problem because of the abnormal rise in its import bill for oil, while Iraq is in a position to supply crude of the type best suited to India's requirements on terms helpful to it.

New Delhi's initiative, resulting in the current visit of Mr. Ramadhan's, came at a time when most countries, including major powers and Arab nations, have augmented their ties with Iraq, either by choosing not to go by rigid and, in some cases, unwarranted interpretations of the sanctions regime or by re- interpreting its provisions or by using the loopholes in the U.N. mandate. ``Delegations'' from Russia, China and France and political figures from Malaysia and Indonesia recently visited Baghdad, at times ignoring the no-fly zones, enforced by the Americans. New Delhi could play a major role in the re- construction of Iraq and has told Baghdad about it.

As such, India would like to position itself to be able to use the opportunities after the removal of sanctions. Indian officials recall the support extended by Iraq to India on Kashmir and related matters.

In deciding to expand its relations with Iraq, India did not have to face the dilemma of the type, it experienced while deciding to invite Gen. Maung Aye, number two in the military government in Yangon. New Delhi made a difficult choice in favour of pragmatism in the clash between it and ideology (support to the leader of the democratic forces, Ms. Aug San Suu Kyi).

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