Friday, June 7, 2013

Eye on Iran: Useless Rial Is U.S. Goal in New Iran Sanctions, Treasury Says











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Bloomberg: "The U.S. wants to make Iran's currency useless in global commerce through an executive order that gives financial institutions a July 1 deadline to stop dealing in rials or face sanctions, Treasury official David Cohen said. President Barack Obama issued the order June 3, and 'the purpose of the one-month phase-in period is to give financial institutions currently holding rials the opportunity to dump them,' said Cohen, the Treasury Department's undersecretary for terrorism and financial intelligence, in an interview today in Washington. 'The idea is to cause depreciation of the rial and make it unusable in international commerce,' he said. ;On July 1 we will have the ability to impose sanctions on any foreign bank that exchanges rial to any other currency or that holds rial-denominated accounts.' The move is intended to toughen sanctions that so far failed to press the Islamic republic to halt its nuclear program. According to the Treasury, the rial has lost more than two-thirds of its value in the past two years, trading at 36,000 per U.S. dollar as of April 30, compared with 16,000 at the start of 2012. That's deprived Iran, the source of the world's No. 4 proven oil reserves, of a large portion of energy revenue." http://t.uani.com/15SdSyH

NYT: "Americans are increasingly skeptical about whether the United States should thrust itself into conflicts overseas, according to the latest New York Times/CBS News Poll, but that reluctance does not extend to preventing Iran from obtaining a nuclear weapon. After 12 years of war and amid signs of a sustainable economic recovery, nearly six in 10 people said the United States should not take a leading role among all other countries in trying to solve conflicts, the poll found, while only about a third said it should remain at the forefront. On Iran, however, the same proportion of people - 58 percent - favored the United States taking military action to stop Iran from manufacturing a bomb, an action that President Obama has repeatedly warned the Iranian government is a 'red line' for the United States." http://t.uani.com/17tPnuS

YnetNews: "The Pentagon has recently completed a series of field exercises on US soil as part of which a replica of an underground nuclear facility was destroyed, Yedioth Ahronoth reported Friday. The tests were declared a resounding success having exceeded all expectations. The results of the experiment were relayed to friendly nations with the aim of reassuring them as to the US's ability to destroy Iranian nuclear facilities in a single strike. It was also meant to convey that the US is serious in its intentions to attack Iran should circumstances allow it. The experiment included the firing of several bunker buster bombs first introduced by the US Defense Department in July 2012. The GBU-57 B bomb is mounted on a B-2 bomber and as part of the experiment penetrated the underground facility's concrete ceilings." http://t.uani.com/19OUIw7
Election Repression Toolkit    
Sanctions

Reuters: "Essar Oil more than halved its oil imports from Iran in April, the first month of the contract year, from a year ago, data from trade sources showed, helping New Delhi win the latest renewal of a waiver from U.S. sanctions on Tehran over its nuclear plans. Essar, India's second-biggest private refiner after Reliance Industries, shipped in 55,600 barrels per day (bpd) from Iran in April compared with 117,600 bpd a year ago, tanker arrival data made available to Reuters showed. However, the imports have jumped nearly 70 percent compared with March, the last month of the contract year, when the private refiner was trying to meet a planned 15 percent cut in its annual imports from Tehran." http://t.uani.com/15SmBRr

June 14 Elections

AP: "At the height of Iran's internal political clashes in late 2011, Supreme Leader Ayatollah Ali Khamenei became so exasperated that he warned the Islamic Republic could someday drop the office of an elected president. The threat was quickly dismissed as a show of force. But it remains an instructive moment to help explain next week's election to pick the successor to Khamenei's ally-turned-outcast Mahmoud Ahmadinejad. Khamenei, the pinnacle of Iran's Islamic power structure, has come to both fear and debase the country's highest elected office. The worries were evident when Khamenei's election overseers blocked from the ballot former President Akbar Hashemi Rafsanjani and Ahmadinejad's protege Esfandiar Rahim Mashaei." http://t.uani.com/11oQyEz

BBC: "'I don't know who I will vote for but I cannot sit idly by,' says Arastoo, a 37-year-old shopkeeper in the ancient bazaar in Kashan, some 225km (140 miles) south of Iran's capital, Tehran. Ahead of the presidential election on 14 June, people here are closely following the campaigns of the eight candidates. 'I am watching them all to see who presents a better economic plan, not better economic slogans,' says Arastoo. 'I am fed up with politicians' empty promises.' A small crowd gathers around us, listening to our conversation. Some think I am a representative for one of the candidates. 'We cannot make ends meet,' a middle-aged man chips in." http://t.uani.com/11JxhfX

AFP: "Press cartoonists say they are dodging 'moving red lines' in the run-up to a June 14 presidential election in Iran, a country where a satirical image can get a newspaper banned or an editor jailed. There have always been no-go areas, such as caricaturing the Islamic Republic's supreme leader, Ayatollah Ali Khamenei, or the military, but there has still been a certain freedom of tone during the campaign. Two leading cartoonists, working at reformist newspapers, told AFP their job remains fraught with difficulty as the restrictions have not been clearly defined. Several others from across the political spectrum declined to be interviewed by AFP about their election coverage. Jamal Rahmati, 40, artistic director of reformist newspaper Etemad, told AFP that, "in general, before the elections we get relative freedom, to a surprising degree. We can touch on every topic except clerics. 'Nowadays, there may be a problem with any topic because the boundaries are not clearly defined,' he added." http://t.uani.com/18b2e6g

FT: "According to some opinion polls in pro-fundamentalist media, the gap between Mr Qalibaf and his rivals is growing and could push him into an expected second round of the elections. His main rivals include not only Mr Jalili but also Ali-Akbar Velayati, a former foreign minister and adviser to the supreme leader. Those who vote in large cities are likely to favour Mr Qalibaf over the other two. But senior western diplomats in Tehran say Iran's supreme leader may be weary of Mr Qalibaf's political ambitions, particularly after his experience with Mr Ahmadi-Nejad, who tried to build an independent power base through the presidency and went as far as to defy the leader." http://t.uani.com/16PA1RZ

Opinion & Analysis

Dieter Bednarz in Der Spiegel: "On June 14, the leadership in Tehran will deceive the Iranian people. It won't be the regime's first lie, but it is characteristic of the most recent history of the Islamic Republic. On Friday of next week, 55 million Iranian eligible voters will elect the future president from a selection of more than half a dozen candidates. The propaganda machine of Supreme Leader Ayatollah Ali Khamenei, 74, is leading them to believe that they can indeed shape their country's future. If they weren't as afraid of the regime, many Iranians would not only laugh out loud at his audacity, but would also go to the barricades against this phony democracy. But in the last four years, Iran has become a republic of fear. The prisons are filled with countless activists and dissenters, and some of them may be there because they laughed too loudly at Khamenei at some point. Sometimes it doesn't take much to be arrested, interrogated and locked away. But the fear is mutual. While the people tremble at the thought of being apprehended by the regime's henchmen, the leadership is also nervous about new demands for more freedom and democracy. In the 2009 election, Khamenei made the mistake, disastrous from his standpoint, of allowing candidates to run who aroused hopes of liberalization. After three decades of being ruled by the turban-wearing ayatollahs, merely the prospect of a small measure of freedom was enough to drive millions to the polls and then into the streets, when they believed that their "green movement" had been cheated of its rightful victory. This time Khamenei has deliberately obstructed a large number of potential candidates who have shown only the slightest potential of wanting to question the pure doctrine of the Islamic Republic that the revolutionary leader fiercely defends. The ayatollah is so fearful that he didn't even permit the candidacy of former President Ali Akbar Hashemi Rafsanjani. Despite being a staunch supporter of the system, Rafsanjani did cautiously side with the opposition four years ago and could very well have developed into the leader of a protest movement. Instead, the political stage is now filled with a group of especially lackluster apparatchiks. The favorites include conservatives from the ayatollah's machinery of power: his foreign policy advisor Ali Akbar Velayati, 67, and Saeed Jalili, 47, Iran's chief negotiator in the nuclear conflict, who served as Khamenei's chief of staff for four years. Could the ayatollah have picked more loyal candidates?" http://t.uani.com/12wbHmG

Michael Makovsky & Blaise Misztal in The Weekly Standard: "Six months after it was first hinted at, and a month after widespread reports surfaced, the United Nations, Britain, and France have all just confirmed the use of chemical weapons in Syria. Yet, there has been no U.S. response to Syria's increasingly clear violation of President Obama's publicly stated red line. This lack of action raises serious questions about the resoluteness of U.S. policy when it comes to another potential 'game-changer' in the region: Iran developing a nuclear weapon. Rather than deterring Syria or Iran from using or pursuing illicit weapons, the administration's red lines appear to be eroding U.S. credibility and national security.  The lesson learned from Syria is that preventing a nuclear Iran will require an actionable and verifiable red line. This should include a credible mechanism for assessing Iran's progress toward the red line and warning of its crossing. To be effective, red lines must be possessed of three virtues. First, a red line must be actionable. In Syria, the United States drew the red line at the very action it hoped to prevent-the use of chemical weapons-leaving no time to act. A red line ought not be confused with the undesirable event it seeks to stop. Instead it is a moat around that event, designed to trigger action before it occurs. Thus, to be effective the red line must be set sufficiently ahead of the event it seeks to prevent to allow time for detection, mobilization, and reaction. Second, any red line ought to be verifiable by a realistic and pre-determined evidentiary standard. To be able to react if a red line is crossed, the United States must be able to detect and verify that transgression, having established beforehand what kind and quality of evidence suffices. In the case of Syria, the post facto decision to require United Nations confirmation of the use of chemical weapons has rendered the red line effectively unverifiable. Third, to be actionable, the verification of the red line must be credible. Policymakers and the public alike must trust the evidence of any transgression to support a response, especially a military one. But following the Iraq war's intelligence failures, U.S. intelligence agencies will be reluctant to declare, and Americans disinclined to trust, any 'smoking gun.' Unfortunately, the U.S. line for Iran-'we're not going to accept Iran having a nuclear weapon'-does not meet these three standards; it is not actionable, verifiable, or credible. Merely possessing the components of a nuclear device-a delivery mechanism, the explosive device, and fissile material-would not trigger this red line. Only the assembly of these components could. That can be done quickly in a small facility. Thus, with the red line drawn at the possession of nuclear weapons, the United States is committed to detecting and acting on Iran's decision to screw together a bomb. It would be next-to-impossible to verify such a decision, and any source that could detect it would necessarily be covert, and thus, not widely credible. Even if the information were verified and credible, it is unlikely there would be enough time available to take action. To reestablish the credibility and efficacy of his Iranian red line against Iran, President Obama should reformulate it so that it is actionable, verifiable, and credible." http://t.uani.com/19OXWQi

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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