India, Iran discuss trilateral cooperation with Afghanistan; issue of oil payments nowhere near resolution

From left: Nirupama Rao, foreign secretary of India; Mohd Ali Fathollahi, Iran's deputy foreign
minister for Asian and Asia-Pacific affairs; and Ali Akbar Salehi, foreign minister of Iran

New Delhi

6 July 2011

Foreign secretary Nirupama Rao discussed trilateral cooperation among India, Iran and Afghanistan in her talks in Tehran, signalling a movement beyond mere articulation of positions to possibly a structured consultation on the situation in Afghanistan.

Ms Rao called on foreign minister Ali Akbar Salehi on Tuesday and held talks with deputy foreign minister for Asian and Asia-Pacific affairs Mohd Ali Fathollahi. She met with Saeed Jalili, secretary of Iran's supreme

national security council, on Wednesday.

The situation in the Arab world, anti-piracy cooperation and consular issues were among other issues that Ms Rao discussed in her talks with Mr Fathollahi, who first mooted the trilateral cooperation during his visit to India in August 2010.

Ms Rao's visit to Iran followed that of national security adviser Shivshankar Menon in March, on the eve of the Persian New Year.

Prime Minister Manmohan Singh has shied away from visiting Iran but an opportunity could present itself in 2012 when Iran hosts the NAM Summit.

Foreign secretary Nirupama Rao with Saeed Jalili, secretary of Iran's supreme

national security council

Ms Rao's visit comes amid India's continuing search for an amicable solution for crude-oil payments to Iran. Iran has been selling crude to India on credit (the outstandings are over Rs 4,400 crore) since December 2010, when the Reserve Bank of India discontinued the practice of routing payments through a regional clearinghouse called the Asian Clearing Union in view of the US sanctions on Iran.

India switched to the services of the German-Iranian Europaish-Iranische Handelk AG (EIH) bank based in Hamburg but the European Union's sanctions against the bank in May forced Germany to terminate the facility. Petroleum and natural gas minister Jaipal Reddy has said that efforts were being made to ensure uninterrupted oil supplies from Iran. Iran is India's second largest source of imports after Saudi Arabia.

Ms Rao's visit came a year to the day since her July 5, 2010 speech in New Delhi in which she spoke about India pursuing its ties with Iran independent of the US, making accelerated efforts" to complete infrastructure projects, and how India was "justifiably concerned that the extra-territorial nature of certain unilateral sanctions recently imposed by individual countries" could adversely affect India's energy security.

The bilateral ties have remained in disrepair since 2005 when India voted against Iran in the IAEA.

With eye on China, India to host trilateral talks with Japan, US this year; Japan does not fancy the Quadrilateral with Australia

New Delhi
29 June 2011

For Japan, three is not a crowd. Four maybe. While it agrees that a more robust Asian security architecture will be required if China's opaque military modernisation continues, for now it will be content with trilateral or three-way security dialogues involving India, Australia and the United States, without giving it the shape of a Quadrilateral or resurrecting notions of containing China. Currently, Japan has trilateral dialogues with the US and India; with the US and Australia; and with China and South Korea. India is the third country, after the US and Australia, with which Japan has the two-plus-two talks involving foreign and defence ministers. New Delhi is expected to host the inaugural India-US-Japan trilateral dialogue later this year. It will be conducted by officials, and not by foreign ministers as was mentioned in the April 8 press release issued by the ministry of external affairs after foreign secretary Nirupama Rao's talks in Tokyo. Besides discussing anti-piracy cooperation and maritime security, the talks could progressively extend to cover security and defence cooperation.

China's military rise has caused concerns in the region and beyond. Without naming China, Australian defence minister Stephen Smith recently said, "All we ask in terms of a growth of military capacity is that one is transparent as to its strategic intentions". That view is shared by Tokyo. "We keep asking the Chinese what is your intention

[but] unfortunately we have not received a convincing explanation," AKITAKA SAIKI, Japan's new ambassador to India, said Wednesday in an interaction at the Observer Research Foundation here. "While Japan has no intention to undermine good neighbourly relations with China, I hope China will be a little more sensitive to concerns expressed by its neighbours. Actions need to match words, that's my view," he observed. Mr Saiki cautioned that the future trajectory of trilateral talks would depend on Beijing's attitude.

The current Japanese sentiment stands in contrast to the churning in Australia, which has instituted a Defence Force Posture Review for addressing issues such as "the growth of military power projection capabilities of countries in the Asia Pacific" -- an indirect reference to China's reach and influence. In a recent interaction with this newspaper, Michael Auslin from the US-based American Enterprise Institute, a conservative think tank, said that Australia, not post-tsunami Japan, could be the lead partner in the Quadrilateral. Dr John Lee from the Sydney-based Centre for Independent Studies, in turn, cited the increasing possibility of Australia lifting the ban on uranium sale to India to suggest that the perception of Australia drifting towards China was not true.

The Quadrilateral was an initiative of Shinzo Abe, who was the Japanese premier from September 2006 to September 2007. On September 4, 2007, the navies of India, Japan, the US, Australia and Singapore conducted joint naval exercises in the Bay of Bengal. However, later that year, Australia's then newly elected prime minister and current foreign minister Kevin Rudd unilaterally withdrew from the Quadrilateral Initiative. The strategic pact has remained stillborn ever since. It suffered another setback after Abe's Liberal Democratic Party lost power to the Democratic Party in 2009. India did not show any particular interest, either. Prime Minister Manmohan Singh said in Beijing in January 2008 that India was "not part of any so-called 'contain China' effort".