Thursday, March 10, 2016

Eye on Iran: Khamenei Says Iranian Economy Yet to Gain from Foreign Business Visits








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Reuters: "Supreme Leader Ayatollah Ali Khamenei said on Thursday Iran's economy had not yet benefited from the Western delegations visiting Iran as they had failed to deliver on their promises. 'We haven't seen anything tangible from these delegations visiting Iran ... We are expecting to see some real improvements. Promises on paper have no value,' Khamenei said in a meeting with members of the Assembly of Experts, according to state television. Hardline allies of Khamenei, wary of losing their grip in power, have criticized multi-billion-euro deals with European multinationals since a nuclear deal was reached with six major powers in 2015... Khamenei also praised the high turnout of 62 percent in two crucial elections of parliament and Assembly of experts last month, but warned about efforts by Iran's 'enemies' to infiltrate. 'We have been harmed by the West and we should not forget it. I am not suggesting cutting ties with them but we should be careful,' he said... Rouhani and his allies have signaled the government's willingness to improve ties with 'the Great Satan' and to discuss the regional crisis with the United States. But Khamenei repeated his stance, saying: 'We must have relations with the world but not with America and the Zionist regime (Israel).'" http://t.uani.com/1QGKMdk

Al-Monitor:
"[Amir Ali Haji-Zadeh, commander of the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force] called the press conference to discuss the IRGC's highly publicized testing of ballistic missiles that day. According to Haji-Zadeh, the missiles were launched from the Alborz Mountains, in the north, and traveled approximately 1,400 kilometers (870 miles) to the southeast of the country. Haji-Zadeh, IRGC commander Mohammad Ali Jaffari and deputy IRGC commander Hossein Salami were present at the launches, the second such tests in two days... Based on Haji-Zadeh's comments at the press conference, the IRGC is already expecting a US reaction. 'However much the enemy increases pressure and sanctions, the response of the IRGC will be increased,' he said. 'After the nuclear deal, the enemy has targeted Iran's national security, and the sanctions are meant to weaken Iran.' The launches were Iran's first ballistic missile tests since the Jan. 16 'implementation day' for the nuclear deal. The Fars News Agency wrote that the tests 'were a clear answer' to actions taken to counter Iran's defensive capabilities. One day after implementation day, the United States sanctioned 11 people and companies affiliated with Iran's ballistic missile program. When asked if ballistic missiles were being developed with Israel in mind, Haji-Zadeh said, 'The Zionist regime is at the end of the line, and its life will not be long.' He added, however, 'I believe that to get rid of the Zionist regime, missiles are not necessary, and over time, they will collapse and fall.' The notation 'Israel will be wiped from the pages of time' was written in Hebrew on the missiles. Haji-Zadeh stressed that Iran would not start a war, but that its leaders take its enemies seriously. He said, '[The] evils of the Zionist regime are clear for everyone, [and] the reason for designs of missiles with a 2,000-kilometer range is because of [Israel].' He also asserted, however, 'Our primary enemy is America.'" http://t.uani.com/1R9F9l5

Bloomberg: "Iran was ordered by a U.S. judge to pay more than $10.5 billion in damages to families of people killed in the Sept. 11, 2001, terrorist attacks and to a group of insurers. U.S. District Judge George Daniels in New York issued a default judgment Wednesday against Iran for $7.5 billion to the estates and families of people who died at the World Trade Center and Pentagon. It includes $2 million to each estate for the victims' pain and suffering plus $6.88 million in punitive damages. Daniels also awarded $3 billion to insurers including Chubb Ltd. that paid property damage, business interruption and other claims. Earlier in the case, Daniels found that Iran had failed to defend claims that it aided the Sept. 11 hijackers and was therefore liable for damages tied to the attacks. Daniels's ruling Wednesday adopts damages findings by a U.S. magistrate judge in December. While it is difficult to collect damages from an unwilling foreign nation, the plaintiffs may try to collect part of the judgments using a law that permits parties to tap terrorists' assets frozen by the government. The case is In Re Terrorist Attacks on September 11, 2001, 03-cv-09848, U.S. District Court, Southern District of New York (Manhattan)." http://t.uani.com/1M94UAB

Nuclear Program & Agreement

Al-Monitor: "Since the International Atomic Energy Agency (IAEA) issued its first report on Iranian compliance with the landmark nuclear deal, some US nuclear experts, including a former IAEA deputy director, have chafed at the minimal level of detail provided about Iran's nuclear program. Where in the past IAEA quarterly communications to its Board of Governors often contained a litany of questions about Iran's activities, including statistics on every gram of enriched uranium and centrifuge rotor in Iran's possession, the new report offers much less information and is a largely upbeat assessment of Iran's compliance with the Joint Comprehensive Plan of Action (JCPOA), which went into full implementation on Jan. 16... Olli Heinonen, a former deputy director of the IAEA who has been critical of the agency for closing an investigation into past nuclear weapons work by Iran, criticized the new report for failing to provide figures for the amount of excess enriched uranium Iran sent to Russia. The IAEA report, Heinonen added, also did not give numbers for centrifuge parts in Iran's inventory. 'These components are essential in assessing breakout times, and reinstallation of previously removed advanced centrifuges or installation of new ones can directly affect the one-year breakout time that proponents of the JCPOA maintain it enforces,' Heinonen wrote. 'An accounting of this inventory is also important as a baseline for further monitoring.' David Albright, president of the Institute for Science and International Security, which publicizes the quarterly IAEA reports, said that by 'failing to provide more information about the status of key technical aspects of Iran's nuclear program and the implementation of its JCPOA commitments to date, the IAEA is withholding vital data about the status of Iran's nuclear program. It risks undermining public transparency and confidence in the agreement.'" http://t.uani.com/1Twvjjx

Ballistic Missile Program

Reuters: "A senior Revolutionary Guards commander has said that Iran's ballistic missile program will not stop under any circumstances and that Tehran has missiles ready to be fired, according to Iranian state television. Brigadier General Amir Ali Hajizadeh made his comments after a series of ballistic missile tests conducted by guard units that drew international concern, including a call by U.S. Democratic presidential candidate Hillary Clinton for new sanctions against Iran... 'Iran's missile program will not stop under any circumstances,' Hajizadeh said. 'The IRGC has never accepted the U.N. Security Council resolutions on Iran's missile work. 'We are always ready to defend the country against any aggressor. Iran will not turn into Yemen, Iraq or Syria,' he was quoted as saying by state television... The Guards said the tests were aimed at displaying Iran's 'deterrent power and its ability to confront any threat'. 'Some of the missiles carried 24 warheads and one tonne of TNT,' said Hajizadeh, who heads the Guard's aerospace division. Hajizadeh said Iran had no intention of starting a war, 'but the Zionist regime (Israel) is our enemy and we don't trust American officials.' 'We have underground tunnels around the country and under mountains, where we store our missiles... These tunnels cannot be destroyed even if targeted by atomic bombs,' he said... U.S. Secretary of State John Kerry spoke with Iranian Foreign Minister Mohammad Javad Zarif about the missile tests, a State Department spokesman said. But Iran's Students News Agency ISNA said on Thursday that Zarif and Kerry had not discussed the issue. 'John Kerry has sent emails to Zarif asking for a telephone call to discuss issues, including Iran's missile tests, but it did not happen because Zarif is on an official visit,' ISNA quoted a source as saying." http://t.uani.com/1R9DvzJ

NYT: "'We have huge reserves of various range ballistic missiles that are ready to target enemies and their aims, at any time, from different points of the country,' Brig. Gen. Hossein Salami, the deputy commander of the Revolutionary Guards, told reporters on the sidelines of the missile-firing drills in Kavir, Qum Province, the semiofficial Fars news agency reported... 'Taking into account that Hezbollah has stored more than 100,000 missiles,' General Salami said, 'the Islamic Republic possesses 10 times more missiles of different types, and its power is unlimited.'" http://t.uani.com/1LeupFT

U.S.-Iran Relations

WashPost: "Nine years after former FBI agent Robert Levinson went missing on the Iranian island of Kish, U.S. officials say there is disagreement over his whereabouts. Former and current FBI agents say they think that Levinson, if he is alive, remains in Iran. But others in the U.S. government think he may be elsewhere, after the family was sent a hostage video in late 2010 that officials say came from Pakistan. The family also received from Afghanistan pictures of Levinson in an orange jumpsuit, officials say. The debate over Levinson's location comes nearly two months after an agreement with Iran led to the release of Washington Post reporter Jason Rezaian and four other Americans. Levinson's family hoped that he would be among those freed, but after the deal was announced, the White House said that Levinson may not be in Iran after all... Levinson's wife, Christine, implored Washington and Tehran to dig into her husband's disappearance and to keep pushing for his freedom. 'These past 9 years - 3,288 days - have been harder for our family than anyone could ever imagine,' she said. 'But, as difficult as it has been for us, we know that Bob is living a nightmare that is 100 times worse. We need the United States government and the country of Iran to work together to resolve what happened to Bob and return him safely to his family.'" http://t.uani.com/1LTLdSv

Congressional Action

Al-Monitor: "Congress is ramping up its efforts to slap new sanctions on Iran after the country said it conducted multiple ballistic missile launches in defiance of US and international sanctions... Lawmakers have been moving to reauthorize legislation targeting Iran's energy sector, the Iran Sanctions Act (ISA), which expires at the end of the year. Republicans and hawkish Democrats, however, are already looking past that bill toward legislation aimed at enforcing restrictions on ballistic missiles as well as the sale of conventional arms. 'It may very well be that ISA reauthorization on its own, which I support, may not be enough for many members of the Senate and they'll be looking for other opportunities,' Menendez told Al-Monitor. 'And in my mind, something that could be reasonably negotiated would be preferable than just an amendment process that could open the doors to things that aren't necessarily thoughtful.' The comments are an implicit acknowledgment that lawmakers are having a tough time bridging the gap between opponents and supporters of the deal. Corker and Menendez are trying to thread the needle and come up with the strongest possible language that can survive a potential veto by the administration while avoiding additions from hard-line Republicans that could kill the whole effort. 'If we want to send a clear message that because we struck a nuclear agreement with them doesn't mean that they can promote terrorism, export or proliferate ballistic missile technology, that they can violate human rights, that they can destabilize the region, then there have to be actions that ultimately send them that message, and that's what I'm working on,' Menendez said. 'It will deal with those different categories, and it will deal with them in ways that if Iran continues to violate them, then [we would be] starting off with US consequences and then hopefully, as we have in the past, try to internationalize those consequences.' Cardin said he expects the administration to eventually get on board if lawmakers can produce a bipartisan bill." http://t.uani.com/1P1Pi1R

Sanctions Enforcement

The Hill: "House Foreign Affairs Committee Chairman Ed Royce (R-Calif.) on Wednesday blasted the Obama administration's response to two days of Iranian ballistic missile testing in the face of U.S. sanctions. 'Instead of forcefully condemning Iran's dangerous missile tests, the White House is twisting itself into pretzels to explain how they don't violate the president's deeply flawed nuclear deal,' Royce said in a statement... White House press secretary Josh Earnest said on Tuesday that the White House is still reviewing the launches to assess whether the U.S. should take the matter to the United Nations Security Council (UNSC). 'There's at least one specific United Nations Security Council resolution that could apply here, and the truth is, we're still reviewing the Iranian launch to assess whether it is necessary for this matter to be raised before the United Nations Security Council,' Earnest told reporters. He also noted that the U.S. passed sanctions on Iran in response to similar tests conducted in October and November. Republican and some Democrats in Congress on Tuesday called for stronger measures against Tehran, in light of the sanctions and a UNSC resolution calling upon on Iran to refrain from such tests. Royce slammed the administration for 'tripping over technicalities,' adding that inaction could show Iran it can violate the nuclear deal. 'Iran is making a mockery of President Obama's vow to confront Iran's dangerous and illicit acts,' he said. 'For a second day in a row, the Iranian regime has launched ballistic missiles in violation of U.N. sanctions. These latest missiles were reportedly designed to strike our ally Israel, and stamped with the words 'Israel should be wiped from the pages of history,'' he added. 'Here's the reality: If Iran sees it can violate U.N. missile sanctions with no consequence, it will violate this nuclear deal too,' Royce said. 'President Obama must lead and aggressively enforce all sanctions against Iran's missile programs, support for terrorism, and human rights abuses. No more looking the other way.'"  http://t.uani.com/1Xf05M3

Business Risk

Reuters: "U.S. Democratic presidential front-runner Hillary Clinton on Wednesday called for sanctions against Iran after the Islamic Republic brushed off U.S. concerns and test-fired two ballistic missiles that it said were designed to be able to hit Israel... Clinton, a former secretary of state under President Barack Obama, said she was 'deeply concerned' by the tests, the second round of Iranian missile launches in two days. 'Iran should face sanctions for these activities and the international community must demonstrate that Iran's threats toward Israel will not be tolerated,' said Clinton, who is ahead in the race to be Democratic nominee at the Nov. 8 presidential elections." http://t.uani.com/1LepWmv

Sanctions Relief

Bloomberg: "General Electric Co. is plotting a strategy for its oil and gas business in Iran as the U.S. eases sanctions with the petroleum-rich country. Lorenzo Simonelli, head of the company's crude division, said he visited Iran in recent weeks to 'understand what was taking place in the country.' GE will only proceed if government rules allow the company to do business there, he said. 'Iran is a big market from an oil and gas perspective,' Simonelli said Wednesday in an interview at Bloomberg's New York headquarters. 'We will abide by the sanctions, but it's a market where we used to transact.' Geographic expansion is part of a broad growth strategy for London-based GE Oil & Gas that may include acquisitions and more-advanced product offerings. Building out the division is central to Chief Executive Officer Jeffrey Immelt's transformation of GE into a more streamlined industrial manufacturer." http://t.uani.com/1LTLW6h

FT: "Iran sought to reassure investors of its commitment to unveil new and improved oil contracts, downplaying domestic opposition to the return of international energy companies. Mohammad Nahavandian, President Hassan Rouhani's chief of staff, told the Financial Times that the lifting of sanctions was a 'win-win' situation for Iran and the west and that it wanted 'constructive interaction' with the outside world. 'We have to think about the future, and co-operation between the Iranian economy and the outside world would be beneficial to us all,' he said. Iran's oil ministry cancelled a long-awaited conference to publicise a new contract for international oil companies in London last month after it was attacked by Mr Rouhani's opponents as an attempt by international oil companies to loot Iran's natural resources. Mr Nahavandian said that the Rouhani administration was working with its critics to resolve the issue. 'The government has decided to go ahead with the expansion of the oil industry and foreign investment is required for this. We have revised the framework of the [oil] contracts,' he told the FT. He added: 'It is not finalised yet; it is open for comments. You cannot call it opposition but there are differing opinions and the government would like to incorporate all these views.' Mr Nahavandian also delivered a keynote speech at the FT Iran summit, making it clear that Iran was open for business. 'We are making a positive environment,' he said... But the continued uncertainty leaves the international oil industry unwilling to enter the country. 'Oil companies are negotiating in a vacuum. It's all theoretical at this stage,' said Sue Millar, a sanctions lawyer at Stephenson Harwood. 'They all know what they want but whether Iran can deliver contractually or politically is another matter. There are so many unanswered questions.'" http://t.uani.com/1piktl5

Reuters: "Iran aims to overhaul its banking sector by tackling non-performing loans (NPL) and imposing tougher capital requirements after years of isolation, a senior central bank official said on Wednesday, adding the country was working on a Eurobond issue. Many of Iran's banks are still struggling after piling up bad debt during the more than a decade-long sanctions era. The situation was compounded by several banks having exposure to the country's property market, which turned sour in 2012 leaving problem loans in the system. 'We are committed to tackling the NPL problem, hopefully by improving the economic conditions,' Peyman Ghorbani, economic vice governor with Iran's central bank told Reuters on the sidelines of an FT Iran conference in London. 'But for the remaining part, it is under investigation in the central bank - if it is necessary to establish an asset management company, we are going to do so.' Official data showed the ratio of non-performing loans to total loans was 13.4 percent in the Iranian month ending June 21, 2015. Market estimates point to nearly double that figure with the equivalent of $40 billion at the top end of estimates for non-performing loans. 'What we are trying to is repair the capital adequacy ratio of the Iranian banks. The first step is Basle I and then we will go to Basle II and III,' he said... Ghorbani said Iran's central bank had started to have better cooperation with central banks in Italy and Switzerland." http://t.uani.com/1P1OdHj

Reuters: "Two Chinese firms are pushing for multi-billion dollar deals with Iran to build a high-speed railway and modernize its shipping fleet following the lifting of most sanctions against Tehran, sources with knowledge of the negotiations said. State-run China National Transportation Equipment & Engineering Co Ltd (CTC) is close to finalizing an agreement on the $3 billion rail project to connect Tehran with the northeastern holy city of Mashhad, a Chinese source told Reuters. Dalian Shipbuilding Industry Co, which is also controlled by Beijing, has likewise been in discussions on building container ships and oil tankers for Iran, according to two sources who declined to be identified because the talks are still continuing... For the 930-km (580 mile) rail project, China's Export and Import Bank (EXIM) is expected to fund 85 percent of the cost, with CTC providing engineering, procurement and construction services, said the source... Top Dalian shipyard executives have visited Tehran three times since January, meeting their counterparts at the Islamic Republic of Iran Shipping Lines (IRISL) - Iran's top container and cargo carrier - and the country's oil shipping operator National Iranian Tanker Co (NITC), the sources said... Previously Chinese shipyards, including Dalian, had built large oil tankers for NITC in an order worth $1.2 billion between 2012 and 2013, Reuters has reported." http://t.uani.com/1TOxMXb

AP: "Iran's state TV is reporting that Iran and Britain have signed an agreement to establish a total of 42 weekly passenger flights between the two countries. Thursday's report says the Iranian and the British civil aviation authorities will allow each country to maintain 21 weekly flights to various destinations in the other nation. The TV says there will also be unlimited cargo flights. British Airways plans to resume its scheduled flights to Iran in July. The carrier halted flights to Tehran in 2012 amid rifts between Iran and the West over Tehran's nuclear ambitions. Iran Air, however, continued its three weekly flights to London." http://t.uani.com/1M934ja

Yemen Crisis

Reuters: "A senior Houthi official told Iranian officials on Wednesday to stay out of Yemen's conflict, after an Iranian general said Tehran might send military advisers to help Houthi forces fighting a Gulf Arab coalition. The Houthis usually see Shi'ite Iran as a friendly power in their year-old war against the Saudi-led Arab coalition, which is trying to restore President Abd-Rabbu Mansour Hadi to power. 'Officials in the Islamic Republic of Iran must be silent and leave aside the exploitation of the Yemen file,' the official, Yousef al-Feshi, a member of the Houthis' Revolutionary Committee, said in a posting on Facebook. It was the first public remark from a senior official in the Houthi group, seen to be very close to Houthi leader Abdel-Malek al-Houthi, to be directed at Iranian officials. On Tuesday, Brigadier General Masoud Jazayeri, deputy chief of staff of Iran's armed forces, suggested in an interview with the Tasnim news agency that Iran might support the Houthis in a similar way it has backed Syrian President Bashar al-Assad's forces in Syria. Feshi's posting coincided with a visit by a Houthi delegation to Saudi Arabia, a move that could signal an attempt to end a year of fighting that has killed some 6,000 people." http://t.uani.com/1QORVpH

AP: "A top leader of Yemen's Shiite rebels issued a harsh rebuke of ally Iran on Thursday, calling on Tehran to back away from the crisis in Yemen. Youssef al-Fishi, a top military commander of the rebels known as Houthis, asked Iranian officials to 'remain silent' and 'stop exploiting' the Yemeni civil war for their own interests. The remarks, posted on al-Fishi's Facebook page, underscore how the formerly firm Houthi-Tehran alliance may be faltering after a year-long Saudi-led air campaign targeting the rebels. The violence has left Yemen's infrastructure in ruins, killed more than 6200, and forcibly displaced 2.4 million people. They were made against a backdrop of a slight cooling in the conflict between the Houthis and Iran's regional rival Saudi Arabia, which recently negotiated a prisoner exchange with the rebels. The rebuke came a day after Iranian deputy chief of staff Gen. Masoud Jazayer was quoted by Iran's Tasnim news agency as saying that the Islamic Republic is ready to help Yemeni people 'in any possible level.' The comment was in response to a question about whether Iran is ready to send military advisors to Yemen as it did in Syria." http://t.uani.com/1nzti83

Iran-Saudi Tensions

NYT: "President Obama believes that Saudi Arabia, one of America's most important allies in the Middle East, needs to learn how to 'share' the region with its archenemy, Iran, and that both countries are guilty of fueling proxy wars in Syria, Iraq and Yemen. In a series of interviews with The Atlantic magazine published Thursday, Mr. Obama said a number of American allies in the Persian Gulf - as well as in Europe - were 'free riders,' eager to drag the United States into grinding sectarian conflicts that sometimes had little to do with American interests. He showed little sympathy for the Saudis, who have been threatened by the nuclear deal Mr. Obama reached with Iran. The Saudis, Mr. Obama told Jeffrey Goldberg, the magazine's national correspondent, 'need to find an effective way to share the neighborhood and institute some sort of cold peace.' Reflexively backing them against Iran, the president said, 'would mean that we have to start coming in and using our military power to settle scores. And that would be in the interest neither of the United States nor of the Middle East.'" http://t.uani.com/1RSP8OE

AFP: "Saudi Arabia and other Gulf monarchies could turn a page and build strong relations with Iran if it respects them and stops 'meddling' in their affairs, Foreign Minister Adel al-Jubeir said Wednesday. 'If Iran changes its way and its policies, nothing would prevent turning a page and building the best relationship based on good neighbourliness, with no meddling in the affairs of others,' he told reporters in Riyadh. 'There is no need for mediation' in such a case, said Jubeir, whose country severed all links with the Islamic republic in January after crowds attacked the kingdom's diplomatic missions in Iran. Jubeir said relations with Tehran had deteriorated 'due to the sectarian policies' followed by Shiite-dominated Iran and 'its support for terrorism and implanting of terrorist cells in the countries of the region'. 'Iran is a neighbouring Muslim country that has a great civilisation and a friendly people, but the policies that followed the revolution of (Ayatollah Ruhollah) Khomeini have been aggressive,' he said. Jubeir was speaking after a meeting of Gulf foreign ministers and their counterparts from Jordan and Morocco. In a joint statement, ministers meeting in Riyadh urged Iran to respect UN resolution 2231 which endorsed the nuclear deal and included curbs on ballistic missiles, as Tehran defiantly fired two more missiles on Wednesday." http://t.uani.com/1QGB36G

Human Rights

Journalism Is Not a Crime: "Three Iranian journalists who were detained by Iran's Revolutionary Guards in November 2015 have appeared in court this week. Another accused of the same charges is due to stand trial shortly. The trials of journalists Ehsan Mazandarani and Davoud Asadi began on Monday, March 7 at Branch 28 of the Revolutionary Court. The branch is presided over by Judge Moghiseh, whom human rights organizations have repeatedly accused of violating judicial practice and the rights of defendants. The hearing of the third journalist, Isa Saharkhiz, was scheduled to take place on Tuesday, but was postponed by the court. Iran's Revolutionary Guards arrested the three journalists in early November 2015 and accused them of being members of an 'infiltration network' colluding with hostile Western governments. However, the investigator for their cases had not been able to make a case for 'infiltration'. Instead, the journalists have been charged with 'propaganda against the regime,' 'acting against national security' and 'insulting authorities.' ... Saharkhiz, who suffers from severe kidney problems and heart disease, has been on several hunger strikes since his arrest, protesting against prison conditions and the fact that there has been no progress on his case. According to his family he has lost 20 kilos. On February 19, Saharkhiz was transferred to solitary confinement without explanation. Another Iranian journalist, Saman Safarzai, who was also arrested in November 2015, will reportedly stand trial on Saturday, March 12." http://t.uani.com/1U52vi8

Domestic Politics

Guardian: "In a message of condolence for Saturday's funeral of Ayatollah Abbas Vaez-Tabasi in Mashhad, Ayatollah Ali Khamenei, Iran's supreme leader, said the departed cleric, who died the previous day aged 80, had been 'a sympathetic brother...[and] comrade of difficult days'.  But Khamenei lost no time in appointing Ebrahim Raeisi, the 55-year-old national prosecutor-general, to follow Vaez-Tabasi as chairman of Astan Quds Razavi, the foundation that manages the shrine of Imam Reza in Mashhad. Raeisi is a close ally of Khamenei, and his appointment will strengthen links between the leader's office and the shrine, whose annual turnover - based on endowments, property and companies - is many billions of dollars. The leader has chosen another ally, Ahmad Alamolhoda, as his representative for Khorasan province, a second post left vacant by Vaez-Tabasi's passing. Vaez-Tabasi was close to former president Akbar Hashemi Rafsanjani, an ally of president Hassan Rouhani... Raeisi, who holds the clerical rank of hojjatoleslam, is a different character. At last year's 36th anniversary of the taking of the embassy hostages, which featured criticism of the Rouhani administration as well as denunciations of the United States as the 'Great Satan', Raeisi announced that the intelligence and security forces had 'identified and cracked down on a network of penetration in media and cyberspace, and detained spies and writers hired by Americans'. Two years ago, Raeisi accused the west of promoting homosexuality around the world in the name of human rights, and he has also reportedly defended the amputation of the hands of thieves... At the time of the 1988 executions of 3,000-5,000 political prisoners ordered by then leader Ayatollah Ruhollah Khomenei, Raeisi was deputy prosecutor in Tehran, a role he had held since 1984-5... As head of the shrine, Raeisi could play a huge role in the future succession to Khamenei, 76, as leader, especially as he is also a member for south Khorasan province of the Experts Assembly, the body that chooses the leader should a need arise." http://t.uani.com/1QP5WDN

Opinion & Analysis

WSJ Editorial: "Advocates of the nuclear deal with Iran were heartened last month by reports that moderates close to President Hasan Rouhani had done well in elections to the country's Parliament and the more influential Assembly of Experts. It soon became clear that the moderates hadn't done as well as advertised-and that moderation, Iranian-style, is relative. That much was clear from the message printed this week along the length of an Iranian ballistic missile, which said-in Hebrew as well as Farsi, lest anything be lost in translation-that 'Israel must be wiped off the face of the earth.' On Wednesday Iran test-fired two such missiles with a reported range of 1,250 miles from a mountain base, hitting targets 850 miles away in southwestern Iran. The Jewish state is about 600 miles from the Islamic Republic at the nearest point. Tehran's show of force-it also tested missiles on Tuesday-are not the work of the usual 'hardline' suspects. Iran tested ballistic missiles last fall in violation of a U.N. Security Council resolution, and in January Mr. Rouhani publicly ordered his defense minister to speed up missile testing and production. The Obama Administration later sanctioned a handful of Iranian individuals and companies for the violations, but to little effect. The tests appear to be timed to coincide with Vice President Joe Biden's visit to Israel. 'Our main enemies, the Americans, who mutter about plans, have activated new missile sanctions against the Islamic Republic of Iran and are seeking to weaken the country's missile capability,' said one Iranian general. 'The Guards and other armed forces are defenders of the revolution and the country will not pay a toll to anyone.' So much for the nuclear deal producing a new era of Iranian accommodation to the world. Part of the problem is that Secretary of State John Kerry bowed to Iranian demands during the nuclear negotiations not to include ballistic missiles as part of the final deal, though missiles are an essential component of any nuclear program. Instead, the U.S. pushed a weak resolution through the Security Council, which 'called upon' Iran to wait eight years before building or fielding missiles 'designed to be capable of delivering nuclear weapons.' Tehran insists that, since it has supposedly abandoned its nuclear program, the current tests cannot violate the resolution. The Administration will likely take its time deciding what, if anything, to do about the tests. Hillary Clinton is calling for sanctions, but the sanctions threat means little to a regime that has figured out it has little to fear from the U.S. That's especially true since Iran can always threaten to walk away from the deal should sanctions bite too hard-and its officials have already threatened to do so. The lesson-as always in arms control, from Brezhnev's Soviet Union to North Korea-is that a regime that can't be trusted with nuclear weapons also can't be trusted to honor the agreements it signs promising to eliminate them. Iran's missile program is the clearest example to date of how the nuclear deal has enhanced the country's military leverage. There will be others." http://t.uani.com/1pzmWaq

Ray Takeyh & Reuel Marc Gerecht in Foreign Affairs: "Democracy in the Islamic Republic is a peculiar institution: it is designed to reinforce the legitimacy of the theocracy. Various vetting bodies, all ultimately controlled by the clergy, routinely nullify parliamentary legislation. The Majlis, Iran's parliament, has long been a mere echo chamber for the ruling elite, an escape valve for regime-loyal dissent. The curiousness of Iran's theocratically managed democracy is amplified by elections (like the ones just held) and the Iranian press, which reports on the campaigns and the differences among the political elite as if they were the left-right contests seen in the West. President Hassan Rouhani and his supporters styled themselves as hope-and-change candidates. By instinct, the Western press used the same vocabulary. In truth, the elections of 2016 did signal change, but not the kind the Western press had in mind. Rather, they spelled the end of Iran's once-vivacious reform movement and the death of the 'Islamic Left,' which has produced nearly all of Iran's reformers." http://t.uani.com/1Ui8aQJ

Mohammad Ayatollahi Tabaar in WashPost: "The stunning performance of Iran's moderate forces in the Feb. 26 elections has prompted new optimism for democracy in the Islamic Republic. It should not. The victors of these elections might better be described as a mighty centrist coalition of pragmatists, reformists and moderate conservatives. This coalition aims at narrowing the ideological spectrum in Iran at the expense of both democracy and Islamism... Reformists have adamantly remained unified behind Rouhani and Rafsanjani by lowering their demands. The fact that even a moderate conservative such as Ali Larijani, speaker of the Majles, ended up on their list and enjoyed their popular support demonstrates how much both sides have moved toward the center... The Islamic Republic owes much of its existence and survival to the shrewd use of 'moderates.' It was Khomeini's alliance with the nationalist leader Mehdi Bazargan that projected a democratic vision for the upcoming revolution and helped delink the shah from the United States and Iran's Imperial Army. Bazargan, who became the first prime minister subsequent to the revolution, was also the first moderate casualty after Khomeini turned anti-American in order to outbid his communist nemesis. But the regime began to generate its own moderates in the coming three decades. Each time, these emerging factions clashed with the conservative establishment, while projecting a new face and hope, and thus helping resolve the regime's international or internal crises. By now, the regime has lost so many layers to the moderate camp that one wonders which group of Khomeini's disciples represents the real Islamic Republic. On the one side, there is Khamenei and on the other, all of his presidents - except Ahmadinejad, a radioactive figure disowned by all parties. The fault-line similarly cuts through key institutions such as the IRGC and now reportedly even the Guardian Council. The recent elections have released centripetal forces to mend this internal fissure. Khamenei and his conservative but key minority constituency may have no choice but to come on board. Or so Rafsanjani thinks. Similarly, the Iranian electorate sees no option but to vote for the candidates it has, not the candidates it wishes it had. But even more surprising is the regime's open acknowledgement of this. A few days before the election, Rouhani compared voting to shopping. 'Sometimes you don't find the ideal clothes for your children at a store. Nevertheless, you buy the clothes that are not your ideal just to prevent your child from catching a cold,' Rouhani said... In order to manage a restless young population, Rafsanjani and Rouhani now realize that they must prepare for a major act. They need to dilute the Islamist core of the regime, release it from the self-inflicted anti-American trap and set it on a nationalist path directed toward the West. They could sell these liberalizing measures to the citizens as a bridge toward democracy, while framing them for the conservative establishment as an authoritarian delaying tactic. Their success might be productive for many important domestic and foreign policy initiatives. Building a democracy is not one of them - unless it becomes an unintended consequence." http://t.uani.com/1TOMT2P
       

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

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