Britain-Iran Relations

Tobias Ellwood Excerpts

Wednesday 12th October 2016 Westminster Hall

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

I thank all hon. Members who have participated in what has been an excellent debate. I begin by thanking my hon. Friend the Member for South Ribble (Seema Kennedy) for what I thought was a powerful and emotive, but very sober, reflection on Britain’s relationship with Iran. The duality of the situation that we face with Iran at this juncture was reflected in the contributions right across the field.

I was pleased that my hon. Friend the Member for South Ribble began by highlighting the history and the context in which we find ourselves today. We sometimes rush into these debates, looking at the details, without first appreciating or reminding ourselves of that bond. It is perhaps more relevant in the countries in the middle east. To them, the bonds that existed in the past are very important—we perhaps gloss over them, and we should remind ourselves. I appreciate that my hon. Friend reminded us of what happened in the 1800s and before, as our English naval capability was strengthening its ties and its trade relationships with India, Iran and the Trucial agreement that took place with the Gulf nations—indeed, the role of Persia in the great game—were all part of the tapestry that created those bonds, which were furthered by the discovery of oil and the beginnings of what is today BP. There is a legacy and history that ties us together and of which we should be reminded, as we look to embark on a new relationship following the important, generational change and opportunity that Iran now has with the nuclear deal.

We were reminded of the size of the diaspora in this country, which is connected to what happened in the 1979 revolution—about 85,000 people are directly connected with Iran. We were also reminded of the 2016 elections. Without delving too much into domestic matters, I was buoyed by the outcome of those elections and the change in the approach and direction of travel in the Majlis and in the Assembly of Experts. We are seeing the country take positive steps.

My hon. Friend the Member for North West Hampshire (Kit Malthouse) highlighted the very educated, very young population, who are as aware as anybody of what is happening in the rest of the world and are expressing a desire to have a good, solid, positive and responsible relationship within their own country, the region and the rest of the world. That is what the bulk of ordinary Iranians are asking for. The issue is—dare I say?—the old guard, who at the moment very much recognise a desire for change in their country, but are unsure of how to embark on the next steps and how to adapt to the change the people of their country are demanding of them.

Many hon. Members, but specifically my hon. Friend the Member for Hendon (Dr Offord) and the hon. Member for Strangford (Jim Shannon)—who I will call my honourable friend in this context and who has persistently and consistently raised the issue—spoke of the importance of the plight of Christians and other minorities such as the Baha’is. That shows the duality that we face here. There is an opportunity for trade, engagement and so on but there is still much work to do in other areas. We have to decide how we fit into that— how to balance that interest and opportunity while taking advantage of greater engagement and conversation to encourage change in those other critical areas.

As with other debates, I will write to my hon. Friends and hon. Members in reply to their specific questions, particularly where I do not have the answers right now. That is not a cop-out; it will allow me to give hon. Members answers in depth. I will focus the rest of my time on the questions posed by my hon. Friend the Member for South Ribble, who began by talking about the trade opportunities that exist.

We should not ignore the fact that this is the biggest new market to open up in a decade. Trade is certainly growing. Since the nuclear deal and the relaxation of sanctions, our bilateral trade has increased. I pay tribute to the Prime Minister’s envoy, Lord Lamont, who has done a sterling job in bringing leaders, for instance Foreign Minister Zarif, to meet parliamentarians and business people. That helps to create the atmosphere where business can be conducted. Lord Lamont has taken delegations out to Tehran as well.

There are clearly huge areas of opportunity, not just in hydrocarbons and traditional areas. There has been little spending on infrastructure in Tehran for more than three decades. We have a role that we can play, if we choose, but as has been expressed across the board, there is a massive hindrance at the moment. There is a huge hurdle at the moment in the form of legacy sanctions and US sanctions connected to the banking sector, which prohibit US passport holders from being able to do business—or make them worried to do business—for fear of triggering US sanctions. I have had discussions with John Kerry—with the Americans and others—and we came close to having a meeting with the Office of Foreign Assets Control, which is the US Treasury committee that focuses on this issue. We were not successful in getting that meeting, but we will persevere to make that happen. John Kerry and the director of OFAC, John Smith, said that they do not stand in the way of business being permitted in the context of the joint comprehensive plan of action. However, businesses, including big British banks, have raised the cautionary concern that US passport holders do not feel confident at the moment to go and do business in Tehran. The Government understand that we need to resolve that issue urgently.

We are also offering financial support. The Bank of England’s role was mentioned, and we have other financial services. Given the experience of the City, we are offering Tehran advice and support on how it can introduce anti-money laundering programmes and counter the financing of terrorism. We want to ensure that those products are in place as its own financial services develop.

[Mr Bacon]

The Minister mentioned the Americans. It is comforting to everyone that he came close to securing a meeting with OFAC, but it would be even more comforting if he had actually secured it, so I hope he succeeds in doing so. Is he worried, as I am, that the United States, despite not having diplomatic relations with Iran, is acting in a way that secures its own commercial interests at the expense of other western partners? It is noticeable that Germany and France are both putting pressure on the United States and reminding it to lift the sanctions, as it is supposed to do in accordance with the JCPOA obligations.

[Mr Ellwood]

My hon. Friend makes an important point. In fact, we discussed that matter in some of the forums we had with leaders who have come over from Iran. I am very much focused on going back to that committee. Unfortunately, the very people who wanted to attend felt that they might trigger the sanctions simply by being at the meeting to discuss this matter. That is the cautionary environment that we now face.

My hon. Friend the Member for South Ribble mentioned the consequences of Brexit. Let me remind everyone that, although we are backing away from direct involvement in the European Union itself, Britain is not stepping back from trying to solve the problems of the day. Britain will step up to the plate, whether on Ebola in Sierra Leone or on trying to get a nuclear deal. Although we will not be part of the EU in the future, Britain will participate in those important matters because that is who we are and what we want to do. Outside or inside the EU, Britain has a role to play on the international stage, and we will continue to pursue striking international deals, as we did with Iran.

The hon. Member for Hornsey and Wood Green (Catherine West) asked whether our embassy has the capacity to grow and whether we have the capability. Absolutely, we do. As trade starts to develop, all embassies will make an assessment of where things are moving and where developments are taking place. We have now got an embassy with a full ambassador in place, so that is already happening.

[Catherine West]

Can the Minister tell me how many people speak Farsi in the Foreign Office in London?

[Mr Ellwood]

I will certainly get the hon. Lady the details on that important question.

Our embassy is growing. I am pleased to say that ambassadors are now in place on both sides. There was some sniggering when soft power was mentioned, but I must stress that we are considered one of the world’s most important and influential soft powers. It is because we are a permanent member of the United Nations; we are committed, engaged and determined to understand the world around us; we have a hard-power capability and are the biggest military force in Europe; we have a history and a relationship with many countries around the world; and we remain committed, transparent and trusted. That all adds up to being an important soft power. That is why debates like this are important. Those things allow us to have more influence over other countries that do not have such relationships and simply shout from afar expecting change to happen.

[Mr Nigel Dodds (Belfast North) (DUP)]

I entirely agree with what the Minister said about the UK’s soft power in the world. He said that, after Brexit, we will continue to have a strong role on the world stage, in particular at the UN. I do not know whether the Minister is going to get to this point but, in relation to the nuclear deal, what is the UK’s response to Iran’s breach of UN resolution 2231 through ballistic testing and so on? What assessment has the Minister made of it? What are we doing at the UN about it?

[Mr Ellwood]

I will come to that point in a second. The short answer is that the two issues are quite separate. The nuclear deal stands alone and is specifically to do with containment of the ability to create a nuclear weapon. Resolution 2231 is to do with ballistic missiles and the capability of launching an intercontinental or a nuclear weapon using that vehicle. The tests that are taking place are triggering further sanctions separate to the nuclear deal.

The next question that my hon. Friend the Member for South Ribble asked was about dual nationals. That is a very sensitive issue, as hon. Members will be aware, because Iran does not recognise dual nationality, which causes problems and is a concern to anybody choosing to travel to Iran thinking that they will be supported by Britain in the way they would if they had sole British citizenship. That is the challenge that we face. We are working very hard on a number of consular cases, particularly those of Kamal Foroughi and Nazanin Zaghari-Ratcliffe. Those are two of the most prominent cases, and hon. Members will have had many letters on those matters. They are dual nationals, and that is the challenge that we face. I encourage anybody with a dual nationality who is thinking of travelling to Iran to look carefully at the Foreign and Commonwealth Office website before travelling so they are fully aware of the situation.

My hon. Friend the Member for South Ribble also talked about Iran’s maturing stance following the nuclear deal. The deal allows a change in attitude towards Iran and further dialogue on the human rights issues that have been discussed, to which I am afraid I cannot do justice in the short time remaining.

Iran is at a crossroads. The nuclear deal that has been signed with the UK and the other E3+3 countries is an opportunity.

[Kwasi Kwarteng (Spelthorne) (Con)]

Will the Minister give way?

[Mr Ellwood]

I cannot give way, because I have to allow a couple of minutes for the proposer of the motion to speak.

We must take a balanced approach. We must robustly enforce the nuclear deal and check the human rights concerns that have been raised in this debate, while promoting trade opportunities. We stand ready to help Iran at this juncture, but we expect it to check its proxy influence in the region around it and play a responsible role as it moves into the future.