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Reuters:
"Iran's crude oil exports increased in May after a decline in April,
according to sources who track tanker movements, moving above the level
allowed by November's interim deal on curbing Tehran's nuclear programme.
The increase, which appears to be led by higher sales to China in
particular, could revive concerns in Washington that a softening of
sanctions has given Tehran's economy a bigger boost than planned. Iran's
exports have averaged 1.38 million barrels per day (bpd) in May, one of
the sources said. That represents an increase from 1.1 million bpd in
April, as estimated by the Paris-based International Energy Agency.
'Overall exports have increased in May,' the source said. 'We have seen
more vessels paying visits to Turkey. China has increased imports this
month.' A second source, who also tracks Iranian exports, also noted that
loading data pointed to a rise in Iranian shipments in May, including
robust shipments to China. 'Exports are up, and China does not seem to be
listening to the sanctions,' the source said. China's crude imports from
Iran more than doubled in April against the same month last year to a
record of nearly 800,000 bpd, Chinese customs data showed last
week." http://t.uani.com/1lXrRbY
Reuters:
"In an unprecedented, three-year cyber espionage campaign, Iranian
hackers created false social networking accounts and a bogus news website
to spy on military and political leaders in the United States, Israel and
other countries, a cyber intelligence firm said on Thursday. ISight
Partners, which uncovered the operation, said the targets include a
four-star U.S. Navy admiral, U.S. lawmakers and ambassadors, and
personnel from Afghanistan, Britain, Iraq, Israel, Saudi Arabia and
Syria. The firm declined to identify victims and said it could not
say what data had been stolen by the hackers, who were seeking
credentials to access government and corporate networks, as well as
intelligence on weapons systems and diplomatic negotiations. 'If it's
been going on for so long, clearly they have had success,' iSight
Executive Vice President Tiffany Jones told Reuters. The privately held
company is based in Dallas, Texas and provides intelligence on cyber
threats. ISight dubbed the operation 'Newscaster' because it said the
Iranian hackers created six 'personas' who appeared to work for a fake
news site, NewsOnAir.org, which used content from the Associated Press,
BBC, Reuters and other media outlets. The hackers created another eight
personas who purported to work for defense contractors and other organizations,
iSight said. The hackers set up false accounts on Facebook and other
social networks for these 14 personas, populated profiles with fictitious
personal content, and then tried to befriend targets, according to
iSight." http://t.uani.com/SXXHhP
ITAR-TASS:
"Iran and Russia have agreed to continue nuclear cooperation, the
Atomic Energy Organization of Iran (AEOI) says. The AEOI spokesperson
Behrouz Kamalvandi made a statement to this effect on Thursday. 'Iran and
Russia have decided to build two more nuclear power plants in Bushehr,'
he said. The capacity of each facility will reach 1,000 MW, Kamalvandi
added. According to Iranian officials, the construction of two units may
start this year. Russia and Iran reached a preliminary agreement on the
project on March 12." http://t.uani.com/RKp8dG
Nuclear Program & Negotiations
Reuters: "Iran is planning to start up a plant in June that will
convert low-enriched uranium gas into an oxide form less suitable for
making nuclear bombs, as required by a landmark deal with world powers,
diplomats said. Under last year's interim accord with six major powers to
help ease tension over Iran's nuclear program, it needs to take action by
late July to limit its stockpile of uranium gas refined to a fissile
concentration of up to 5 percent... In its report, the International
Atomic Energy Agency (IAEA) said the commissioning of the conversion
plant near the central city of Isfahan - final tests that were originally
due last year - had now begun. Asked at a technical briefing for
diplomats earlier this week when it was expected to begin operating, a
senior IAEA official said the launch was planned for the second half of
June, according to people who attended the closed-door meeting. 'From
what I hear that still allows for all the (conversion) work to be done by
mid-July,' one Western envoy said. The IAEA report said Iran had
transferred 4.3 tonnes of low-grade uranium gas to the Isfahan site from
its Natanz enrichment plant, in a possible sign that it was preparing to
start conversion into oxide powder in the near future. Because of the
conversion facility's delay, the low-grade uranium stockpile has grown to
nearly 8.5 tonnes in May from 7.6 tonnes in February, according to the
IAEA report." http://t.uani.com/1izemOw
Sanctions
Impact & Enforcement
WSJ: "BNP Paribas SA shares opened sharply lower Friday, as
investors reacted negatively to the prospect of the bank facing more than
$10 billion in fines to settle allegations it skirted U.S. sanctions...
The push to secure a high-dollar penalty, along with a guilty plea from
BNP, stems in part from what prosecutors viewed as the bank's longtime
flouting of U.S. economic sanctions against Iran, Sudan and other
countries, the people said." http://t.uani.com/RKjxUP
Syria Conflict
AFP: "Iran said Friday that next week's presidential election in
Syria, branded a farce by Western governments, will boost the legitimacy
of its ally Bashar al-Assad. 'God willing, the elections in Syria will be
carried out without a hitch,' said Ali Akbar Velayati, the senior foreign
policy adviser to Iran's supreme leader, Ayatollah Ali Khamenei. 'This
election will strengthen the legitimacy of the Bashar government... as
his people have realised he has prevented Syria from disintegrating or
falling to occupation,' Velayati told the official IRNA news agency. Iran
has been a staunch ally of the Syrian leader throughout the uprising
against his rule that erupted in March 2011." http://t.uani.com/TZUhvN
Human Rights
NYT: "Sassan Soleimani, the director of 'Happy in Tehran,' a viral
YouTube tribute to Pharrell Williams that offended Iran's conservative
judiciary, was released on bail Thursday, according to the International
Campaign for Human Rights in Iran, a New York-based advocacy group.
Evidence of the director's freedom, after nine days in custody, came in
the form of a self-portrait he sent to Kambiz Hosseini, a popular
expatriate satirist whose Jon Stewart-like riffs on current events reach
Iranians via the Internet or on satellite channels financed by the United
States government." http://t.uani.com/1myQpJT
Domestic
Politics
Al-Monitor: "A member of the Iranian Parliament's special
investigate committee has warned against public disclosure of the ongoing
investigation into corruption under former President Mahmoud
Ahmadinejad's administration, saying that making the details of the
violations public could harm the country and public trust, which he
described as 'under restoration.' The 'corruption is so big that we are
scared it could cause social shock,' committee member Gholamali
Jafarzadeh told Payam-e No May 3. 'The dimensions of corruption in the
cases at the investigation committee are so high that we are scared that
if they become public it would cause trauma to the system,' he continued.
The popular website Tabnak picked up the interview May 27, and the story
went viral on Twitter and Facebook. One of the more distressing sources
of corruption, according to Jaffarzadeh, involved the Foundation for
Martyrs. He asked, 'How could some within the administration take
advantage, with complete awareness, of the families of martyrs and
veterans? Now when the wages of a class who, in the words of Imam [former
Supreme Leader Ayatollah Ruhollah Khomeini], are the most supreme in society,
are robbed, see for yourself what was going on in other fields.'" http://t.uani.com/1tWzpBS
Foreign Affairs
Reuters: "Sudan turned down an Iranian offer to set up air defences
on its Red Sea coast after a 2012 air strike Khartoum blamed on Israel,
fearing they would upset Iran's regional rival Saudi Arabia, Sudan's
foreign minister was quoted as saying on Thursday. In an interview with
the Saudi-owned al-Hayat newspaper that seemed aimed at improving frosty
ties with Riyadh, Ali Karti played down Khartoum's links to Iran and to
the Muslim Brotherhood, which is outlawed in Saudi Arabia. 'Iran, in
truth, offered to set up air defence platforms on the Western coast of
the Red Sea after the latest Israel raid, but Sudan rejected that because
this would require Iranian arms experts (on the ground),' Karti said
during a recent visit to Saudi Arabia, al Hayat reported. 'We rejected
that because it is an Iranian presence against Saudi Arabia, something
which we do not accept,' he added." http://t.uani.com/1lXqTMM
Opinion &
Analysis
Gabriel Scheinmann in TNI: "Fifty years ago, the CIA produced a
Special National Intelligence Estimate (SNIE) on China's nuclear weapons
program for President Lyndon Johnson. Overhead photography taken three
weeks earlier revealed that a Chinese installation in Lop Nor was
definitively a nuclear test site and would come online in two months.
However, the CIA estimated, China would not have the necessary amount of
fissionable material, which the United States assumed would come from a
small plutonium reactor at Baotou, until mid-1965. Seeking to make sense
of the conflicting timelines, the CIA began to speculate: perhaps the
Soviets had transferred additional fissionable material, perhaps the CIA
was unaware of other enrichment sites, or, perhaps, as is often the case
in large undertakings, progress among the different elements of China's
nuclear program had merely become uneven. In conclusion, the SNIE reads,
the available facts 'do not permit a very confident estimate of the chances
of a Chinese Communist nuclear detonation in the next few months. Clearly
the possibility of such a detonation before the end of the year cannot be
ruled out-the test may occur during this period. On balance, however, we
believe that it will not occur until sometime after the end of 1964.'
Seven weeks later, China tested its first nuclear bomb on October 16,
1964, a highly enriched uranium implosion device. Fifty year later, it is
this assessment that could land on President Obama's desk with regards to
Iran's nuclear program and it is this assessment that strikes fear in
America's Middle Eastern allies. Israelis and Arabs alike worry that by
the time America is certain that Iran is within reach of possessing a
nuclear weapon, Washington's ability or willingness to stop it will be
out of reach. Despite clear evidence of a Chinese test site in its final
stages, the CIA did not believe Beijing had enough weapons-grade
plutonium and, therefore, still assessed that any test was close to a
year away. The SNIE, in the words of former Secretary of Defense Donald
Rumsfeld, had too many 'known unknowns' in its nuclear picture and the
Johnson Administration did what it thought was reasonable and
responsible: nothing. American allies fear the Obama Administration will
similarly let Iran go nuclear due to a lack of certainty. Not once has
the American intelligence community accurately predicted when hostile
states have gone nuclear and not once has an American president used
military force to stop them from doing so... Intelligence gathering about
purposefully secretive nuclear programs of American enemies is a
Sisyphean endeavor. In fact, the major Iranian nuclear facilities of
Natanz, Arak, and Fordow were discovered only belatedly by Western
intelligence. Blaming the intelligence community and its faulty
predictions for instances of nuclear detonation is like blaming the
bookie for the race results. While the CIA and others can seek to bound
the 'known unknowns', it is the president's responsibility to decide
whether and how to act." http://t.uani.com/1izkMx2
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