Iran issue: India sees hope in Rice, Annan remarks

New Delhi
13 January 2006

If Washington's endorsement of EU3's decision on
Iran has caused some anxiety in New Delhi, United States Secretary of
State Condoleezza Rice's remarks -- that the target is the government of
Iran, not its people and "this [issue] should not be about Iranian people" --
would have come as a relief for South Block.

Dr Rice has said it is still to be decided how a "strong message" can be
sent out "without affecting people". While placing the blame for the
escalating diplomatic crisis squarely on the Iranian regime, she observed
that the Iranian people deserve better.

Also, United Nations Secretary General Kofi Annan has called for giving
diplomacy time to resolve the issue. After a telephonic conversation with
Chief Iranian Negotiator Ali Larijani, who has reaffirmed that his country is
interested in negotiations but within a time frame, Mr Annan said,
"Basically, I called him to urge him to avoid any escalation, to exercise
restraint, to go back and give negotiations a chance and that the only
viable solution lies in negotiations."

Observers say the threat of economic or other sanctions against the
world's second largest oil producer could have had a cascading effect on
oil prices and caused India's oil bill to spiral up. According to reports, oil
prices on Friday were lower in Asian trade, easing back as there was
some hope that Iran was prepared to show some flexibility.

Observers also said that it was still not certain if Iran will be
referred to the UN SC immediately and/or sanctions imposed on
Tehran. They said the second round of talks between Russia and
Iran is scheduled for February 16. Also, the five major powers will
meet in London soon to decide appropriate action.

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