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AP: "Iran will soon install more advanced centrifuges at its new uranium enrichment site, the country's nuclear chief said Wednesday, underscoring Tehran's continued defiance in the face of international sanctions imposed over its controversial nuclear program. Vice President Fereidoun Abbasi also announced that Iran plans to triple its output of the higher enriched uranium in 2011 and move the entire program to the new, secretly-built facility. The uranium enrichment lies at the heart of Iran's dispute with the West, which is concerned that the activity masks efforts to make nuclear weapons - a charge Tehran denies, insisting the work is peaceful and only meant to generate electricity. Abbasi, who also heads Iran's nuclear agency, said that Tehran would set up the more efficient centrifuges, suitable for higher-grade uranium enrichment, at the Fordo site near the holy city of Qom in central Iran. Built next to a military complex to protect it in case of an attack, Fordo was long kept secret and was only acknowledged by Iran after it was identified by Western intelligence agencies in September 2009." http://t.uani.com/kpBSYt
Reuters: "No offer from world powers can persuade Iran to stop enriching uranium, President Mahmoud Ahmadinejad said on Tuesday, dismissing the key demand of countries that fear Tehran is developing nuclear weapons. A day after the U.N. atomic watchdog said it had new evidence of possible military dimensions to Iran's nuclear work, Ahmadinejad accused it of doing Washington's bidding and said Tehran's atomic advances had 'no brake and no reverse gear.' The head of the International Atomic Energy Agency, Yukiya Amano, said on Monday the IAEA had received 'further information ... that seems to point to the existence of possible military dimensions to Iran's nuclear program.' That contradicts Iran's insistence that its nuclear work is for entirely peaceful purposes, and Ahmadinejad made clear his displeasure with the Japanese IAEA chief who has taken a blunter approach than his Egyptian predecessor Mohamed ElBaradei. 'With America's orders (the IAEA) has written some things in a report that are against the law and against the agency's regulations,' Ahmadinejad told reporters. 'These have no legal value and aside from harming the agency's reputation it will have no other effect.'" http://t.uani.com/kS4NYa
WashPost: "Iran is moving production of higher enriched uranium to a mountain bunker where it aims to triple output by using more advanced centrifuges, state television reported Wednesday. Iran says the announcement is a response to a letter by Yukiya Amano, the director-general of the International Atomic Energy Agency on Friday, which reiterated 'concerns about the possible military dimensions' of the Islamic Republic's nuclear energy program. 'Our answer is increased work in the sphere of nuclear technology and know-how,' Iran's nuclear chief Fereydoon Abbasi-Davani told reporters after a cabinet meeting. The moving of Iran's most sensitive nuclear equipment deep inside a mountain had been predicted by Iranian nuclear officials in the past. But the sharp increase in production of uranium enriched to nearly 20 percent is new and will further heighten tensions between Iran and world powers distrustful of the nature of the Islamic Republic's nuclear program." http://t.uani.com/lposec
Nuclear Program & Sanctions
Reuters: "President Barack Obama said on Tuesday the United States and its allies may slap more sanctions on Iran over its nuclear program, after Tehran vowed that no offer could halt its enrichment of uranium. Obama, at a news conference with German Chancellor Angela Merkel, said they agreed Iran's nuclear program and its refusal to engage in any meaningful talks remain a serious concern. President Mahmoud Ahmadinejad, dismissing the key demand of countries that fear Tehran is developing atomic weapons, said on Tuesday there was 'no brake and no reverse gear' to Iran's nuclear advances. The head of the International Atomic Energy Agency, Yukiya Amono, said on Monday the U.N. atomic watchdog had received further information that seemed to point to possible 'military dimensions' to Iran's nuclear program. 'We agreed that if the International Atomic Energy Agency this week determines again that Iran is continuing to ignore its international obligations, then we will have no choice but to consider additional steps, including potentially additional sanctions, to intensify the pressure on the Iranian regime,' Obama said." http://t.uani.com/jm9VPR
AFP: "Iranian President Mahmoud Ahmadinejad on Tuesday accused Washington, Tehran's arch-foe, of planning to sabotage Pakistan's nuclear facilities, during a media conference in Tehran. 'We have precise information that America wants to sabotage the Pakistani nuclear facilities in order to control Pakistan and to weaken the government and people of Pakistan,' the hardline president said. The United States would then use the UN Security Council 'and some other international bodies as levers to prepare the ground for a massive presence (in Pakistan) and weaken the national sovereignty of Pakistan,' he added, without elaborating. Pakistan is the only Islamic nation with nuclear weapons, and has close relations with Iran." http://t.uani.com/mIEP1Z
Reuters: "Japan is unlikely to allow India to use Japanese banks to provide a clearing house mechanism for India to pay for Iranian oil imports, Japan's deputy foreign minister told Reuters on Tuesday. Iran has offered India various options to end an impasse on payments, including a choice of currencies and paying on a cargo-by-cargo basis, after India's central bank scrapped a long-standing payment system in December under pressure from the United States. 'I do not think so,' Shinichi Nishimiya, deputy foreign minister of Japan said when asked whether Japan would allow its banks to process the payments. He said Japan would follow global sanctions against Iran, which stands accused by western powers of pursuing a nuclear weapons programme. Iran denies the charge." http://t.uani.com/kFHfIl
WashPost: "A new report from the RAND Corporation argues that despite the improbability of convincing Iran not to develop nuclear weapons, there are still opportunities for influence. The report, 'Iran's Nuclear Future: Critical U.S. Policy Choices,' outlines the complexities for future U.S. policy to deter Iran's nuclear program and details three options: Apply broad economic sanctions on the country, or target specific banks and businesses related to the Revolutionary Guards. Apply military pressure by training for conventional attacks on Iran's nuclear facilities and expanding regional missile defense systems. Offer incentives not to build nuclear weapons by easing economic sanctions and lowering the perception of the U.S. military threat in Iran." http://t.uani.com/j9lUcB
AP: "OPEC says it has decided to maintain output levels, with the option of meeting within the next three months for a possible production hike. The decision is unexpected and reflects unusual tensions in an organization that usually works by consensus. Saudi Arabia and other influential Gulf nations had pushed to increase production ceilings to calm markets and ease concerns that crude was overpriced for consumer nations struggling with their economies. Those opposed were led by Iran, the second-strongest producer within the Organization of the Petroleum Exporting Countries." http://t.uani.com/jK4aZH
Domestic Politics
Guardian: "Iran's president Mahmoud Ahmadinejad has admitted for the first time that a rift has developed between him and some of the most senior figures of the Islamic regime. In a press conference in Tehran on Tuesday, the first since news emerged of his power struggle with the supreme leader Ayatollah Ali Khamenei, the president said: 'It is very clear now that we are 180 degrees away from them - we are actually on opposite sides.' He pointed the finger at ruling conservatives, who have accused the government of 'revolutionary deviancy', while playing down suggestions that he has been at odds with Ali Khamenei. In recent months, conservatives close to the supreme leader have launched an extensive campaign against the president and his allies, who they believe are undermining the supremacy of the leader. Senior figures in the powerful revolutionary guards and some of the most prominent clerics in the country who have supported Ahmadinejad in the past are now distancing themselves from him." http://t.uani.com/iFCdmY
Bloomberg: "Iran's inflation accelerated to 14.2 percent in the 12 months through the Iranian month of Ordibehesht, which ended May 21st, from 13.2 percent in the previous month, according to data published on the central bank's website." http://t.uani.com/iRKtz3
Foreign Affairs
AP: "FIFA says its match officials were right to stop Iran's women's team from playing a 2012 Olympic qualifier wearing Islamic head scarves. Iranian officials were 'informed thoroughly' before Friday's match against Jordan that the hijab scarf covering a women's neck is banned for safety reasons, FIFA says. Iran's soccer association has said it will complain about the FIFA delegate from Bahrain who ordered the match abandoned. Jordanian officials accepted the rule and 'decided not to select a number of players,' FIFA says. FIFA banned the hijab in 2007 and has extended the safety rule to include neck warmers." http://t.uani.com/lWsUYk
Opinion & Analysis
David Albright & Paul Brannan in ISIS: "The latest safeguards report from the International Atomic Energy Agency (IAEA) highlights again the issue of potential nuclear weapons work in Iran. In addition to providing more detail on the type of weapons work contained in the information that the IAEA has received, it also repeats a statement from a September 2010 safeguards report on Iran that 'there are indications that certain of these activities may have continued beyond 2004.' This conclusion is supported by the intelligence assessments of Britain, France, and Germany that Iran is working on improving its ability to make nuclear weapons components. Reports of the conclusions of the recent classified U.S. National Intelligence Estimate (NIE) vary, but it too appears to increasingly accept that Iran is developing various nuclear capabilities that better position it to produce such weapons. The assessment of the 2007 NIE that Iran had not resumed working on nuclear weapons appears increasingly outdated and potentially wrong. Importantly, European and U.S. intelligence agencies reportedly continue to agree that there is no evidence that the Iranian regime has made a decision to make a nuclear weapon. However, Iran appears embarked on improving its ability to make nuclear weapons, if it chooses to do so... The United States and its allies are right to work for more effective sanctions to slow Iran's nuclear progress. At the same time, they should continue to insist that Iran halt its uranium enrichment program and cooperate with the IAEA until the international community is confident that Iran is not pursuing a nuclear weapon. There continue to be calls in the United States and elsewhere that major concessions be made in negotiations with Iran that would allow for some type of limited enrichment under a strengthened safeguards agreement or supervision of Iranian enrichment by an international consortia. Acquiescing to Iran's demand for enrichment, whatever the level, absent confidence that it is not pursuing a nuclear weapon represents a fruitless policy that has generated failure in other important cases, notably Pakistan in the 1980s and Israel in the 1960s when they both achieved their first nuclear explosive devices or weapons. In too many proliferation cases, demands for short-term gains in diplomacy create a far more bleak long-term situation. Without a major change in behavior, accepting Iranian enrichment merely serves as a self-defeating 'red-line' that Iran could step over whenever it chose. Iran could take seemingly minor steps to cross that line, such as insisting on a growing number of operational centrifuges, a path it has often outlined in formal negotiations with the European Union, or seeking increased levels of enrichment. Iran could easily alter its stated interpretation of safeguards that it would agree to in a deal on enrichment. In such a situation, the international community may not hold Iran to account for its crossing red lines. After reaching a hard-won agreement, the international community may be hesitant to scuttle the entire agreement over infractions, and the controversy over Iran's transgressions could soon pass. The cases of South Africa, Libya, and Brazil, all of which abandoned nuclear weapons programs, show that international resolve backed by a combination of pressure and incentives can lead to the abandonment of nuclear weapons programs. These successful cases show that military options or major concessions are not inevitable if sustained strategic patience and foresight are instead exercised." http://t.uani.com/lp8dXQ
Golnaz Esfandiari & Kourosh Rahimkhani in The Atlantic: "Speaking at the mausoleum of the founder of the Islamic Republic Ayatollah Khomeini last week, Iranian President Mahmoud Ahmadinejad was interrupted several times by chants against his closest aide and the man he'd like to succeed him, Esfandiar Rahim Mashaei. It was déjà vu for the Iranian president, who had in the past waged similar attacks against his critics, haranguing them at public events. But now he, after a few months of bruising political battles that have damaged what remained of his credibility and popularity within Iran, had become the victim. The incident gave the Iranian public yet another glimpse into a power struggle between Ahmadinejad and Supreme Leader Ayatollah Khamenei that has been unfolding over the past several months. As a result of that battle, Ahmadinejad has found himself in a position familiar in Iran to other officials who have dared stand up against Khamenei. He has come under attack from all sides, and his entourage -- several of whom have been detained by police -- is facing a long list of severe accusations, ranging from deviating from the principles of the Islamic Republic and promoting 'Islam minus clergy' to sorcery and pushing for ties with Iran's enemies, including the United States. Ahmadinejad has angered Khamenei with his repeated attempts to gain more power within the Iranian political system and to act unilaterally. In response, Khamenei has launched a campaign to weaken the combative president. Last Friday's incident at Khomeini's mausoleum was just another warning to Ahmadinejad to surrender to Khamenei's will or face more attacks. For now, Ahmadinejad doesn't seem intimidated or ready to compromise with Khamenei, who as Supreme Leader has the last say in all state matters and is politically above the president, not his rival." http://t.uani.com/iIhlnG
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