Posted on 05/27/2005 6:10:03 AM PDT by Srirangan
NEW DELHI - Quietly but surely, India is reopening its diplomatic contacts with the new Iraqi administration. In the first official contact with the new Iraqi government, Prime Minister Manmohan Singh's special envoy for West Asia, C R Gharekhan, met Iraqi Prime Minister Ibrahim Jaafari earlier this week. While India has offered to help in rebuilding the war-ravaged country and in the drafting of its new constitution, it is also seeking to cut into the estimated US$100 billion reconstruction business. India hopes to garner as much as $10 billion.
During his meeting with Jaafari, Gharekhan handed over a personal letter from Singh emphasizing India's commitment to cooperate with Iraq on the task of national reconstruction. In the letter, Singh invited Jaafari to visit India, a gesture that Jaafari reciprocated by inviting the Indian premier to Iraq. Gharekhan suggested that Jaafari assign the Iraqi oil minister to lead a delegation to India for the next meeting of the India-Iraq Joint Commission. Jaafari, who has studied Mahatma Gandhi's life and teachings, spoke warmly about Indo-Iraq ties and said he supported UN reforms including the expansion of the Security Council while emphasizing India's "important position" in world affairs.
The new government in Baghdad has already indicated that it is more than willing to welcome back Indian businessmen, in order to re-establish thriving Indo-Iraq economic ties that took a hit after the US-led invasion in 2003. Apart from warm relations, there is a healthy respect for quality services rendered for projects delivered by Indian companies in Iraq. According to reports, more than 100 Iraqi businessmen are currently visiting India each month, the number having doubled from last year, and the Indian mission in Baghdad is inundated with inquiries from Indians wanting to do business in a new Iraq.
Indeed, India and Iraq go back a long way. Before the Gulf War, in 1990-91, Iraq, which has the world's third-largest oil reserves, was one of the major sources of India's oil imports and one of the biggest markets for India's project exports, mostly in the construction sector. With the Gulf crisis in 1990 and the imposition of UN sanctions, India's trade with Iraq declined considerably. In line with UN resolutions, India decided to partially lift the ban on trade with Iraq in June 1991, with relations expanded further in 1996. After the overthrow of the Ba'athist regime by coalition forces in 2003, the UN sanctions were lifted and trade between Iraq and other countries began to normalize. The new government has been stressing the need for immediate reconstruction of Iraq and has been floating tenders. As the time required for the submission of bids is rather small, Indian firms are looking for local representation in the country.
Saw a report last week that SecState had been spreaheading a major diplomatic initiative with India. Seems to be bearing fruit.
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