EUROPA EUROPE

Helmut Kohl

CHANCELLOR OF GERMANY'S UNITY AND THE EURO

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Helmut Kohl was the Chancellor who voted for the Euro, created dialogue and common ground with Russa and united Germany together with Mikhail Gorbachev. Kohl was a German statesman who served as Chancellor of Germany from 1982 to 1998 and as the chairman of the Christian Democratic Union from 1973 to 1998. From 1969 to 1976, Kohl was minister president of the state Rhineland-Palatinate. Kohl chaired the Group of Seven in 1985 and again in 1992. 

ANALYSIS AND INTERPRETATION FROM

A EUROPEAN PERSPECTIVE

PETROFILM.COM

 Institute for Empathic Dialogue Creation and Conflict Resolution

A Petrofilm Europe Exclusive

IRAN-US RELATIONS 

  Seal of the Foreign Ministry

From the Foreign Ministry Tehran

Hossein Adeli PhD

Deputy Foreign Minister for Economic Affairs

از وزارت امور خارجه تهران

دکتری حسین عادلی

معاون وزیر امور خارجه در امور اقتصادی ایران



Seal of the Central Bank

 The Central Bank Governor

Ambassador to England, Canada, and Japan

Secretary General of the Gas Exporting Countries Forum

Founder Ravand Institute for Economic and International Studies

THE COMPLETE AND UNABRIDGED INTERVIEW

 مصاحبه کامل و خلاصه نشده 

Petrofilm Europe arrives for the meeting with Hossein Adeli in the Foreign Ministry Tehran.

Working card for the Editor-in-chief

THE SUCCESS OF

THE UNITED STATES

IN AFGHANISTAN

  ALSO COMES AS THE ACTIVE

SUPPORT FROM IRAN

Revolutionary icon Khomeini, Leader Khamenei



A GOLDEN OPPORTUNITY

For Washington to better its relations with Tehran

Went out of the Window!

 CLICK PICTURE PLAY VIDEO

INTERVIEWED APRIL 2002 IN THE FOREIGN MINISTRY 

Dr. Adeli: "Great disappointment!"



INTRODUCTION

The interview was held in Dr. Hossein Adeli's office in the Foreign Ministry in Tehran. It was the first of two meetings that Harald Dahle-Sladek had with Dr. Adeli. The first took place on May 6, 2002 and the second meeting was held in May 2003 in the Foreign Ministry. May 2003 was also the month when Norway met Iran on Minister level in the Headquarter of the National Iranian Oil Company NIOC; the last such meeting between the two sides before the Statoil corruption case broke, and made it impossible for the medium-sized Norwegian oil company Statoil to continue its operations in Iran.

MOHAMMAD HOSSEIN ADELI PhD

At the end of his term in 1999, Adeli was nominated as Deputy Foreign Minister for Economic Affairs and the Chairman of the Coordinating Council for Foreign Economic Relations until 2004. During these years, Adeli initiated two special committees for Reconstruction of Afghanistan and Reconstruction of Iraq through a series of multilateral arrangements, and filled the role of Secretary General for both committees. 



Obama, Karzai 'reaffirm' Afghan-led peace process with Taliban: White House 

             USA: President Obama                         Afghanistan: President Karzai 

HOW THE DIALOG INTERVIEWS STARTED

Harald Dahle worked six years in Iran from January 1998 till May 2003, first in the capacity of documenting and creating dialog in the PC2000 Seismic Survey between Iran, Norway and P.R.China, and later creating dialog in Tehran. He has twenty four years study on Iran and parts of his works are donated to the Nobel Institute Library in Oslo.

Ambassador Noghrehkar Shirazi - Ambassador to Austria, two terms (1992-2000) and to Norway, one term (2000-2004) took the initiative to open up the high-level dialog talks for Harald Dahle in the Islamic republic of Iran to help him complete his Interview project VISION OF IRAN - Creating Dialog and Common Ground with the Islamic Republic. Harald Dahle: -I am of the opinion that sitting down with the people of Iran and creating dialog is a far better thing to do than go to war. Empathy, respect and dignity is what we need, and kindness is the bridge that leads to the heart of the other side.

Photo: The Iranian Embassy Oslo. From left Harald Dahle. His Excellency Ambassador to France Ali Ahani and His Excellency Ambassador to Norway Noghrekar Shirazi, who had once been the Governor of Shiraz. Photo by Deputy Head of Mission Mr. Rezvani.

IRANS PEACE INITATIVE REJECTED

It soon became evident that the rejection of the United States to appreciate what Iran had contributed with to the United States engagement in Afghanistan did not sit well with the leaders of the Islamic Republic. Tehran's generous intent would have been a Golden opportunity for Washington to better its relations with Tehran, but in wain! It seemed that the Americans was not yet ready to hand their Iranian contributors a firm and lasting handshake.His Excellency Dr. Hossein Adeli had been the Central Bank Governor, Ambassador to England, Canada and Japan.

Ambassador Adeli has received Japan's highest order  the Order of the Rising Sun by Japans Prime Minister Shinzo Abe, the highest Order given to any Iranian National for his important role in the Iran–Japan Relation.

Japanese Emperor Order awarded to Iranian diplomat

Japanese Emperor Order of 'Rising Sun, Golden and Silver Star' was awarded by Japanese Prime Minister to Iranian diplomat Mohammad Hossein Adeli.

In a ceremony in the Japanese Emperor palace in Tokyo on Friday May 9, 2014, in the presence of Japanese statesmen and four other foreign diplomats who received the award, the Order of 'Rising Sun, Golden and Silver Star' was awarded to Mohammad Hossein Adeli by Japan's Prime Minister Shinzo Abe. Japanese Emperor, in a speech, felicitated the recipients of the award for their accomplishments and wished success and health for them and appreciated the recipients of the Order for their efforts in direction of improving relations and understanding of their respective country with Japan. Already, Shinzo Abe in a letter had invited Adeli to attend the ceremony to receive Japanese Emperor Order.

Grand Cordon of the Order of the Rising Sun

Japan's Foreign Minister Fumio Kishida also in a letter had felicitated the occasion to Adeli on April 29, 2014. In a statement by Japan's Emperor Court, it was said that Dr. Adeli, during his tenure as ambassador in Japan in late 1980's, made a big effort to develop bilateral relations. When he was governor of Iran's Central Bank, Adeli wrote a book on Japan development after World War II and delivered speeches about Japan growth pattern. He was among organizers of Iran-Japan Friendship Society and still is head of the society.

After Tsunami in Japan, Adeli, in an article expressed sympathy with Japanese people and invited Iranians to express sympathy with Japanese nation. The Order of ' Rising Sun, Golden and Silver Star' is the highest Japanese Emperor Order awarded to an Iranian official. In 2002, Adeli received High Order of Swiss Kranz Montana Economic Forum, which was awarded by the Prince of Monaco. 

Dr. Adeli was interviewed by Harald Dahle in the Foreign Department May 6, 2002. Dr. Adeli was visibly annoyed during the Iran-US part of the interview. 

THE IRAN-US RELATIONS

Dahle: -Tehran has sent an invitation to Washington for a meeting and better the relations between the two sides. I understand that the United States has rejected this initiative. How do you view the current relations with Washington after this disappointment?

Adeli: -Well, actually our relations with the West,  in general has improved a lot during the last, may be four, five years.

Dahle: -Yes.

Adeli: -Specially with the policies that have been followed by President Khatami, Dialogue among Civilization, the Rule of Law, the Principles of Civil Society, the elimination of tension between Iran or other countries, or elimination of misunderstanding. All of these policies have been seriously followed by Iran in its foreign policy and has contributed to the relations with all countries of the world except the United States. And with the West in general we have been able also to exchange delegations on the level of Foreign Minister and head of Governments.

US MILITARY SUCCESS

US Air Mobility Command

Adeli - But with the United States, it is unfortunately to see, that even developments in Afghanistan, which owes a lot to understanding and effective assistance from Iran, has not, I believe been able to penetrate into the hearts or the minds of decision makers in the United States.

Dahle: -Without the help from Iran in Afghanistan, you say that the United States would not have been where they are now?

Adeli: -I think that there is no doubt, even in the American eyes, that what the situation that we see now in Afghanistan owes a lot to Iranian assistance, Iranian understanding. The military success of the United States owes a lot to understanding and appreci-ation from Iran. And also,  the political process in Afghanistan owes the same thing. And may be that was a very unique opportunity for the United States to reciprocate these kinds of understanding, and to seize and stop the kind of policies that are pursued by them, in the past, may be, couple of decades. But apparently there is not still a strong sign from that side!

Dahle: -Iran has friendly relations with many countries in the world, so why not also with the United States?

Adeli: -Off course, the general policy of Iran is to have friendly relations with every country in the world including the United States, provided that this kind of relationship would be based on an equal footing, on a mutually satisfactory, mutually beneficial sort of relationship. So, this is why I think that, as the policies of the United States, which are normally a unilateral policy, we hope that one time they would join the other countries of the West, the other developing countries, join that kind of understanding of Iran. That the developments in the region and developments in Iran would open their eyes, and that they would adopt a new policy toward our country!

THE IRAN-IRAQ RELATION

President Khamenei visits an Iran-Iraq war battle field 1988

Dahle: Dr. Adeli can you please outline Iran’s policy on Iraq for our readers. 

Adeli: Yes, we believe in the policy of President Khatami of Dialogue among Civilization and Coalition for Peace, so these are the policies that we are following. So, if we are against that kind of attack on Iraq is not because we lose opportunity or, I mean we may have our own differences with Iraq, but this is out of a principal position that differences should be settled in an amicable way. Or in a non-hostile way, or a non-armed conflict.

 

THE TALIBAN AND 9-11

Dahle: So that Iran prioritize to follow the United Nations to solve conflicts. What about the Taliban attack on nine-eleven? Should that have been solved in the UN as well? 

Adeli: That attack on the United States is not like the hostility that erupted between Taliban and the United States, these are two different cases. In Taliban case, where Americans were hit directly, America could justify for the world to fire back.  But in terms of other kind of differences we have created the United Nations in order to settle differences in other ways; to take a gun and start shooting is a bad idea.

We don’t say that the differences that exist between the United States and the international behavior of Iraq is justified, we don’t say that. May be there is lots of wrong behavior on the part of Iraq. However, the way to deal with it is not to take the gun and shoot, because if that would become and exemplary way and be followed by the others, then there is lots of differences between many countries in the world. And one cannot say that whoever is stronger should take the gun and shoot! Therefore, we are having strong reservations against these kinds of actions, and we don’t want to see them happen.

GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN

THE CENTRAL BANK IRAN

The Central Bank of Iran, also known as Bank Markazi, officially the Central Bank of the Islamic Republic of Iran is the central bank of Iran. Established under the Iranian Banking and Monetary Act in 1960, it serves as the banker to the Iranian government and has the exclusive right of issuing banknote and coinage. 

THE CENTRAL BANK GOVERNOR

Dahle: -Your Excellency, you were the Central Bank Governor from ninety eighty-nine till ninety ninety-four. I anticipate that it was a time of great importance taking into consideration the situation after the war. Looking back, could you please give your thoughts on this period, thank you.

The Central Bank Headquarter Tehran

Adeli: -Well, off course I served under President Rafsanjani as the Central Bank Governor and off course  as my President, now and then on different occasions like Nowruz or the New Year I go and see him. And I would facilitate him on the different occasions and so from time to time I go and see him as I go and see the other very high-level dignitaries with whom I had relationship before.

President Akbar Hashemi Rafsanjani

Dahle: -When Khomeini came to power on February first nineteen seventy-nine a new chapter started for Iran. How do you view that time in retrospect? Could you please give your thoughts on this, thank you.

Adeli: -Frankly speaking, in my personal opinion, what is taking place is the continuation of an evolutionary process which has really started from beginning of revolution. I mean, nobody can deny that what is seen today can not be analyzed in isolation. What started twenty-three years ago? We started free elections, and we have been able to conduct twenty-two free elections. And the people got used to these kinds of elections. Off course now our elections, our general elections are more participated dynamically.

Dahle: -Yes.

Adeli: -But if we hadn’t had the previous elections we would not have been able to these lively, dynamic elections. Because to participate in the general election is a culture, it’s not the kind of mechanical order coming from Government to the other, therefore we started the principles and elements of free society twenty-three years ago.

Dahle: -Dr. Adeli, when you sat as the Central Bank Governor did you then make yourself some thoughts, a vision how you would like the economy to go?

Adeli: -Well actually, not only did we have our own vision, but we also expressed it repeatedly on television and in the media. At that time, we created a program for the reforming of the economy, and we were informing the people on the various measures that we were creating. We wanted to create an economy that was competitive and in which the people ore the private sector would be the dominant sector of the economy and would be able to compete and seize the opportunity in a competitive environment. Therefore, we started in our own financial sector.

Dahle: -In what area did you first start to refurbish the economy, Dr. Adeli?

Adeli: -We applied the reform for the reducing of the multiplicity of the exchange rate, for unifying the exchange frate. We had lots of rates and wanted to unify them. We had a very administered, monetary policy. We took measures to liberalizing the monetary policy so that monetary policy would be determined by the rates and by the appropriate measures of monetary policy, instead of bureaucratic and administrative decisions. We revived the Stock Exchange as a capital market in order to assist the money market.

At that time, we did not have an active money market, it was a dead Stock Exchange created in Iran thirty years ago. It was inactive and we activated it after the war with the very rules of the market. We also applied the creation of private sector financial institutions. At that time, off course, we were not successful in getting the legislation approved for establishing the private banks, but we were able and successful non-bank financial institutions by the private sector.

Dahle: -Such as the Bonyad?

Adeli: -No, no, no! Financial institutions which could do most of the bank transactions, but they are limited in being full-fledged commercial bank; they were short of just one, two transactions. They were banks – I mean non-bank financial institutions are defined as banks without the permission to do one or two banking transactions, so you don’t call them banks, but they are full-fledged commercial banks.

Dahle: -They lack one or two banking transactions but are still full-fledged banks, I understand, thank you for clearing this up.

Adeli: -We also introduced new instruments such as the bonds, which we introduced un an Islamic way. And for the first time we introduced the notion of having real interest rate. We introduced the notion of independent Central Bank for which I really fought for, and I was relatively successful; that was for the first time in the Islamic economic literature that a notion of an independent Central Bank was introduced.

Therefore, we created an environment where the prices are determined by the market forces not by the administrative decisions. We wanted an environment where subsidies are targeted and are conveyed and given to the consumers in a very transparent way rather than in an indirect way; an environment were trade would be liberalized to the extent that would create a competitive environment and would not damage the industrial power or capability of the country.

To have an active and dynamic international relationship with the other capital markets, with the other money markets, with the other countries. Therefore, the economy we were thinking of and we envisioned at that time would be dynamic, emerging and developing, one which would have the participation of the people themselves, and to have them as the dominant power of the economy.

Dahle: -So, alongside the political revolution you have had an economic revolution?

Adeli: -Well I think that was a prerequisite that was applied and took place to certain extent; off course, in some policies we were not hundred percent successful, but in general and in average we were successful. After the war we started the application of economic reforms,  very bold and ambitious economic reforms. I must say, that were targeting the free economy, or open economy, or whatever you want to call it. So, we started revising the subsidies, stimulating the economy, deregulating, targeting downsizing of the Government, targeting the zero-deficit budget and unification of the exchange rate.

All of these reforms started just after the war. These sorts of economic dynamics were partly successful and partly failure, but all of them contributed to the creation of environment in which the people could start thinking of other needs, of other requirements which are political requirements, which are of a higher nature, of free expressions in the papers, in the media and the other things.

This is why I can see that what has been taken place in Iran is not a new thing. It is the continuation of an evolutionary process. You may see some new phenomena – but these new phenomena are not an isolated phenomena just created from scratch today, because this is a social process, we are talking about a social process which has its roots in the developments that took place in the earlier decades. And this is why the stage in which we are now is a stage which we are proud of.

Developments that have been taking place the past six years after the Government of President Khatami, these are quit dramatic evolutionary phenomena which have boosted our country and that we are very much proud of.

Dahle: -Dramatic indeed!

Adeli: -From a social point of view one cannot say that this is separated from what took place before ore even what took place before that. I mean before President Khatami was President Rafsanjani, before President Rafsanjani we were not in a very good situation because we were fighting a war. But, even when we were at war we had quite a different way of participating in the public debate and in decision making than we used to have it before revolution. So, this is how I see all of these processes of social, political, economic, and evolutionary changes that are taking place, and I hope that these would continue to take place in the future because we are committed to this way and because the nature of this reform is reversable. And in the past twenty-three years we have seen that this has taken – in spite of ups and downs which you would see in the curves in the money market every day or at the stock exchange – we have had a rising curve, and an upward curve.

Dahle: Dr. Adeli what will you say to foreign investors who are thinking of coming her and investing?

Adeli: -We have one general message to all foreign investors that we have lots of opportunities in Iran in various sectors; in telecom sector, in automobile sector in auto sectors, in mining sector and withing IT. There are lots of sectors where we would welcome foreign investors, even in the very high-tech services. Therefor the opportunities are here, and the economy has been successfully sustaining twelve years of  consecutive growth, and this is very important! And this has been done and has been achieved despite oil price volatility in the past decade. We have had two sharp volatilities, one in ninety-three, the other in ninety-seven, ninety-eight where the oil prices fell down.

Despite of this, Iran was successfully sustaining the growth without any interruption in the past twelve years. The economy is quite dynamic and is generating lots of opportunities, especially with the developments that are taking place in the region, this is number one. Number two, in the general message, is the reforms that are taking place in Iran, and they are all aiming at providing a very receptive environment.

I will give you a couple of examples on this. On tax, Iran used to be one of the highest tax rates of the developing countries with fifty-five percent on corporate tax and ten percent on income tax amounting to sixty-four percent. We have reduced this flatly to twenty-five percent, which is quite compatible to other developing countries, especially in our region and makes us one of the tax friendly countries. Another development is the Foreign Investment law. We give production to foreign investors; we would support them by any kind of guarantees and also facilities that are provided by our ministries.

THE ENERGY HUB OF THE REGION

And also, we have in the new – proceeding its final step – we are letting them to invest hundred percent in Iran. So, this is why the environment is quite mature and is quite ready for them to go ahead. And there are also some other reforms that are taking place which have more internal implications that would provide a very good supportive environment for investors, like the deregulation and privatization in the financial sector. I don’t want to go into details, but the special message for the oil and gas industry and investors is that Iran is becoming – like it or not - the hub for the region for energy distribution.

Iran is a gas rich country second to Russia, and there are lots of developments that are taking place and makes Iran as a major exporter of gas in various parts. We are now discussing the gas pipeline to India; we have already started the gas pipeline to Turkey; we are starting a gas pipeline to Armenia; we are discussing gas pipelines to some of the Persian Gulf countries that are going to be gas-deficit countries, and we are planning the gas pipeline to Europe. There are LNG facilities in the Persian Gulf and there are lots of activities and oil, upstream and downstream; it’s a very busy country in terms of oil and gas.

And the fact is that the world is going to demand more oil, more energy, more fossil energy in the future, and would also be more dependent on gas, what is called the fuel for the twenty-first century. Seen in this context, I guess that Iran is one of the most attractive countries with business opportunities in this sector.

DOMESTIC INFLATION

Dahle: -Thank you Dr. Adeli. Can you say some words regarding inflation in Iran at the moment.

Adeli: -Fortunately inflation in the past few years, due to the management of fiscal policy, a very disciplined fiscal policy, and also a very conservative and prudent monetary policy, have come down. Historically, my be in the past fifteen years the inflation in Iran has been around seventeen to twenty percent, an average of the past twelve years. But in the past two years, due to the sort of these disciplined policies in the budget in the fiscal and the monetary the inflation has come down to eleven-point eight percent, less than twelve percent.

This is due the fact that reforms that are taking place in Iran are aimed at down-sizing the government, therefore downsizing the expenses of the government, and therefore is facilitating the target of zero-deficit budget. So, in the past couple of years we have been able to achieve this very important target of zero-deficit budget of Iran. This har really contributed to the curbing and checking the inflation, so inflation now is below twelve and is relative satisfactory to our views.

THE FREE ZONES AND FREE ZONE ISLANDS

Dahle: -I took part in a seminar in 2020 about Free Trade Zones and Islands held at the University of Kish, on the island of Kish. Hossein Nassiri, the president of Free Trade Zones was the main speaker. What is your impression of the so-called free-trade zones and islands?

Adeli: -Free zones are considered to be zones without any regulations, without any bureaucracy so that the foreigners can go there without visas, there are no taxes levied on anything and the regulations, the licenses are given to foreign investors and the foreign investor do not have any limitation.

But at the same time, they are not seen as the main gate for facilitating the foreign investment. Actually, we are very much putting emphasis on the main land regulations to make it as easy as possible, as receptive as possible to attract foreign investors to Iran. Therefore, the free zones are seen as facilitators not just catalysts ; that is something that will going to be there in parallel with pursuing vigorously to make the internal and the main land environment as attractive as possible.

GAS-TO-LIQUID PROJECTS

Dahle: -Gas-to-liquid projects are very in the wind nowadays. What is Iran’s position?

Adeli: -Well, GTL-projects and LNG-projects both are very important projects for Iran as a long term and long-standing gas exporter and gas supplier specially versus the distant markets like Japan and China. We have plans to jointly develop facilities and installations for GTL as well as for LNG for Japan and China and even for other parts of the world. I mean any sort of willingness on the part of countries who are willing to join us in developing these fields or developing the facilities, investing in the facilities, are much welcome.

Dahle: -And Norway?

Adeli: -Yes, Norway is very interested in investing in this sector is now seeking various kind of opportunities, and off course GTL and LNG are sectors that your companies can consider and study investing in.

THE IRAN-NORWAY RELATIONS



Dahle: -How do you Dr. Adeli see the Iran-Norway relation now?

Adeli: -In my view I guess that the two countries have found each other recently. The two countries have had off course relationship for a long period of time, but they have not had effective and adequate communication to understand each other’s potential and each other’s opportunities.

Dahle: -What do you mean by that, sir?

Adeli: -I think that in the recent years the contact between the two sides have increased and communication has made understanding more possible, and opportunity have been created by the exchange of delegations for exploring new areas and new businesses.

In my view the two countries should have joined forces may be twenty years ago, or fifteen years ago or ten years ago to have investment in upstream. But now we see that Statoil has come seriously, they have applied for and seeking (businesses). And off course it is very much welcomed, and it has been facilitated by our ministry of oil, and this is the beginning, I think, of a long road and a vast opportunity for both sides to get involved in the various sectors. Off course oil and gas is the priority and it’s your expertise, and your expertise is not confined and limited to oil and gas, you have other expertise; this is the beginning of marriage and there are lots of other activities to be followed by this very happy sort of joint effort in oil and gas.

IRANS TRADING PARTNERS

Dahle: -Who are your first trading partner nowadays?

Adeli: -Our first trading partner is the European Union, and our second trading partner is Japan. We have an excellent relationship with Japan. And in terms of economic cooperation off course, Japan is quite involved in the various sectors of Iran, and we are  happy to have this cooperation with them in trade, in economic cooperation, in oil and gas; in the various sectors we have welcomed them, and they have been a very committed partner of Iran in various kinds.

THE IRAN-JAPAN RELATIONS

Adeli: -And we also have a very good understan-ding with them, and we know off course the limitations of Japan’s foreign policy. And at the same time there is a very high-level and unique under-standing of each other, Iran, and Japan, so that it created the opportunity for the Iranian President Khatami to visit Japan – so we have relation with them on the highest level in political terms, and on the highest level in economic terms.We do not have any  impediment or any obstacle in expanding and deepening and exploring even more opportunities of business relationship with each other.

Dahle: -And with this superb answer I would like to thank you Dr. Adeli for this interview.

Adeli: -After you have finished talking with everybody here in the Foreign Ministry, the National Iranian Oil Company and all the other places in Tehran you have to give each of them marks from top to bottom, right?

Dahle: -Well, I think that you range as number one Dr. Adeli, no doubt about that!

Adeli: -Oh, thank you so much, thank you very much! (laughing happily).