Webblog by Gregory Schulte on the P5+1 Incentive Package Offered to Iran

August 29, 2006

On June 1st, the six foreign ministers of Europe, Russia, China and the U.S. agreed on a far-reaching set of proposals that would benefit the economic well-being and long term security of the Islamic Republic if Iran's leaders were prepared to negotiate seriously and suspend activities that are not necessary for a civil nuclear program but that have given the world such concern.

United Nations Security Council Resolution 1696 has since made suspension of these activities mandatory.

We have now received a response from the leadership of Iran. Iran's leaders have characterized their response as positive but we are dismayed that they are not prepared to suspend the activities of concern.

We are now awaiting the report of the International Atomic Energy Agency (IAEA) Director General Mohamed El Baradei on Iran's nuclear activities. If the Director General reports that Iran fails to suspend these activities, we cannot be convinced that Iran's leaders intend to negotiate seriously and respect their international commitments. The UN Security Council agreed that, if Iran's leaders fail to suspend uranium enrichment, the Council will move to implement sanctions.

If, on the other hand, Iran's leaders suspend the activities that so concern the world and show genuine willingness to negotiate, the six-country proposal provides an opportunity for Iran's leaders to improve the economic well being of Iranians.

The leadership of Iran now has a choice: to continue their current course of ignoring the concerns of the international community and further isolating Iran politically and economically or to suspend these activities that have given the world such concern and seize on this opportunity to improve the living standards of the Iranian people.

The Best Way To Improve the Living Standards of the Iranian People: More International Trade and Investment

The package offered by the governments of China, France, Germany, the United Kingdom, Russia and the United States offer new opportunities for economic growth.

· A framework for increased trade and foreign direct investment will help create jobs and offer hope for a better life to the two-thirds of Iranians who are under 30 and unemployed. A significant reduction in Iran's double-digit unemployment rate would make a major contribution toward improving the lives of all Iranians.

· New investment in Iran's petroleum sector and in associated industries would lead to substantial increases in oil production and support the creation of thousands of new jobs. Oil accounts for a large portion of Iran's export revenues and increased production will make more funds available for social services and economic development.

· Iranian membership in the World Trade Organization would make a major contribution toward increasing trade and foreign direct investment in Iran. One result of WTO membership would be more high quality goods in Iranian stores at competitive prices. Another would be well-paying jobs with foreign companies who invest in Iran.

Reintegrating Iran into the world economy would increase energy security and availability, increase regional security in the Middle East, and facilitate upgrades in Iran's infrastructure relating to agriculture, telecommunications, transportation and basic science.

· Iran would receive legally binding fuel supply assurances for civil nuclear reactors and international support for the construction of new, state-of-the-art power plants.

· International cooperation on nuclear energy research and development would support progress in fields such as medicine and agriculture.

· International cooperation in civil aviation could lead to the removal of restrictions on purchases of U.S. and European civil aircraft and related parts.