Aust. reviews Iran ties

Press, 9 April 1980, Page 1

Aust. reviews Iran ties

NZPA Melbourne The Australian Government has launched a full review of diplomatic and economic ties with Iran.

The Foreign Affairs Minister (Mr Andrew Peacock) said yesterday that the review would be “total.” He and officers of his department had been in “continual consultations” with the United States, which earlier yesterday broke off diplomatic ties with Iran.

Mr .Peacock said ecorp omic sanctions and diplomatic relations would be discussed at a Federal Cabinet meeting next week. “It is not a matter for an individual Minister to take action,’’ he said.

The whole relationship was being examined and ! therefore economic ele- ; ments had to be considiered.

j “We have been acting • with great restraint over the last four or five months, 'particularly in our com* ■ mercial relations with ; Iran.

“It is time to reassess that, but I am not indicat-

ing that we would necessarily impose, economic sanctions. If they are to work effectively they have got to be adopted by so many other countries,” Mr Peacock said. .

The Deputy Prime Minister (Mr Taiboys) said last evening that the Government had not yet decided whether to back the United States moves against Iran. “The Ambassador has just returned to his post. Any further action will be taken after the Govern’ ment has given consideration to the American proposals,’’ he said. The Ambassador (Mr C. D. Beeby) had returned to the embassy in Teheran last week, said the Prime Minister (Mr Muldoon) yesterday. “In the light of reports which' we have received from a member of the embassy staff who returned to Teheran several weeks ago, there appears to be no reason why the embassy should not resume its normal functions.”

“We are therefore proceeding with the phased

return of seconded staff,” Mr Muldoon said. .

Mr Beeby and members of his staff were withdrawn from Teheran on security grounds in February after a break-in at the embassy. Italy had blocked the delivery to Iran of big Italian-built Boeing helicopters and spare parts for Bell helicopters made in Italy under licence, said officials of the Agusta aircraft company yesterday. They said that they did not think the delivery, of the equipment would be approved while hostages in the United States embassy in Teheran continued to be detained.

Italy’s action showed strong opposition ft> the detention of hostages and the violation of diplomatic immunity by the Iranian authorities. It also resulted from strong United States pressure on Rome. Agusta officials in Milan said that they would normally fly. the Boeing Chinook helicopters to Iran, but the Defence

Ministry had not granted rights to overfly Italy. Iran originally ordered 50 Chinooks in a complicated deal involving the sale to Italy of Iranian oil, and renegotiated down to 34 after the fall of the Shah. Teheran ’kept an option to buy the remaining 16 later. The delivery of the parts for the Bell helicopters was delayed because Agusta had not received written approval from Government ministries to go ahead. But Foreign Ministry officials said that the Ministry had approved the delivery of the part's after being told by the Red Cross that they were needed for helicopters engaged in flood relief work in Iran.

This provoked private United States warnings that Agusta’s licences and a potentially lucrative Italian plan to sell warships to Iraq using United Statesmade engines could be at stake if the deliveries of military equipment to Iran went ahead during, the hostage crisis, Western diplomats said.