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Clinton hopes for deal over Iran and oil during India visit Clinton hopes for deal over Iran and oil during India visit
(about 3 hours later)
Hillary Clinton has arrived in India hoping to press the south Asian power to cut back its consumption of Iranian oil and to reinvigorate relations which, after many years of rapid improvement, have flagged.Hillary Clinton has arrived in India hoping to press the south Asian power to cut back its consumption of Iranian oil and to reinvigorate relations which, after many years of rapid improvement, have flagged.
Clinton arrived from Bangladesh where she spoke out in support of Mohamed Yunus, the founder of the microcredit pioneer Grameen Bank, who has been under pressure from the government. She also called for the release of a senior opposition leader who is thought to be held by security services and for an investigation into the death of a trade unionist last month. Clinton arrived from Bangladesh where she spoke out in support of Mohamed Yunus, the founder of the microcredit pioneer Grameen Bank, who has been under pressure from the government.
"It would send the wrong signal to foreign investors and buyers if the murder of labour-rights activists ... are not properly investigated," Clinton said. Bangladesh is a major centre of garment manufacturing for international firms. She also called for the release of a senior opposition leader who is thought to be held by security services and for an investigation into the death of a trade unionist last month.
In India, oil is likely to be the priority for the US secretary of state. India, which imports around 80% of its oil, has publicly rejected western sanctions on Iran and continues to buy around 12% of its fuel requirements from Tehran, a longstanding ally. "It would send the wrong signal to foreign investors and buyers if the murder of labour-rights activists … are not properly investigated," Clinton said.
Bangladesh is a major centre of garment manufacturing for international firms.
In India, oil is likely to be the priority for the US secretary of state.
India, which imports 80% of its oil, has publicly rejected western sanctions on Iran and continues to buy about 12% of its fuel requirements from Tehran, a longstanding ally.
However, the prime minister, Manmohan Singh, and his ailing government has pushed refiners to cut imports of oil from Iran by up to a fifth – enough, it hopes, to win a waiver from Washington before sanctions go into effect next month.However, the prime minister, Manmohan Singh, and his ailing government has pushed refiners to cut imports of oil from Iran by up to a fifth – enough, it hopes, to win a waiver from Washington before sanctions go into effect next month.
The US granted exemptions to Japan and 10 European Union nations in March from its sanctions, which are aimed at pressuring Iran to end its nuclear programme. India and China, Iran's biggest buyers of crude, remain at risk if they do not cut oil imports "substantially". The US granted exemptions to Japan and 10 EU nations in March from its sanctions, which are aimed at pressuring Iran to end its nuclear programme. India and China, Iran's biggest buyers of crude, remain at risk if they do not cut oil imports "substantially".
"Our assessment is India is making good progress but we really need to receive assurances that they are going to continue to make good progress," a senior US official travelling with Clintonsaid. "Our assessment is India is making good progress but we really need to receive assurances that they are going to continue to make good progress," a senior US official travelling with Clinton said.
Relations between Washington and Delhi have been bolstered in recent years by a landmark civilian nuclear agreement, common interests in Afghanistan, growing trade and a series of presidential visits.Relations between Washington and Delhi have been bolstered in recent years by a landmark civilian nuclear agreement, common interests in Afghanistan, growing trade and a series of presidential visits.
Indian officials have told the Guardian that the amount of oil being bought from Tehran is steadily being reduced, not least because of the difficulties they encounter paying for any purchase as previous rounds of sanctions bite.Indian officials have told the Guardian that the amount of oil being bought from Tehran is steadily being reduced, not least because of the difficulties they encounter paying for any purchase as previous rounds of sanctions bite.
However, they said the process of finding alternatives would not be quick. Though imports from Saudi Arabia had been stepped up, there was a limit to the amount India wanted to import from the kingdom. Greater supply from Iraq was however being seen "as a good option", one explained.However, they said the process of finding alternatives would not be quick. Though imports from Saudi Arabia had been stepped up, there was a limit to the amount India wanted to import from the kingdom. Greater supply from Iraq was however being seen "as a good option", one explained.
During her visit, Clinton will also lobby for progress on stalled economic reforms. Many major US businesses are keen to see a new law that could open India's supermarket sector to foreign chains passed as soon as possible. This was mooted last year but failed in the face of local opposition. She is also likely to argue against a broad retrospective tax proposal, which could cost American businesses billions of dollars. During her visit, Clinton will also lobby for progress on stalled economic reforms. Many major US businesses are keen to see a new law that could open India's supermarket sector to foreign chains passed as soon as possible. This was mooted last year but failed in the face of local opposition.
She is also likely to argue against a broad retrospective tax proposal, which could cost American businesses billions of dollars.
Clinton arrives in India after a stormy visit to China, which saw Beijing and Washington tussle over the fate of the blind Chinese human rights activist Chen Guangcheng, who escaped 19 months of house arrest and fled to the US embassy.Clinton arrives in India after a stormy visit to China, which saw Beijing and Washington tussle over the fate of the blind Chinese human rights activist Chen Guangcheng, who escaped 19 months of house arrest and fled to the US embassy.