TNAG-0930-FCO40-1148-Sanctions-against-Iran-extension-to-Dependent-Territories-1980 — Page 343

Iran

23 APRIL 1980

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such decisions were taken in this House before being decided by EEC Ministers?

Secondly, has the hon. Gentleman con- sidered the consequence of his action on many groups of workers in this country? For example, does he accept that the nation, not those workers, should bear the cost? Will there be any compensation for the workers of Talbot if the Iranian order there is stopped?

Mr. Hurd: On the first point, I think that the hon. Gentleman would be the first to complain if we had gone ahead with sanctions, resolutions or measures without knowing that our main compe- titors--the Germans and the French, for example—were willing to do the same. The hon. Gentleman would have been in a great state of indignation and excite- ment at our soft-headedness in that re- gard. It is an excellent thing that the countries of Europe have come together and taken this stand collectively. The hon. Gentleman is right, as I made clear in my statement, that it is a matter for national measures, and these will have to be approved by the House in the usual way.

I have already dealt with the question of compensation. Ministers will need to look at this matter very carefully. I made the point that much of the business entered into before February 1979 is covered by the ECGD and that business entered into after ECGD cover was with- drawn was obviously entered into with some element of risk.

Mr. Warren: I welcome the initiative of approaching the Government of the Soviet Union to find out what, if any- thing, they are prepared to do to ease the situation inside Iran, but will EEC Ministers take the opportunity to make clear once again to the Soviet Union that adventures around the frontiers of Iran will not reduce the tension inside that country?

Mr. Hurd: My hon. Friend is right to stress this point, and we take every opportunity to act on it.

Several Hon. Members rose-

Mr. Speaker: Order. I propose to call four Members from either side before

we move on.

Mr. Spearing: Is it not a fact that the political instability of Iran is due in

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part to the rejection by sections of Iran- ian society of Western economic influence in Iran and that certain sections took the initiative in respect of the hostages? Will the Minister tell us why he thinks that sanctions of the type that he has outlined will influence those who wish to retain those hostages? Is it not even more likely to do the opposite?

Mr. Hurd: We have given the Iranians three weeks to ponder the consequences of the holding of the hostages. We know that people in positions of influence in Iran-I should not put it higher than that -are conscious of the dangers of the path that they are treading. We hope that they will use those three weeks to secure decisive progress "that is the phrase in the communiqué-towards the release of the hostages.

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Mr. Crouch : I welcome Europe's demonstration of solidarity with our friends in the United States. My hon. Friend described their attitude to the Iranian crisis as "desperate". That word frightens me somewhat. I hope that our voice and the voice of Europe will not be unheard and go unheeded in Wash- ington if the situation is as desperate as he thinks it is.

Mr. Hurd: I agree entirely with my hon. Friend's point. One of the advant- ages of the decision taken yesterday in Luxembourg is that it enables us, in a way that would not be possible if the other decision had been reached, to con- tinue to pass to the United States the British analyses and consideration of what is wisest.

Mr. Spriggs: Is the Minister aware that regrettably it appears that sanctions will have to be applied if we wish to obtain the release of the hostages being held in the United States embassy in Iran? In the event of sanctions being applied against Iran, will the hon. Gen- tleman undertake to consider compensa- tion for all firms who have business con- nections with Iran? If employment is seriously affected as a result of sanc- tions, will he take special measures to deal with any unemployment problems?

Mr. Hurd: I have tried to answer that question twice already. Obviously it is an aspect of the matter that Ministers will need carefully to consider.