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To: Second_Titan who wrote (75188)	9/30/2000 2:25:33 PM
From: BigBull	Read Replies (1) \| Respond to of 95453

Iran to West - "Adjust your economies" irna.com thr 093 Iran-Oil-West Norbakhsh: West Must Follow Advice It Gave When Oil Price Was Low London, Sept. 30, IRNA -- The oil consuming nations in the West should now follow the advice they gave oil producers when oil price was low and therefore adjust their economies appropriately, said Mohsen Norbakhsh, Governor of Central Bank of Iran (CBI). "When the oil price reached 10 dollars per barrel two years ago, oil producing countries were told when objecting to the economic hardship hence caused that they should adjust their economies appropriately", he told IRNA in London. "We heeded that advice and adjusted our economies but now that oil is near 30 dollars per barrel we say the same thing to them: adjust your economies instead of applying pressure on oil producers " Norbakhsh said. He considered this adjustment to be the reduction in tax levied on fuel whilst oil prices were low and inflationary pressures in consuming countries subdued. The level of tax on petrol is as high as 74 per cent in some European countries. "To adjust their economies" Norbakhsh suggested, "fuel taxes that have been applied in the past few years should be cut in order to reduce prices and relieve pressure from consumers in the industrial world ". He therefore criticised "pressure" that is being applied by the governments of these countries on oil producers and called this a "contradictory behaviour". When asked how the oil issue was discussed at the World Bank meetings in Prague earlier in the week Norbakhsh said "the subject was hotly debated at the working committee level." There were 24 delegates present, representing all the regions of the world, he said. "Representatives of the oil producing nations defended their position vigorously however" he added "and cleared many of the points raised". Referring to the position of Iran on the subject he said the price of oil in "1973 prices" is currently at " 5 dollar" but stressed "this does not mean we want much higher prices". "Achieving stability in the oil market is the top priority for us" Norbakhsh explained, as fluctuations in the oil price "harms both the producers nd consumers". He went on to explain what Iran considers to be a fair price without putting an exact figure on it, although OPEC has set the bands as between 22 and 28 dollars per barrel. "Prices should be at such levels as to encourage producers to invest in oil and thus keep it flowing to the market to meet the demand". He estimated that by the end of the current Iranian year, ending on March 20, 2001, the special fund set up by Iran to accumulate any oil revenues above that considered sufficient to cover imports, etc., would have a balance of "about Dlr 6 billion". "These funds will be made available to the private sector in order to help boost production and economic activity" he explained. JA/JH END ::irna 30/09/2000 21:20