Iran’s Supreme National Security Council Saeed Jalili: Departure of US troops from Iraq will pave the way for the progress and prosperity of the Iraqi nation; US military equipment must pay Iran $2.8 million in a dispute over a 1977 contract; Iran claims
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    • (December 12-18, 2011)

    According to reports, Secretary of Iran’s Supreme National Security Council Saeed Jalili said that the pullout of US troops from Iraq will definitely help Baghdad to promote its independence and strengthen its might. He mentioned during the meeting with Ammar Hakim, leader of the Islamic Supreme Council of Iraq that the departure of US’ troops from Iraq will also pave the way for the progress and prosperity of the Iraqi nation. He also added that Iraq’s stability is important to the Islamic Republic and Tehran is keen to promote cooperation with Baghdad in all spheres. During the meeting, Hakim appreciated the Islamic Republic’s role in supporting the Iraqi nation and government. 1

    In another development, an appeals court ruled that a US manufacturer of military equipment must pay Iran $2.8 million in a dispute over a 1977 contract despite a federal ban on trade with the country. Cubic Defense Systems had asked the US Court of Appeals for the 9th Circuit to overturn an international arbitration award Iran won over a decades-old contract dispute. But refused, finding America’s interest in enforcing international arbitration awards outweighed the public policy against trade with Iran. The dispute dates back to 1977, when Iran’s Ministry of Defense hired Cubic Defense to provide an air combat system. Due to the Iranian Revolution in 1978, the equipment was never provided, and the parties agreed to discontinue the contract and settle accounts later. Cubic Defense eventually sold the equipment to Canada. In 1991, Iran brought an arbitration proceeding against Cubic Defense before the International Court of Arbitration of the International Chamber of Commerce and received a $2.8 million award, plus interest and costs. When Cubic Defense failed to pay, Iran sued in California district court. 2

    In other develoepmts, according to reports, Iran’s Intelligence Ministry said that its agents have arrested a person of Iranian origin at Bagram Air Field on suspicion of spying for the US. It said the suspect, who did not identify by name, sought to infiltrate into Iran’s secret services and funnel false information to deceive Iranian intelligence. The report alleged the attempted infiltration was part of a complicated intelligence battle the US has launched against Iran. The ministry claimed the suspect has already served in the US Army’s intelligence units and spent time at US military bases in Afghanistan and Iraq. Iran periodically announces the capture or execution of alleged US or Israeli spies, and often no further information is released. 3

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