Japan's oil development talks with Iran face a serious challenge from the United States. President George W. Bush's administration, which suspects Tehran of trying to develop nuclear weapons, is strongly opposed to Japan's pursuit of a development project in the Azadegan oil field of southwest Iran.
There is good reason to doubt Tehran's claim that its nuclear intentions are not related to weapons development. An investigation by the International Atomic Energy Agency has found that Iran is building uranium-enrichment facilities behind the scenes as well as an experimental heavy-water reactor.
According to informed sources, the Bush administration has urged Japan not to sign an oil-field development contract, saying it would be highly "inappropriate" for Japanese companies to make a huge investment in a country with Iran's ambitions of nuclear development.