Peoples Geography — Reclaiming space

Creating people's geographies

Israel indebted to Iran

Well, well. We’ve heard of those terrible suicides by heavily indebted Indian farmers, but this could perhaps be the most tragic death-wish to escape debt story we’ve yet seen, at the very least a revealing factor in the equation: Caught by The Truth Shall Set You Free from a tip-off, the Guardian has this article from Matty Friedman of AP entitled ‘Report: Israel, Iran Holding Debt Talks’ (6 Dec):

Iran is still owed hundreds of millions of dollars for oil it supplied to Israel in the years before the Islamic Revolution in 1979 and the two countries, now sworn enemies, are holding contacts meant to settle the debt, according to the report in the daily Haaretz citing anonymous Israeli and Swiss officials involved in the negotiations.

Israel and Iran had a close relationship in the 1950s, 60s and 70s, when Iran was ruled by the pro-Western Shah. Israeli companies were given large construction contracts in Iran, the countries cooperated on security and weapons development, and, according to the report, a joint Israeli-Iranian company, Trans Asiatic Oil Ltd., supplied Iranian oil to Israel.

In 1979, when Shiite clerics ousted the Shah, Iran cut off all contacts with Israel, leaving an Iranian debt to Israeli companies for services rendered and a much larger Israeli debt to Iranian oil suppliers, according to the report.

Two mediation processes involving different parts of the debt are now ongoing between Iranian and Israeli representatives, the report said, and a third ended recently in a ruling that Israeli fuel companies owe Iran tens of millions of dollars.

The Israeli Foreign Ministry and international mediation concerns in Geneva refused to comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


This entry was posted on 7 December, 2006 by in Hegemon-watch, Iran, Israel, Israel Watch, Money and Debt, Political Economy, Racism, USA.

Timely Reminders

"Those who crusade, not for God in themselves, but against the devil in others, never succeed in making the world better, but leave it either as it was, or sometimes perceptibly worse than what it was, before the crusade began. By thinking primarily of evil we tend, however excellent our intentions, to create occasions for evil to manifest itself."
-- Aldous Huxley

"The only war that matters is the war against the imagination. All others are subsumed by it."
-- Diane DiPrima, "Rant", from Pieces of a Song.

"It is difficult
to get the news from poems
yet men die miserably every day
for lack
of what is found there"
-- William Carlos Williams, "Asphodel, That Greeny Flower"