Iran (UK Foreign Policy)

Lord Bellingham Excerpts

Thursday 6th November 2014 Commons Chamber

[Mr Henry Bellingham (North West Norfolk) (Con)]

It is a huge privilege to follow my hon. Friend and near neighbour, the Member for South Norfolk (Mr Bacon), who speaks with huge expertise. It is a pleasure also to follow my right hon. Friend the Member for Croydon South (Sir Richard Ottaway) and the incredibly distinguished former Foreign Secretary, the right hon. Member for Blackburn (Mr Straw).

We should not forget that our disengagement from Iran started with the dramatic events on 29 November 2011, when the embassy was ransacked and a number of staff had their lives put at risk. It was an appalling event, and we were obviously right to disengage from that moment onwards. Even now I pay tribute to the ambassador, Dominick Chilcott, and his staff for their bravery at the time, and for the incredibly dignified way in which they behaved in the face of this horrendous event. Since then, there have been some extraordinary changes.

I will focus my remarks on the reasons why we should re-engage with Iran. The first is the extraordinary changes taking place in that country. The right hon. Member for Blackburn spoke about our historical links with Iran and the importance of the diaspora in this country and elsewhere, for example in Switzerland and Canada. I have not visited Iran recently, but many of my friends have, and one of the observations I keep hearing is how much change there has been, even under the Ahmadinejad regime.

Huge amounts of petro-revenue are going into infrastructure, and not only in Tehran but in other cities such as Isfahan, Tabriz and Shiraz. Major investment on the ground, for example in social housing, is empowering a growing middle class. They want change, and they want better education. My right hon. Friend the Member for Croydon South mentioned higher education. Some 55% of school leavers in Iran now go into higher education. Indeed, Azad university now has more than 100 campuses. Ambitions and expectations are changing.

Were we to talk to our average constituent about Iran, we might find that they have a vision of a fanatically religious state in which public executions take place in every city, with people being hanged from cranes. That is an absolute parody of what is happening there, and it is hugely misleading. Religion in Iran is on the wane. The mosques, far from filling up with people on the key days of the week, are pushed to attract the congregations they once had.

I entirely accept that there is a long way to go on human rights. Yes, there has been a release of political prisoners, but like others, I was appalled by the case of Mohsen Amir-Aslani, who was sentenced to death for insulting the prophet Jonah; and we have heard about the case of Ghoncheh Ghavami, the young British-Iranian woman imprisoned for a year for attending a volleyball match. There is still a long way to go on human rights, but since the election of Hassan Rouhani—like the right hon. Member for Blackburn, I welcome his election—there has been a very significant change indeed.

The second reason we should re-engage, and perhaps the most important, is the progress being made on the nuclear programme. Rouhani has driven that process, which culminated in the interim agreement in Geneva on 13 November. That was an extraordinary breakthrough. Yes, there is still some way to go, and my hon. Friend the Member for South Norfolk, who is an expert on the matter, went into great detail—I shall not try to match him—but the IAEA has given assurances that Iran has complied with the terms of the agreement.

There is obviously now a need for a permanent solution. I echo what my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) said a moment ago about the need for trust and verification. That echoes the Foreign Secretary’s recent statement. There has been significant progress, and there is a need for patience. I certainly endorse the suggestion from my right hon. Friend the Member for Croydon South that the deadline needs to be extended. Linked to that is the reduction in the number of sanctions and the various reliefs announced by the P5 plus 1 on oil sales, frozen funds and humanitarian trade. Important and significant progress has obviously been made in that regard.

The third reason for the need to re-engage is what is happening elsewhere in the region. I will not go into too much detail, because we could spend all day talking about it, but I think that what is happening with ISIS/ISIL is incredibly worrying. That organisation’s desire to create a caliphate and step back into the dark ages threatens this country. We need only look at the number of jihadists going out there, the number who have been killed already and the number of radicalised youngsters who have gone there or may well go there in future. That affects Britain and other western countries. I think that we should give credit to Iran for the role it has played. It has been constructive in so far as it has helped to push out Maliki and bring in a new Prime Minister, Abadi.

Furthermore, I think that we should press Iran to play a role in trying to ensure that the different Shi’a militias are rolled up into the Iraqi security forces. Iran obviously has an important role to play in that regard, and we need to recognise and understand that role and be sensitive to it. We need to encourage it as much as possible, because Iran has a role to play in combating this wretched, vile, evil organisation—ISIS or IS.

The fourth reason we should re-engage—again, this is a regional point—relates to Afghanistan. We should look back and see how incredibly constructive Iran was about 10 years ago in a number of areas of our engagement with Afghanistan. We should now look to Iran to be a really positive voice in favour of national reconciliation in Afghanistan and to support the proposed peace settlement with the Taliban. The key point is that Iran can be a pragmatic and flexible actor in that process. I know that there are colleagues in the House who will say that Iran backed the insurgency that killed British troops and must therefore be condemned. Ultimately, we have to remember that Iran’s interests lie away from the Taliban in its present form and in favour of a stable and united Afghanistan, and we should bear that in mind.

The fifth reason we should re-engage is the need to look at the trade agenda. The prospects for the UK to do more trade with Iran are very significant indeed. We have to look after our interests in this world. It is very good news that our trade outside the EU has expanded and is expanding, but our balance of trade with Iran is, depressingly, about $200 million, despite very tight sanctions. The right hon. Member for Blackburn pointed out that US trade with Iran is about four times that figure.

The right hon. Member for Blackburn touched on another important reason why we need to engage with Iran: financial services. He did not mention Standard Chartered bank, but I shall mention it briefly. As the Minister will know, Standard Chartered was recently fined £670 million by the US authorities for breaching US domestic sanctions. I find that very worrying, because there is now a new investigation under way. The bank was punished for quite legally facilitating UK company trade with Iran. It did not break any UK or EU sanctions, or indeed any US sanctions, but it fell foul of some US domestic legislation. The issue, of course, was that a lot of those trades were denominated in dollars, which is the world’s reserve currency, and the US authorities latched on to that fact and threatened to withdraw the bank’s licence, which was quite outrageous. The bank—a world-class, British bank—decided to pay the fine. It is now under investigation again. I regard that as incredibly serious. It was basically threatened with financial blackmail.

What is the view of Her Majesty’s Government on that matter? Is the Minister aware that Andrew Bailey of the Bank of England warned of the consequences of such action? Is he aware that, at a time when we are trying to look proactively at re-engaging and increasing our financial trade with Iran, many companies will look at Standard Chartered’s experience and say, “We want to look at possible contracts in Iran, but we have to be financed by British institutions that will have dollar-denominated packages, so we could fall foul of US domestic sanctions as a result.” Will he look at that urgently? What discussions has the Foreign Office had with the Treasury on the matter? Can the Minister intervene to ensure that it is sorted out?

[Mr Bacon]

I am listening to my hon. Friend with great interest. He may not have noticed a news piece on the Al-Monitor website that was published on 4 November—only the day before yesterday—with the headline “Direct US-Iran banking channel could cement nuclear deal”. US and Iranian officials refused to comment on that piece, which says that the Americans are considering

“the creation of what is known as a ‘blessed channel’”

to facilitate further, easier financial transactions.

[Mr Bellingham]

That is very interesting. On the one hand, this financial blackmail is taking place against various UK banks, but on the other, the US is trying to encourage and facilitate trade. This does need looking at, and I hope that the Minister will comment on it.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)]

rose—

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[Mr Deputy Speaker]

Order. I will not have the Minister give his speech now. Interventions have to be short. You are knocking your own time off, and I do not want that. We have to be considerate to all the other Members who wish to speak in this debate, and, quite rightly, I want to hear them. I do not understand why they must have a reduced amount of time because people are taking advantage.

[Mr Bellingham]

I will therefore reduce my response to one sentence, Mr Deputy Speaker. When I was responsible for our relations with Sudan, we discouraged trade, but we also helped companies that had trading problems and looked at problems just like this one.

I conclude by saying that now is an ideal time for Britain to re-engage with a country with which we have historically had very close relations. I hope that by reopening our embassy we can look forward to a new era in those relations with an incredibly important country in the region.

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[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)]

I agree with the hon. Member for Harrow West (Mr Thomas) that this has been a genuinely thoughtful and provocative debate. The hon. Gentleman also reminded us of what the Labour Government have done in the past. I pay tribute to them for that work, and pay particular tribute to the hon. Gentleman, who has lived and breathed this subject for many years. I know that he is departing the House at the next general election. He will be sorely missed, given the knowledge that he brings to debates on this issue.

I congratulate the right hon. Member for Blackburn (Mr Straw) and my hon. Friend the Member for South Norfolk (Mr Bacon) on securing the debate. I welcome the contributions made by Members in all parts of the House, and will do my best to cover the main themes that arose. Both the right hon. Gentleman and my hon. Friend observed that Iran is a land of which many of us know too little; I hope that the debate has partly rectified that.

The Chairman of the Foreign Affairs Committee, my right hon. Friend the Member for Croydon South (Sir Richard Ottaway), spoke of the duality of the country. There is youth and an educated nation there, but there is also the darker, proxy influence that Iran has on the region. My hon. Friend the Member for North West Norfolk (Mr Bellingham) raised a number of important issues, including the storming of the embassy, the importance of trade, and the problems encountered by Standard Chartered. I should explain that any bank that chooses to trade or work with Iran and trades in dollars will be subject to United States law, which is why Standard Chartered encountered those problems.

The hon. Member for Hammersmith (Mr Slaughter) referred to an important consular case which was mentioned by a number of other Members: that of Ms Ghoncheh Ghavami. I have discussed it with the hon. Gentleman. The Foreign Office is very much involved, and I should welcome the opportunity to meet him later in the week to talk about that.

My hon. Friend the Member for Kettering (Mr Hollobone) mentioned Iran’s ballistic missile capabilities. We must consider its ability to create not just a nuclear weapon but the delivery platform for it. That must not be forgotten when the negotiations recommence.

The hon. Member for Hackney North and Stoke Newington (Ms Abbott) spoke of the importance of reopening our embassy. I recall that, during Foreign Office questions in July, I expressed a hope to go to Tehran and do that very thing. I remember the date that had been earmarked—12 August—because it was my birthday. Sadly, for reasons that I shall go into later, that did not happen, but we will persevere.

My hon. Friend the Member for Aberconwy (Guto Bebb) drew attention to the Foreign Affairs Committee’s report, which is greatly welcomed, and to the breach of serious United Nations resolutions. My hon. Friend the Member for Hendon (Dr Offord) spoke of the importance of access for the IAEA at Parchin and various other sites, and the importance of striking the right deal. He emphasised that we must downsize or reach an accommodation, but must ensure that the deal is appropriate for the international community. The hon. Member for Portsmouth South (Mr Hancock) spoke about Iran’s human rights record, which was mentioned by a number of other Members, and about the power of the Supreme Leader in the country.

My hon. Friend the Member for Basildon and Billericay (Mr Baron) placed the challenges faced in respect of Iran in the context of other recent international engagements, which he has mentioned once or twice in the Chamber before—he is certainly consistent in that—and my hon. Friend the Member for Hexham (Guy Opperman) talked about empowering the elected Government and the complications of comparing them with our own Government here, and also the complexities of the power bases in Iran. My hon. Friend the Member for Tiverton and Honiton (Neil Parish) posed the fundamental question: can Iran be trusted? That is what this debate is all about: what role does Iran wish to play within its own borders, in the region and, indeed, in the world?

I am sure my hon. Friends will agree that we face many daunting challenges in the middle east. There are those who say those challenges are shared by Iran, and that it is high time the international community put aside our differences and found ways to work with Iran to resolve them. There is, of course, much truth in this: it is not in Iran’s interests for sectarian tensions in the region to worsen, and we all face common threats from ISIL.

We should also not forget Iran’s history. It is a significant regional power with a proud and ancient culture, as the right hon. Member for Blackburn highlighted. Iran has been a significant regional power for over 3,000 years and has a deep, rich and diverse history going back to the birth of civilisation. The magnificence of Persepolis, the beauty of Isfahan, the Cyrus cylinder and the lyricism of its poetry are just a few of the many examples of Iran’s contribution to world heritage over the centuries, and Persian culture and thought have rightly had an enduring influence on the west, and we are very much the richer for it.

However, we would like to see Iran playing a more constructive role in the region, aligning its activities with the international community’s efforts to tackle ISIL and achieve a peaceful solution in Syria. We must also recognise that there remains great distrust in the region over Iran’s intentions, however, and that real progress will require a change in Iran’s behaviour. Genuine progress will require a transformation in the nature of Iran’s relationship with its neighbours and the world, and the key to that is a resolution to the nuclear issue.

The current Iranian Government recognise that it is in Iran’s interests to reach a nuclear agreement. It is for that reason that we have pursued nuclear negotiations over the past year with professionalism and in good faith, despite the many challenges. I very much hope that we will soon be able to say that nuclear negotiations have succeeded. We remain committed to reaching a comprehensive nuclear agreement. It is right that we should leave no stone unturned in the quest to do so, but we must not, and will not, do a bad deal. The stakes are too high.

I pay tribute to the commitment and expertise of the nuclear negotiators, both on the Iranian side and in the E3 plus 3. Without them, we would not have made the unprecedented progress that we have to date, but there is a long way still to go. Iran needs to recognise that it must take meaningful steps to roll back its nuclear programme, including reducing its enrichment capacity, in order to gain substantial sanctions relief. That is the trade-off at the core of the negotiations—negotiations which, I can tell the House, will begin in Oman next week.

A number of Members have mentioned the issue of the opening of the embassy. We announced in June our intention to reopen the British embassy in Tehran and have been engaging intensively with the Iranian authorities since then on the practicalities. We want to see the UK and Iran have functioning embassies in each other’s capitals. This does not mean that we suddenly agree on everything—there will continue to be areas where we sharply disagree—but reopened embassies will better equip us to address these challenges as well as the range of areas where our interests coincide, a point eloquently made by the hon. Member for Hackney North and Stoke Newington. Embassies are also vital in enabling greater links between the people of our two countries.

However, there are currently two outstanding issues that must be resolved before we can reopen our embassy: first, repairing the damage caused by the mob invasion of our embassy in November 2011; and, secondly, the issue of visa services.

[Mr Bellingham]

Will the Minister also note that a great deal of damage was done to works of art? The fire did a huge amount of damage, and this is not just a question of repair; it is also a question of paying for all those works of art and other bits and pieces that were destroyed or damaged.