Iran (UK Foreign Policy)

Lord Soames of Fletching Excerpts

Thursday 6th November 2014 Commons Chamber

[Mr Straw]

I think there is. For example, we can look at the human rights record under President Rafsanjani, and it got better under President Khatami. As long as President Khatami had power and authority in the extraordinary and very competitive power game that takes place in Tehran, he was able to do things. Moreover, the level of media freedom these days is infinitely greater than it was under Ahmadinejad. The licence to break the controls on the internet, including from President Rouhani himself, also illustrates that changes have taken place. There is a long way to go, however. I am certain that improvements in human rights will come about only through the empowerment of the forces for good in Iran and a diminution of those who are opposed to change. If there is no deal, the consequences are likely to be adverse not only for Iran but for the international community.

[Sir Nicholas Soames (Mid Sussex) (Con)]

The right hon. Gentleman knows my views on this. I support exactly what he is trying to do, and I take the view that the Government must, if they can, move all this forward. Does he agree, however, that one of the most difficult things in dealing with Iran is that, rather like China and Russia, it has absolutely no regard for the rules, other than the rules it chooses to set itself. The complications for America are shown in the question raised by my hon. Friend the Member for Kettering (Mr Hollobone) just now, in that it is impossible to know whether or not the Iranians are going to abide by the rules, and that makes it much more difficult to reach a conclusion.

[Mr Straw]

I am grateful to the right hon. Gentleman and I recognise the support he gives on this issue. I do not generalise between Russia and China; they have similarities, to the extent that they refuse to accept obligations, but they differ. These days we can see in China a real determination by many elements of its Government better to impose a rule of law. Going back to what I have said, those who have dealings, both diplomatic and business, with Iran say that the Iranians are very hard negotiators—and they are—but when, in the end, they have done a deal, they stick to it. It has to be said that there is no evidence that Iran has resiled from what it agreed on 24 November 2013; the IAEA reports that it has implemented what it has agreed.

If there is no deal and negotiations break down because of unacceptable red lines from some, but not all, of the six countries involved, over time the international consensus will break down. First China and then Russia will peel away, and then we are likely to see a reappraisal of policy within the European Union. That reappraisal will be fuelled in part by a belief that US sanctions against Iran have a greater effect extra-territorially, on European banks and trading entities, than they have within the domestic jurisdiction of the US itself. That belief is well founded, because the US authorities do provide greater certainty, and therefore greater protection from penalty, to US banks and entities trading with Iran than they do to similar banks and entities outside the US; I am talking about legal trade allowed under the sanctions regimes.

That may explain the curious irony about exports in recent years to Iran. Across the EU, such exports have slumped in the past 10 years, whereas in the US they are on a rising trend. Ten years ago, US exports to Iran were one ninth of ours, but now they are double. One reason for the fall in our exports, proportionately greater than any other western country’s, is that the UK is alone in maintaining a policy of not supporting any trade with Iran. I have heard no credible explanation for that, and I ask the Minister to have it revised.

I have to be brief, given the time, but the last matters I wish to raise are important and they relate to the reopening of the embassy. The Foreign Affairs Committee reported in July that the reopening was imminent, and indeed it was. As I understand it, that has fallen away not only for some practical reasons, but because of the Home Office’s refusal to accept the re-establishment of a visa regime without categorical undertakings from the Iranians about returns. Iran is difficult on the issue of returns of overstayers and illegals, but so are China, India, Nigeria and a long list of other countries. Iranians do not feature in the top 10 of foreign national prisoners here, or of returns. So I very much hope this is not an area where British foreign policy, and the importance of reopening the embassy fully, is being led not by King Charles street, but by 2 Marsham street, the headquarters of the Home Office. That would be an eccentricity which this House should not tolerate.

I have spoken for too long, Mr Deputy Speaker. I am very grateful to the Backbench Business Committee for the opportunity to have this important debate on Iran.

--- Later in debate ---

[Sir Richard Ottaway]

My hon. Friend is absolutely right, and that goes to this question of trust. If visits are prevented, how can we trust people when they say what is going on there?

As we approach the deadline, there is little sign of a deal. There is still prevarication. The Foreign Office should be prepared to sign up to an extension of the deadline if that is what is needed. The time is on the west’s side at the moment: the sanctions have had an impact, even though they are a crude weapon; the oil price is falling; and the Iranian economy is shrinking fairly significantly. This is the right time to do the deal, but the window is narrow, as the situation has become more complicated by the mid-term election results in the United States. An increasingly confident Republican-controlled Congress is set to make life more and more difficult for President Obama as he reaches the end of his presidency. Rouhani’s time is also limited, as he is trying to fight off the hardliners. If there is no deal, Rouhani will be weakened, the hardliners will be back and they cannot wait for this deal to fail, and the hostility to the west will grow.

If Iran gets a bomb, the middle east arms race will accelerate, and the security situation will get worse. Russia has a role to play. There were reports yesterday that some processing may be done in Russia, which is a great idea if it is possible and achievable. As has been said about Ukraine over recent months, we must keep the lines of communication open with Russia, mainly because they are a key player in settling the deal in Iran.

[Sir Nicholas Soames]

Does my right hon. Friend agree —I tried to make this point to the former Foreign Secretary, the right hon. Member for Blackburn (Mr Straw) —that, in the wider sense, the key to all this is confidence? In doing this transaction with the Russians, which is both sensible and welcome, we must ensure that, for the success of future negotiations, there is proper verification at all times and at every stage.

[Sir Richard Ottaway]

My right hon. Friend is absolutely right. Trust and verification go hand in hand. Without good verification and trust, there will be no basis for a settlement.

I have spoken for far too long. We should not compromise on this matter because, at the end of the day, no deal is better than a bad deal.