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AP: "The Obama administration may
soon tell foreign governments and banks they can start using the dollar
in some instances to facilitate business with Iran, officials told The
Associated Press, describing an arcane tweak to U.S. financial rules
that could prove significant for Tehran's sanctions-battered economy.
While no decision is final, U.S. officials familiar with internal
discussions said the Treasury Department is considering issuing a
general license that would permit offshore financial institutions to
access dollars for foreign currency trades in support of legitimate
business with Iran, a practice that is currently illegal. Several
restrictions would apply, but such a license would reverse a ban that
has been in place for several years and one the administration had
vowed to maintain while defending last year's nuclear deal to skeptical
U.S. lawmakers and the public... Dropping the prohibition would go a
long way to meet Iran's complaints that the West hasn't sufficiently
rewarded it for taking thousands of uranium-spinning centrifuges
offline, exporting its stockpile of the bomb-making material and
disabling a facility that would have been able to produce weapons-grade
plutonium. But it surely would prompt intense opposition from critics
of last July's nuclear accord. If approved, the new guidance would
allow dollars to be used in currency exchanges as long as no Iranian
banks are involved, according to the officials, who weren't authorized
to speak publicly on the matter and demanded anonymity. No Iranian
rials can enter into the transaction, and the payment wouldn't be able
to start or end with American dollars. The ban would still apply if the
final payment is intended for an Iranian individual or business on a
U.S. sanctions blacklist. The administration has hinted the U.S. could
introduce new sanctions concessions, but has confirmed nothing...
Members of Congress are crying foul. The 2012 National Defense
Authorization Act instructs the president to 'block and prohibit' all
Iranian assets if they 'come within the United States, or are or come
within the possession or control of a United States person.' In a
letter to Lew on Wednesday, Republican Sens. Marco Rubio and Mark Kirk
said any Iranian access to dollars 'would benefit Iran's financiers of
international terrorism, human rights abuses and ballistic missile
threats.' They cited testimony last year by Treasury Department's
sanctions chief, Adam Szubin, who told lawmakers Iran wouldn't be
allowed 'even to execute a dollarized transaction where a split
second's worth of business is done in a New York clearing bank.'" http://t.uani.com/1Rs0sTr
NYT: "Iran's supreme leader backed
the country's missile program on Wednesday, criticizing a prominent
ayatollah who had suggested that in the future, negotiations were far
more important. Defending the military's recent tests, which critics,
particularly in the United States, say are a violation of the recently
concluded nuclear agreement, the supreme leader, Ayatollah Ali
Khamenei, said that both negotiations and the testing of missiles were
important to Iran. 'If the Islamic system pursues technology and
negotiations without defense power, then this will be a retreat in the
face of threats from other insignificant countries,' Ayatollah Khamenei
was quoted as saying in an address in Tehran. 'Enemies continue
strengthening their military and missile sectors. How can anyone say
that the era of missiles has passed?' Ayatollah Khamenei was responding
to a comment posted on Twitter over a week ago by Ayatollah Ali Akbar
Hashemi Rafsanjani, a former president and influential supporter of
Iran's moderate president, Hassan Rouhani. Ayatollah Rafsanjani wrote
that the 'world of tomorrow is one of negotiations, not the world of
missiles.' Ayatollah Khamenei, in a rare open criticism, reacted
harshly, though he referred only indirectly to Ayatollah Rafsanjani's
remark. 'People say that tomorrow's world is a world of negotiations and
not a world of missiles,' he said. 'If they say this thoughtlessly, it
shows that they are thoughtless. However, if this is intentional, then
this is treachery.'" http://t.uani.com/1Y1WtgR
AFP: "Iran's defence minister has
said he is 'certain' the UN Security Council will not take any action
over its ballistic missile tests despite calls from Western powers.
Britain, France, Germany and the United States wrote a joint letter on
Monday calling for action over tests they said violated last year's
landmark nuclear deal between Iran and major powers, and the Security
Council resolution that enshrines it. They said the two kinds of
missiles fired by Iran on March 8 and 9, the Shahab-3 and Qiam-1, were a
breach of the resolution because they were 'inherently capable of
delivering nuclear warheads', something Iran denies. 'I am certain that
the Security Council and the United Nations will not respond as our
actions are neither a breach of the Joint Comprehensive Plan of Action
(the July nuclear deal) nor are they against Resolution 2231,' General
Hossein Dehghan said." http://t.uani.com/1RrZHtm
Nuclear
& Ballistic Missile Program
Reuters: "The chairman of the U.S.
Senate Foreign Relations Committee said on Wednesday the U.N. Security
Council's refusal to respond to Iran's ballistic missile tests defied
Obama administration assurances that a ban on such tests would remain
in place after the Iran nuclear deal. 'As many of us feared, now it
appears Iran can defy those restrictions with impunity fearing no
pushback from the U.N. Security Council,' Republican Senator Bob Corker
said, in response to a report by Reuters that diplomats suggested
Iran's tests do not technically violate provisions of Security Council
Resolution 2231." http://t.uani.com/1Y1VH3q
WashPost: "Sens. Corker and Ben Cardin
(D-Md.), are expected to soon release legislation stepping up sanctions
against Iran over its ballistic missile program. But the United States
and its partners cannot force the U.N. Security Council to take similar
actions - and reports that the international community may not follow
the United States' lead with anything more than a public rebuke have
Corker crying foul, while other lawmakers are expressing concern. 'US
& allies must respond w/ action,' Rep. Ted Deutch (D-Fla.) posted
on Twitter Wednesday, citing the same Reuters report. Deutch was one of
a small number of Democrats who opposed the Iran deal." http://t.uani.com/1M2Y9WE
U.S.-Iran
Relations
NYT: "The Justice Department has
appointed Kenneth R. Feinberg, the lawyer who administered compensation
for victims of the Sept. 11 attacks, as special master to oversee a new
fund to compensate victims of state-sponsored terrorism. The fund,
created by Congress late last year, will provide compensation to
victims of attacks like the bombings of American embassies in East
Africa in 1998 and the bombings of the American Embassy and Marine
Corps barracks in Lebanon in the early 1980s. It is also intended to
compensate the Americans taken hostage at the United States Embassy in
Tehran in 1979... The fund presents some unusual complications because
it covers victims who in some cases have already been designated to
receive compensation in various federal court rulings, as well as the
Tehran Embassy hostages, who were long barred from seeking
court-ordered damages from Iran because of the terms of the treaty that
freed them in 1981. An additional complication is a lawsuit filed by
the central bank of Iran seeking to overturn a law in which Congress
designated that $2 billion in frozen Iranian assets should be available
to compensate victims of terrorism. The Supreme Court heard oral
arguments in that case earlier this year, and a ruling is due this
spring." http://t.uani.com/1oo2JmM
Sanctions
Enforcement
AP: "Treasury Secretary Jack Lew
warned Wednesday against the overuse of financial sanctions against
other nations and said the U.S. must be prepared to ease the penalties
over time if they succeed in changing behavior... Lew gave his speech
about lessons learned on decades of sanctions at the same time that
some Republicans in Congress want to keep hard-hitting sanctions in
place against Iran. They were against last year's nuclear agreement in
which the U.S. and its allies agreed to ease sanctions against Tehran
in exchange for its promise to curtail programs that would allow it to
develop nuclear weapons. 'Since the goal of sanctions is to pressure
bad actors to change their policy, we must be prepared to provide
relief from sanctions when they succeed,' he said. 'If we fail to
follow through, we undermine our own credibility and damage our ability
to use sanctions to drive policy change. ... Since Iran has kept its
end of the deal, it is our responsibility to uphold ours in both letter
and spirit.'" http://t.uani.com/1Va4PUl
Reuters: "Overuse of harsh sanctions
like those deployed against Iran to limit its nuclear program risks
driving business activity from the United States and a move away from
the dollar as the world's reserve currency, U.S. Treasury Secretary
Jack Lew said on Wednesday... For example, the United States was able
to induce buyers of Iranian oil to sharply curtail their purchases, and
international banks cut ties with Iran for fear of losing access to the
U.S. financial system. Iran reached a deal with the United States and
other world powers last July that lifted the harshest measures in
return for curbs on its nuclear program. But 'sanctions overreach'
risks encouraging businesses to avoid the U.S. financial system and
could erode the power of the U.S. dollar as the pre-eminent reserve
currency, Lew said during a speech in Washington. 'The more we
condition use of the dollar and our financial system on adherence to
U.S. foreign policy, the more the risk of migration to other currencies
and other financial systems in the medium-term grows,' Lew said. In
particular, so-called secondary sanctions should be wielded in the most
'exceptional' circumstances, Lew said. Those measures bar even non-U.S.
citizens from dealing with sanctioned individuals or companies, and
were the type of sanctions levied against Iran. 'They are viewed even
by some of our closest allies as extra-territorial attempts to apply
U.S. foreign policy to the rest of the world,' Lew said, adding that
the Iran nuclear sanctions should not be viewed as a 'starting point'
for other sanctions programs." http://t.uani.com/1RMwIzB
Sanctions
Relief
Reuters: "Asian imports of Iranian oil
jumped nearly a quarter from a year earlier to a two-year high in
February, as shipments into India and South Korea roughly doubled weeks
after international sanctions were lifted on Tehran's disputed nuclear
programme. International oil and shipping companies have been eager to
renew business with Iran since sanctions related to its nuclear
programme were lifted in January. Tehran's exports may also get further
support as progress has been made on reinsurance issues that had been
hampering its oil trade. Aside from the greater volumes taken by Asian
buyers, Iran's oil flows to Europe have also begun to pick up after a
slow start. An Iranian official said last week that exports had risen
by 900,000 barrels per day (bpd) to 2.2 million bpd in the past two months.
Imports by Iran's top four buyers - China, India, Japan and South Korea
- came to 1.28 million bpd in February, up 24.6 percent from a year
ago, government and tanker-tracking data shows. That was the highest
volume taken by Tehran's four biggest oil clients since they bought
1.37 million bpd in February 2014... The following tables show Asia's
Iran crude imports in bpd for last month and the year to date." http://t.uani.com/1PHwjdf
Iraq
Crisis
WSJ: "In Iraq, there was also a
spoiler: Iran. With money and bombs, Tehran's Shia Muslim regime was
fueling frictions between Iraq's Shia majority and its Sunni minority,
pushing the country into civil war. Mr. Khalilzad reports that the Quds
Force, the elite overseas arm of Iran's Islamic Revolutionary Guard
Corps, 'had an enormous number of Iraqis on its payroll, sometimes at
low levels and other times at much higher levels.' He writes that in
his efforts to thwart Iran's pernicious reach, 'I sometimes told Shia
Islamist leaders, who were close to Iran, that I believed Tehran wanted
to turn Iraq into a smoldering ruin that the Iranians could then
control with ease.' Some Shia leaders quietly agreed, including, on at
least one occasion, Prime Minister Nouri al-Maliki, who told Mr.
Khalilzad that he believed Iran had been behind the 2006 terrorist
bombing of a major Shia shrine in Iraq, the Golden Mosque." http://t.uani.com/1SBf9SU
Opinion
& Analysis
Barack
Obama in WashPost:
"Of all the threats to global security and peace, the most
dangerous is the proliferation and potential use of nuclear weapons.
That's why, seven years ago in Prague, I committed the United States to
stopping the spread of nuclear weapons and to seeking a world without
them. This vision builds on the policies of presidents before me,
Democrat and Republican, including Ronald Reagan, who said 'we seek the
total elimination one day of nuclear weapons from the face of the
Earth.' Thursday in Washington, I'll welcome more than 50 world leaders
to our fourth Nuclear Security Summit to advance a central pillar of
our Prague Agenda: preventing terrorists from obtaining and using a
nuclear weapon. We'll review our progress, such as successfully ridding
more than a dozen countries of highly enriched uranium and plutonium.
Nations, including the United States, will make new commitments, and
we'll continue strengthening the international treaties and institutions
that underpin nuclear security... Beyond preventing nuclear terrorism,
we've made important progress toward the broader vision I outlined in
Prague... Second, we're strengthening the global regime - including the
Nuclear Non-Proliferation Treaty - that prevents the spread of nuclear
weapons. We've succeeded in uniting the international community against
the spread of nuclear weapons, notably in Iran. A nuclear-armed Iran
would have constituted an unacceptable threat to our national security
and that of our allies and partners. It could have triggered a nuclear
arms race in the Middle East and begun to unravel the global
nonproliferation regime. After Iran initially rejected a diplomatic
solution, the United States mobilized the international community to
impose sanctions on Iran, demonstrating that nations that fail to meet
their nuclear obligations will face consequences. After intense
negotiations, Iran agreed to a nuclear deal that closes every single
one of its paths to a nuclear weapon, and Iran is now being subjected
to the most comprehensive inspection regimen ever negotiated to monitor
a nuclear program. In other words, under this deal, the world has
prevented yet another nation from getting a nuclear bomb. And we'll
remain vigilant to ensure that Iran fulfills its commitments." http://t.uani.com/1Sp1qfz
Sen.
Chris Coons (D-Del.) in The Hill: "This Thursday in Washington, President Obama will
convene heads of state from around the world for a fourth Nuclear
Security Summit, a conference of world leaders dedicated to preventing
nuclear terrorism and securing stockpiles of nuclear material around
the world. With terrorist organizations and rogue nations fomenting
instability around the world, and as the international community's
leading powers work to enforce the nuclear deal with Iran, the
challenge of preventing the use of nuclear weapons is not an academic
exercise. As a global community, we need to take real, tangible steps
to meet this challenge. The best first step we can take is to support
the International Atomic Energy Agency (IAEA) - the world's nuclear
watchdog. Since 1957, world powers have tasked the IAEA with preventing
the spread of nuclear weapons and making sure countries honor their
international obligations to use nuclear technology and material for
peaceful purposes. With the agreement reached between the U.S., five
other global powers,and Iran last summer, also known as the Joint
Comprehensive Plan of Action (JCPOA), ensuring the IAEA can do its job
has never been more important. The JCPOA gives the IAEA unprecedented
access to monitor Iran's nuclear efforts through highly intrusive
physical inspections and 24-7 remote monitoring technology. Under the
terms of the deal, the IAEA also has the authority to monitor and
oversee every stage of Iran's nuclear fuel cycle, from the mines from
which uranium is extracted from the ground, to the facilities that
enrich it into material that can be used in a nuclear bomb. Conducting
these inspections and maintaining this level of oversight is the IAEA's
job - but world powers have a responsibility to make sure the agency
has the resources it needs. Access alone is not enough: to turn that
access into effective oversight, while still fulfilling its regular
mission of ensuring nonproliferation around the world, the IAEA needs
long-term, sustainable funding... It is no understatement to say that
the IAEA's very credibility is on the line as it begins to monitor,
inspect, and verify the status of Iran's nuclear program... That's why
I've urged Congress to increase America's voluntary contribution to the
IAEA to a level $10.6 million above the President's request, and to
commit to sustained support in the future." http://t.uani.com/1VV70fd
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Eye on Iran is a periodic news summary from United Against
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