DATE=5/19/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-249570
TITLE= IRAN PRESIDENT / SAUDI (L)
BYLINE=SCOTT BOBB
DATELINE=CAIRO
CONTENT=
VOICED AT: 

INTRO:  IRANIAN PRESIDENT MOHAMMED KHATAMI HAS FLOWN TO QATAR, 
THE LAST STOP OF HIS THREE-NATION TRIP TO THE MIDDLE EAST.  V-O-A
MIDDLE EAST CORRESPONDENT SCOTT BOBB REPORTS THE IRANIAN 
PRESIDENT -- BEFORE LEAVING FOR QATAR WEDNESDAY -- HELD A LAST 
MEETING WITH SAUDI CROWN PRINCE ABDULLAH IN JEDDAH.

TEXT:  CROWN PRINCE ABDULLAH HAILED THE IRANIAN PRESIDENT'S VISIT
AS A SUCCESS, TELLING THE SAUDI NEWS AGENCY THE TWO COUNTRIES 
ESTABLISHED THE NECESSARY TRUST ON ALL SENSITIVE SUBJECTS.  HE 
SAID HE BELIEVES THE VISIT WILL HAVE A POSITIVE IMPACT ON THE 
WHOLE REGION.

SOURCES SAY THE TWO COUNTRIES DID  NOT  ACHIEVE A GREAT DEAL OF 
PROGRESS ON CERTAIN DIPLOMATIC ISSUES, IN PARTICULAR THE DISPUTE 
BETWEEN IRAN AND THE UNITED ARAB EMIRATES OVER THREE ISLANDS IN 
THE GULF. THEY SAY IRAN MAINTAINED ITS CALL FOR DIRECT TALKS WITH
THE EMIRATES, WHEREAS THE EMIRATES WANT INTERNATIONAL MEDIATION 
OF THE DISPUTE.

RELATIONS WITH THE UNITED STATES REPORTEDLY ALSO WERE DISCUSSED. 
SAUDI ARABIA, AN ALLY OF THE U-S GOVERNMENT, REPORTEDLY SOUGHT TO
ENCOURAGE A NORMALIZATION OF RELATIONS.  BUT THE IRANIAN 
PRESIDENT SAID THE UNITED STATES STILL IS  NOT  SHOWING THE 
NECESSARY GOOD WILL TOWARD IRAN.

HOWEVER, CONSIDERABLE PROGRESS WAS MADE ON BILATERAL AND ECONOMIC
ISSUES.  THE TWO GOVERNMENTS VOWED TO MAINTAIN OIL PRODUCTION 
CUTS ESTABLISHED LAST MARCH IN ORDER TO RAISE PETROLEUM PRICES.  
AND THEY CALLED ON OIL EXPORTERS TO CONTINUE TO ABIDE BY THE 
LOWER PRODUCTION QUOTAS.

THE TWO GOVERNMENTS ALSO AGREED TO OPEN A JOINT BANK AND TO 
REACTIVATE A JOINT TRADE AGREEMENT.

RELATIONS BETWEEN IRAN AND SAUDI ARABIA WERE COOL FOLLOWING THE 
IRANIAN REVOLUTION 20 YEARS AGO.  AND THEY WERE SEVERED IN THE 
LATE 1980'S AFTER 400 MOSTLY IRANIAN PILGRIMS WERE KILLED IN A 
CLASH WITH SAUDI SECURITY FORCES DURING THE PILGRIMAGE TO MECCA.

HOWEVER, RELATIONS BEGAN TO IMPROVE TWO YEARS AGO, FOLLOWING THE 
ELECTION OF PRESIDENT KHATAMI.  THE IRANIAN PRESIDENT IS A 
MODERATE WHO IS SEEKING TO LOOSEN SOME RESTRICTIONS ON INDIVIDUAL
FREEDOMS INSIDE HIS COUNTRY AND TO STRENGTHEN TIES TO OTHER 
NATIONS IN THE REGION.

                       ///  REST OPT  ///

THE IRANIAN NEWS AGENCY REPORTS THAT IN ANTICIPATION OF PRESIDENT
KHATAMI'S VISIT TO QATAR, AN ACCORD HAS BEEN DRAFTED ON JOINT 
COOPERATION AGAINST DRUG TRAFFICKING.  IT ALSO SAYS RESTRICTIONS 
ON IRANIANS WORKING IN THE GULF STATE ARE BEING EASED.  (SIGNED)

NEB/SB/JWH

19-May-99 12:30 PM EDT (1630 UTC)
NNNN

Source: Voice of America
.