In a move aimed against the sovereignty of Iran, and hoping to deal
blows to both Russia and imperialist rivals, particularly Japan,
U.S. president Bill Clinton announced a trade ban against Tehran April
30. Under the guise of combating international terrorism
the
White House is pressing other governments to stop doing business with
the Persian Gulf country.
The Clinton administration claims Iran is a rogue state
that
sponsors international terrorism and is trying to build an arsenal of
weapons of mass destruction. Washington, the biggest producer and
holder of nuclear bombs, and the only government that has ever used
them, accuses Tehran of having a nuclear arms program.
I am convinced that instituting a trade embargo with Iran is the
most effective way our nation can help curb Iran’s drive to
acquire devastating weapons and support for terrorist activities,
said Clinton at a meeting of the World Jewish Congress, where he
announced the action.
Calling Iran a nation that ranks at the top of the world’s
`10 Most Wanted’ list,
the president announced sanctions
barring the purchase of all Iranian goods by U.S. companies, their
overseas branches, and, in some cases, foreign subsidiaries. The order
also blocks U.S. exports to Iran. The embargo would permit only those
foreign subsidiaries of U.S. companies deemed to operate independently
of their U.S. parent to purchase Iranian oil.
The Iranian Foreign Ministry issued a statement calling
Clinton’s decision disgraceful,
adding that,
Today’s economic system is that of competition and Iran has
various alternatives for its trade.
Imperialist allies in no hurry to follow Washington’s call for
worldwide sanctions against Iran has so far met with a tepid response
from its imperialist allies. The trade embargo coincides with the
efforts of many capitalist powers to increase trade with Iran. The
State Department’s yearly report on terrorism issued last week
singled out Iran as the most active sponsor, but with a conspicuous
lack of conclusive evidence,
noted the London Financial Times in a
May 2 editorial titled Iran sanctions won’t work.
Meanwhile, the International Atomic Energy Agency has inspected
Iran’s atomic energy facilities and found nothing amiss.
Tokyo is particularly reluctant to accede to U.S. embargo demands. Nearly 10 percent of Japan’s crude oil imports came from Iran last year. Japanese capitalists also shipped $641 million worth of goods to Iran during that time. If trade is curtailed Tokyo would have substantial difficulty in obtaining secure oil supplies.
German economics minister Gunter Rexrodt said, We do not believe
that a trade embargo is the appropriate instrument for influencing
opinion in Iran.
Germany is Iran’s largest single trading
partner, exporting nearly $2 billion worth of goods there last year.
A spokesperson for the European Union said in Brussels May 2, We
are not going to respond to this initiative.
The White House is pushing Moscow particularly hard to cancel the sale of two nuclear reactors and other equipment to Iran. The Russian government, seeking to strengthen its hand in Central Asia and hard up for the cash, is not inclined to back down from the $1 billion deal.
Russian officials point out the light-water reactor technology they plan to provide to Iran cannot be diverted for military purposes and is similar to the one being sold to North Korea.
Washington plans to press forward While Washington has not received an endorsement of its request for a trade embargo, the U.S. government has made clear that it expects its allies to join the action and will attempt to coerce the desired response.
Even before the announcement of the trade embargo, fierce U.S. pressure had tightened the screws on the Iranian economy.
In March, Clinton forced Conoco Inc. to scrap a $1 billion deal with Tehran to develop two offshore oil fields in the Persian Gulf. Conoco’s agreement was the first time a major U.S. company was ready to invest a large sum of money into a business venture with Tehran since the 1979 revolution that overthrew the U.S.-backed Shah. Washington pressured the government of Azerbaijan to exclude Tehran from a $7.4 billion Caspian Sea oil deal in April. And Tokyo has held up a $450 million installment on a $1.4 billion loan to finance a hydroelectric power dam in Iran because of threats from Washington.
If the Americans are very, very firm in their pressure, it will
create real difficulties for Iran in dealing with third parties,
the president of a major oil trading company based in Monte Carlo told
the New York Times. No one wants to defy America today.
One small indication of the obstacles Washington will face in its
attempts to isolate Tehran was the elaborate state welcome accorded
Iranian president Hashemi Rafsanjani during a visit to India April
16-18. The Clinton administration’s extremely strong
concern
did not prevent the two nations from strengthening business
and political ties. No one told [U.S. Treasury Secretary Robert
Rubin] he would have to stay one limousine behind the state visitor
whom India is really out to impress: President Hashemi Rafsanjani of
Iran, a country the Clinton Administration calls an `outlaw
nation’ that must be economically isolated,
the New York
Times reported.
U.S. companies, mostly through subsidiaries, purchase $4 billion of oil yearly from Iran, or 30 percent of that country’s annual output. In addition to the billions of dollars in oil procurements, U.S. capitalists ship more than $300 million a year worth of goods to Iran, ranging from frozen poultry to oilfield equipment.
A spokesman for Exxon Corp., one of the largest purchasers of Iranian
oil, said, Should the government change the laws regarding trade
with Iran, we will comply.
The oil companies contend they will
easily find ways to acquire their product.
Clinton’s trade embargo was announced on the eve of the Tehran Bookfair. Hundreds of foreign publishers plan to display and sell books at the event, scheduled for May. Several U.S. publishers are among those who have been planning to attend, including McGraw-Hill, John Wiley & Sons, and Pathfinder Press. It had not been made clear at press time whether publishing would be covered by the embargo.
It is the policy of the McGraw-Hill companies to comply with
applicable U.S. government export control restrictions on transactions
with certain foreign countries,
said Mark Harrop, director of
public relations. We are ascertaining whether, in fact, we will be
permitted to exhibit our educational and professional materials at the
Tehran Book Fair in light of the Clinton Administration’s recent
weekend announcement.
As a publishing house, we look forward to a large book fair in
which publishers from all over the world, including the United States,
are part of the exchange of books and views,
said David Prince,
business manager of Pathfinder Press. Pathfinder has participated
in the Tehran Book Fair for the past several years and looks forward
to being able to do so this year. We stand opposed to any and all
restrictions imposed by the U.S. government that would hinder or limit
trade in any way.
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