M A I N   N E W S

India agrees to import oil from Iraq

NEW DELHI, Nov 29 (PTI) — In a major deal with Iraq, India today agreed “in principle” to import oil from Baghdad in return for wheat under the world body’s food-for-oil programme but the contract would be implemented after discussions with its sanctions committee.

“An understanding has been reached in principle for the import of oil from Iraq, India, in turn will export foodgrains to Baghdad under the food-for-oil programme. We will engage in consultations with the UN sanctions committee regarding the implementation of this understanding in context of the sanctions regime currently in force against Iraq,” a foreign office spokesman said.

He was briefing reporters on the visit of Iraqi Vice-President Taha Yassin Ramadhan and the three-day Indo-Iraq joint commission meeting from November 26, which was attended by Petroleum Minister Ram Naik and Iraqi Oil Minister A. Mohammad Rashid here.

Replying to a question on India’s stand on the sanctions against Iraq imposed after the 1991 Gulf war, the spokesman said the sanctions were “unjust, unwarranted and detrimental to the interests of the Iraqi people”.

He said a decision on the lifting of sanctions should be in tandem with Iraq implementing the Security Council resolutions.

Mr Ramadhan, who held wide-ranging talks with the Indian leadership, told reporters that India and Iraq have agreed on a framework for cooperation for a long-term strategic partnership and urged New Delhi to look beyond UN sanctions and help in rebuilding its economy.

The Foreign Office spokesman did not give out details about the quantity of oil imports from Iraq and whether the prices would be lower than the international market.

Official sources said India had been importing oil worth $ 250 million from Iraq under the food-for-oil programme since 1996, but the volume of import under the new understanding was expected to be much higher.

On the meeting Mr Ramadhan had with External Affairs Minister Jaswant Singh, the spokesman said the Iraqi Vice-President informed Mr Jaswant Singh about his leader Saddam Hussain’s vision of a long-term relationship with India.

He told reporters that a new dimension was being given to bilateral ties with special focus on bolstering economic cooperation.

Mr Ramadhan, who is on a five-day official visit, the first high-level visit from Iraq to India in the past 25 years, said, “We found real understanding and appreciation here of the position of Iraq.”

Describing his visit as a “turning point” in Indo-Iraq relations, he said there were now immense prospects for cooperation and expansion of bilateral ties in diversified fields. “Now, we are moving ahead,” he said.

The Iraqi leader parried questions on whether Baghdad had agreed to sell oil to India at lower rates.

TNS adds: Meanwhile, the Iraqi Oil Minister, Dr Amer Mohammed Rashid said Baghdad would not cut its crude oil production and would go ahead with its, new oil-pricing mechanism.

Iraq has proposed a differential pricing formula, which, if implemented may affect international crude oil prices.

Asked if Iraq would cut supplies to buyers failing to pay the new price, he said buyers had no problems with the new formula.

On a proposal to extend sanctions against Iraq by another year, Dr Rashid said “we haven’t heard of it. Let the resolution come we will react accordingly”.

Mr Ramadhan, who held talks with the President, Mr K.R. Naryanan and the Prime Minister, Mr Atal Behari Vajpayee, signed the agreed minutes.

Under the agreed minutes, India would increase the number of Iraqi trainees under various programmes, provide 20 training slots for self-financing Iraqi students and award 30 scholarships to them.

India has also been invited by Iraq to participate in the Baghdad International Trade Fair and also join that country in a wide variety of projects and in supply of raw materials and equipment, a spokesman of the Ministry of External Affairs said.

India to buy 10 Mirages
Tribune News Service

NEW DELHI, Nov 29 — The government has decided to acquire 10 France-made Mirage 2000 aircraft and British Aerospace’s Hawk advanced jet trainers (AJTs), the Rajya Sabha was informed today.

Replying to supplementaries during question hour, the Defence Minister, Mr George Fernandes, said the upgradation of Russian MiG 21 BIs would cost $2 million per aircraft as against a cost of between $25 and 35 million to acquire new fighter aircraft.

The upgradation process would be completed by 2004, he said.

The aircraft were upgraded to meet the challenges of the future in a cost-effective way, he said, adding that the upgradation would increase the life of the aircraft by 10 years.

The minister said the acquisition of Mirage aircraft would improve the fleet strength of the Air Force.