As Iran sanctions threaten, Iran sees new friend in Cambodia

Even more than a new economic partner, Iran is apparently looking to Cambodia as a conduit to reach greater Southeast Asia through the 10-country Association of South East Asian Nations (ASEAN). "Cambodia can play a key role in connecting Iran and the association," Iran's Accredited Ambassador to Cambodia Seyed Javad Qavam Shahidi told the FARS news agency after Hor's visit.

Web of geopolitics

In the complex web of geopolitics, it makes sense that Iran would warm relations with Cambodia, says British historian Philip Short. China woos Cambodia and Burma as counterweights to regional power India, while also wooing Iran and Pakistan as counterweights to longtime rival Russia, he says.

"So, for Cambodia and Iran – both Beijing’s good friends – to get cozy isn't a surprise at all. In fact, one wonders why it didn’t happen earlier," says Mr. Short, author of the Khmer Rouge history "Pol Pot: Anatomy of a Nightmare" and the biography "Mao: A life."

"For Cambodia there’s an obvious economic interest," continues Short. "And for Iran, which is still pretty isolated, the more diplomatic support it can garner the better."

China has invested millions in infrastructure projects in Cambodia. In December 2009, Beijing pledged $1.2 billion in aid and soft loans. That made China a bigger benefactor to Cambodia than all other countries combined. In July, international donors pledged $1.1 billion in annual aid to Cambodia, which was still the most ever from them. "China is Cambodia’s best buddy," says Short.

But Cambodia has also been courted avidly by Washington in recent years. In July, US soldiers participated in a peacekeeping exercise with troops from 23 Asia Pacific nations as part of the US-run 2010 Global Peace Operations Initiative. Washington and Beijing have long competed for influence in the region, with China supporting the Khmer Rouge insurgency against a US-backed government of the 1970s.

No warning from Washington?

Cambodia's business community appears unfazed by the country's newfound friendship with Iran.

"If Iran wishes to offer any material support to Cambodia, why shouldn’t they accept it? Cambodia is a neutral country with a lot of needs, and welcomes all the help it can get," says Douglas Clayton, CEO of the private equity fund Leopard Capital, which has attracted international investors to a $34 million multisector equity fund in Cambodian businesses.

A spokesperson from the US Embassy in Phnom Penh says that Washington urges "all UN Member States, including Cambodia, to fulfill the objectives of UNSCR 1929 (United Nations Security Council Resolution 1929) by meeting not only their mandatory minimum obligations but also by applying accompanying measures." UNSCR 1929 was passed in June to target Iran's nuclear enrichment program.

While Cambodia's government spokesman says that Phnom Penh has not been warned against developing ties with Iran, Professor Ben-Meir of New York University suspects the US may have dropped a hint to Cambodia against getting too close.

"Soon Cambodia itself will begin to feel the pressure from the international community to stop trading with Iran," he says. "Cambodia therefore will continue to play a balancing act, swaying from which side it is getting the greater benefit. For this reason, the United States and the EU will have to come up with some aid to Cambodia if they wish to distance Cambodia from Iran."

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