Department of Foreign Affairs urged red carpet rollout for ‘prickly’ Iranians

Irish Government officials were asked by the Department of Foreign Affairs to go on a charm offensive for the visit of a high-level Iranian trade delegation in 1994.

Massive beef export contracts that could potentially “eliminate the need for intervention in 1994” was the prize on offer, Government papers released by the National Archives stated.

However, the Iranians were described as “very prickly on protocol” and the Department asked that the Taoiseach Albert Reynolds make time to meet their foreign minister, Dr Ali Akbar Velayati.

It also asked for a “ministerial presence at the airport” in order to impress the arriving Iranian delegation.

The Iranians purchased 20,000t of Irish beef in 1993 and had purchased a further 20,000t in 1994.

However, there were strong indications that the Middle Eastern state could potentially purchase up to 40,000t from Ireland, a briefing note from the Department of Foreign Affairs to the Department of the Taoiseach explained.

‘Ultra-sensitive’

It was estimated that these contracts could deliver close to Ir£90m in export earnings - which was the value of beef shipments to Iran prior to 1989 when BSE scuppered the trade.

“We do know that the Iranian decision to buy [beef] from us is politically motivated; i.e. related to the fact that we have maintained a dialogue with them over the years despite the differing views on various issues,” the briefing note stated.

Explaining the necessity to assuage the visitors’ egos, a senior Department of Foreign Affairs official described the Iranians as being “ultra-sensitive” when it came to matters of protocol.

“Thus, while I readily appreciate ministers have other important concerns tomorrow evening, nevertheless I think it is essential to the success of the Velanyati visit that a minister be on hand at the airport tomorrow evening,” he added.

Background notes also identified the trade imbalance between Ireland and Iran as another area of concern.

The notes showed that while Ireland exported close to IR£12m in goods and services to Iran in 2019; in contrast, Iranian exports to Ireland did not exceed IR£700,000.

Iran was lobbying Ireland to purchase more crude oil from the Middle Eastern state in order to rebalance the trade deficit somewhat.

Saddam’s son slandered Irish beef

The son of Iraqi dictator Saddam Hussein sent the Department of Agriculture into orbit following the publication of a seriously disparaging article on Irish beef in 1992.

The article in the Baghdad newspaper Babel, which was edited by Sadaam Hussein’s son Uday, elicited a sharp and very angry response from both the Department of Agriculture and Bord Bia’s precursor Córas Beostoic agus Feola (CBF) in 1992.

Papers released by the National Archives also show how the incident sparked fears that Irish beef would be banned from Iraq; and prompted protracted discussions within Government about how best to respond to the Babel article and the subsequent fallout.

The April 1992 article massively inflated the incidence of BSE in the Irish herd by confusing the disease situation in Ireland with that of the UK.

Reputation

Moreover, it included a raft of inaccuracies which the authorities feared would seriously damage the reputation of Irish beef.

However, refuting the assertions made by Babel was complicated by the fact that Iraq was diplomatically isolated in the wake of the Gulf War of 1990-91.

Both the Department of Agriculture and CBF wrote to Uday Hussein as editor of Babel to complain.

“My authorities were shocked and dismayed about the misleading and false information which had been given to your reporter,” the Department’s director of veterinary services, RG Cullen, stated in a letter to Uday Hussein.

“It is in the United Kingdom, NOT in Ireland, that there have been 300 cases of BSE a week,” he pointed out.

‘Completely false’

In his letter to the Babel editor, CBF’s chief executive Paddy Moore said the article was “biased” and “completely false”.

A senior official in the Department of Foreign Affairs cautioned that any attempt by Ireland to influence Iraq regarding a possible ban on Irish beef imports could have diplomatic consequences.

“An approach by the embassy would undoubtedly be seen by Iraq as a sign that we are redeveloping our relations and they would be most likely to seek a political price in return for cooperation,” the official stated in a briefing note.

Uday Hussein was killed by US forces in a gunfight in Mosul following the second invasion of Iraq in 2003 and the toppling of Saddam Hussein’s regime.

Comments by a European Commissioner that structural funds should not be used to fix potholes in secondary roads had the Government rattled in 1994.

Concerns were raised within Government that criticism of the manner in which EU structural funds were being used by Ireland could impact future applications for such supports.

Local criticism of the spending plans for the Ir£7.2 billion package of supports which was secured for the period from 1993 to 1999 also added to Government nervousness.

A written draft of a speech by the European Commissioner for regional policy Bruce Millan was marked for the attention of senior officials in a range of departments.

The Scottish Labour politician told a function in Dublin that “during the course of the previous Community Support Framework (1989-93) Ireland received, on a per capita basis, twice as much as the average for the other Objective 1 regions”.

Highest payments

Millan pointed out that Ireland would continue to receive the highest payments from the fund for the period 1994-2000.

However, he warned that the party could be coming to an end for Ireland in terms of EU structural funds.

“The situation beyond 1999 is a lot less clear with regard to Structural Funds,” he said.

Commissioner Millan had previously warned that Structural Funds should not be used to “fill potholes” in Ireland’s country roads.

A special deal on gas prices was being sought by Irish Fertiliser Industries (IFI) to stave off the potential closure of its three plants, Government records from 1994 show.

IFI was a joint venture between the State, which owned 51% of the company, and British firm Imperial Chemical Industries (ICI), which had the remaining 49% shareholding.

The fertiliser manufacturer lobbied Government during the summer of 1994 to secure natural gas at a preferential rate into the future to help offset rising operational costs and increased international competition. The company was already receiving cheap natural gas from the Kinsale field. IFI paid 7.6p per therm for gas in 1994, when the standard European price – or Dutch F price – was 17p per therm.

Preferential gas price

“It has been estimated by consultants retained by NET [IFI’s Irish constituent part] that the low gas cost to IFI has in effect been a cost advantage (subsidy) to IFI of about IR£62m since 1987 and is currently a cost saving of IR£19m or so per annum,” a memo to Cabinet stated.

Losing the preferential gas price would cost IFI IR€19.3m and result in the company recording a trading loss of IR£12.4m for 1993/94, the memo pointed out.

IFI warned that the company - which produced iconic Irish fertiliser brands such as NET Nitrate - would close by 1999 if the preferential gas prices were not continued beyond the end of the decade.

The company eventually closed in October 2002, with the loss of 600 jobs across its plants in Cork, Arklow and Belfast.

Meanwhile, the NET board was proposing that its debt be transferred to the National Treasury Management Agency or be effectively nationalised and taken on by the country’s taxpayers.

“The board of NET recognises that NET’s debt is in effect a sunk cost and recommended its transfer to the National Treasury Management Agency (NTMA) in its October 1993 report to the minister [for Enterprise and Employment]. The board now reiterates this recommendation,” an appendix to the memo to government stated.

The launch of a major plan to reverse economic decline and population loss in the west of Ireland stirred stiff opposition within Government in 1994.

The new programme, which was termed a ‘Crusade for Survival’, recommended a raft of policy initiatives including a major clampdown on the movement of milk quotas out of Connacht, Clare and Donegal.

The crusade also proposed the establishment of a Western Development Partnership Board to drive the plan.

However, Government papers released by the National Archives show that Bertie Ahern, as the Minister for Finance, was opposed to the establishment of the Western Development Partnership Board.

Duplication

Ahern maintained there was potential for “duplication of effort” between the board and local authorities. He also claimed that there was a risk that the board would seek “executive powers”, and that other regions could then “seek the same”.

Meanwhile, the Minister for the Environment Michael Smith expressed concern that there would be overlap between the work of the partnership board and that of the regional assembles.

The crusade for the west was initiated in response to a major report on economic stagnation in the region which was commissioned by the areas’ Catholic bishops.