Tuesday, July 17, 2012

Eye on Iran: Lenders Expect Lebanese Banks Profits to Fall






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Daily Star: "Byblos Bank chairman François Bassil expects the combined net profits of the Lebanese banking sector to plunge by 5-10 percent at the end of 2012 due to political bickering and the volatile situation in neighboring Syria... 'What makes matters worse is the indifference of the government, which has failed to take any steps to contain the consequences of the deteriorating situation in Syria,' Bassil said. The recent campaign by the U.S. group United Against Nuclear Iran to discredit the reputation of the Lebanese banking sector was at the heart of comments made by Bassil, who vehemently dismissed all accusations of money laundering and terrorist funding. 'All of the U.S. officials who we met have praised the measures taken by Lebanese banks to curb any attempt to deal with Iranian and Syrian banks. We are complying strictly with all U.N. Security Council resolutions,' Bassil said. He stressed that Lebanese banks never received Iranian funds." http://t.uani.com/O8uUAp

Daily Telegraph: "Hillary Clinton, the US Secretary of State, warned Iran on Monday that it would use 'all elements of its power' to prevent Tehran developing a nuclear weapon as US aircraft carriers were deployed in the Gulf amid escalating tensions. Mrs Clinton, who was speaking in Jerusalem at the end of a one-day visit, sought to reassure Israel about US support stressing that both countries would work 'in close consultation' to halt Iran's alleged nuclear weapons programme. 'We will use all elements of American power to prevent Iran obtaining a nuclear weapon,' Mrs Clinton told reporters in a late-night press conference." http://t.uani.com/LvshJH

Reuters: "Iran is set to arrest a slide in oil shipments in July as China increases imports to a record high to amount to more than half Iran's crude exports, an industry report said. Iran's oil exports are expected to average 1.084 million barrels a day in July, little changed from 1.094 million bpd in June, in what Geneva-based consultancy Petrologistics said was a preliminary report. Tehran's oil exports halved in the four months from February to June because of U.S. and European Union sanctions aimed at discouraging what the West fears is an Iranian programme to develop nuclear weapons." http://t.uani.com/O7kdMI
Lebanon Banking Campaign   
Nuclear Program
  
WSJ: "The Pentagon is building a missile-defense radar station at a secret site in Qatar and organizing its biggest-ever minesweeping exercises in the Persian Gulf, as preparations accelerate for a possible flare-up with Iran, according to U.S. officials. The radar site will complete the backbone of a system designed to defend U.S. interests and allies such as Israel and European nations against Iranian rockets, officials told The Wall Street Journal. The minesweeping exercises, in September, will be the first such multilateral drills in the region, and are expected to be announced by U.S. officials Tuesday. The Pentagon's moves reflect concern that tensions with Iran could intensify as the full weight of sanctions targeting the country's oil exports takes hold this summer. Though U.S. officials described both the radar site and the naval exercises as defensive in nature, the deployments likely will be seen by Iran as provocations." http://t.uani.com/NBKvtI

WSJ: "Secretary of State Hillary Clinton sought on Monday to reassure Israel that U.S. efforts to block Iran's nuclear ambitions are working, but said the Obama administration's strategy of diplomacy and economic sanctions needs more time to play out. After a day of meetings with Prime Minister Benjamin Netanyahu and other Israeli leaders, Mrs. Clinton told reporters that recently imposed economic sanctions are putting unprecedented pressure on Tehran. She acknowledged that Iran has responded with 'nonstarters' to several rounds of negotiations with international powers and that Iranian leaders hadn't made a 'strategic decision' to engage in talks. She said Israel and the U.S. are in close coordination on Iran. 'Our two-track policy of diplomacy and pressure is in full move here,' she said following a dinner meeting at Mr. Netanyahu's official residence in Jerusalem." http://t.uani.com/ME3qib

AP: "Iran says it hopes upcoming talks with an EU official could pave the way for the resumption of high-level negotiations with world powers over Tehran's controversial nuclear program. Foreign Ministry spokesman Ramin Mehmanparast says the July 24 meeting between Iran's No. 2 negotiator Ali Bagheri and Helga Schmid, deputy of the EU foreign policy chief, will be key to a possible resumption of the stalled negotiations." http://t.uani.com/O8rMob

Reuters: "Security experts have uncovered an ongoing cyber espionage campaign targeting Iran and other Middle Eastern countries that they say stands out because it is the first such operation using communications tools written in Persian. Israeli security company Seculert and Russia's Kaspersky Lab, said on Tuesday that they identified more than 800 victims of the operation. The targets include critical infrastructure companies, engineering students, financial services firms and government embassies located in five Middle Eastern countries, with the majority of the infections in Iran." http://t.uani.com/OOebj8

Sanctions

WSJ: "Iran's leaders have repeatedly claimed that sanctions against its oil exports, aimed at pressuring it over its nuclear program, will harm the West more than they harm the Islamic Republic. Data published by the Organization of Petroleum Exporting Countries late Monday show how hollow that claim may be. Last year, before any direct oil sanctions were imposed on Iran, the country generated 88% of its export earnings from oil. Yet its significant contribution to national income belied the apparent weakness of Iran's oil industry. Iran's crude oil exports fell 12.5% in 2011, faster than any other country apart from Libya, which was in a state of civil war for much of the year, according to OPEC's annual statistical bulletin." http://t.uani.com/PcRwRi

Fox News: "A scathing U.S. Senate report charges that Europe's largest bank exposed the U.S. financial system to money laundering by Mexican drug cartels as well as potentially illicit transactions involving Iran and other countries. The extensive report on London-based HSBC Holdings PLC by the Senate Permanent Subcommittee on Investigations was released ahead of a hearing on Capitol Hill Tuesday morning. The probe focused on the bank's key U.S. affiliate, HBUS, and also said U.S. regulators knew the bank had a poor system to detect problems but failed to take action. The sweeping allegations include accounts that two affiliates for years sent thousands of transactions through HBUS 'without disclosing links to Iran' even though they were supposed to." http://t.uani.com/MglhzU

Reuters: "China's government can follow Japan's example and provide insurance guarantees for Chinese tankers carrying Iranian oil amid Western sanctions on Iran, top shipping conglomerate COSCO Group said on Tuesday... 'We need to wait until the insurance issue is solved. We are pushing for a solution right now. Without insurance cover, we wouldn't dare to ship oil from Iran,' Wei Jiafu, state-owned COSCO Group's chairman, told Reuters on the sidelines of a conference. 'Japan has set a precedent, we can just follow their lead.'" http://t.uani.com/M6fAlp

Human Rights

Chicago Tribune: "Highland Park resident Nasrin Nakhaei learned in May that her 85-year-old father, Muhammad-Husayn Nakha'i, had been arrested and jailed in his home country of Iran. The government has not said why it arrested him, Nakhaei said, but the family suspects it's because of his Baha'i faith. Nakhaei, 48, who has lived in the United States for 11 years, learned what happened from relatives." http://t.uani.com/Q4cLr8

Foreign Affairs

Guardian: "On the international stage, leaders of the Islamic republic have shown unwavering support for the Syrian regime of Bashar al-Assad. But at home, they have not been able to portray a country united over the crisis. Since the uprising began in Syria, two contradictory pictures have emerged inside Iran of the way it is unfolding. Media outlets affiliated to the regime, like the state-run Keyhan newsapaper or Fars news agency, have mainly reported the official line, introducing Assad as the victim of western and terrorist-led efforts. On the other hand, independent media who work under intense official censorship, like Etemaad and Shargh newspapers, have managed to report the uprising with relative objectivity, publishing articles on the scale of the Assad regime's brutal crackdown against protesters." http://t.uani.com/LW9Dfm

Fox News: "A United Nations agency under fire for shipments of computers and other sophisticated equipment to North Korea and Iran has apparently rejected a request by the U.S. State Department to conduct an independent probe into the controversy, drawing a pointed bipartisan rebuke from top lawmakers on Capitol Hill.  In a letter being released Tuesday, the leaders of the House Foreign Affairs Committee complained to World Intellectual Property Organization Director General Francis Gurry about his agency's refusal to cooperate. They accused the agency of locking down key documents while trying to root out the whistle-blowers who alerted others to the scandal -- and then rebuffing the State Department's request for an outside investigation." http://t.uani.com/Mrxi3G

Ottawa Citizen: "The Iranian-Canadian activists who blew the whistle on Iran's alleged recruitment program in Canada say they privately warned numerous politicians and officials of the Islamic republic's activities in the weeks before government ministers spoke out in reaction to the Citizen's report on the scheme. Foreign Affairs Minister John Baird and Public Safety Minister Vic Toews publicly admonished Iran after the Citizen's July 10 front-page article told how a senior Iranian Embassy official in Canada was calling on Iranian-Canadians to 'be of service' to Tehran. Activists Shabnam Assadollahi and Shadi Paveh of the Ottawa region say they dispatched emails last month flagging what some terror experts described as an Iranian 'call to arms.'" http://t.uani.com/NG3Lkv

Opinion & Analysis

Under Secretary for Terrorism and Financial Intelligence David Cohen in NYT: "'Iran's Aging Airliner Fleet Seen as Faltering Under U.S. Sanctions' (news article, July 14) does not mention two critical facts. First, Iran Air is not simply a passenger airline. Rather, Iran Air provides material support to two organizations deeply involved in Iran's weapons proliferation - the Ministry of Defense and Armed Forces Logistics, which oversees Iran's ballistic missile program, and the Islamic Revolutionary Guard, which orchestrates arms shipments to and from Iran. That is why, in June 2011, we imposed sanctions specifically on Iran Air. Second, because we care about civilian flight safety, we have issued licenses to allow for the inspection, and in previous years also the repair, of Iran's civilian aircraft, so long as those services were performed outside Iran so the parts and services could not be misdirected to Iran's military aircraft. To our knowledge, the Iranian government, which controls Iran Air, never took advantage of these licenses." http://t.uani.com/Mrxj7K

Business Monitor International Iran Autos Report: "A particular test for Iran is the withdrawal of PSA Peugeot Citroen. The Peugeot arm has been a key supplier of components for leading domestic firm Iran Khodro (IKCO), but has suspended supplies and may have to rethink its position completely, following its tie-up with General Motors Company (GM). As GM is now a 7% stakeholder in PSA Peugeot Citroen, the implications of US sanctions against Iran will extend to the French carmaker's operations. The US lobby group United Against Nuclear Iran (UANI) has called for an end to Peugeot's involvement in Iran, where IKCO builds the Peugeot 206 and 405 models. GM claims that its partner had already suspended its supplies before the agreement was signed. UANI launched its 'Auto Campaign' in March 2012, citing a BMI report looking at how the enforcement of economic sanctions on Iran has resulted in the country's government prioritising the development of a strong domestic auto industry. UANI says in recent months, both Hyundai and Porsche have ended their business in Iran in response to its campaigns. UANI has since ramped up its campaign to get foreign automakers out of Iran. It says that Fiat, Isuzu, Kia Motors, Mazda Motor, Mitsubishi Motors, Nissan Motor, Peugeot, Renault, Suzuki Motor, Toyota Motor and Volvo either export to the Islamic Republic or have manufacturing agreements with car companies controlled by the regime. Following the release of industry data in May indicating that new car production in Iran in April dropped 27% year-on-year (y-o-y), UANI CEO and ambassador Mark D. Wallace issued a statement saying: 'The message is clear: responsible international auto companies will not continue to work in Iran. We call on all auto manufacturers - including Fiat, Mazda, Nissan, Renault, and Peugeot - to fully end their irresponsible business in Iran. We call on Congress to pass UANI's DRIVE Act, which would require automakers to certify they are not engaged in any business in Iran to be eligible for US government contracts.' According to a Bloomberg report, in late May Ambassador Wallace testified about Iran's automotive industry before the US House Foreign Affairs Committee. Ambassador Wallace called out Peugeot and its US partner GM, saying 'Peugeot right now is a major actor in Iran, a major manufacturer inside Iran in direct partnership with the IRGC.' He said that, while Peugeot says it suspended its business with Iran until July, Iran produced more than 15,000 Peugeot vehicles in April. At the moment, we believe the suspension is revisited on a monthly basis... It has taken a little longer for Kia's affiliate Hyundai Motor to end its Iranian operations, but it has now done so, according to the New York Times. Although UANI has been pressing the carmaker to cut its ties since 2010, the group has only recently reclassified Hyundai as 'withdrawn' on its list of foreign businesses dealing with Iran. The report suggests that, in line with the US sanctions, foreign companies maintaining ties with Iran could face penalties in the US market. This would be a major incentive for  Hyundai, which reported growth of 20% in US sales in 2011 and increased its market share from 4.6% to 5%." http://t.uani.com/MuVeXF

Michael Singh in FP: "As the crisis in Syria heats up, so too has talk of a possible Iranian role in resolving it. Visiting Tehran last week, U.N. envoy Kofi Annan asserted that 'Iran could play a positive role' in Syria. Two weeks earlier, Russian foreign minister Sergei Lavrov lobbied for Iran to be invited to Annan's 'Syria Action Group' meeting in Geneva, citing the need to invite 'everybody who has influence on all Syrian sides.' The Iranians themselves have also joined the chorus, pushing to include Syria on the agenda of recent P5+1 talks and, on Sunday, offering to host talks between the Syrian regime and opposition. The notion that Iran will help to usher in a political transition in Syria has been met with skepticism in the West. According to a recent Defense Department (DOD) report on Iranian military power and strategy, Tehran has provided the Assad regime with 'military equipment and communications assistance' during the uprising, and has 'probably provided military trainers to advise Syrian security forces.' Secretary of State Hillary Clinton put it more succinctly, asserting that Iran was 'helping to stage-manage the repression' in Syria. Iran's actions have not only provoked new U.S. sanctions, they run afoul of preexisting U.N. sanctions prohibiting arms sales by Tehran. For Western policymakers to understand which view is correct -- that is, whether Iran is a potentially constructive player whose influence could sway Assad to change course, or a spoiler which could be counted upon to stymie efforts to foster an orderly political transition -- they must examine Iranian interests in Syria as well as how Iran's inclusion would affect the dynamics of international diplomacy. Such an examination yields a clear conclusion: Iran should be excluded. The first question that must be addressed is in regard to Iranian interests in Syria -- that is, what does Tehran want to achieve in Syria? According to the DOD report, Iran as a matter of strategy 'seeks to increase its stature by countering U.S. influence and expanding ties with regional actors,' and uses tools including 'active sponsorship of terrorist and insurgent groups...to increase its regional power.' For these reasons, Syria under Assad has been an invaluable asset for Iran: a rare ally in the effort to challenge American interests in the region, a territorial base for coordinating Iranian support to groups such as Hezbollah and Hamas, and a forward operating hub to exert influence in Lebanon and keep Israel at bay." http://t.uani.com/O7qAzz

Dr. Al Khalafalla in Fox News: "Casual observers of the 2011 popular uprisings in Egypt, Libya and Tunisia have compared them with the protests over the last year in Bahrain.  They lump these movements into one category, and call them the 'Arab Spring,' suggesting they represent hope and progress.  The so-called experts say acceding to the demands of the street is inevitable, and that the demonstrations show a longing for democracy in the Middle East. They're wrong. It is an analytical error to confuse public demonstrations with democratic rule.  What we generally call democracy involves far more than simply voting and allowing the majority to determine the policy and structure of the government.  Voting against the current order without first establishing the rule of law leads to anarchy. We are seeing this play out already in Libya and Egypt: the people rebelled against the old governments, and they now are faced with the task of deciding what kind of government they will have.  It is very dangerous to make those decisions in a power vacuum. Similarly, the Government of Bahrain faces continued protests by Shi'a protestors demanding increased political power from Sunni rulers and elites.  But take a step back and it's easy to see that Bahrain has become a new front in Iran's proxy war on its neighbors." http://t.uani.com/O7qWGp

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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