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BAGHDAD (Reuters) – Pomp and ceremony greeted Iranian President Mahmoud Ahmadinejad on his arrival in Iraq on Sunday, the fanfare a stark contrast to the rushed and secretive visits of his bitter rival U.S. President George W. Bush.

Ahmadinejad held hands with Iraqi President Jalal Talabani as they walked down a red carpet to the tune of their countries’ national anthems, his visit the first by an Iranian president since the two neighbours fought a ruinous war in the 1980s.

His warm reception, in which he was hugged and kissed by Iraqi officials and presented with flowers by children, was Iraq’s first full state welcome for any leader since the U.S.-led invasion to topple Saddam Hussein in 2003.

His visit not only marks the cementing in ties between the neighbours, both run by Shi’ite majorities, but is seen as a show of support for the Iraqi government and an act of defiance against Iran’s longtime enemy, the United States, which has over 150,000 troops Iraq.

A line of senior Iraqi political leaders welcomed Ahmadinejad when he arrived at Talabani’s palatial home.

Bush has visited Iraq several times, his administration keen to reduce Iranian influence in the world’s top oil-exporting region.

But that goal been made harder by a reluctance from Iraq’s mainly Sunni Arab neighbours to send high-level diplomatic representation, or even to visit, despite U.S. encouragement.

“To Iraq’s neighbours, Ahmadinejad’s visit underlines that a non-Arab country has kept its embassies open since the fall of Saddam and its leader visits Iraq,” Iraqi Deputy Foreign Minister Labeed Abbawi told Reuters.

Many Arab diplomats have stayed away after a suicide car bomber attacked the Jordanian embassy in August 2003, killing 17 people. Militants have killed several other diplomats, including an Egyptian who had been sent to head Cairo’s mission in 2005.

“Not a single Arab country has an embassy in Iraq and not one of their leaders has visited, despite Iraq being an Arab country,” Abbawi said.

Several Arab nations have missions in Iraq, but none has ambassadors permanently in the country.

Ahmadinejad’s motorcade took Iraq’s notoriously dangerous airport road to Talabani’s palace at the start of his two-day visit, eschewing the helicopter trip usually taken by other visiting dignitaries as a security measure.

Bush’s last visit in September 2007 was to a desert airbase in Anbar province in Iraq’s west. He flew in unannounced to ward off insurgent attacks and the visit was over in a few hours.

Washington says Tehran supplies weapons and training to Shi’ite militias in Iraq, a charge Tehran denies. Analysts say Iran seeks a stable Iraq but at the same time wants to make life difficult for occupying U.S. forces.

Ahmadinejad, whose government is at odds with Washington over Tehran’s nuclear programme, has repeatedly called for U.S. forces to leave Iraq, blaming them for violence that has killed tens of thousands of Iraqis since the 2003 invasion.

U.S. officials in Baghdad say they will play no role in Ahmadinejad’s visit and that the U.S. military will not be involved in protecting him as he travels around unless it is asked for help.

When Ahmadinejad flew into Baghdad, his plane was controlled by Iraqi air controllers. But from his plane, Ahmadinejad would probably have seen the rows of American armoured vehicles and helicopters at a giant U.S. military base next to the airport.

via//Reuters

The secret campaign was launched two years ago to undermine Tehran’s nuclear program. It has persuaded a ‘handful’ of key officials to leave.

WASHINGTON — The CIA launched a secret program in 2005 designed to degrade Iran’s nuclear weapons program by persuading key officials to defect, an effort that has prompted a “handful” of significant departures, current and former U.S. intelligence officials familiar with the operation say.

The previously undisclosed program, which CIA officials dubbed “the Brain Drain,” is part of a major intelligence push against Iran ordered by the White House two years ago.

Intelligence gathered as part of that campaign provided much of the basis for a U.S. report released last week that concluded the Islamic Republic had halted its nuclear weapons work in 2003. Officials declined to say how much of that intelligence could be attributed to the CIA program to recruit defectors.

Although the CIA effort on defections has been aimed in part at gaining information about Tehran’s nuclear capabilities, its goal has been to undermine Iran’s emerging capabilities by plucking key scientists, military officers and other personnel from its nuclear roster.

Encouraging scientists and military officers to defect has been a hallmark of CIA efforts against an array of targets since the height of the Cold War. But officials said those programs did not generally seek to degrade the target’s capabilities, suggesting that U.S. officials believe Iran’s nuclear know-how is still thin enough that it can be depleted.

The program has had limited success. Officials said that fewer than six well-placed Iranians have defected, and that none has been in a position to provide comprehensive information on Tehran’s nuclear program.

The CIA effort reflects the urgency with which the U.S. government has sought to slow down Iran’s nuclear advances, as well as the importance Washington attaches to finding human sources who can help fill intelligence gaps left by high-tech collection methods such as satellites and electronic eavesdropping equipment. The program was described by officials on condition of anonymity because of the sensitivity of the effort.

The White House ordered the stepped-up effort in hopes of gathering stronger evidence that Tehran was making progress toward building a nuclear bomb. The Bush administration “wanted better information” on Iran’s nuclear programs, said a U.S. official briefed on the expanded collection efforts.

“I can’t imagine that they would have ever guessed that the information they got would show that the program was shut down,” the official said.

That was the central finding of the comprehensive intelligence report released last week. The National Intelligence Estimate on Iran contradicted previous intelligence assessments and undercut assertions by the Bush administration.

The new report, which represents the consensus view of all 16 U.S. intelligence agencies, also concluded that Tehran “at a minimum is keeping open the option to develop nuclear weapons” and continuing to pursue civilian nuclear energy technologies that could help it make a bomb.

A CIA spokesman declined to comment on the effort to cultivate defectors, saying “the agency does not comment on these kinds of allegations as a matter of course.”

White House reversal

The administration’s decision to step up intelligence collection on Iran in 2005 was a reversal from a position the White House took after President Bush was first elected. Former CIA officials said that the agency had built up a large Iran Task Force, made up of nearly 100 officers and analysts at headquarters, by the end of the Clinton administration. But that office shrank to fewer than a dozen officers early in the Bush administration, when the White House ordered resources shifted to other targets.

“When Bush came in, they were totally disinterested in Iran,” said a former CIA official who held a senior position at the time. “It went from being a main focus to everything being switched to Iraq.”

Asked about decisions to reduce the size of the Iran Task Force, CIA spokesman Paul Gimigliano said: “Iran has been an issue of priority to the United States for a long time. You shouldn’t assume that a single unit of any size reflects the complete level of effort. That would be a mistake.”

Even as the task force shrank, officials said, other CIA units, including its counter-proliferation division, continued to track Iran’s procurement networks and other targets.

Some of that reduced task force capacity has been restored, former CIA officials said. Two years ago, the agency created an Iran division within its overseas spying operations, applying to a single country resources and emphasis usually reserved for multinational regions.

The stepped-up effort went beyond the CIA, and has also involved the National Security Agency, which eavesdrops on other countries’ communications, and the National Reconnaissance Office, which operates spy satellites.

The defector program was put in place under CIA Director Porter J. Goss, who has since left. The agency compiled a list of dozens of people to target as potential defectors based on a single criterion, according to a former official involved in the operation: “Who, if removed from the program, would have the biggest impact on slowing or stopping their progress?”

The rewards for defectors can be substantial, including relocation to another country and lifetime financial support.

In the two years since it was launched, the program has led to carefully orchestrated extractions of a small group of Iranian officials who operated in the mid- to upper tiers of the Islamic Republic’s nuclear programs.

None of those who defected was considered essential to the nuclear program, nor were they able to provide comprehensive descriptions of Iran’s efforts, officials said.

“Did they have replacements for these people? Any country would have,” the former official involved in the operation said. “But we did slow the program.”

The identities of the defectors have been carefully protected. However, there was speculation this year of CIA involvement in the apparent defection of a former Iranian deputy defense minister, Ali Reza Asgari, who went missing in February during a visit to Turkey.

At the time, Iran’s top police chief was quoted in the official news agency as saying that Asgari probably had been kidnapped by operatives working for Western intelligence services. Asgari was believed to have extensive knowledge of Iran’s conventional weapons program as well as its ties to the militant Shiite Muslim group Hezbollah in Lebanon.

But Asgari was not thought to be involved in Iran’s nuclear program, and the CIA, when pressed by congressional officials about the matter, adamantly denied involvement in the Iranian general’s disappearance.

Officials declined to discuss the whereabouts of the defectors, or details regarding the methods used to approach them. The former senior U.S. intelligence official said that potential defectors had not been approached directly by the CIA, but through other contacts the agency has cultivated inside the country.

Often, the former official said, there are as many as “three degrees of separation” between agency personnel and those targeted for approach, and that each of those interim contacts had to be thoroughly vetted before a planned approach was approved. Those who have left Iran have been debriefed and relocated either by the CIA or with the help of allied intelligence services, the former official said.

The CIA program was implemented after significant debate between the White House and the agency over its size and scope, officials said. National Security Council officials urged the CIA to make the program as broad as possible, and to spread word through Iranian networks that the United States was prepared to help officials leave the country and relocate.

But CIA officials fought to keep the program narrowly targeted to avoid catching the attention of Iran’s intelligence service. Even at that, CIA officials assumed that Iran’s service was keeping close watch on key officials in the nuclear program, and that potential defectors could be decoys.

The “Brain Drain” program is among the latest in a long series of efforts to shore up U.S. intelligence on Iran. It was launched at a time when a presidential commission was preparing a scathing report on the inadequacies of U.S. intelligence on Iran and other nations suspected of having nuclear, chemical or biological weapons.

U.S. intelligence officials said the information that surfaced this summer prompting the reevaluation of Tehran’s nuclear weapons program centered on intercepts of Iranian government officials’ conversations and the seizure of a journal that contained notes documenting the country’s decision to shut down its weapons research.

During a briefing with reporters last week, a senior U.S. intelligence official said that Iran was “the hardest intelligence target there is.”

“I mean, by comparison, North Korea is an open and transparent society,” the official said.

History of setbacks

U.S. intelligence on Iran has been beset by setbacks stretching back more than two decades. The CIA has had no permanent presence in the country since the United States broke diplomatic ties with the country — and removed embassy personnel, as well as CIA officials who operated under diplomatic cover — after the 1979 Islamic Revolution.

Afterward, the agency began recruiting sources in Europe and elsewhere, in cities where there are large populations of Iranian expatriates who travel to and from the country. But the effort has been marked by failures.

In 1989, Iran’s intelligence services broke up a network of agents in the country that was being directed by a CIA station in Germany known as “Tefran,” for Tehran-Frankfurt. When that station was shut down, much of the collection work was shifted to Los Angeles, where there is a large population of Iranian immigrants, many of whom visit their home country.

Source: Los Angeles Times


The US is shaping up for an attack on Iran – which is just what its unpopular president, Mahmoud Ahmadinejad, needs to survive as he faces disillusion among the public and rising anger among the ayatollahs. Adrian Levy and Cathy Scott-Clark report

Saturday December 8, 2007
The Guardian

Since his surprise election in 2005, Iran’s president Mahmoud Ahmadinejad has widely been seen in the west as a dangerous demagogue with an alarming anti-Semitic streak, a man determined to take his country into a bruising showdown with the US. His jarring style of anti-diplomacy has alienated virtually every country bar his declared allies in Cuba, Belarus, Venezuela and Syria. On the one hand, his repeated collisions with the west have played to a rising wave of nationalism at home, and to the anger felt by the wider Islamic world. On the other hand, he has also given America the potential excuse it has long sought to open hostilities. One third of the US navy is massed in the Persian Gulf. Whether a war were fought over Iran’s bid for a nuclear bomb or its alleged meddling in the ongoing carnage in Iraq little matters to the Bush administration. Even a National Intelligence Estimate, published on Monday, that downplayed Iran’s nuclear weapons intentions does not really matter to the hawks – they are ready to go.

In Europe, what was once unthinkable – backing another, potentially bloody conflagration against an Islamic power while the world is still bogged down in Iraq – has become a possibility. Even before Bush started talking in October in Old Testament terms about a third world war being triggered by Iran, the French foreign minister had argued back in September that Iran’s nuclear programme was bringing the west to the brink: “We have to prepare for the worst, and the worst is war.”

Ahmadinejad, however, has suckered the west into a confrontation for his own reasons. He has derailed Iran’s economy, squandering record oil profits and paralysing the banks. He has alienated his core support among the poor. He has brazenly attempted to rig clerical institutions, the machinery that turns out Shiadom’s future leaders, so as to consolidate his rule. Such an audacious plan, from a man who could once do no wrong, has triggered a momentous fight-back from affronted clerics and senior political figures.

Those who know him best say Ahmadinejad has come to realise that it will take something momentous for him to hold on to power come the parliamentary elections next March – hence his provocations. Vali Nasr, an Iranian-born professor of international politics at Tufts University in Boston, goes so far as to say, “He desperately needs war with America to survive politically in a country that is as exhausted as Europe and the US is with his increasingly volatile grandstanding.”

For a visitor, the sheer size of Iran’s capital is daunting. Tehran is one of the modern megalopolises, twice as populous as London. The wealthy northern suburb of Elahieh is often highlighted as proof of the emerging new Iranian society: photographs of Gucci-clad women and men in jeans are beamed around the world as evidence of change. However, it soon becomes obvious that its influence is small. More than 10 million poor, religiously conservative residents dominate the city. They migrated here during the years of the Shah, when bungled land reforms allocated such small parcels of agricultural land to them that no one could produce enough food to survive. Today they live cheek by jowl: the chadoris, women swathed head to foot in semi-circular black robes, and the basijis, men and boys who dress like their president and who have been recruited by the million to the Basij volunteer military force of the Revolutionary Guards. They are the country’s plain-clothed ears and eyes, as well as the morality police, enforcing a rigid vision of a Shia state. In the city warehouses are filled with workers trimming silk carpets destined for western showrooms they will never visit. Most have never held a passport and have little interest in seeing the world.

Ahmadinejad had barely travelled, too. He talked proudly when he stood for the presidency in 2005 of having left Iran only once, “for a short trip to Austria.” He appeared to be one of the people. In Iran what you wear is a political statement, and he sounded and dressed as they did. Conjuring the time when he was among the disenfranchised mass who signed up to the Iranian Revolutionary Guards Corps established by Ayatollah Khomeini, he promised to take people back to the pious values of 1979. A turning point in his campaign came when he released a short film showing him dining cross-legged on the floor of his simple, working-class home on Tehran’s 72nd square, his wife hidden by her chador. Compare this with the image of his opponent, Hashemi Rafsanjani, two-time president, a wealthy ayatollah whose family owned hundreds of acres of pistachio orchards in Kerman province, and who produced ill-judged campaign ads showing him discussing the lack of entertainment options with a group of affluent, western-dressed teenagers from Elahieh.

When Ahmadinejad appeared on the international stage he seemed unconventional, even shabby, among the crowd of sombre suits; his uniform was a crumpled jacket, buttoned-up shirt and beard, his nervous smile made him seem modest and simultaneously embarrassed. World leaders overlooked his apparent ignorance of the niceties of international diplomacy and his street vernacular, drawn from the working-class suburb of Tehran where he grew up, the youngest son of a migrant worker.

But it soon became clear that this former student of traffic management and one-time mayor of Tehran was advancing a radical conservative agenda. An intensely religious man, he began to sound Talibanesque in his pronouncements. There were no homosexuals in Iran, he said (without explaining this was because they were forced to undergo sex-change operations at the government’s expense). Women belonged in the chador, he declared, as his administration published figures showing that in just two months 160,000 had been charged with being insufficiently veiled earlier this year. Public hangings – which had not been seen in the capital for many years – returned to the city’s streets and were broadcast on live TV. After drawing international condemnation for restarting Iran’s stalled nuclear programme, Ahmadinejad raised the temperature by sacking Ali Larijani, Iran’s vastly experienced secular nuclear negotiator, replacing him with a former militia leader.

Throughout Tehran, there are 60ft-high posters depicting Iran’s “martyrs”, the million soldiers who fell during the eight-year war with Iraq in the 80s. The ghosts of the dead fill the city. Ahmadinejad has invoked them at every stage of his political career. He reminds people that when he was mayor in 2003, he had martyrs’ bodies exhumed from their provincial cemeteries and reburied in the capital’s squares so that wherever people walked there were memories of loss beneath their feet.

Patriotism was only one string he pulled. At the heart of his election message was a claim that chimed with the deeply religious poor: a divine force protected him and would help the Iranian people get closer to God, too. In a series of national roadshows that became his political signature, he insisted that messengers from heaven had told him that the Mahdi, a messiah-like figure who Iranian Shi’ites believe vanished in AD873, was about to return to the mortal world bringing salvation.

According to the sacred texts of Shi’ism, the Mahdi’s reappearance would establish a just Islamic society at a time of war and chaos and, citing one such text, Ahmadinejad and his spiritual advisers declared that that time was now.

It must surely rank as one of the most hyperbolic manifesto pledges ever made, but still, it got Ahmadinejad elected. The new president then shared his vision with the UN general assembly in September 2005. During his address he appealed to God to “hasten the emergence of… the Promised One…” After he left the meeting, Ahmadinejad had a conversation with an Iranian cleric, describing how he had felt the hand of God in the UN, which was recorded and uploaded on to the net: “I felt it myself… for 27 to 28 minutes all the leaders did not blink. They were astonished… It’s not an exaggeration, I was looking.”

But there was no point making such grand pledges if he could not provide the evidence. Ahmadinejad began furiously investing millions of pounds to animate his claim that the Mahdi was coming. And he chose to do it at one of the holiest places in Iran.

The city of Qom, 90 miles south of Tehran, on the edge of the Kavir desert, is the scene of frenzied building work. According to local tradition, the Mahdi once appeared here in a vision to a shepherd watering his sheep at a well on the outskirts of the city, and devotees believe that it will be from this well that he re-emerges.

For several hundred years a small mosque, known as Jamkaran, stood on the vision site, attracting pilgrims who scribbled their innermost desires on scraps of paper that they threw into the well. One of Ahmadinejad’s first acts in power was to have his entire cabinet sign a piece of paper that was also put down the well, a pledge to transform the mosque into a place worthy of the Mahdi’s presence. Soon after, posters started appearing on the streets of Tehran declaring, “He’s Coming.” There was talk of a fast train link to connect Jamkaran to the capital in case the Mahdi turned up without warning, enabling politicians to get to the mosque in double-quick time.

Today it resembles an Islamic Lourdes. The modest mosque has been embellished with 100ft minarets, blue-tiled domes and new prayer halls. Hundreds of thousands of devout, working-class Iranians flock to the site, especially on Tuesday nights, the reputed time for the Mahdi’s reappearance. Ahmadinejad shuttles here almost weekly, and whenever he appears he is mobbed like a rock star. A holy of holies in an ultra-conservative country, it is out of bounds to western tourists who catch only a blur of blue tiles from their coaches as they are escorted down the motorway to the archaeological sites of Esfahan, Persepolis and Shiraz.

As the sun burns red, dozens of cranes and earthmovers move along the horizon. Every road leading to the mosque is filled with chadoris, who run, clutching bags and children, to claim a small patch on the tarmac perimeter where they will eat, sleep and pray through the night. Ahead, the mosque is illuminated by a hundred thousand bulbs. Tears wash down the faces of worshippers as they catch their first glimpse of the minarets. As the muezzin’s call wells up from deep inside the complex at 7pm, the crowds kneel as one in prayer.

The maddah, or storyteller, takes the crowd on an emotional late-night journey. “Come on, come on! I have a fear of not seeing You!” he cries, appealing to the Mahdi, as the crowds sway and sob. He tells stories of martyrs who have come back in his dreams to warn that Iran has lost its way, and that until it returns to its revolutionary roots they will not reach paradise. Only Ahmadinejad can be trusted to carry out this exorcism, he warns. It is a message that resounds with every family here, as all have lost brothers, sons and fathers. “We must follow our president who is brave and facing western aggression,” says Farida Milani, from Yazd, who is here with her wheelchair-bound mother.

Before Ahmadinejad came along, Qom was home to one vitally important shrine, and it was not Jamkaran. The city was world-famous among Shias as the burial spot of Lady Fatima Masuma, a direct descendent of the Prophet Muhammad, whose death here more than a millennium ago transformed a previously forlorn desert settlement into a pilgrimage site. It became a centre of learning in the 20s, when Shi’ite intellectuals, including Ruhollah Khomeini, began gathering. When he returned from exile in 1979 as Grand Ayatollah Khomeini, he resettled in Qom, from where he led the country’s transformation into an Islamic republic, turning the city’s seminaries into its ideological engine. Soon there would be 300 madrasas taking in 50,000 students.

Qom was tasked with fomenting Iran’s theocratic foreign policy; it became a place much feared by the US and Israel. Both accuse it of being a provocative source of inspiration for students affiliated to extreme groups, including Hezbollah and Hamas, who come to study at the government’s expense. Some have also returned to seek sanctuary, including Imad Mughniyah, Hezbollah’s special operations chief, spotted in Qom in 2001. He has been accused of masterminding the 1983 bomb attacks on the US embassy and marine barracks in Beirut that killed 304, the 1985 hijacking of TWA flight 847 and numerous kidnappings of westerners in Beirut. More recently, he was blamed for the attack on a Jewish community centre in Buenos Aires in 1994 that left 92 people dead. For these reasons Qom has been identified as a possible target in any US attack.

Ahmadinejad knew that scores of high-ranking clerics would be affronted by his manipulation of the Mahdi story, derisive of his scholarship and critical of what many saw as a cynical attempt to undermine the one man who had the authority to sack him. His claims challenged Grand Ayatollah Ali Khamenei, Iran’s Supreme Leader and commander-in-chief, whose official title, vali-e faqih, means “God’s jurisprudent on earth” – a direct link with the divine that would be superseded if the Mahdi showed his face.

Although the Supreme Leader had done more than anyone to get the president elected, issuing directives to all Revolutionary Guardsmen and their families to vote for him in 2005, relations soured after Ahmadinejad proved not to be the malleable figure Khamenei had hoped for. Frozen out by the theocratic establishment, Ahmadinejad fought back. He began lambasting many of the city’s septuagenarian clerics for being corrupt and soft, reminding people that some had become rich during the Iraq war trading weapons and selling ration cards.

In Qom, Ahmadinejad sought to eclipse long-established seminaries with his own to bring the city under his control. Government money was poured into the Imam Khomeini Institute, a hardline madrasa whose scholars were charged with trawling through religious treatises to find evidence that the Mahdi’s re-emergence at Jamkaran was imminent. Ahmadinejad placed in charge Mohammad Taghi Mesbah-Yazdi, a cleric who would soon become known as an ayatollah, a significant promotion without the normal years of study.

Mesbah-Yazdi has become Ahmadinejad’s ideological mentor. They first met in the early 80s when Ahmadinejad attended a series of his lectures on the philosopher Martin Heidegger, who had been championed by the Nazis. Here, Ahmadinejad found the noisy, blue-collar nationalism that he would imbue with hyper-spirituality. He created a vision of a pious and soldierly people easing the path of the coming Mahdi.

Abbas Milani, director of Iranian studies at Stanford University in California, who has studied Ahmadinejad’s background, explains. “Mesbah-Yazdi forged key elements of an Islamic pseudo-fascist ideology founded on a sour brew of anti-Semitism and Heideggerian philosophy… This in turn has informed Ahmadinejad’s world view.”

An enthusiastic supporter of the death penalty and public floggings, Mesbah-Yazdi was recently elected to the Assembly of Experts, the body responsible for choosing the next Supreme Leader. He has made it clear he is eyeing the top job.

The ground floor of the Imam Khomeini Iistitute is given over to a large bookshop exclusively selling works by Mesbah-Yazdi. His image is plastered on every wall. Turbaned mullahs enter the building on their way to class. Students come from all over the Muslim world – Pakistan, Afghanistan, Lebanon, Palestine; there are even a handful from America.

A white-bearded ayatollah approaches and asks, “What are you doing here?” After a garbled explanation about wishing to study Islamic law, he introduces himself as Ayatollah Haghani, Yazdi’s director of international affairs. He is clearly uncertain, but agrees to show the library where mullahs hunch at study stations, their turbans neatly hanging on a hat-rack in the corner. The shelves are stacked with volumes by Marx, Popper and Russell, and in the periodicals section are anti-terrorism papers produced by Chatham House, in London. The ayatollah’s phone trills a Qu’ranic prayer; whoever is on the line is angry that foreigners are here. “You must leave,” the ayatollah says curtly. The elevator descends in silence and as the doors open on the ground floor three meaty security guards jump in. Behind them is the unmistakable figure of Mesbah-Yazdi. He brushes past, scowling, in a whirl of coffee-coloured robes. He signals for visitors to be escorted out.

Controlling Qom was only one plank in Ahmadinejad’s strategy. As a parvenu, wresting power from the political establishment has been equally important, and he has done it with gusto, filling the cabinet and major administrative bureaucracies with former Revolutionary Guards and intelligence officials. His new intelligence minister is Gholam Hossein Mohseni-Ejehei, a man whom only a little digging reveals has been linked to the murders of Iranian political activists. The new interior minister, Mostafa Pour Mohammadi, sat on a three-person committee in 1988 that ordered the execution of thousands of political prisoners.

Even the culture ministry has been turned upside down. Its new chief is Hossein Saffar Harandi, a university buddy of Ahmadinejad and former Basij leader, whose first act in office was to call upon Iranian musicians to compose a symphony of support for Iran’s nuclear programme, and who has shut down almost every newspaper and website critical of the regime. “It’s not what they did in the past that matters but what they do in the future,” the president has said in defence of his men. This is precisely what worries Shirin Ebadi, the Nobel peace prize-winning Iranian lawyer, who told the Guardian, “The situation in Iran has worsened considerably with these new men in power.” Women who complain of rape have been stoned. The age of consent for girls has been lowered to nine. Children have been convicted and executed for adult crimes. Barbers have been jailed for shaving beards.

Yet, for all Ahmadinejad’s efforts to control every aspect of Iranian life, his authority has begun slipping away. Some of Iran’s most senior clerics have questioned the manipulation of the Mahdi story. Mesbah-Yazdi has been derided as Professor Crocodile (the name Mesbah rhymes with temsah, the Persian word for the reptile), while Ahmadinejad has been accused of “endangering the reputation of Islam and the Qur’an” by Javadi-Amoli, an ayatollah at the Qom seminary school.

But the most damaging criticism comes from Iran’s Grand Ayatollahs, a band of 19 leaders whose spiritual authority remains unquestioned. They, too, have become enraged by the upstart in his Revolutionary Guards suit.

At his modest headquarters, Grand Ayatollah Hossein Ali Montazeri, Khomeini’s former deputy, sits cross-legged, a skullcap covering his remaining wisps of grey hair. He does not hold back. He accuses the current regime of despotism, over-reliance on Iran’s security forces and disrespect for the seminary. “Power brings ignorance, and those in power now have forgotten what the revolution was for.” He pauses, aware of the weight of his words. “They have become extremists, going in a different direction.”

The Jamkaran extravaganza has enraged the grand ayatollah. “People go expecting to see the Mahdi sitting there in a corner. They are being misled. It is wrong. The Mahdi is very dear to our people and the politicians are taking advantage.” He has one more thing to add: “Iran needs to put aside all the bad blood and America needs to stop interfering, before it creates another Iraq or Afghanistan.”

At his Qom madrasa, Grand Ayatollah Yusef Saanei has begun to make some startling pronouncements: women having equal rights to men, non-Muslims being treated as respectfully as Muslims, listening to music being permissible, men being allowed to shave their beards. On his wall is a framed quote from Khomeini, saying, “I have raised Mr Saanei like a son of mine.”

“America thinks Iran is violent and responsible for all its ills,” he says. “It is up to our leaders to show the world the difference between Sunni and Shia Islam, to show Shia Islam has never condoned terrorism and renounces terrorist groups like al-Qaida.” Unlike his president, he wants reconciliation. “After Khomeini died, the spirit of what he believed in died away, too. If the current president continues, there will be no new generation.” Saanei taps his cane. “If the people now in power carry on, Iran will crumple from the inside and die.”

Outside Qom, dissent is building, too. People have begun to question how far Ahmadinejad is prepared to go with his nuclear sabre-rattling and whether the country can defend itself against US “surgical strikes”. Among targets already identified by Washington hawks are Revolutionary Guards facilities, many of them in the capital. Last month Jomhuri Eslami, an influential conservative newspaper, chastised the president in a front-page editorial for describing officials who advocated restraint in the nuclear stand-off as “traitors and spies”.

However, the most significant threat to Ahmadinejad is his appalling economic record. As soon as he became president, he began increasing state control and destroying the free market. Ministry of finance officials were replaced by clerics with no economic experience; Ayatollah Mesbah-Yazdi was appointed Ahmadinejad’s main economic adviser.

Together they have implemented a series of disastrous reforms dictated by the principles of Sharia law. After Mesbah-Yazdi likened banks to loan sharks, Iran’s independent banking sector was crippled by a raft of restrictive measures. A low-interest loans scheme for small businesses, designed to encourage job creation, collapsed. Millions have been spent on popular measures, such as the “Love Fund” to help poor young men meet the costs of marriage, and the minimum wage has been increased by 60%. But more than 20% are now out of work and the urban poor, Ahmadinejad’s backbone, have been floored by rising prices.

Iran should be one of the richest countries in the world. It is, after all, the fourth largest oil producer and has the second biggest natural gas reserve. But the president has squandered windfall oil revenues on billion-dollar no…#8209;bid contracts awarded to companies owned by friends in the Revolutionary Guards. In the past 18 months, millions of dollars worth of oil revenue is thought to have disappeared into individual pockets as the military has moved seamlessly into building airports, producing oil and opening mobile phone networks, transforming Iran into a military state not unlike its neighbour, Pakistan.

Mohammad Ghouchani, editor of the Hammihan newspaper, says, “Ahmadinejad likes to present himself as Robin Hood, taking from the rich to help the poor, but his scattergun and ill-conceived policies have achieved precisely the opposite.” Evidence that this message is sinking in came in September when a poll found that 56% of Ahmadinejad’s supporters in 2005 would not turn out for him again. Meanwhile, Hashemi Rafsanjani, the reformist he outwitted in 2005, has gathered strength.

Iran’s former ambassador to the UK, Hossein Adeli, has appealed to the west to back down. “This country, this baby of revolution, has been living 30 years in isolation under a deep sense of insecurity, and the majority of Iranians are tired. We are trapped in a wall of deep mistrust and suspicion with the US and UK that has now reached its peak. Our officials and your officials sit in their respective positions issuing rhetoric for their domestic audiences. They’re worrying about winning the next election, not communicating with the other side or seeing the ground realities.” Adeli should know. Until Ahmadinejad forced him out of office in December 2005, he had been handling secret discussions between Tehran, London and the Bush administration.

What should happen next? “We have to start talking. If we don’t, Ahmadinejad will be saved by people who have begun to loathe him. Washington needs to stop, take breath and realise we have many common strategic interests. Iran’s most important strength, our weapon, is our influence in the heartland of the world.”

Instead of open hostilities, Adeli calls for investment coupled with an offer of unconditional negotiations from Washington. He believes that would provide the impetus for some of the four million wealthy Iranians exiles who took a trillion dollars worth of capital with them to return and launch a campaign for the Islamic Republic’s first ever democratic election. It is one that Ahmadinejad would now most likely lose.

Source: Guardian Unlimited

 

Why the Bush administration decided to make the new Iran nuclear intelligence public.

By Michael Isikoff and Mark Hosenball

 

The Bush administration decided to release new National Intelligence Estimate (NIE) extracts reporting that Iran terminated its nuclear weapons program in 2003 at least in part because some officials feared leaks and accusations of a cover-up if the material were kept secret, according to current and former U.S. intelligence officials.

The unexpected release of the new NIE on Monday comes just over a month after retired Adm. Mike McConnell, the Director of National Intelligence, issued a written order to all agencies under his supervision directing that it would be his office’s policy that NIE extracts “should not be published.” McConnell’s order followed the government’s recent publication of declassified extracts of several recent NIEs on contentious issues like the Iraq war and terror threats to the United States. McConnell declared that the “possibility that KJs [key judgments] or other positions [sic] of an estimate will be leaked is not a sufficient reason for preparing unclassified” NIE extracts. The order said that NIE extracts in the future would be declassified only if it could be done in a way that would protect intelligence sources, if the extracts would include a “nearly complete presentation” of the logic behind a declassified intelligence judgment, and if there were “compelling reasons”—such as the need to inform the public or police about looming terror threats—for making the classified analyses public.

As recently as two or three weeks ago intelligence officials were telling members of Congress and the media—including NEWSWEEK—that the conclusions of the new NIE on Iran’s nuclear ambitions, which had been in preparation inside the intelligence community for months, were unlikely to be made public. However, just over a week ago, when a final draft of the Iran nuclear NIE was completed and approved by McConnell’s office and the 16 U.S. intelligence agencies he supervises, intelligence officials and Bush administration policymakers changed their minds about keeping it secret, several officials said.

Intelligence officials, primarily McConnell’s principal deputy intelligence czar, Donald Kerr, consulted with the White House before releasing the declassified version of the NIE on Monday, several officials said, and White House officials agreed that the report should be made public. But a senior intelligence official insisted that intelligence officials alone made the decision as to which parts of the NIE should be made public.

The official reason for making the new NIE’s conclusions public is that they represent a change in previous U.S. intelligence assessments of Iran’s nuclear ambitions. In public statements over the last two years, senior intelligence officials noted that an NIE produced in 2005 estimated with “high confidence” that Iran was “determined to develop nuclear weapons.” (The 2005 NIE text was never declassified.) According to a statement issued earlier this week by Kerr, the administration decided to release extracts from the new NIE because the import of the new analysis is that “our understanding of Iran’s capabilities has changed.”

Other officials said that in deciding to release key portions of the new NIE, the administration also was mindful that if it had tried to keep the new NIE’s conclusions secret, they almost certainly would be leaked to the media anyway. Given their political significance, the administration then could have been accused of trying to cover up important intelligence that appeared to sharply contradict its policy statements about Iran. These included claims by President Bush that Tehran’s nuclear ambitions could lead to World War III and implicit threats of U.S. military action against Iran. An intelligence official familiar with the views of the intelligence czar’s office insisted that concern about leaks was not a principal factor in deciding to make the document public. “We didn’t think it was fair to have [the old assessment out there] when that judgment had changed,” the official insisted.

Bruce Riedel, a former top Middle East expert at the CIA and National Security Council, noted, however, that the raw intelligence reporting that led McConnell’s office to its new, less alarmist, judgments about Iran’s nuclear ambitions would have been seen months ago by officials on congressional intelligence committees, who then likely would have “raised a fuss” if this material had been ignored in the new NIE on Iran’s nuclear effort. Riedel added, “In 20 years in the American intelligence community, I have never seen a U-turn on a key issue as dramatic as this.”

Declassified extracts from the new Iran nuclear NIE, which can be read on the intelligence czar’s Web site, say that U.S. intelligence today believes that Iran once had a secret program to build a nuclear bomb but that U.S. agencies now have “high confidence” that the program was halted in 2003. The document says that the United States assesses with only “moderate confidence” that as of a few months ago Tehran’s secret program had not been restarted, but also says that if Iran resumed its nuclear bomb program it would be unlikely to be able to actually produce a bomb until 2010 at the earliest, and more likely not for several years more. The document says U.S. intelligence believes with “moderate-to-high confidence” that Tehran is still “keeping open the option to develop nuclear weapons.”

The new NIE on Iranian nukes, requested by Congress about a year ago, was originally supposed to have been completed last spring. However, several months ago intelligence officials told NEWSWEEK that completion of the report had been put on hold while “new information” about Iran’s nuclear program was being evaluated. While President Bush said that he had been briefed on some information related to the new NIE at the end of the summer, he apparently was not briefed on the full import and conclusions of the new NIE until a week ago—one day after the final draft of the NIE was completed.

A congressional official familiar with a confidential briefing given about the NIE three weeks ago said that during that briefing, while intelligence officials laid out many elements in the new NIE, they apparently did not make entirely clear how sharply the new NIE’s conclusions would diverge from previous U.S. intelligence findings, particularly with regard to the key assertion that Iran had shelved its nuclear weapons program in 2003. A British official familiar with the views of British intelligence said that he had “no prior knowledge” of the new NIE findings before they were published, and said other British intel officials were “somewhat surprised.”

Officials familiar with the new intelligence that led to the new NIE’s most critical conclusions—that Iran abandoned its nuclear bomb program four years ago and probably hasn’t revived it—say the information comes from multiple sources that include both public information, like TV news pictures and reports from the International Atomic Energy Agency, and highly classified intelligence, including reporting from the National Security Agency, which eavesdrops on electronic communications, and the CIA’s National Clandestine Service, which collects information from human spies, such as defectors and in-place informants. Both current and former officials said that even though the latest NIE says Iran actually suspended its secret bomb development program in 2003, the intelligence reporting on that development did not reach U.S. agencies until this year. The sources said that there is no indication at this stage that U.S. intelligence agencies, for one reason or another, might have overlooked or dismissed similar reporting about the suspension of the Iranian program that had come in earlier.

Officials declined to discuss the nature of secret human sources from whom the CIA might have collected information for the new NIE estimate. But two officials categorically denied news reports claiming that some of the information came from Ali Reza Asgari, a former senior Iranian defense official who disappeared earlier this year while on a visit to Turkey. (In fact, U.S. officials denied any knowledge of Asgari’s whereabouts or the reasons for his disappearance.) Officials contacted by NEWSWEEK declined to comment on allegations that part of the intelligence that went into the new report was an electronic intercept report in which an Iranian scientist was overheard complaining, apparently earlier this year, about how Iran’s nuclear weapons program had been shut down in 2003.

Some conservative critics of U.S. intelligence have criticized the new NIE’s conclusions, suggesting that U.S. agencies may have fallen victim to an elaborate deception mounted by Iranian intelligence. “The chances that this is Iranian disinformation are real,” insisted John Bolton, the former Bush administration hardliner who, before serving as U.S. Ambassador to the United Nations, headed the State Department bureau that monitored nuclear proliferation activities by Iran and other countries. Bolton told NEWSWEEK that while he was at the State Department he never saw any intelligence reporting indicating that Iran had given up its nuclear weapons program.

However, U.S. intelligence officials said that while an Iranian disinformation effort was possible, they believe that their conclusions were not influenced by Iranian disinformation. Indeed, officials said, the underlying intelligence information that went into the NIE was carefully vetted by “red teams” of analysts and counterintelligence officers for possible Iranian deceptions, but stood up to this intense vetting. “We did turn it over to our CI [counterintelligence] folks and said, ‘What do you think? Could this be a strategic deception?’” one senior intelligence official said, adding, “I think the overall judgment is that is plausible but not likely, and the overall assessment of the community is contained in the words you see in the key judgments: high confidence, high confidence, high confidence.”

Terror Watch, written by Michael Isikoff and Mark Hosenball appears online weekly

Source: Newsweek

We’ve got to keep pressing hard against an attack on Iran: The security of the United States, as well as the Middle East, is hanging in the balance.

Rhetoric flowing out of the White House indicates the Bush administration is planning a military attack on Iran. Officials in Saudi Arabia, a close Bush ally, think the handwriting is on the wall. “George Bush’s tone makes us think he has decided what he is going to do,” according to Rihab Massoud, Prince Bandar ben Sultan’s right-hand man. Saudi Social Affairs Minister Abdel Mohsen Hakas told Le Figaro, “We are getting closer and closer to a confrontation.”

As Bush and Cheney try to whip us into a frenzy about the dangers Iran poses, their argument comes up short. They say Iran is developing nuclear weapons, but Mohamed ElBaradei, director of the U.N. International Atomic Energy Agency (IAEA), says there is “no evidence” of this. They say Iran is sending deadly weapons into Iraq to kill U.S. troops, but those devices can be manufactured in any Iraqi machine shop. Now the New York Times reports most of the foreign fighters in Iraq come, not from Iran, but from two Bush allies — Saudi Arabia and Libya. An estimated 90 percent of suicide bombings are carried out by foreign fighters. And senior U.S. military officials believe the financial support for Al Qaeda in Mesopotamia comes primarily from Saudi Arabia.

Yet the Bush/Cheney polemics about Iran continue to escalate. In light of the lack of evidence Iran is actually developing nukes, Bush equated Iranian “knowledge” to make nuclear weapons with World War III. “If you’re interested in avoiding World War III,” he said recently, “it seems like you ought to be interested in preventing them from having the knowledge necessary to make a nuclear weapon.” This substantially lowers the bar for a U.S. attack on Iran.

A few days after Bush warned of World War III, Cheney called Iran “the world’s most active state sponsor of terrorism,” adding, “The Iranian regime needs to know that if it stays on its present course, the international community is prepared to impose serious consequences … We will not allow Iran to have a nuclear weapon.” These threats are eerily reminiscent of his rants in the run-up to the U.S. invasion of Iraq.

In an unprecedented move, the Bush administration labeled the Iranian Revolutionary Guard a terrorist organization. It appears the administration applied that label in an effort to trigger language in the 2002 Congressional authorization for the use of military force in Iraq. That authorization says, “The President has authority under the Constitution to take action in order to deter and prevent acts of international terrorism against the United States.”

Like Bush’s invasion of Iraq, an attack on Iran would violate international and U.S. law. The U.N. Charter prohibits the use of military force except in self-defense or with the approval of the Security Council. Iran, which has not attacked any country for 2,000 years, hasn’t threatened to invade the United States or Israel. Rather than protecting Israel, U.S. or Israeli military force against Iran will endanger Israel, which would invariably suffer a retaliatory attack.

In making its case against Iran, the administration points to Iranian President Mahmoud Ahmedinejad’s alleged comment that Israel should be wiped off the map. But this is an erroneous translation of what he said. According to University of Michigan professor Juan Cole and Farsi language analysts, Ahmadinejad was quoting Ayatollah Khomeini, who said the “regime occupying Jerusalem must vanish from the page of time.” Cole said this “does not imply military action or killing anyone at all.” Journalist Diana Johnstone points out the quote is not aimed at the Israeli people, but at the Zionist “regime” occupying Jerusalem. “Coming from a Muslim religious leader,” Johnstone wrote, “this opinion is doubtless based on objection to Jewish monopoly of a city considered holy by all three of the Abramic monotheisms.”

It seems significant that support for Ahmadinejad may be waning among the real power brokers in Iran, particularly the supreme leader Ayatollah Ali Khamenei. The Jomhouri Eslami daily in Iran, which has close ties to Khamenei, has denounced Ahmadinejad’s characterization of those opposed to his nuclear program as traitors.

If the United States attacks Iran, the results would be catastrophic. Three Europeans, including former French Prime Minister Michel Rocard and Yehuda Atai, a member of the Israeli Committee for a Middle East without Weapons of Mass Destruction, wrote in Libération, “We are being warned about it from all sides: The United States is at the brink of war, ready to bombard Iran. The only thing lacking is the presidential order.” Drawing parallels with the U.S. war in Iraq, they caution, “An attack against Iran, whatever its targets, its methods and its initial scope, will significantly aggravate the situation, achieving similar results, without even talking about the disastrous impact on the global economy.” They add, “It would be still worse if the insane idea of using tactical nuclear weapons — which exist — to prevent Iran from building, in spite of its denials, the nuclear weapons that recent IAEA inspections have found no trace of, were implemented.”

The threats against Iran appear to be politically motivated. Journalist Seymour Hersh’s extensive research has convinced him that Bush/Cheney will invade Iran. They likely think embroiling us in Iran will ensure a GOP victory in 2008. It will certainly make it harder for the next President to withdraw from Iraq once we are mired in Iran.

If Hillary Clinton becomes that next President, she will likely continue Bush’s foreign policy. Clinton, who favors leaving a large contingent of U.S. troops in Iraq, says nothing about disbanding the huge U.S. military bases there. Clinton is also rattling the sabers in Iran’s direction. She voted to urge Bush to label the Iranian Revolutionary Guard a terrorist organization and she, too, misquotes Ahmadinejad about Israel.

As we go to the polls in the coming months, it is imperative we scrutinize the candidates’ positions on Iraq and Iran. The security of the United States, as well as the Middle East, is hanging in the balance.

Digg!

Marjorie Cohn is a professor at Thomas Jefferson School of Law and the President of the National Lawyers Guild. She is the author of “Cowboy Republic: Six Ways the Bush Gang Has Defied the Law.” Her columns are archived at marjoriecohn.com.

Source: AlterNet

RIYADH (Reuters) – Venezuelan President Hugo Chavez told an OPEC summit on Saturday crude oil prices could double to $200 if the United States attacked his ally Iran.

“If the United States is crazy enough to attack Iran or commit aggression against Venezuela … oil would not be $100 but $200,” Chavez told the summit in the Saudi capital.

Chavez addressed a hall containing Iranian President Mahmoud Ahmadinejad, a comrade-in-arms against Western influence.

Fears the United States or its ally Israel could attack Iran over its nuclear energy programme — which Washington says is a cover for developing atomic weapons — have helped drive world oil prices to record levels. Tehran denies the charge.

Oil has lapped against the $100-mark this month, prompting consumer nations to call on the exporter group to provide the market with more crude.

OPEC oil ministers said earlier this week in Riyadh that the summit, which ends on Sunday, will leave any decision on whether to raise OPEC output to a meeting in Abu Dhabi on December 5.

A draft final communique says only that OPEC seeks “stability of global energy markets” and oil ministers including Saudi Arabia’s say factors beyond their control limit OPEC’s powers.

That cleared the way for OPEC ministers to try to steer the summit towards relatively uncontroversial environmental issues.

The group “shares the international community’s concern that climate change is a long-term challenge”, the draft says.

OPEC Secretary-General Abdullah al-Badri said this week OPEC would be willing to play its part in developing carbon capture and storage technology to help reduce emissions in the air.

Though the draft makes no mention of an environmental fund with consumer countries to which OPEC would contribute — an idea floated in forums this week — King Abdullah told the opening session Saudi Arabia would give $300 million towards environmental research.

On Friday, Saudi Arabia steered the group towards rebuffing an attempt by Iran and Venezuela to highlight concern over dollar weakness in the summit communique.

The drop in the value of the dollar against other major currencies helped fuel oil’s rally to a record $98.62 last week. Yet it has also reduced the purchasing power of the Organization of the Petroleum Exporting Countries.

ANTI-U.S. PLATFORM

Chavez’s address on Saturday set the stage for a summit that could see more anti-U.S. rhetoric emanate from the capital of one of its closest allies.

“OPEC must stand up and act as a vanguard against poverty in the world,” self-styled socialist revolutionary Chavez said.

“OPEC should be a more active geopolitical agent and demand more respect for our countries … and ask powerful nations to stop threatening OPEC.”

Saudi Arabia’s octogenarian leader, who sat stony-faced throughout the 25-minute speech, was heard joking to Chavez afterwards: “You went on a bit!” Ahmadinejad told reporters he would make his views felt on Sunday.

Saudi Arabia this month proposed setting-up a consortium to provide Iran with enriched uranium for peaceful purposes in an effort to defuse the tension between Washington and Tehran. Iran said it would not halt its own enrichment programme.

Worried by a resurgent Iran with potential nuclear capability, Gulf Arab countries, including OPEC producers Saudi Arabia, Kuwait, Qatar and the United Arab Emirates, have said they will start a nuclear energy programme of their own.

Source: Reuters

Iran has issued a defiant response to the harshest sanctions imposed on it by the United States since the 1979 Islamist revolution, saying the measures are “doomed to failure”.

The head of the revolutionary guard, branded a “proliferator of weapons of mass destruction”, said the sanctions would only drive the corps to defend the “ideals of the revolution more than ever before”.

The US under secretary of state, Nicholas Burns, conceded that past sanctions, which have been in place since 1984, have done little to constrict the growth of Iran’s trade with other countries, in particular China and Russia.

“They [China] are now the number one trade partner with Iran. It’s very difficult for countries to say we’re striking out on our own when they’ve got their own policies on the military side, aiding and abetting the Iranian government in strengthening its own military,” he told the BBC.

Mr Burns said the US still hoped Russia and China would approve a third UN security council resolution imposing new sanctions next month.

Israel, a strong supporter of the US action, said today its foreign minister, Tzipi Livni, would travel to Beijing this weekend to lobby for harsher UN sanctions on Iran.

However, China warned today that “sanctions should not be lightly imposed in international relations”.

“Dialogue and negotiations are the best approach to resolving the Iranian nuclear issue,” the foreign ministry said.

“To impose new sanctions on Iran at a time when international society and the Iranian authorities are working hard to find a solution to the Iranian nuclear issue can only complicate the issue.”

The response of Russia’s president, Vladimir Putin, was more scathing. He said sanctions made a negotiated settlement harder.

“Why worsen the situation by threatening sanctions and bring it to a dead end?” he said. “It’s not the best way to resolve the situation, by running around like a madman with a razor blade in his hand.”

The US measures target the 125,000-strong Iranian revolutionary guard (IRG), one of the best-resourced parts of the country’s military, with its own tanks and planes. It also owns hotels, oil companies and other businesses.

Many analysts believe it is highly unlikely China or Russia will allow further UN sanctions to be imposed on Iran.

The Bush administration went a step further with the IRG’s elite Quds division, responsible for covert actions abroad, labelling it a terrorist organisation, the first time a country’s military has been put on America’s terrorist list. The US says the Quds division, numbering about 15,000, is involved with Lebanon’s Hizbullah and groups elsewhere in the Middle East.

Making the announcement at a press conference, the US secretary of state, Condoleezza Rice, said the punitive moves were intended “to confront the threatening behaviour of the Iranians”. The sanctions and other steps would “increase the costs to Iran of its irresponsible behaviour”.

The administration also imposed sanctions on three Iranian state-owned banks: the banks Melli and Mellat, for alleged arms proliferation, and Bank Saderat, which was labelled “a terrorist financier”.

In addition to the IRG and the banks, eight individuals and several other companies are covered by the sanctions. The measures have long been threatened and Tehran responded by saying they would have no more success than in the past.

Mohammad Ali Hosseini, a spokesman for the foreign ministry, said: “The hostile American policies towards the respectable people of Iran and the country’s legal institutions are contrary to international law, without value and, as in the past, doomed to failure.”

He called the Bush administration’s accusation that Iran was arming Shia militants in Iraq “ridiculous”.

The revolutionary guard, which has huge business interests in businesses including cars, oil and newspapers, is thought to control up to a third of the Iranian economy.

But some analysts believe the unilateral measures will have little effect in isolating Iran – and still less in changing its policy. Selig Harrison, of the Centre for International Policy, told BBC Radio 4′s Today programme: “I don’t think these will be very effective. Arab traders in Dubai thumb their noses up when people say you shouldn’t trade with Iran. A lot of Iran’s foreign trade hasn’t been affected.”

There have also been claims the Iranian president, Mahmoud Ahmadinejad, will be strengthened by the sanctions.

“Hard-liners in Tehran were looking forward to the sanctions. It helps them hide their incompetence behind the embargo,” said political commentator Saeed Laylaz. However, other observers say the measures could weaken Mr Ahmadinejad, leaving him open to charges that his stance is pushing the US into punishing the country and damaging its already fragile economy.

The sanctions package, combined with the sending of a second US carrier group to the Gulf earlier this year, is aimed primarily at containing Iran, which has been expanding its influence in the region since the 2003 invasion of Iraq. It is also intended to force Tehran to stop its alleged attempt to develop a nuclear bomb and end its alleged supply of weapons to Iraqi militia groups.

Ms Rice, who has had to withstand pressure from within the Bush administration for military action, insisted she remained committed to the diplomatic route. But she said: “Unfortunately the Iranian government continues to spurn our offer of open negotiations, instead threatening peace and security by pursuing nuclear technologies that can lead to a nuclear weapon, building dangerous ballistic missiles, supporting Shia militants in Iraq and terrorists in Iraq, Afghanistan, Lebanon and the Palestinian territories, and denying the existence of a fellow member of the United Nations, threatening to wipe Israel off the map.”

President George Bush has said repeatedly that a military strike is an option.

As part of a multi-billion-dollar request for more military spending earlier this week, the Pentagon asked for $88m to develop the Massive Ordnance Penetrator, a huge bunker-busting bomb, for its Stealth bombers. The Bush administration said the bomb was needed “in response to an urgent operational need for theatre commanders”.

Democratic members of Congress questioned whether the weapon was intended for use against Iran, where nuclear facilities are largely hidden underground.

Jim Moran, a Democratic member of the House of Representatives’ defence spending committee, said: “My assumption is that it is Iran, because you wouldn’t use them in Iraq, and I don’t know where you would use them in Afghanistan. It doesn’t have any weapons facilities underground that we know of.”

The immediate impact of the sanctions announcement will be felt in the boardrooms of banks and companies in Britain and elsewhere in Europe. Any business continuing to trade with Iran risks US reprisals.

The sanctions make it illegal for any US citizen to knowingly provide material support or resources to the Quds division. As the US has had few links with Iran since 1979, this is mainly academic. The impact will be felt by non-American companies that have business interests in the US and Iran.

The US treasury secretary, Henry Paulson, who accompanied Ms Rice at the press conference, said: “It is increasingly likely that if you are doing business with Iran, you are doing business [with the Iranian revolutionary guard corps]. It’s simply not worth the risk.”

European governments, including Britain, are discussing whether to also designate the Quds division a terrorist organisation, though the legal definition and the process of designating groups as terrorist is different from that in the US.

Source: Guardian Unlimited

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