Thursday, August 4, 2016

Eye on Iran: Justice Department Officials Raised Objections on U.S. Cash Payment to Iran






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WSJ: "Senior Justice Department officials objected to sending a plane loaded with cash to Tehran at the same time that Iran released four imprisoned Americans, but their objections were overruled by the State Department, according to people familiar with the discussions. After announcing the release of the Americans in January, President Barack Obama also said the U.S. would pay $1.7 billion to Iran to settle a failed arms deal dating back to 1979. What wasn't disclosed then was that the first payment would be $400 million in cash, flown in at the same time... The timing and manner of the payment raised alarms at the Justice Department, according to those familiar with the discussions. 'People knew what it was going to look like, and there was concern the Iranians probably did consider it a ransom payment,' said one of the people... The Justice Department raised other objections to the Iran deals. Prosecutors were concerned that the U.S. would release too many Iranian convicts and drop too many pending criminal cases against people suspected of violating sanctions laws. They prevailed regarding some of the suspects-those accused or suspected of crimes of terrorism or other violence-but the objections on others were overruled, according to the people familiar with the discussions." http://t.uani.com/2awIvk4

Reuters: "The Obama administration said on Wednesday that $400 million in cash paid to Iran soon after the release of five Americans detained by Tehran was not ransom as some Republicans have charged. 'The United States, under President Obama, has not paid a ransom to secure the release of Americans unjustly detained in Iran and we're not going to pay a ransom,' [White House spokesman Josh Earnest] said." http://t.uani.com/2anYxxe


UANI in the News

Carrie Sheffield in Salon: "David Ibsen, president of United Against Nuclear Iran, told Salon that the recent detention of Robin Shahini, another U.S. citizen, is further evidence that Washington should be thwarting-not rewarding-Iran's bad behavior. 'The secret airlifting of $400 million in cash to the Iranian regime is just another example of the United States enabling the nefarious activities of the Ayatollah and his proxies,' he said... These latest developments undoubtedly confirm what conservatives and other pro-Israel activists have been arguing throughout this entire episode... They also tarnish President Obama's legacy, despite his brag last week at the Democratic National Convention in Philadelphia that he'd 'shut down Iran's nuclear weapons program'...  Despite the administration's official claim of an innocent confluence of events, Iranian Revolutionary Guard leaders claimed otherwise in state media that 'Taking this much money back was in return for the release of the American spies.' Tzvi Kahn, senior policy analyst at the Foreign Policy Initiative, also pointed out that what happens in Tehran doesn't stay in Tehran... 'The $400 million payment, which Tehran has transferred to its military, directly subsidizes Iran's hegemonic ambitions,' Kahn told Salon. 'It has led the regime to capture more hostages. And it demonstrates that the nuclear deal, far from moderating Iran, has merely emboldened it to further provoke America, secure in the knowledge that the White House will do almost anything to protect its signature foreign policy achievement... Iran, after all, has only itself to blame for its continued economic travails. Why would companies want to invest in a country that continues to sponsor terrorism across the globe, test ballistic missiles, repress its own people, and capture Western hostages? Washington should ignore the supreme leader's blackmail and instead make clear that Iran will receive no additional economic benefits until it halts its aggression." http://t.uani.com/2avUKQ2

Congressional Action

Weekly Standard: "A chorus of Republican lawmakers condemned the Obama administration Wednesday for secretly sending Iran $400 million in what critics called a ransom payment... House Foreign Affairs Committee Chairman Ed Royce, who sent a letter to Secretary of State John Kerry in February asking for details about the payment, denounced the administration's lack of transparency in a statement. 'The logistics of this payment - literally delivering a plane full of cash to evade U.S. law - shows yet again the extraordinary lengths the Obama administration will go to accommodate Iran, all while hiding the facts from Congress and the American people,' Royce said. 'Hundreds of millions in the pockets of a terrorist regime means a more dangerous region, period,' he said. 'And paying ransom only puts more American lives in jeopardy'... Kansas congressman Mike Pompeo, who also sent a letter to the State Department in January and was met with an incomplete answer, compared the administration's behavior to that of the Iran-Contra scandal... Illinois congressman Peter Roskam, Arizona senator John McCain, Illinois senator Mark Kirk, Texas senator Ted Cruz, and a number of other lawmakers also condemned the 'ransom payment' in statements Wednesday." http://t.uani.com/2awML3b

Opinion & Analysis

Eli Lake in Bloomberg: "If Americans were detained, cash was exchanged, and Americans were released, that looks like a ransom payment, right? Using the razor of Occam... Senior Obama administration officials insist this was not a ransom payment... There is a reason government officials stick to this convoluted story. U.S. policy for decades has prohibited official ransom payments... And yet, when it comes to Iran at least, ransom payments are standard operating procedure. It goes back to the Reagan administration... All of this is important because the Iranians learned an important lesson: Hostage-taking works. Despite the completion of the Iran nuclear deal a year ago, the payment of cash, the release of Iranian nationals and the State Department campaign to encourage foreign investment in Iran, Iran's regime is keeping to form. Since releasing the four U.S. citizens in January, the regime has arrested two more Iranian-Americans and detained other Westerners. The Wall Street Journal reports that friends and family of two captives say Iran wants more cash or a prisoner exchange. If so, can you blame the Iranians? They learned a long time ago that even the toughest-minded U.S. presidents will pay to get their people back. All it takes are a few sweet words from some moderate-sounding interlocutors, and a not-necessarily-plausible cover story, and voila: The Great Satan is paying you for the citizens you should have never taken hostage in the first place." http://t.uani.com/2aCNVuM

WSJ editorial: "When is a payment for hostages not a ransom? When the Obama Administration says so... One reason the Administration is keen to deny that the cash was ransom is because it had already paid a high price by freeing seven Iranians charged or convicted of U.S. crimes and dropping extradition requests for 14 others. But the Iranians weren't satisfied. As the Journal reports, 'U.S. officials also acknowledge that Iranian negotiators on the prisoner exchange said they wanted the cash to show they had gained something tangible.' Cash is an excellent way to pay terrorists, fund Hezbollah in Syria and the Houthis in Yemen, and buy dual-use, nuclear-related hardware-which Iran continues to do, according to reports from Germany's intelligence services. The Administration is pretending this money is being used for strictly kosher purposes... Has [CIA Director John Brennan] heard the word fungible?... The American people aren't likely to get a truthful answer, but someone should ask Hillary Clinton if she thinks paying ransom for hostages encourages the world's thugs to take more Americans hostage." http://t.uani.com/2aQct74

Jennifer Rubin in Washington Post: "Analyst Omri Ceren points out that international banks 'don't want to touch Iran's financial system because of years of sanctions for terrorism, money laundering, etc. The State Department and Treasury Department enlisted the Swiss and Dutch governments to route hard cash to Iran to circumvent those problems.' Once again, the administration fell all over itself to sweeten the pot and get its historic "deal," which increasingly seems to be even more heavily titled in Iran's favor than was known when Congress voted on it. Indeed, a number of foreign policy gurus have remarked on how shady the arrangement was. Michael Makovsky, CEO of JINSA, observes that 'the president has gone rather rogue by circumventing sanctions restrictions on banks by laundering the money through European central banks, which is not only wrong but sends a dangerous signal to other countries and companies.' He further notes, 'This payment coincided with not just the release of civilian hostages from Iran but also followed by a few days the release of American sailors who were abducted the prior week'... Other than outrage it is not clear what Congress is willing to do. Democrats have stalled on meaningful sanctions legislation, either to extend the existing sanctions due to expire at the end of the year or to authorize new sanctions. Hillary Clinton has talked tough during the campaign, but critics of the deal are skeptical she will have the nerve to pass new sanctions that the Iranians will claim 'threaten the deal.' That is the problem, of course. Iran managed to get a deal out of Obama that required no permanent changes; preserved its option down the road to go nuclear; alleviated economic pressure; delivered cold, hard cash; and gave it ongoing leverage to defend its ongoing defiance, aggression and human rights abuses. If Clinton is elected, it will be incumbent on Republicans to work with her, pushing Democrats in the direction of a much tougher line on Iran. Passage of sanctions, a zero-tolerance policy for illegal missiles (shoot one down, perhaps) and purchase of banned materials, and renewed efforts on the ground to oust Iran's partner Bashar al-Assad are needed. Most of all, however, it will be up to the next administration to figuratively and literally stop Iran from holding us hostage. After years of acceding to Iran's behavior, the United States will need to convey forcefully and promptly that a new U.S. policy is in effect." http://t.uani.com/2aXhDwm

Amir Taheri in NY Post: "In exchange for vague promises, Obama has solved the Islamic Republic's cash-flow problem by releasing unknown quantities of frozen assets. At least some of those assets took the form of hard cash flown to Tehran via Beirut in sealed safes, all in secret. Part of the cash, the Wall Street Journal revealed, appears to have been $400 million for the release of four hostages held by the mullahs - disregarding United States policy not to pay ransom. Iran wasted no time seizing six new American hostages. in fact, since its inception in 1979, the mullahs' regime has not spent a single day without at least one American hostage... A year after the hyped-up "deal," what was known in Western chancelleries as "The Iran Problem" remains intact. In Tehran we have a regime that cannot liberate itself from its dangerous illusions and continues to behave like a rebellious teenager who refuses to grow up. It tries to make the rest of the Middle East like itself because it is afraid of being forced to become like the rest of the Middle East. Obama simply kicked the ticking can down the road for his successor." http://t.uani.com/2aQcDeJ

Marc Johnson in National Review: "We now know that Kerry's 24/7 access and the "anytime, anywhere" inspections promised by deputy national security advisor Ben Rhodes were never in the cards - a "rhetorical flourish," as Wendy Sherman, State's lead negotiator, put it... Since the Obama administration appears to want to maintain this policy of turning a blind eye in service of extending the JCPOA past November, it's up to Congress to act to ensure the agreement's integrity. Congress should set up an independent verification mechanism to assess Iran's compliance with the JCPOA. The mechanism could take any number of forms - a new subcommittee, a new joint select committee, an outside blue-ribbon commission, or some variation thereof. But the mechanism needs to have genuine subject-matter experts, and they must have access to the same reporting that the executive branch receives. This idea isn't new. Robert Joseph, former undersecretary of state for arms control, proposed a similar solution to the House Foreign Affairs Committee even before the JCPOA was concluded. And Representative Todd Young (R., Ind.) introduced legislation (H. Res. 571) to set up a select committee. But no action appears to have been taken on Joseph's recommendations, and Young's bill stalled in the Rules Committee. Between Congress's July-to-September recess and the looming general election, it seems unlikely that any action will be taken in the near term to address these anomalies. But the verification challenges of the Iran deal aren't going away. They're just beginning." http://t.uani.com/2aSAGKl

Matthew McInnis and Daniel Schnur in Newsweek: "A new supreme leader (and therefore new commander in chief) will likely be installed in the next few years. These are the big factors driving uncertainty in how the Iranian military wants to move forward. The recent reshuffling of Iran's Armed Forces General Staff (AFGS) can give some insight not only into the inner dynamics of Iran's military structure, but also how Iran intends to use its military in the future. In particular, the appointment of Mohammed Bagheri, a major general in the Islamic Revolutionary Guard Corps (IRGC), to head the AFGS may be the most telling. Bagheri's predecessor, Hassan Firouzabadi, had little military background prior to his appointment and was instead empowered largely by his personal relationship with Supreme Leader Ali Khamenei. Bagheri, however, has a distinguished military career in the IRGC and the AFGS intelligence dating back to the Iran-Iraq War. Bagheri's appointment shows a shift away from the singular importance of connection with Khamenei, as seen in Firouzabadi, to individuals who also possess institutional loyalty to the IRGC, revolutionary ideals and strong professional credentials.The supreme leader can now be more confident of the capability and position of the IRGC and the military under his successor. It cannot be ruled out that the IRGC was pushing for some of these leadership changes, preparing for a post-Khamenei Iran... Beyond improved interoperability, where does Bagheri want to take the Islamic republic's military? The new commander and those close to him have publicly hit on at least five major themes since his appointment: furthering the capabilities of the Basij, the IRGC's Quds Force, and cyberforces, while increasing intelligence operations and extending Iran's naval reach into the Indian Ocean... Iran's current unconventional asymmetric military and proxy armies give the United States and our allies enough headaches. Adding more traditional capabilities will only compound the regional security challenge, though there may be an upside. U.S. planners may find a more 'familiar' military threat easier to confront." http://t.uani.com/2akGSe4

Amir Toumaj in Long War Journal: "During the latest offensive in southwestern Aleppo, officials have thus far announced the deaths of five Iranian soldiers... The death of [an] Iranian Army artillery officer suggests that elements of the regular Army continue rotating into Syria as part of the IRGC-led expeditionary force. Army commanders publicly confirmed in April the deployment of special forces, following weeks of hints and announcements offering their services for the Islamic Republic in Syria. Special forces were defeated in one of their first major battles in Aleppo at the hands of the battle-hardened Jabhat al Nusrah, al Qaeda's Syrian branch, which is now called Jabhat al Fatah al Sham. Iran has acknowledged the deaths of seven Army commandos, all in April. With the backing of Russian airpower, the IRGC, Iranian-backed militias, and allies succeeded in encircling Aleppo last week. In early July, pro-regime forces launched the operation to link forces from the north and west of the city at Castello Road, the last rebel supply route to the city. The Guard confirmed five fatalities during the course of the operation, including two majors on July 13. At least 42 Afghan and Pakistani militiamen were killed last month, with dozens killed before July 21. Syrian Arab Army, YPG, and Russia dealt the finishing blows last week, completing the encirclement of Aleppo. The Guard was furthermore instrumental in laying the groundwork of Aleppo's siege in February, cutting off rebel supply route to Turkey with the assistance of YPG, Russia, and Iranian-backed militias including Lebanese Hezbollah, Iraqi Shia militias, the Afghan Fatemiyoun Division, and Syrian National Defense Forces. The IRGC put far more of its own ground forces in that operation, losing more than 40 soldiers including brigadier generals. The IRGC prefers to rely on foreign proxies as foot soldiers in Syria with Guard officers advising and leading operations, though the top command has not hesitated to inject its own regular ground forces if necessary. Iran's military involvement in Aleppo underscores the strategic importance of the city to the Tehran. The potential success of Jaish al Fatah in breaking the city's siege would be a setback, but Iran and its allies are committed to victory in Aleppo, or at least achieving a political solution through military means." http://t.uani.com/2aVk71C
       

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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