The Wall Street Journal 
Interactive Edition
April 28, 1997
     
           EU Members Will Work To Set a Policy for Iran

By BRIAN COLEMAN 

BRUSSELS -- The 15 European Union states will try this week to set a policy toward Iran that strikes a balance between criticism and cooperation.

The EU's foreign ministers will take up the difficult topic at a meeting in Luxembourg on Tuesday, with officials predicting the outcome  will be a mixture of renewed diplomatic ties and fresh travel or trade restrictions. The ministerial talks come less than three weeks after a German court blamed the Iranian regime for the murder of Kurdish dissidents in Berlin and prompted 14 EU member states to recall their ambassadors from Tehran.

"The bottom line is [that we will] send back our ambassadors in a coordinated manner,'' said a spokesman for the Dutch foreign ministry.
But, he added, "it is important that we now decide on further action.''

'Critical Dialogue'

That action is expected to include extending the suspension of their controversial "critical dialogue'' policy of putting friendly pressure on Iran. The ministers also will consider a number of other actions, such as restricting visas for Iranian officials and tightening rules on arms sales to the country.

The Europeans are caught in a dilemma. On the one hand, the German court ruling makes it impossible for them to ignore Iran's terrorist activities and is forcing them to act. On the other hand, EU member states, in particular Germany and Italy, have strong economic ties to Iran, with trade totaling about $10 billion a year.

"There's too much money at stake'' for the EU to break off relations entirely, said Ibrahim Karawan, head of Middle East studies at the London-based International Institute for Strategic Studies. "There are people on the European side who don't want to lose the Iranian market.''

U.S. officials will be watching the meeting with keen interest and mixed emotions. Peter Tarnoff, special adviser to U.S. Secretary of State Madeleine Albright, has quietly been visiting European capitals in the past week, urging EU states to impose economic sanctions similar to those enforced by the Americans or to impose
new travel restrictions on Iranian officials.

EU's Relations With U.S.

The outcome could have a bearing on EU-U.S. relations. The two sides recently reached a truce in their dispute over Europe's continuing diplomatic and trade relations with Iran and Libya. However, the U.S.
Senate continues to demand signs that the EU is getting tough on the two countries.

But U.S. officials say they fully expect the Europeans to return their ambassadors. The EU said at the time that the withdrawal of their ambassadors would be only temporary.

Nor will it be easy for the ministers to strike an agreement on what fresh actions to take. "It has been clear from the outset that dramatic action--especially in the economic field -- will be difficult to achieve with unanimity,'' the Dutch spokesman said.

Virtues of Ties to Iran

Countries such as Germany, Greece and Italy remain convinced of the virtues of continuing relations with Tehran.

"We do not want to isolate Iran,'' Greek Foreign Minister Theodore Pangalos said last week. "We have to exhaust all possibilities. Iran is one of two countries in the region [along with Iraq] that can act as a guarantor of peace and security for the West."

Opponents of the Iranian regime are planning a large demonstration in Luxembourg on Tuesday to protest EU links with the government. They are urging the EU not to return their ambassadors to Tehran. "It will be a green light for terrorism,'' warned Shahin Gobadi, a member of the exiled National Council of Resistance of Iran. "If Europe does that, they will pay the price down the road.''