http://www.thenewanatolian.com/tna-19355.html

Israelis and Iranians holding secret talks to settle old debt

The Associated Press / Jerusalem
07 December 2006

While Iran continues to deny that Israel has the right to exist, Iranian 
and Israeli representatives are holding clandestine talks in Europe to 
settle an old Israeli debt, an Israeli daily reported Wednesday.

Iran is still owed hundreds of millions of dollars for oil it supplied 
to Israel in the years before the Islamic Revolution in 1979, and 
representatives of the two countries, now sworn enemies, are holding 
contacts meant to settle the debt, according to the report in the daily 
Haaretz. The report was attributed to anonymous Israeli and Swiss 
officials involved in the negotiations.

Israel and Iran had a close relationship in the 1950s, 60s and 70s, when 
Iran was ruled by the pro-Western Shah. Israeli companies were given 
large construction contracts in Iran, the countries cooperated on 
security and weapons development, and, according to the report, a joint 
Israeli-Iranian company, "Trans Asiatic Oil Ltd.," supplied Iranian oil 
to Israel.

In 1979, when Shiite clerics ousted the Shah, Iran cut off all contacts 
with Israel, leaving an Iranian debt to Israeli companies for services 
rendered and a much larger Israeli debt to Iranian oil suppliers, 
according to the report.

Two mediation processes involving different parts of the debt are now 
ongoing between Iranian and Israeli representatives, the report said, 
and a third ended recently in a ruling that Israeli fuel companies owe 
Iran tens of millions of dollars.

The Israeli Foreign Ministry and international mediation concerns in 
Geneva refused to comment.

Iranian President Mahmoud Ahmedinejad has repeatedly denied that Israel 
has the right to exist and has called for the destruction of the Jewish 
state. Israel fears that Iran's nuclear program is intended for that 
purpose.

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