Joint Communique of 9th SA-Iran Bilateral Commission

22 August 2006

1. At the invitation of Dr Nkosazana Dlamini Zuma, the Minister of Foreign
Affairs of the Republic of South Africa, Mr Manouchehr Mottaki, Minister of
Foreign Affairs of the Islamic Republic of Iran paid an official visit to South
Africa on 21 and 22 August 2006 (corresponding to 30 and 31 Mordad 1385 Iranian
calendar) in order to participate in the 9th meeting of the Joint Bilateral
Commission.

2. During the visit Dr Dlamini Zuma and Mr Mottaki conducted bilateral
discussions and led their respective delegations to the meeting of the Joint
Bilateral Commission. Mr Mottaki also paid a courtesy visit to President Thabo
Mbeki and had bilateral discussions with the Ministers of Trade and Industry,
Minerals and Energy as well as Science and Technology. In addition Mr Mottaki
visited Sasol's synthetic fuel facility in Secunda and gave a lecture at the
University of Pretoria.

3. Other members of the Iranian delegation interacted with their South
African counterparts in the working groups of the joint commission.

4. In their opening remarks at the Joint Bilateral Commission, both
Ministers of Foreign Affairs expressed their satisfaction with the good
relationship that exists between South Africa and Iran as well as at the
efforts made since the eighth JBC to strengthen political, economic and
cultural ties between the two countries. Both Ministers expressed the desire to
see the relationship develop further in the following areas: economic
co-operation, mining, agriculture and women's affairs. The Ministers decided to
create two working groups as follows:

* 4.1 The "Political and Social Affairs Working Group" was co-chaired by
Ambassador Jerry Matjila, the Deputy Director-General: Asia and Middle East at
the Department of Foreign Affairs of South Africa and by Ambassador Javid
Ghorbanoghli, Secretary of the Africa Headquarters of Iran and Director-General
for Africa at the Ministry of Foreign Affairs.

* 4.2 The "Economic and Technical Working Group" was co-chaired by Mr Iqbal
Meer Sharma, Acting Deputy Director-General: International Trade and Economic
Development at the Department of Trade and Industry of South Africa and by Mr
Seyyed Mohammad Mousavi Mirkalaei, Director-General for African and Arab States
at the Ministry of Commerce of the Islamic Republic of Iran.

5. Both working groups reviewed the decisions taken during the eighth
meeting of the JBC held in Tehran on 14 and 15 December 2004 (corresponding to
24 and 25 Azar 1383) and expressed their satisfaction at the progress that had
been achieved.

6. It was also recognised that the second Deputy Ministerial Working Group,
which met in Pretoria in July 2005, contributed significantly to the good
relations and interaction that exist between South Africa and Iran. It was
agreed that a further meeting of the third Deputy Ministerial Working Group
should be held in Tehran six months after the ninth meeting of the Joint
Bilateral Commission.

7. Political and Social Affairs Working Group

7.1 The Middle East

The two sides acknowledged the political and economic importance of the
Middle East region and agreed that without lasting peace in the region there
can be no global peace, stability and economic prosperity.

The working group discussed the situation in the Middle East and in
particular the latest developments in Lebanon, Palestine and Iraq. The
delegation from Iran provided an overview of the role that the Islamic Republic
is playing to enhance peace, security and stability in the region. Both
countries agreed that the continuing hostilities in the Middle East especially
in Lebanon, Iraq and Palestine draws attention away from the international
development debate and channels development resources to expensive military
campaigns.

His Excellency, Minister Mottaki briefed his South African counterpart on
his visits to various states in the Middle East to discuss the Israeli attack
on Lebanon. Whilst both countries welcomed the adoption of United Nations (UN)
Security Council Resolution 1701 calling for the cessation of hostilities,
Minister Mottaki expressed his country's reservations on parts of the
resolution. Both countries reiterated the need for the implementation of the
said resolution. Both sides called for immediate measures by the international
community to assist the Lebanese people in the reconstruction of their
country.

Both sides agreed that the humanitarian situation in the occupied
territories of Palestine continues to worsen and called upon the international
community to provide appropriate assistance. Both sides recognised the
inalienable right of people under occupation to self-determination and
territorial integrity. Both sides condemned the disproportionate attacks by
Israel on the Lebanese infrastructure and civilian population.

Both sides welcomed the establishment of a national government in Iraq and
expressed their full support to the government and people of Iraq. Both sides
expressed a deep concern over the deteriorating security situation in Iraq that
threatens to push Iraq into civil war. Both sides called on the international
community to ensure that peace and security return to Iraq and that
reconstruction of the country commences as soon as possible and expressed their
full support for the sovereignty and territorial integrity of Iraq. Both sides
agreed that the presence of a multinational force in Iraq be terminated as soon
as possible.

7.2 Africa

The South African side indicated that the focus of its foreign policy was
the consolidation of the African Agenda and added that it remains committed to
the socio-political upliftment of the continent that includes the aims of
security and stability and the eradication of poverty.

The two delegations noted the fact that the President of the Islamic
Republic of Iran, his Excellency President M Ahmadinejad, attended the recent
summit of the African Union (AU) in Banjul, the Gambia. Upon his return the
President shared his impressions of the continent with the Cabinet and
reaffirmed the commitment of the Iranian government towards the development of
Africa.

The South African delegation provided a briefing on recent developments in
Africa and the role it is playing within the context of the AU to promote
peace, stability and prosperity on the continent. In particular, reference was
made to South Africa's role in assisting the people of the Democratic Republic
of Congo (DRC) to conduct peaceful democratic elections. Brief discussions were
also held on the situations in C�te d'Ivoire, Burundi and the Sudan.

The two delegations exchanged ideas and information about co-operation on
Africa's socio-economic development programme the New Partnership for Africa�s
Development (NEPAD), as well as measures to expedite and support co-operation
between Iran and NEPAD.

In this regard, Ambassador Javid Ghorbanoghli, Secretary of the Africa
Headquarters and Director-General for Africa has extended an invitation to the
Chief Executive Officer of the NEPAD Secretariat to visit Tehran during
December 2006. This will provide an opportunity to formalise and extend the
co-operation between Iran and NEPAD and to discuss the practical implementation
of the co-operation offered by Iran in order to foster mutually beneficial
relations between Africa and Iran in pursuit of socio-economic development. The
visit will also be important in the context of finalising the "Proposed
Framework of Co-operation between the Africa Headquarters of the Islamic
Republic of Iran and the NEPAD Secretariat" as submitted by the Iranian
authorities to the NEPAD Secretariat for consideration.

The Iranian side reported on progress with regard to the work of Iran's
Africa Headquarters under his Excellency�s, the Executive Vice President of the
Islamic Republic of Iran, efforts to mobilise all government departments in
support of African development.

7.3 Disarmament and nuclear issue

Both sides reiterated the basic and inalienable right of all
Non-Proliferation Treaty (NPT) States as provided for in Article IV of the
Treaty to develop research, production and use of nuclear energy for peaceful
purposes without discrimination and in conformity with Articles I, II and III
of the NPT. They reaffirmed that nothing in the Treaty should be interpreted in
a way that inhibits or restricts the right of all parties to the Treaty to
develop nuclear energy for peaceful purposes.

It was also reiterated that States' choices and decisions in the field of
peaceful uses of nuclear energy and their fuel cycle policies should be
respected.

Both sides underlined that all issues on safeguards and verification
including those of Iran should be resolved within the framework of the
International Atomic Energy Agency (IAEA) and should be based on technical and
legal grounds. South Africa emphasised the importance for the IAEA to continue
its work in resolving the Iranian nuclear issue and in this context encouraged
the Islamic Republic of Iran to continue to co-operate closely with the
agency.

Both sides strongly emphasised that diplomacy and dialogue through peaceful
means must continue with a view to finding a long-term solution to the problem
with due consideration to the rights, obligations, needs and aspirations of all
the parties concerned.

Both sides reiterated their commitment to the non-proliferation of all
weapons of mass destruction and to their complete elimination.

7.4 Human rights

Both sides emphasised the importance of international co-operation to
protect and promote human rights. Both sides emphasised the need for an equal
and balanced approach toward human rights including political, economic, social
and cultural rights and reiterated the fulfilment of development rights through
international co-operation and strengthening the relevant mechanism within the
UN system.

Both sides welcomed the establishment of the Human Rights Council, which met
for the first time in Geneva in June 2006 and undertook to engage bilaterally
as well as at multilateral fora on human rights issues. Both sides hope that
the new Human Rights Council (HRC) would fulfil its obligations and its mandate
to the letter without prejudice.

7.5 Global governance

Both sides emphasised 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 comprehensively reform the UN and especially
the Security Council (SC) in view of the post-cold war developments. In this
regard the two sides agreed on the need to reassert the centrality of the
General-Assembly.

7.6 Regional co-operation

7.6.1 Indian Ocean Rim Association for Regional Co-operation (IOR-ARC)

The two sides expressed their satisfaction at the work done at the first
Heads of Mission Working Group meeting which was facilitated successfully by
South Africa in Pretoria on 18 May 2006. The meeting reviewed the periodic work
programme presented by the Chair of IOR-ARC and discussed the relevance as well
as the progress in terms of the implementation of current projects/initiatives
within the IOR-ARC context. At the meeting it was decided that non-productive
projects/initiatives are reviewed and their implementation be accelerated,
affording member states the opportunity to follow up on the status of more
productive initiatives and to encourage ownership of these initiatives in order
to make progress.

Both sides proposed the continuation of close co-operation between the
IOR-ARC Chair (Iran), the next Chair (Yemen) and the IOR-ARC Executive
Director, Mr Samsudeen who is based in Mauritius. In addition South Africa
would continue to encourage improved co-operation among IOR-ARC member states,
especially in view of the planned IOR-ARC Summit and the tenth anniversary
celebrations next year (2007), as well as assisting the IOR-ARC Secretariat in
monitoring the implementation and progress of IOR-ARC initiatives.

7.6.2 New Asia - Africa Strategic Partnership (NAASP)

The two sides reiterated that the importance of inter-continental
co-operation between sub-regional organisations or regional economic
communities remains as a cornerstone of NAASP. Provision has been made for the
two countries' representatives to meet during the first NAASP Senior Officials
Meeting (SOM) that is scheduled to take place from 1 - 3 September 2006 in
Durban, SA. Both the Economic Cooperation Organisation (ECO) and Southern
African Development Community (SADC) have been invited to attend the above
meeting to represent their regional constituencies.

South Africa and Iran undertook to follow developments within the newly
created NAASP framework and explore additional areas of co-operation in all
three tiers of NAASP interaction, namely government-to-government (political
solidarity, economic cooperation and socio-cultural relations); sub-regional
co-operation; and people-to-people co-operation.

7.7 Accelerated and Shared Growth Initiative for South Africa (AsgiSA)

The South African side briefed their Iranian counterparts on the origin and
goals of the Accelerated and Shared Growth Initiative for South Africa
(AsgiSA). Special emphasis was placed on the Joint Initiative on Priority
Skills Acquisition (JIPSA). The South African side requested Iran to consider
supporting the objectives of AsgiSA and formally requested Iran to assist South
African nationals in acquiring skills in the upstream and downstream
petrochemical sector.

The Iranian side expressed its full support for the South African programme
and declared its willingness to discuss ways in which Iran could support the
aims of the programme.

7.8 Education

The two parties agreed to pursue co-operation in the field of education,
including the exchange of information and visits between the two educational
systems.

7.9 Health

Further to paragraph 1.12 on health of the eighth JBC held in Tehran, a
South African delegation visited Iran in May 2006 to finalise the registration
of doctors. A total of 27 doctors were registered and given job offers and
contracts for a period of three years.

The parties noted with satisfaction the arrival and deployment of the first
group of Iranian doctors to the selected South African provinces. The parties
further agreed to accelerate the process of recruitment of the next group of
Iranian doctors as a second phase for implementing the protocol on recruitment
of health professionals.

The South African side noted with appreciation the active participation of
the Senior Advisor of the Iranian Minister of Health and Medical Education in
the briefing meeting of the Iranian doctors and his courtesy visit to the
Special Advisor of the Ministry of Health of South Africa.

Both sides agreed to the establishment of a joint working group to develop a
pilot project on district primary health care network in one of the South
African provinces.

The Iranian side requested the South African side to accelerate the review
of the technical document relating to the 10 Iranian pharmaceutical products
which were submitted to the Department of Health of South Africa. This would
enable the Iranian pharmaceutical companies to start with the production of the
above-mentioned pharmaceuticals for marketing in South Africa as a joint
project. The South African side agreed to explore possibilities in ensuring
such joint collaboration.

Both parties agreed to set up a joint committee to develop a joint
collaborative plan for the prevention and control of major emerging and
re-emerging diseases including Tuberculosis (TB), Malaria, Hepatitis C, avian
flu and Crimean Congo Hemorrhagic Fever (CCHF) and HIV/AIDS.

7.10 Environment and tourism

Both sides agreed to the implementation of the objectives of the Memorandum
of Understanding (MoU) signed between the Republic of South Africa and the
Islamic Republic of Iran on 11 October 2003 in the fields of environment and
tourism.

Both sides emphasised the need for the exchange of information on management
programmes in protected areas and eco-tourism.

Both sides stressed the need for accelerating the agreement reached on
conservation issues in marine, terrestrial, wetlands (national and
international), desert and ocean eco-systems as well as in nature and
human-based activities.

7.11 Arts and culture

Both sides stressed the importance of strengthening and promoting art and
cultural relations between the two countries and expressed their preparedness
to sign the Programme of Co-operation (PoC) of the cultural agreement at the
earliest possible time. The Iranian side declared its readiness to establish
the cultural centre of the Islamic Republic of Iran in Pretoria after obtaining
permission for that proposal from the South African side.

7.12 Home affairs

The two sides discussed the exchange of delegations to investigate the
possibility of signing an agreement on the Exemption of Visas for diplomatic
and official passports holders. It was also agreed to consider the possibility
of exempting bona fide tourists for a period of thirty days.

The two sides agreed that the invitation to the South African Minister of
Home Affairs to visit Iran would be encouraged once the officials have agreed
on the modalities of this agreement.

7.13. Sport and recreation

Both sides reviewed the MoU on co-operation in the field of sport and
recreation and noted that it had expired and would have to be renewed.

The South African side expressed their appreciation for the offer made by
the Islamic Republic of Iran to assist with technical issues pertaining to the
hosting of the 2010 Soccer World Cup.

7.14 Science and technology

Both sides agreed that the Iran-SA scientific and technological co-operation
started very well after the signing of the co-operation agreement in May 2000,
but lost some momentum recently due to a variety of reasons. However, joint
calls for proposals through the National Research Foundation (NRF) and student
exchanges at especially universities of technology continued
satisfactorily.

In order for this partnership to grow and be revitalised it is envisaged
that the focus be possibly limited to three thematic areas namely
biotechnology, nanotechnology and gas-to-liquid. With a reduced scope there
would be more intense interactions and the scientists and researchers from both
sides will be encouraged to continue engaging in exchange visits and possibly
conducting joint workshops on these thematic areas, as well as promoting and
undertaking joint research projects.

The South African side has agreed to make available a sum of money in order
to support research work under the existing bilateral agreement. A new joint
call for proposals will be posted by the NRF and their Iranian counterparts.
Projects to be supported will be restricted to the three thematic areas
identified above. This position will be reviewed in the next Joint Committee on
Scientific (JCS) and technological co-operation between the two countries which
both sides agreed to hold within the next six months in the Islamic Republic of
Iran.

7.15 Women's affairs

The two sides agreed on the important role played by women in both
countries.

During the JBC the Centre for Women and Family Affairs (Presidential office)
met with the office for the Status of Women in the South African Presidency.
During the meeting the issues of empowerment of women were discussed especially
in the promotion of entrepreneurs and employment in rural areas.

The South African side invited the Centre for Women and Family Affairs to
attend the international symposium on "Women and Rural Development," which will
take place in South Africa in October 2007.

The two sides agreed to continue to exchange views on bilateral and
international issues of mutual concern.

8. Economic and Technical Working Group

With a view to strengthening the existing relations between the Islamic
Republic of Iran and the Republic of South Africa and achieving the determined
aims of previous joint 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 recommended steps:

8.1 Commerce

The Iranian side declared its readiness to start expert discussions on a
preferential trade agreement which was presented through diplomatic channels to
the Republic of South Africa. South Africa stated that agreements of this
nature are only negotiated multilaterally through a Customs Union (SACU). An
undertaking was made by the Republic of South Africa that this matter will be
presented before the SACU Council of Ministers' agenda and this will be done
within the next six months.

8.2 Exhibitions

In order to promote trade relations and economic co-operation, the two
countries agreed to participate in each other's international trade exhibitions
and fairs and underlined particularly a need for introducing their products to
each other through exclusive exhibitions to be held in their respective
countries.

The two countries agreed that they will encourage and facilitate the Iranian
International Exhibitions Company and the organisation(s) concerned in South
Africa, and undertake exhibitions in each other's country with the aim of
exposing goods and products of each country.

8.3 Customs

The two countries note and appreciated the signing of the Customs
Co-operation Agreement as it will enhance technical co-operation between them.
On implementation, this agreement will also facilitate the promotion of trade
between the private sectors of the Islamic Republic of Iran and the Republic of
South Africa.

8.4 Oil and petrochemical

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.

The National Iranian Oil Company (NIOC) is ready to assist in the training
of South African experts in the downstream and upstream sectors. South Africa
undertook to forward a draft proposal within a month.

The National Petrochemical Company (NPC) also expressed its readiness to
assist in the training of South African experts and emerging entrepreneurs in
the petrochemical sector. South Africa undertook to submit their training needs
within a month.

Both sides agreed to expand their technical, economic and trade co-operation
in the petrochemical sector on the basis of long-term agreements.

Both sides agreed to encourage joint venture investment to lay the grounds
for increasing the supply of petrochemical, chemical and polymer products in
Iran, South Africa and third party countries.

8.5 Transport

(a) Rail

Both sides agreed to explore co-operation in the following fields:

* supplying parts needed for general motors (GM) and general electric (GE)
locomotives
* training (short term and long-term academic trainings in Bachelor of Science
and Master Degrees)
* supplying bogies needed for Wagon Pars Company.

(b) Maritime

Both sides noted the agreed minutes of the Joint Bilateral Merchant Shipping
Committee, which took place on 21 October 2005, in Cape Town.

The working group urged the relevant ministries on both sides to implement
their commitment and to convene the second meeting of the Joint Bilateral
Merchant Shipping Committee in Tehran in 2007 to review progress.

The South African side informed the Iranian side of the conference of the
African Ministers responsible for Maritime Transport which will take place in
October 2006 in Abuja. This conference will review the African Maritime
Transport Charter which will redefine Africa's maritime relations with the
world.

(c) Air

Both sides agreed to encourage the implementation of the bilateral air
services agreement and to support airlines of respective countries which are
interested in operating flights between the Republic of South Africa and the
Islamic Republic of Iran.

8.6 Agriculture

Both sides expressed the desire to co-operate in initiatives to alleviate
poverty especially through development in the agricultural sector with specific
reference to women.

The parties stated their commitment to promote capacity building through
education and training in economic activities in the agricultural sector.

Both sides also expressed their willingness to host managers, experts and
examples of successful rural development projects so as to share information
and experience.

These initiatives will be on the basis of mutual benefit and availability of
resources. Both sides extended invitations to attend their "Women Farmer of the
Year" events.

Both sides emphasised on expansion of agricultural co-operation in different
fields namely: horticulture, farming, water and soil, research and training,
livestock and plant protection while the Iranian side expressed its readiness
to host the head of South Africa's "Agricultural Research Council" (ARC).

Considering the increasing level of agricultural trade between the two
countries, both sides expressed their readiness to negotiate an agreement on
plant quarantine.

The above applies on condition that the co-operation will be of mutual
benefit to both parties and that both parties dispose of the necessary
resources.

8.7 Housing

The Iranian Shaheed Investment Company discussed with the relevant South
African parties the construction of low-cost housing. Shaheed Investment
Company undertook to send a team for financial and technical surveys to the
Republic of South Africa. The South African party undertook to prepare and
present a program for the visit of the Iranian team to the Republic of South
Africa within six months.

8.8 Free Trade Zones

The Iranian Free Trade Zones and Special Economic Zones expressed their
interest and stated their invitation that:

(i) The investment companies of the Republic of South Africa should
participate in capital investments in creation and completion of the
infrastructures and public utilities in the Iranian Free Trade Zones.

(ii) The investment companies, industrialists and persons dealing with the
export-import enterprises of the Republic of South Africa should participate in
economic activities (production, processing of goods, export and re-export) in
the Iranian Free Trade Zones.

(iii) The export - import traders of the Republic of South Africa should set
up permanent exhibition centres for goods in order to take advantage of the
Iranian Free Trade Zones to access the markets of Central Asian States.

(iv) The insurance companies, crediting and financial institutes of the
Republic of South Africa should participate in the Iranian Free Trade Zones
insurance sector.

8.9 Investment co-operation

Both sides expressed their satisfaction with the implementation of the
agreement for the promotion and reciprocal protection of investments signed
between two counties and agreed that the exchange of information, holding
seminars about investment opportunities in both countries and periodical
meetings between private and state sectors are essential.

In emphasising the importance of the joint investment in various fields
between private and public sectors of the two countries, both sides agreed to
establish joint investment subcommittees.

The two sides invited potential investors, industrialists and export/import
enterprises to participate in economic activities (production processing of
goods, export and re-export) in identified areas.

8.10 Banking

The Export Guarantee Fund of Iran (EGFI) expresses its readiness to cover
the non-payment risk of short, medium and long term credits to be granted to
South African buyers against a sovereign guarantee or against L/Cs opened or
Bank Guarantees issued by EGFI's acceptable Banks (Absa, First National Bank,
Nedbank and Standard Bank). Moreover, non-payment risk of all credits to be
granted to South African firms on open account basis is coverable after the
buyers have been assessed as credit worthy.

8.11 Trade promotion

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 trade. The Iranian side stated that they are ready to purchase sugar,
maize, paper and other commodities and products directly from the Republic of
South Africa.

8.12 Electricity

The two sides have established a working group to look at identifying
projects for possible co-operation. Energy Ministry Sahami Sakht Va Tahiehe
Kalaye Ab Va Bargh (SATKAB) Holding Company from the Iranian side and
Department of Minerals and Energy from the South African side, were introduced
for further follow-ups and will meet in Tehran and Pretoria every six months.
The first meeting is to be held in Tehran within the next 60 days.

The parties expressed their intention to enhance their co-operation in the
various fields of generation, transmission and distribution of electricity and
the working group shall especially examine modes of co-operation in:

* implementation of projects on European Patent Content (EPC) basis
* manufacturing and supply of transformers and switchgears
* transfer of technology and training, either via establishing of joint venture
between Iranian and South African companies or individually.

8.13 Mining

Both parties agreed to implement the signed agreement in advancing
co-operation in the mining sector.

9. It was agreed that the tenth meeting of the JBC should be held in Tehran
in 2007. The exact date of the meeting shall be mutually agreed upon through
diplomatic channels.

9. Dr Mottaki expressed his appreciation to Dr Dlamini Zuma for the
hospitality accorded to him and his delegation.

9. The Joint Communiqu� of the ninth meeting of the JBC between South Africa
and Iran was concluded in Pretoria on 22 August 2006 (corresponding to 31
Mordad 1385) in the English and Farsi languages, which are both equally
authentic.

Dr Nkosazana Dlamini Zuma Minister of Foreign Affairs of the Republic of
South Africa Mr Manouchehr Mottaki Minister of Foreign Affairs of the Islamic
Republic of Iran.

Enquiries:
Manusha Pillay
Cell: 082 359 3587

Issued by: Department of Foreign Affairs
22 August 2006
Source: SAPA