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DEPARTMENT OF

TRADE AND RESOURCES  M IC A S

IRAN AUSTRALIA JOINT MINISTERIAL COMMISSION :  SECOND MEETING

(Joint Communique issued by the Acting Prime Minister and Minister  for Trade and Resources,  the Rt Hon. J.D. Anthony and the Iranian  Minister for Agriculture and Rural Development,  H.E. Dr Ahmad Ali  Ahmadi) -  Ã¢ÂÂ

The second meeting of the Iran/Au s t r a . 1  i a Joint Ministerial

Commission was held in Canberra from 7 - 9 June 1978 to review

bilateral trade and economic relations,  and to identify and to

further new opportunities for the expansion of two Way trade and

economic co-operation between Iran and Australia.  The second

meeting of the Committee of Representatives,  the joint trade Committee

established under the 197^ Trade Agreement was also held in conjunction

with the Ministerial meeting.

The delegation from Iran was led by H.E. Dr Ahmad Ali

Ahmadi,  Minister for Agriculture and Rural Development and included

the Iranian Ambassador H.E. Dr Khosrow Akmal,  Mr Bizhan Nozari,

Senior Adviser to the Minister of Economic Affairs and Finance and

other senior Iranian officials.

The Australian delegation was led by the Rt Hon. J.D.

Anthony, Acting Prime Minister and Minister for Trade and Resources

and included the Rt Hon. Ian Sinclair, Minister for Primary Industry

and Acting Minister for Foreign Affairs,  Mr S. Burton, Acting

Secretary, Department of Trade and Resources and other senior

Australian officials.

During his visit to Canberra, Minister Ahmadi paid

courtesy calls on Mr Anthony and Mr Sinclair and had discussions

with them on matters of mutual interest.

In reviewing trade developments between the two

countries,  both delegations expressed their mutual satisfaction

at the increase in trade.

2.

The Commission noted that trade had increased substantially

last year and it was agreed that there was scope for further

increases in trade to the benefit of both countries.  Both sides

noted that there had been a significant increase in Australian exports

to Iran, mainly in live sheep and carcass meat.

Both delegations expressed their concern that the present

situation in the international economy arid the uncertainties created

for international trade as a result of action by certain countries

had adversely affected the growth of international trade. Both sides

agreed to continue their support for measures designed to ensure the

continued expansion of international trade,  trade liberalisation and

the expansion of their bilateral trade.

At the end of the visit the Ministers signed the agreed

minutes of the second session of the Iran/Australia Joint Ministerial

Commission which contain the agreements reached by the two sides in

different areas of economic co-operation.

In the field of trade both sides emphasised that all

appropriate measures should be taken to facilitate the development of

trade and to increase and diversify trade exchanges between the two

countries. In the field of economic co-operation the two sides agreed

that there were a number of areasfincluding dry land farming, seed

production, industry and mining, in which the two countries can co-operate

to their mutual benefit and agreed to exchange information in these

areas.

With regard to uranium, the two sides discussed areas of

co-operation. They were able to make further progress on the text of

a bilateral agreement covering the transfer of nuclear materials.

They agreed to resume discussions at an early date to complete the

draft agreement.

The Leaders of both Delegations expressed their appreciation

for the spirit of co-operation that existed during the course of the

discussions which were conducted in a warm and a cordial atmosphere.

Canberra,  A.C.T. 78/42

9 June 1978

TRADE BETWEEN AUSTRALIA AND IRAN

Two-way trade between Australia and Iran has been

growing rapidly and in 1976/77 totalled $254 m.

Australian exports to Iran have risen from

$26.8 m. in 1972/73 to $150.3 m. in 1976/77. This figure

represents an increase of 68% over 1975/76. Major exports

include mutton and lamb, live sheep, iron and steel,

chemicals, wool,  lead and barley.

Imports from Iran have risen from $18.5 m. in

1972/73 to $103.7 m. in 1976/77. This figure represents

an increase of 24% over 1975/76. Main imports include

petroleum and petroleum products, textiles, sulphur and

edible nuts.

AGREED MINUTES

OF THE SECOND SESSION OF THE IRAN-

AUSTRALIA JOINT MINISTERIAL COMMISSION

The second session of the Iran/Australia Joint Ministerial

Commission was held in Canberra on 8 - 9 June 1978.

The Iranian Delegation was led by His Excellency, Dr

Ahmad Ali Ahmadi,  the Minister of Agriculture and Rural Development,

The Delegation of Australia was headed by the Rt Hon. J.D. Anthony,

Acting Prime Minister, Minister for Trade and Resources.  The list

of the two delegations is attached as Annexes 1 and 2.

The Joint Commission examined the trade and economic

relationships that had developed between Iran and Australia since

the first meeting. The Ministers reviewed the growth of trade

between the two countries and discussed existing and additional

possibilities for expansion of trade and economic co-operation,

especially in the fields of agriculture, meat/sheep, industry and

mining,  including uranium.

TRADE

It was noted that trade had increased substantially last

year and it was agreed that there was scope for further increase in

trade to the benefit of both countries.  Both sides noted that

there had been a significant increase in Australian exports to Iran,

mainly in live sheep and carcass meat.

The Australian side shared Iran's desire to diversify and

expand its trade,including industrial exports. The Commission

emphasised the development of two-way trade and reaffirmed that all

appropriate measures should be taken to facilitate, increase and

diversify trade between the two countries,  particularly in respect of

those commodities and goods mentioned in Schedules A and B annexed

to the Trade Agreement.  In this connection the capability of

Iran to export dates was noted and the Australian side stated that

Australian importers would be advised of this capability.

2.

The Australian side outlined the recently modified

Australian system of tariff preferences applicable to Iranian

products and reaffirmed its willingness to provide advice and

assistance in the marketing of Iranian products in Australia.

In this context it was agreed that an Iranian trade

mission should visit Australia in order to study and investigate

market opportunities in Australia for Iranian products.  The

Australian side offered to facilitate the activities of such a

mission.

Both parties confirmed, as agreed at the first session,

that having regard to the parallel functions of the Committee of

Representatives established, under the Trade Agreement and the

Joint Ministerial Commission, the two bodies should be seen to be

operating in direct association. The Commission agreed that it

would be desirable for the functions and obligations of the Joint

Committee of Representatives to be simultaneously discharged by the

Officials' Meetings lyhich would precede or accompany the Joint

Ministerial Commission meetings.

The Commission made the following observations with

regard to trade in the items mentioned below:

LIVE SHEEP AND SHEEPMEAT

Both parties noted the considerable growth in the live

sheep and sheepmeat trade between Australia and Iran. The

Australian side reiterated its past support for the continuation

of this trade with the strong possibility of it growing, particularly

in forzen meat, due to increased demand from Iran. The Iranian side

stated that there would be a move away from frozen hogge11/young

sheep towards Australian lamb.  The Iranian side also stressed

that all suppliers to the Iranian market should do so at competitive

prices.

3.

The Australian side reiterated the view expressed during

the first session of the Commission that, for Iran to be assured of

continuity of supply, Australian producers needed to have confidence

in long-term access to the Iranian market at prices that were fair

and reasonable to both countries. The Australian side however

expressed the hope that more progress might be made in the near

future towards achieving the objectives of long-term access at

fair and reasonable prices.

The Australian side pointed out that in order to produce

sufficient lamb-meat and live sheep to ensure continuity of supply

to Iran* the question of current and future prices and quantities would

need to be re-examined.  The Australian Meat and Livestock Corporation

has powers and responsibilities for regulating meat and livestock

exports in the long-term interests of the Australian industry. It

would therefore be highly desirable for the Corporation and the

Iranian Meat Organization to have discussions on various aspects

of the trade at an early date.

BEEF

It was noted that Iran's imports of beef were increasing

from Australia and other countries,  and the Australian side

registered Australia's strong interest in supplying additional

quantities of beef to Iran.

WHEAT

Both sides expressed regret at the inability of

Australia to provide wheat to Iran in substantial quantities in

1977/78 due to a very poor growing season.  The Australian side

advised that subject to a satisfactory season for wheat growing

in Australia, it would be possible to offer quantities of wheat

to Iran in the 1978/79 season. The Australian side emphasised

that if Iran sought wheat on a regular basis from Australia it

could expect to obtain a regular yearly supply.

b.

COARSE GRAINS

The Australian side noted that Iran had made an initial

$2.5 million purchase of sorghum in 1976/77 and expressed the hope

that the ability of the Australian coarse grains industry to

supply a variety of grains would be of interest to Iran. The

Iranian side undertook to examine the situation and advise of any

likely needs.

LIVE CATTLE FOR SLAUGHTER

Despite the recent ban on the import of live cattle from

Australia, the Australian side reiterated its interest in supplying

slaughter/feeder cattle to Iran for fattening under lot-feed

conditions.

The Iranian side explained the situation concerning the

policy of the Iranian Government not to permit the import of

slaughter cattle and would advise the Australian authorities if

there was to be any change in this policy.

DAIRY CATTLE

The Australian side noted with satisfaction that the

initial shipment of Australian Friesian dairy cattle had been made

to Iran. Although of small proportions at this time,  the

Australian side expressed the hope that substantial numbers of

Australian dairy cattle would be imported by Iran following the

satisfactory performance of the smaller herd presently in Iran.

The Iranian side stated that subject to satisfactory performance by

the Australian cattle,  and veterinary health requirements of Iran,

further numbers of these animals would be considered for import by

the private sector in Iran.

WOOL

The Commission noted that there Was a mutually advantageous

trade in wool, particularly scoured wool, from Australia to Iran.

It looked forward to the continuance of this trade.

5.

SULPHUR AND PETRO-CHEMICALS

The Commission noted the high rate of industrial growth

now taking place in Iran including sulphur and with particular

emphasis on the future export of a wide range of petro-chemical

products.

The Australian side noted this with interest and undertook

to give full consideration to the development of trade in these areas

with Iran.

EXPORT OF URANIUM

Officials of the two countries met again in a co-operative

atmosphere to continue their discussions. They were able to make

further progress on the text of a bilateral agreement covering the

transfer of nuclear materials. They agreed to resume discussions

at an early date to complete the draft agreement.

BAUXITE/ALUMINA

The Commission noted that Australia supplies alumina to

Iran for the operation of the aluminium smelter at Arak. It also

noted that the major expansion of the IRALCO plant at Arak was

underway and that it was proposed to construct a major new smelter

in Southern Iran.

The Australian side referred to its position as a

major Supplier of bauxite and alumina to many countries in the

world and its capacity both present and proposed to satisfy the

alumina requirements of both these plants mentioned above.

It expressed the hope that the Iranian side would take

this into account when the sourcing of alumina for these plants was

being considered.

The Iranian side stated that the matter would be drawn

to the attention of the appropriate authorities Noting past

Iranian interest in possible investment in Australian enterprises

6.

the Australian side provided the Iranian party with details

concerning the new Australian investment guidelines.

LEAD AND ZINC

The Australian side referred to the availability of

lead and zinc from the large-scale Australian industry and

expressed satisfaction on the continued supply of lead and zinc

metal to Iran.

Reference was made to Iran's intention to up-grade its own

lead and zinc ore concentrates and the Australian side expressed

interest in providing any technical expertise which might be needed

in this regard. The Iranian side stated they would draw this to the

attention of interested parties of Iran

ECONOMIC CO-OPERATION

Agriculture

The Commission noted the significant increase in

Australia's exports of foodstuffs to Iran, particularly of live

sheep and sheep-meat,  and it was anticipated that this would

continue to increase.

In order to promote long term stability in commodity

markets and to assure Iran's access to foodstuffs from Australia,

the Australian side emphasised again the need to encourage the

conclusion of long term purchase agreements between the relevant

Iranian agencies and Australian marketing boards and exporters

.  The two parties expressed satisfaction with the

considerable growth of Austiran, the joint venture between the

Iranian Government and the Australian private sector,  and

expressed the hope that both the scope of the trade and the nature

of the trade handled by Austiran would increase. The Iranian side

stressed that the prices offered by the joint venture would

need to be competitive with others.

Milk Plant Management

7-

The Australian side referred to the long-standing

discussions which have taken place between the Australian Dairy-

Corporation and the Iranian Milk Processing and Distribution

Company concerning the provision of technical personnel to assist

in the management of 11 new milk plants in Iran. The Australian

side expressed the hope that this matter might be satisfactorily

concluded in the near future.

Dry-land Farming

The Commission noted the similar climatic and physical

conditions prevailing in the two countries and suggested that

Australian dry-land farming techniques and heavy duty farming

machinery could be of benefit to Iran in its many agricultural

development projects.  It was noted that an Iranian Mission had

visited Australia in 1977 to examine Australian dry-land farming and

range management techniques.  The Australian side stated that it

was their intention to send a Dry-land Farming Mission to Iran

which would consist of technical experts,  research personnel and

machinery manufacturers,  to further inform the Iranian agricultural

industry of the skills, services and machinery available in

Australia.

The Iranian side expressed interest in such a Mission and

undertook to facilitate its activities.

Seed Production

The Commission expressed interest in the development of

co-operation in the seed production Indus i:ry in Iran in a wide

variety of pasture and other seeds.

The Australian side offered to add a seed specialist to

the proposed Dry-land Farming Mission and would encourage private

sector seed producers to visit Iran with a view to examining the

areas of co-operation in this field.

8.

Food Handling and Grain Storage

'  Both sides expressed interest in co-operation between

Australian and Iranian enterprises in the design of and construction

of food handling facilities,  including cold stores,  and grain storage

facilities and the manufacture of equipment for such purposes in

Iran.

Both sides expressed interest in the fact that a number

of Australian firms were already engaged in these activities in

Iran in conjunction with Iranian enterprises.

The Australian side noted that Iran had a development

programme to extend its storage facilities and said it would welcome

opportunities for Australian enterprises to participate in this

programme.  In this context the Commission expressed the hope that

some concrete measures for co-operation would result in this

field.

Solar Energy

The Commission noted that both Iran and Australia

had a particular interest in solar energy development as an

alternative source of energy. It was observed that the climatic

conditions of both countries were favourable to its application.

It was noted that considerable level of practical research

was being undertaken in Australia by Commonwealth Scientific and

Industrial Research Organisation (CSIRO) and various Universities.

It was hoped that technical experts from Iran would visit Australia

for an exchange of views in this important area.

Industry and Mining .

The Commission noted that several Australian consulting

geologists and others were involved in geological activities in

Iran. The Australian side stressed the wide nature and high levels

of technical competence existing in the Australian mining industry,

and suggested that the particular skills in mining, geological

9.

exploration and mining equipment might be of interest to Iran in

the accelerated ore search programme now underway on a major scale

in Iran. The Australian side stated that it had potential to

offer an expanded range of services to Iranian industry and the

mining sector.

The Iranian side stated that the availability of

increased Australian industry potential would be drawn to the

attention of the appropriate authorities.

Student Exchange

The Commission noted that the exchange of students

between Iran and Australia could be expanded. It was agreed

that the position should be examined with emphasis on agricultural

and mining areas.

NEXT SESSION

It was agreed to hold the third session of the Joint

Ministerial Commission in Tehran on a date to be agreed upon in

due course.

Done in Canberra on the 9 June 1978, in duplicate

copies in English, both texts being equally authentic.

J.D. Anthony Leader of Australian Delegation

Ahmad Ali Ahmadi  Leader of Iranian  Delegation

IRANIAN DELEGATION

His Excellency Mr Ahmad Ali Ahmadi Minister for Agriculture and Rural Development

His Excellency Dr Khosrow Akmal,  Ambassador

Members

Mr Bizhan Nozari Senior Advisor to the Minister of Economic Affairs  and Finance

Mr Syrous Manzour Â·

Vice President,  International Affairs and  Information, Atomic Energy Organisation

Dr Manouchehr Keymaram Chairman of the Board of Directors and  Managing Director of Iranian Meat Organisation

Mr Saleh Amir-Khalkhali Deputy Director General of International  Economic Co-operation, Ministry of Economic  Affairs and Finance

Mr Masoud Sateri Chief of the Office of Minister of Agriculture  and Rural Development

Mr Cyrus Ardeshiri,  Head of Asian Department  Ministry of Commerce

Advisor

Mr Keyvan Tabary Legal Advisor, Atomic Energy Organisation  of Iran

AUSTRALIA/IRAN JOINT MINISTERIAL COMMISSION -

SECOND MEETING

Australian Delegation

Rt Hon. J.D. Anthony Acting Prime Minister and

Minister for Trade and  Resources

Rt Hon. Ian Sinclair Minister for Primary Industry

and Acting Minister for  Foreign Affairs

Mr S. Burton Acting Secretary

Department of Trade and  Resources

Mr P.H. Barratt Deputy Secretary

Department of Trade and  Resources

Mr Â¥ G. Burns Minister (Commercial) -

Tehran

Mr R.R. Fernandez First Assistant Secretary

Nuclear Division Department of  Foreign Affairs

Mr G. Mackey First Assistant Secretary

Meat & Meat Products Division,  Department of Primary Industry

Mr G,E. Bowen Assistant Secretary

Trade Relations and Markets Division  Department of Trade and Resources

Mr ÃÂ.H. Farrow Assistant Secretary

Uranium Division Department of Trade and Resources

Mr G J .  Hall Assistant Secretary

Trade Promotion and Services  Division Department of Trade and Resources

Mr M.S. Farrell Assistant Secretary

Natural Resources,  Science and the  Environment Branch  Department of Prime Minister and  Cabinet

Mr G.T. Briot Acting Assistant Secretary .

Energy Policy Division

'  Department of National Development

Mr N.J.’S. Bayley Acting Assistant Secretary

International Branch Department of Industry and Commerce

