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Rebuffing Bush, Iran Promotes Economic Ties With EU

Austria’s Klestil, right, welcomes Iran's Khatami at the Hofburg Palace in Vienna.

VIENNA, March 12 (IslamOnline & News Agencies) – In a visit seen by analysts as a way of bypassing the U.S. President’s “axis of evil” term, the Iranian President used his visit to Europe this week to promote economic and political links between Iran and the European Union.

Khatami granted contracts worth 1.1 billion dollars (1.26 billion euros) to several Austrian businesses on the second day of his two-nation visit, which includes talks tomorrow (Wednesday, March 13) with Javier Solana, Foreign Policy Chief in the European Union.

The Iranian president notably signed a contract to build a metro line in Tehran with the Austrian subsidiary of German electrical conglomerate Siemens, the Austrian employers' chamber said, reported Agence France-Presse (AFP).

Vienna's airport also signed a contract to extend an airport in Iran while Austrian telecommunications company Indeo was hired to modernize Iran's telephone network, according to the chamber. A fourth contract was signed with Austrian autmobile parts manufacturer Magna Steyr.

"There have never been so many contracts signed between Iran and Austria. It is a very large volume of business," said chamber spokesman Marcus Nepf.

Euro Chamber, an association representing 1,500 chambers of commerce and 15 million businesses in 36 European countries, has signed an economic cooperation agreement with the Iranian Chamber of Commerce.

The project was backed by European Commission President Romano Prodi, an Austrian source said.

"We are in favor of developing business and commercial ties with Iran. We call on the EU to quickly develop an appropriate framework for commerce and cooperation," said Christoph Leitl, president of Euro Chamber, at an economic forum attended by Austrian President Thomas Klestil.

"Economic stability is the base of political stability", he added. "In the 21st century, it is not a question of digging new graves but of building new bridges," he added in an address to some 200 business representatives.

The Iranian reformist leader Monday started what is widely seen as a mission to build up European ties after U.S. President George Bush accused Iran of pursuing weapons of mass destruction and "exporting terror".

"States should not describe their opponents as evil," said Khatami at a news conference Monday with Klestil.

"But all states should work together to fight the real evil in the world, which is poverty, injustice, terrorism and violence."

For his part, Klestil backed Iran's denial of the allegations leveled by Bush, which were made during his State of the Union address at the end of January.

"I don't agree with this view, Austria doesn't agree with this view and the European Union doesn't agree with this view either," said the president, who in 1999 became the first EU head of state to visit Iran since the Islamic revolution 20 years earlier.

Khatami's visit to Austria is his first to Europe since the United States grouped Iran in an "axis of evil" with Iraq and North Korea.

 

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