Joint Communique of the 8th Joint Bilateral Commission between the Islamic Republic of Iran and the Republic of South Africa held in Tehran from 14 to 15 December 2004 (Corresponding to 24 and 25 Azar 1383)

At the invitation of His Excellency Dr, Kamal Kharrazi, esteemed Minister of Foreign Affairs of the Islamic Republic of Iran, Her Excellency Dr. Nkosazana Dlamini Zuma, esteemed Minister of Foreign Affairs of the Republic of South Africa, head of the high-ranking political, economic and cultural delegation, paid an official visit to Tehran from 14 to 15 December 2004 (Corresponding to 24 and 25 Azar 1383 Iranian Calender).

Her Excellency Mrs. Manto Tshabalala-Msimang Minister of Health of the Republic of South Africa and other high-ranking officials accompanied the Minister of Foreign Affairs of the Republic of South Africa.

During the visit, Her Excellency Dr. Nkosazana Dlamini Zuma, esteemed Minister of Foreign Affairs of the Republic of South Africa officially visited Dr. Kamal Kharrazi. She also paid a courtesy call on His Excellency President Mohammad Khatami, President of the Islamic Republic of Iran and conferred with His Excellency Dr. Haddad Adel, Speaker of the Islamic Consultative Assembly of the Islamic Republic of Iran. Minister Zuma also met and held discussions with the Secretary of the National Supreme Security Council of the Islamic Republic of Iran, His Excellency Dr. Rouhani and the Chairman of the Expediency Council, H.E. Hojatoleslam Hashemi Rafsanjani.

Her Excellency, Mrs. Manto Tshabalala-Msimang Minister of Health of the Republic of South Africa, met with her counterpart, His Excellency Dr. Masoud Pezeshkian and held discussions with him.

The other members of the delegation of the Republic of South Africa participated in the Working Group sessions of the 8th Joint Bilateral Commission and held talks with their Iranian counterparts on various issues of mutual interest.

During the course of the opening ceremony of this Joint Commission, both the Ministers of Foreign Affairs of the Islamic Republic of Iran and the Republic of South Africa respectively, expressed their pleasure with the existing relations between the two countries and noted recent positive developments.

The Parties decided to establish two working committees in the following fields:

Political and Social Affairs
Technical and Economic Affairs

Dr. Anil Sooklal, Deputy Director General of the Ministry of Foreign Affairs of Republic of South Africa and Mr. Javid Ghorbanoghli, Director General for Africa of the Ministry of Foreign Affairs and Secretary of the Africa Headquarters of the Islamic Republic of Iran, jointly headed the Political and Social Working Group. Mr. Mousavi Mir-Kalaee, Director General for Arab and African Affairs of the Ministry of Commerce of the Islamic Republic of Iran and Mr. Cassim Nakooda, Deputy Director for Trade and Investment of the Republic of South Africa jointly headed the Technical and Economic Working Group.

At the 8th Joint Commission, bilateral relations during the previous year were reviewed and the parties expressed their satisfaction at the progress achieved as well as the growing trend of mutual cooperation in the political, social, economic and commercial fields.

Political and Social Working Group

The parties discussed various issues and agreed as follows:

1-1 Bilateral Relations

1-1-1 The parties expressed their satisfaction at the progress achieved in the bilateral and multilateral relations between Iran and South Africa since the 7th Joint Commission.

1-1-2 The parties expressed their satisfaction at the growing trend of economic cooperation between the two countries especially the substantial increase of direct investment in the two countries.

1-1-3 The South African delegation expressed its gratitude to the Ministry of Foreign Affairs of the Islamic Republic of Iran for the latter's initiatives in favor of strengthening interaction with the African Continent within the framework of the New Partnership for Africa's Development (NEPAD).

1-2 Deputy Ministerial Working Group of the Islamic Republic of Iran and the Republic of South Africa

1-2-1 With respect to the expansion and strengthening of mutual ties in the political and economic fields and the development of common positions of the two countries vis-à-vis issues of mutual interest, the parties placed emphasis on further consultations between the two countries' Foreign Ministers and their deputies.

1-2-2 The parties expressed their satisfaction with the first meeting of the Deputy Ministerial Working Group held during the visit of Mr Aziz Pahad, Deputy Foreign Minister of the Republic of South Africa to Tehran during August 2004 and agreed to continue further meetings of the group in future.

1-3 The New Partnership for Africa's Development (NEPAD)

1-3-1 The two delegations welcomed the opportunity to exchange ideas and information about co-operation on Africa's socio-economic programme, NEPAD.

1-3-2 The South African delegation welcomed the initiatives taken by the Iranian authorities to strengthen their co-operation with the African continent and to support the NEPAD programme by way of establishing the Iran-Africa Co-operation Forum, the Africa Headquarters chaired by the First Vice-President and the NEPAD desk at the Ministry of Foreign Affairs. Clearly there is much synergy between the visions expressed in NEPAD and the Dialogue among Civilizations.

1-3-3 The two delegations agreed to foster support for NEPAD and co-operate on issues of African development through relevant multilateral and regional structures, such as the UN, NAM, the G-77, IOR-ARC and AASROC.

1-3-4 The South African delegation undertook to expedite linkages between the NEPAD Secretariat and the relevant Iranian authorities. To this end the Iranian delegation will finalise a proposal for co-operation on tangible and concrete priority areas for submission to the NEPAD Secretariat before the end of January 2005. Following agreement on the contents of the co-operation document, visits will be facilitated by the head of the NEPAD Secretariat to Tehran and the head of the Africa Headquarters and a team of experts to the NEPAD Secretariat in Johannesburg, at mutually agreed dates.

1-3-5 As regards areas of co-operation on the NEPAD programme, the following priority areas were identified:

• Infrastructure, particularly in energy, transport and development corridors
• Agriculture, particularly water and land management, food security and the extension of agricultural services
• Health, particularly health care systems, clinics and the provision of relevant medicines
• Technical training, capacity building, manufacturing capacity and technology transfers
• The establishment of an Iran-South Africa Business Forum

1-4 Middle East

1-4-1 The two sides exchanged views on the continuing conflict in the Middle East. Both sides recognized the right of the Palestinian people to determine their own destiny. Both sides agreed to work together and hold regular consultations on the unfolding developments in the region with a view to promoting a just, lasting and comprehensive peace in the Middle East.

1-5 Situation in Iraq

1-5-1 The Parties discussed the post-war situation in Iraq. The Islamic Republic of Iran and the Republic of South Africa placed emphasis on the diplomatic and peaceful solution to the crisis gripping Iraq.

1-5-2 The Parties considered the consolidation of a stable political atmosphere in Iraq, and the promotion of the key role of the UN as well as the international communities' efforts for the economic restructuring of the country. These factors are the most effective solution for stability and security in Iraq.

1-5-3 Both sides reiterated that the unity, territorial integrity and sovereignty of Iraq must be respected and maintained.

1-5-4 The Parties also stressed the need for the participation of the international community in the process of the creation of stability in Iraq, and the call for the continuation of regional and international efforts in assisting the Iraqi government and people.

1-5-5 Both sides called on all parties to ensure a free and fair election process in January 2005 and the formation of a democratic government elected by the people which shall represent the will of the Iraqi people from all walks of life. Both sided further called for the end of the continued occupation of Iraq by military forces.

1-6 Disarmament and Nuclear waste

1-6-1 The Parties agreed to promote nuclear weapons-free zones globally and in this context noted the NAM members support of the implementation of the Middle East Nuclear Free Zone Resolution in the NPT Review and Extension Conference of 1995.

1-6-2 The Parties reaffirmed their commitment to the NPT and called for the universal implementation of all its provisions including (nuclear disarmament) and the inalienable rights of all NPT members to technology for peaceful purposes.

1-6-3 South Africa welcomes the progress made in the IAEA Board of Governors regarding the implementation of the safeguard agreement in the Islamic Republic of Iran and looks forward to an early resolution of the issues.

1-6-4 South Africa welcomes Iran's decision to suspend its Uranium enrichment programme as reflected in the Paris agreement which South Africa believes provides the correct basis for the final resolution of the matter and emphasizes that the suspension is a voluntary confidence building measure and not a legal obligation.

1-7 Human Rights

1-7-1 Both sides emphasized the importance of international co-operation to protect and promote human rights.

1-7-2 The Parties called for an equal and parallel approach to all types of human rights including civil, political, economic, social and cultural rights and stressed the realization of the right to development through international co-operation and promotion of related mechanisms within the framework of the UN.

1-8 Reforming the structure of the Security Council of the United Nations

1-8-1 The Parties emphasized the importance of multilateralism and the observance of international rules and regulations and the promotion of the role of the UN. The parties agreed on the need to reform the structure of the UN and especially the Security Council in view of the post-cold war developments.

1-8-2 Referring to the necessity to increase the efficiency and effectiveness of the Security Council, in order to deal with current international challenges, the parties acknowledged the recently released report of the High Level Panel on Threats, Challenges and Change of the UN Secretary General. In this regard a number of reforms will have to be made particularly to the Security Council in order to ensure equity, geographical representation and transparency in decision making.

1-9 Defence

1-9-1 Iran and South Africa are currently engaged in a process of identifying areas of possible defence co-operation in the context of the Iran-South Africa Joint Bilateral Commission. These could include:

• Technology
• Training
• Procurement

This process should culminate in a MOU on defence co-operation to be signed on a suitable date in the future. In the mean time, both sides will endeavor to do whatever is possible to facilitate the formalization of the defence co-operation.

1-10 Regional Co-operation Among Indian Ocean Rim States (IORARC)

1-10-1 Iran and South Africa agreed to adhere to the principles of the Indian Ocean Rim-Association for Regional Co-operation through the expansion of tourism, trade, investment and holding workshops, etc. and decided to promote their bilateral and multilateral co-operation in this regard.

1-11 Asia-Africa Sub Regional Organizations Conference (AASROC)

1-11-1 The Iranian side welcomed the initiative of South Africa and Indonesia as co-hosts of AASROC in working towards forging a new strategic partnership between Africa and Asia. In this regard, Iran indicated support for the forthcoming Summit meeting of African and Asian leaders to be held in Indonesia in April 2005.
1-11-2 Furthermore, both sides agreed to ensure that the SADC and the ECO would explore opportunities for co-operation during the AASROC Regional Economic Communities meetings scheduled for January 2005 in South Africa.

1-12 Health

1-12-1 On 14 December 2004 the Agreement on Co-operation in the Field of Health between Iran and South Africa and the Protocol to the Agreement were signed by the South African Minister of Health, Dr Manto Tshabalala-Msimang, and the Iranian Minister of Health, Dr Masoud Pezeshkian.

The Agreement lays down the framework within which this co-operation is to be structured as part of the broader relations between the two countries. The purpose of the Protocol is to deal with the areas which have been prioritized in the Agreement.

The Protocol identifies the area of human resources as the priority focal point of phase one of implementation. It acknowledges that a group of medical professionals has already been identified and selected for employment in selected public hospitals in three provinces of South Africa. Linked to this Protocol is the employment contract for each practitioner to be signed before commencing clinical service in South Africa.

The Protocol also spells out the responsibilities of both countries and will be in force for a period of three years. The contracts of employment will also last for a period of three years.

1-13 Tourism and Environmental Affairs

1-13-1 Both parties agreed to prepare the action plan/implementation programme of
the MOU on Tourism signed between the two countries.

1-13-2 Exploratory visits will be undertaken by the South African public and private
sector representatives to Iran in the first half of 2005 and Iran is to reciprocate
in the second half of the year 2005.

1-13-4 The parties agreed on the development of educational/academic co-operation in various fields of tourism and undertook to facilitate linkages between institutions and universities from both countries by April 2005. The co-operation should include the following:

• Exchanging scholarships
• Internships,
• Experts,
• New methodologies as well as organizing short term's courses between the two countries.

1-13-5 The parties also agreed to host media tours for travel and tourism journalists from both countries. Logistics to be agreed on a project by project basis.

1-13-6 The Parties agreed to package and exchange information on investment opportunities and joint marketing initiative in each country.

1-13-7 Parties agreed to facilitate each other's participation in tourism fairs and exhibitions to be held in both countries.

1-13-8 Parties agreed to develop expertise exchange in Eco-Tourism with emphasis on zoology and wildlife including the exchange of animals. The South African delegation agreed to facilitate the process and committed themselves for the provision of free animal species to the zoological garden of the Mostazafan Foundation in Tehran. The Iranian delegation undertook to cover the transportation (translocation) of the required animal species.

1-13-9 The Parties shall encourage travel agencies and other relevant organizations to cooperate in order to attract tourist from each other's countries. The Iranian undertook to introduce AITO Complex, belonging to Mostazafan Foundation as one of the largest tour operator and travel agency in the country and Iran Travel Agencies Association to coordinate the participation of non-governmental sector and to follow the implementation thereof.

1-13-10 Both parties undertook to exchange expertise, modern technology in the field of hotel development and to facilitate possible ways of cooperation between relevant organizations of each country. The Iranian delegation is to introduce different hotel chain companies including Parsian International Hotels Company, Iran Hotel owners Society and Iran Association of the Hotel Companies to cooperate with active counterparts in South Africa.

Environment

1-13-11 Both Parties agreed on implementing the Memorandum of Understanding (MOU) on environmental cooperation signed in 2003 in Tehran. The following areas have been identified as potential areas of cooperation.

1-13-12 The Parties expressed their readiness to cooperate on sustainable management of national parks and protected areas, wildlife, protection and sustainable management of eco-systems including environmentally sound Eco-tourism, Recycling especially in paper industry, Conservation and sustainable use of natural resources such as bio-diversity and management of coastal areas, air pollution monitoring, and training courses for rangers.

1-13-13 Plan of action

• Training of 15 rangers from Iran during the first half of 2005 in Iran and vice versa
• Exchange of information in the following areas namely:
• Community involvement in environmental conservation
• Eco-tourism
• Legislation on zoning
• Management of marine protected areas

1-14 Housing

1-14-1 The two sides had further discussions on the MOU signed in October 2004
between the Ministries of Housing of the two countries.

1-14-2 The following issues were discussed:

• Considering investment opportunities in the construction sector in both countries particularly in the construction of low-cost housing.
• Mutual support for urban renewal and inner-city regeneration.
• Exchange of information in respect of alternative building materials and construction technologies.

2. Economic and Technical Working Group

2-1 During the 8th Session of the South Africa-Iran Joint Commission, the following South African Government Departments formed part of the Economic and Technical Working Group.

• Trade and industry
• Minerals and Energy
• Transport
• South African Bureau of Standards

2-2 The following private sector companies were represented

• SASOL
• MTN
• ABSA
• Bateman
• Sud Chemie
• PetroSA
  

2-3 Trade and Industry

In line with the strengthening of existing relations between the Islamic Republic of Iran and the Republic of South Africa and striving to achieve the aims of previous Joint Binational Commissions, both sides expressed the wish to expand the volume of trade in goods and create more diversity in trade exchanges using different methods and performing the following steps.

2-3-1 The Iranian side declared its readiness to start expertise discussions in the field of
a Preferential Trade Agreement which will be presented through diplomatic channel to the Republic of South Africa. South Africa will consider the Preferential Trade Agreement in 2006, after consultation with the Southern African Customs Union (SACU).

2-3-2 Both sides agreed to sign the Agreement on Customs Co-operation in the near future, in either South Africa or in Iran.

2-3-3 Both sides noted the existing banking relations and stressed on the need for further cooperation between the banking system and the financial institutions of the two countries by establishment of credit lines.

2-3-4 The Export Guarantee Fund of Iran (EGFI) expresses its readiness to cover the non-payment risk of credits to be granted to South African buyers based on L\C (Letter of Credit) opened or bank guarantees issue by EGFI's accepted banks or where appropriate, against a sovereign guarantee. Also, non-payment risk of the credits to be granted to South Africa companies on open account basis is coverable by EGFI after such companies have been assessed as creditworthy.

2-3-5 Wishing to promote trade relations and economic cooperation, the two countries agreed to participate in each other's international trade exhibitions and underlined in particular the need for introducing their products to each other through exclusive exhibitions to be held in their respective countries.

2-3-6 The two sides agreed to provide facilities in their Free Trade and International Zones for the other side. In this regard, they welcomed co-operation in joint infrastructure projects, goods processing and re-exportation, offering offshore banking and insurance services.

2-3-7 The Iranian side declared its readiness to establish an Islamic Republic of Iran Trade Center in each of the cities of Johannesburg, Durban and Cape Town in South Africa. The South African Chamber of Commerce needs to be consulted in this regard.

2-3-8 Both sides declared their readiness for common co-operation to provide ground works for industrial and commercial activity by the two private sectors.

2-3-9 Both sides will endeavor to promote cooperation between companies in the construction, technical and engineering sectors, within the laws of both countries.

2-3-10 Both sides agreed to the launch of the Joint Business Council between the two countries at the earliest possible opportunity.

2-3-11 Both sides declared their readiness to promote direct trade of basic commodities such as sugar, paper, maize and manufactured goods based on competitive prices.

2-3-12 Both sides raised the issue of the continuing trade imbalance between the two countries. It was agreed that the Trade Promotion Agencies of both countries will take measures to promote increased trade exchanges and to diversify bilateral trade.

2-3-13 Both parties agreed to cooperate in the following industrial subjects:

• Cooperation for the manufacture of all kinds of railway wagons (like passenger, freight wagons, locomotives, telescopic bridge etc)
• Cooperation with manufactures of passenger and commercial cars, tractors and its relative spare parts.
• Readiness for exports of machine made carpets and shoes, textile, clothes and to import instead of raw material for textile industries, water pipes, fire fighting fits and water turbines.
• Exchange of exports on Aluminum smelter technology between Iralco Company and Alusaf (BHP Billiton).
• Mineral processing expertise from SA for Aluminum production from Bauxite, Nepheline and Alunite.

2-4 Minerals and Energy

Mining

Both parties agreed to facilitate the implementation of the following processes:

• Geological exploration using new exploration methodologies, especially geomagnetic technology
• Mining
• Mineral processing
• Beneficiation
• Technology and skills transfer

These processes will be implemented in respect of the following projects in Iran:

• Aluminum
• Coal
• Titanium
• Copper

2-4-1 As a result of previous bilateral discussions, South Africa has accepted a training offer on jewelry manufacturing and skills transfer. A Working Group has been established to facilitate the implementation process.

2-4-2 A Working Group will also be established to build capacity in granite beneficiation in South Africa by an Iranian company.

2-4-3 Both parties have agreed on closer cooperation with the following South African science councils:

• Council for Geo-Science in exploration
• Mintek on mining, extraction and beneficiation

2.5 Energy

2-5-1 Electricity

The parties announced their readiness to extend cooperation in the electricity and water sectors. Iran welcomes investment of South African private and governmental sectors in hydro-electric, geothermal and combined-cycle projects.

Both parties agreed to form a Working Group to investigate the issues mentioned above and further areas of cooperation on investment, information sharing, technology, research and development.

2.6 Oil and Petrochemical

2-6-1 Following the request by PetroSA, the Iranian side will submit a proposal with regards to the use of the strategic crude oil storage in Saldanha Bay.

2-6-2 South African companies would like to be considered in the provision of services for the Iranian oil, gas and the petrochemical sector.

2-6-3 The NIOC is ready to assist in the training of South African experts in the downstream and upstream sectors. The South African side will forward a draft proposal within the first quarter of 2005.

2-6-4 The National Petrochemical Company (NPC) also expressed its readiness to assist in the training of South African experts and up and coming entrepreneurs in the petrochemical sector. SA to submit their training needs within a month.

2.7 Transportation

The South African Department of Transport, after intensive negotiations with their Iranian counterparts agreed on two priority areas of cooperation:

2-7-1 Rail Transportation and transport

The Iranian Republic Railways expressed its readiness to develop cooperation with South Africa Railways in the following issues:

1. Providing bogies and spare parts of passenger and freight wagons and GM, GE locomotives by South Africa
2. Exchange of experience in the field of maintenance of trucks, locomotives, marketing, operation and safety in movement
3. Providing the Islamic Republic Railways staff with M.Sc training courses by the South African Railway Organisation. Reciprocal gesture: the Iranian Islamic Republic Railways expressed its readiness to train the South African Railway staff in B.Sc and M.Sc levels
4. Leasing locomotives from South Africa
5. Participating in the joint projects in third countries and providing rail engineering and technical services.
6. To be noted that Wagon Pars company of Iran had some cooperation with Global Railway company in South Africa through a broker. The Iranian side expressed its interest to have direct contact with main manufacturers spare parts and the other rolling stock. The South African side agreed to facilitate this process.
The Iranian side expressed its readiness to transit South African commodities to CIS and other countries.

2-7-2 Maritime Sector

According to article 10, paragraph 3 of the Merchant Shipping and Related Maritime Matter Agreement, both parties agree to hold the first technical commission on promoting port and Maritime cooperation in May 2005 in South Africa.

Both parties agreed to cooperate and further discuss the following main issues:

Capacity building in the Maritime industry
Exchange of technical expertise

2.8 Arts and Culture

2-8-1 Both sides expressed the satisfaction for the process of cultural heritage cooperation for the year (2003-2005) in accordance with the cultural agreement which had been signed on 18 July 2002 between the two countries.

2-8-2 Both sides emphasized the need for more activities in the areas of cooperation mentioned in the cultural agreements, by considering the end of this programme in the coming year. Both sides will explore new areas of cooperation for the coming years 2005 to 2008.

2-8-3 The Iranian side expressed its readiness for opening its cultural study centre in South Africa by sending its cultural representative in order to co-ordinate and supervise the cultural cooperation between the countries.

2.9 South African Bureau of Standards

In line with the implementation of the MOU signed between SABS and ISIRI and further intentions as articulated in the protocol signed in May 2002, the two parties agree that:

2-9-1 Regarding the implementation of the agreement as essential, both parties remain committed to its ongoing implementation.

2-9-2 Implementation will commence on two identified fronts:

• Training of SABS officials and the fields of legal metrology and electronic fields,
• Mutual recognition agreements on areas where trade flows exist, namely: electronics & Automotive

2-10 Private Sector participation

2-10-1 MTN

Having identified the potential of the Iran Telecommunications market, MTN has opened an office in Tehran with a view of pursuing:

• The 3rd GSM licensing opportunity by establishing from the Iranian government within 2005 the time table for the management of this licensing opportunity.
• The two sides discussed possible opportunities for MTN in the expansion envisaged for MCI and its privatization within 2005.

3. Other Issues

3-1-1 The Parties agreed to hold the 9th Session of the Joint Commission in Pretoria in 2005. The exact date of the 9th Session shall be mutually agreed upon through diplomatic channels.

3-1-2 Her Excellency, Dr Dlamini Zuma, Foreign Minister of the Republic of South Africa expressed appreciation for the warm hospitality accorded to Her Excellency and her accompanying delegation by the Government and the people of the Islamic Republic of Iran.

3-1-3 The Joint Statement of the 8th Session of the Joint Commission between the two countries was concluded in Tehran on 15 December 2004 (corresponding 25 Azar 1383) in the English and Farsi languages, which are both equally authentic.

SIGNED

Dr Seyyed Kamal Kharrazi, Dr Nkosazana Dlamini Zuma

Minister of Foreign AffairsOf the Islamic Republic of Iran, Minister of Foreign Affairs of the Republic of South Africa

Issued by Mr Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
PRETORIA

16 December 2004