Iran and Azerbaijan share a long history, yet the relations between the two neighbors soured in 2001 due to the disagreements over the oil fields in the south of the Caspian sea. Iran subsequently attacked Azerbaijani geophysical exploration ships and violated the air space of the country. Only political and military help from Turkey prevented that conflict from escalating.

Iran and Azerbaijan, although both overwhelmingly Shia Muslim nations, also differ in their approaches towards the U.S.. Azerbaijan, an active member of the U.S.-led anti-terrorism campaign and economic partner of the U.S., wishes to increase the American economic and military presence in the Caspian region – something bitterly opposed by the Iranian government. Azerbaijan, on the other hand, accuses Iran of violating the human rights of the 20-30 million ethnic Azerbaijanis in Iran and requests the opening of an Azerbaijani consulate in Tabriz. Both countries distrust each other, yet the opportunities for trade and economic cooperation are enormous.

While in Baku, Khatami supported the idea of a North-South transport corridor, stretching from Russia all the way to Iran. Azerbaijan’s government also offered various business plans for the consideration of Iranian businessmen. However, what interested the Iranian leadership most is whether Azerbaijan will refrain from hosting the American bases or not.

Many analysts believe that the visit of the U.S. Defense Secretary Donald Rumsfeld to Baku two weeks ago was related exactly to the issue of U.S. military bases in Azerbaijan. On October 16th, President Bush announced that the U.S. government planned a massive relocation of its military bases overseas, including the re-stationing of the bases from Germany and South Korea to the Eastern Europe and North Africa. This is done in an effort to combat new threats of international terrorism and religious fundamentalism, coming from the Middle East. Azerbaijan, with its geo-strategic location at the crossroads of the Europe, Central Asia and Middle East, could serve as a perfect location for these goals. In addition to that, the increasing tensions in the U.S.-Iranian relations and the growing frustration of the US Administration with Iran’s nuclear program make the need for U.S. bases in Azerbaijan even more urgent.

Although local and international media have been speculating about a possible informal agreement reached by the governments of the U.S. and Azerbaijan on stationing of U.S. troops in the country, government officials on both sides refused to give direct answers. “If someone believes that the military bases are born overnight, they are naïve,” said the foreign minister of Azerbaijan Elmar Mammadyarov, when asked by a Russian journalist about the fate of the bases.

But General Charles Wald, deputy commander of the US European Command Headquarters told the Defense News that Azerbaijan, along with Uganda and Sao Tome, could potentially host U.S. troops, AzerNews reported on August 20. He also added that the American troops would help to guard the Baku-Tbilisi-Ceyhan main oil-exporting pipeline. Azerbaijani leadership faces a difficult choice. Military cooperation with the U.S. can only bring benefits to the gradually strengthening army of Azerbaijan, yet one needs to make sure that the potential anger by Russia and Iran and the threats of Islamic terrorists do not outweigh the benefits of this cooperation.