It gives me great pleasure to exchange views with you on one of the most critical issues facing the international community. The tragic events caused by Iraq's aggression against Kuwait illustrated the indispensability of establishment of a credible and lasting system of security and cooperation in the volatile and strategic Persian Gulf area, which would help remove the conditions for the recurrence of future aggressions. We, along with our partners in the Persian Gulf region, have made important headway in this endeavor, but it would be no overstatement to claim that the achievement of these objectives has proven, by far more difficult than evicting Iraq from Kuwait.

Within only a decade, the Persian Gulf region has been the victim of two aggressions from the same country against its neighbors. The two cases are inter-related in many respects, and both, in one way or another, emanate from similar erroneous perceptions of, and approaches to national and regional security.

To begin the process of building real and credible deterrence to future aggressions, it is indeed necessary to review and re-think those assumptions which proved so tragically erroneous on August 2 1990. In a hysteria fanned and exacerbated by one country or another, and based on an approach founded on rivalry and competition rather than mutual security and cooperation, the smaller states are induced or compelled into relying on foreign forces or underwriting military expenditures of others in the misplaced hope of creating for themselves a security shield against perceived enemies. Taking into account the geo-strategic characteristics of our region, it is evident that an approach based on rivalry and competition would eventually lead to fostering new imbalances and providing the capability for concealed ambitions to surface and menace the region, as was the case with Iraq.

Therefore, it is imperative to pin point common areas of interest and shared objectives and find cooperative methods of achieving and maintaining those objectives.

It is the strong view of my Government that there are significant areas of common interest both between countries of the region and between them and those outside the region with concerns and interests in this strategic and volatile neighborhood.

The Islamic Republic of Iran, for its part, considers

¢ Prevention of tension in the Persian Gulf region;

¢ Preservation of territorial integrity, political independence and international boundaries of all states in the Persian Gulf region;

¢ Free flow of oil and other resources; and

¢ Protection of the environment of the Persian Gulf region

as absolute imperatives for its national security and development.

The strategic importance of the Persian Gulf for the Islamic Republic of Iran has always played a determining role in shaping Iranian foreign policy. Therefore, we strive -- employing the lessons of the past decade -- for the establishment a security and cooperation arrangement in this region, which must be effective, practical and lasting.

The underlying principle in our approach is cooperation among the regional countries in areas of common interest on the one hand, and confidence building in areas of historical concern and mistrust on the other. This approach stands in contrast to formation of competing blocks, which would naturally entrench and exacerbate historical divisions and rivalries.

Areas of common interest and thus cooperation can include various aspects of oil production and export policy, technical and economic cooperation and coordination in the reconstruction and development programs, protection of the environment, as well as cooperation in political, cultural, social and humanitarian fields at bilateral and regional levels and in the framework of international organizations such as the Islamic Conference, the Non-Aligned Movement, and the United Nations. The establishment of a common market is also an interesting idea that has been raised by some of the littoral states of the Persian Gulf. This would not only help the economic development of all littoral states, but also would prove extremely helpful in fostering confidence and removing mistrust.

The area of security assurances and guarantees is naturally a more sensitive and difficult one. Confidence building measures through mutual commitment to a number of underlying principles might provide a positive and constructive first step in this regard. These principles can include basic principles of the UN Charter such as

¢ Respect for sovereignty and territorial integrity;

¢ Inviolability of international borders;

¢ Non-resort to force in settlement of disputes;

¢ Non-intervention in internal affairs; and

¢ Dialogue and mutual understanding.

They can also include principles more directly relevant to the region such as

¢ The unimpeded commercial use of the Persian Gulf and the Sea of Oman; and

¢ Commitment by all states to free flow of resources to and from the region.

It is possible also to envisage gradual creation of verification mechanisms with the help of the United Nations, and to develop responsible and balanced methods of arms control, in particular with regard to weapons of mass destruction. I should point out here, that any regional disarmament and arms limitation scheme should be balanced and take full account of the necessity of not diminishing the security of these countries within the larger context of Middle East as well as South-West Asian regions.

In our view, any regional arrangement should be initiated by the regional countries based on the unique experience, characteristics and historical bonds of the region. Formulas cannot be duplicated or imposed from outside, nor can the region be dependent for its security on outside forces. Presence of foreign forces has historically resulted in domestic instability within the recipient countries and exacerbated the existing tensions between these countries and other regional states. Both these inherent tendencies of foreign military presence are contradictory to the objectives of regional stability.

We have always believed that any regional arrangement should be limited in its nucleus to the eight littoral states of the Persian Gulf. Inclusion of other states will bring with it other complex issues, overshadowing the immediate problems of this region and further complicating the complex nature of Persian Gulf security and cooperation. The Persian Gulf has particular problems which have resulted in two disastrous wars in the span of one decade. Arrangements to constructively tackle these problems and in the process preclude emergence and predominance of the same old disastrous tendencies should not be made contingent upon resolving other issues, however important they may be.

Furthermore, we believe that all eight countries of the Persian Gulf region, including Iraq, must ultimately be included in the security and cooperation arrangements in the Persian Gulf area. Any exclusion will be the seed of future mistrust, tension and crisis. Because of the serious nature of Iraqi internal situation and unpredictability of its outcome, it cannot be reasonably expected to bring Iraq into the discussions that are underway now. But, no arrangement will seek to establish a block against Iraq.

Finally, to prevent the domination and/or imposition of the views of any single country or group of countries, arrangements should be envisaged within the framework of the United Nations and with the active and serious cooperation of its Secretary-General. The necessary institutional framework has already been provided in Security Council Resolution 598.

The active participation of the Secretary-General would also contribute in the following ways:

1. The role of the United Nations and its Secretary-General, with the assurances and guarantees that it would entail -- probably through the Security Council, would relieve some of the immediate concerns and mistrust of the Persian Gulf states, particularly the smaller ones;

2. Such a role, furnishing the necessary international umbrella, would also provide the international community with assurances as well as mechanisms for safeguarding its legitimate interests, thus rendering the military presence of foreign forces in the region with its destructive consequences unnecessary;

3. The United Nations would also provide the necessary linkage with regard to issues that inherently go beyond the boundaries of this or any sub-system. A good example, as I indicated earlier, is the area of arms limitation and control. Therefore, while you have the necessary international character and linkage, the area is not so large as to make its issues unmanageable.

What I have tried to share with you in the past few minutes represents a set of ideas that along with similar ideas are being developed, strengthened and operationalized in a process of dialogue that has started between the countries of the region. The Secretary-General of the United Nations in his recent trip to Iran and Saudi Arabia held extensive consultations with Iranian officials and foreign Ministers of GCC states on the implementation of paragraph 8 of resolution 598 which deals with regional security arrangements. He has reported a very positive impression of these separate talks and plans to follow up on these consultations.

We and our partners -- the littoral states of the Persian Gulf -- have also achieved significant progress in many areas. In the diplomatic front, the relations between Iran and Saudi Arabia have resumed, and improved steadily. Diplomatic contacts and visits between Iran and GCC members have increased. The second meeting of GCC foreign Ministers with Foreign Minister of the Islamic Republic of Iran took place on September 27, 1991 here in New York. The final communique of the meeting indicated the shared principles and objectives of the participants, their determination to further strengthen bi-lateral and regional ties based on a set of principles -- along the lines of those that I enumerated earlier -- as well as their decision to continue these meetings and contacts and to hold the next ministerial meeting in the region during the first quarter of 1992.

Furthermore, the countries in the region have also expanded their cooperation in the economic and technical fields. Cooperation in the area of environment has been an urgent necessity, and has continued within the context of ROPME as well as through bi-lateral arrangements including the active and successful participation of Iranian experts in controlling and extinguishing Kuwaiti oil-wells fire. The international conference on Oil in the 1990s, which was convened in Iran last June with the participation of oil producers and consumers as well as oil companies, and in which a number of high ranking officials from Persian Gulf states participated, was another practical step not to only to promote cooperation in this vital area but also to foster regional and international confidence.

Let me conclude by making a final observation. We know that the establishment of a viable regional security and cooperation arrangement in the Persian Gulf area is not an easy task. Differences between the countries in the region, some publicized and some less a matter of international public attention, do exist, and require an approach which is sensitive to these concerns and problems. But it is important to build a new system in this strategic region based on the lessons that we have learned from the past not to repeat the same mistakes. For Iran, this is the fundamental criterion and the basic point of departure.

Thank you for your attention.