In an interview yesterday with Arab News, Iran’s Ambassador Ali Asghar Khaji said the Tehran conference would discuss various regional issues, including the current situation in Iraq and the road map for a Palestinian state unveiled by US President George W. Bush.

“It will be an important conference as it is the first after the toppling of the Saddam regime,” he said.

In the wide-ranging interview, the ambassador fielded questions on Saudi-Iranian relations, the situation in Iraq, the US role in that country, and the prospects for peace in Palestine in the light of the road map submitted to the Israeli and Palestinian leadership.

The Tehran conference is expected to discuss the current situation in Iraq as a follow-up to the Riyadh conference last month, when the foreign ministers of eight Islamic and Arab countries called for a swift end to the US occupation of Iraq and the formation of a representative government in Baghdad.

Describing the Riyadh conference as an important initiative by the Kingdom, Ambassador Khaji said Iran was willing to participate in any follow-up conference if deemed necessary in the interest of restoring peace. The venue of the conference did not matter, he added.

Pointing out that Saudi-Iranian bilateral trade had shot up from $160 million to $280 million in 2001, and then continued its upward trend last year, the ambassador said the momentum was reflected in the first half of this year as well.

He referred to the high-level delegation of over 50 Saudi businessmen who would be visiting Tehran this month under the leadership of Abdul Rahman Al-Jeraisy, chairman of the Council of Saudi Chambers of Commerce and Industry.

During their stay in the Iranian capital, Al-Jeraisy will also explore the possibility of setting up a free trade zone between the two countries. He also cited the on-going efforts to set up an investment bank, for which a memorandum of understanding was signed with three Iranian banks in June 2001.

Among the other areas of cooperation, a delegation from the Ministry of Interior was recently in Tehran for discussing cooperation in the field of security.