US Nuclear Weapons Proliferation
By John LaForge | CounterPunch | April 18, 2014
The corporate media is focused on the question of how or if Iran could ever break out of its promise under the Nuclear Nonproliferation Treaty to eschew nuclear weapons and use reactors only for civilian purposes. So many headlines refer to sanctions imposed against Iran that millions of people mistakenly think Iran has a nuclear arsenal. It doesn’t.
Meanwhile the Congress in January fully funded production of a new B61 thermonuclear gravity bomb, a program dubbed “Life Extension.” This year’s $537 million is the down payment on the new version of the B61 that the millionaires in DC agreed should get $11 billion over the next few years.
Dubbed the “solid gold nuke” by critics, the 700 pound H-bomb is running $28 million apiece at the moment. That much gold bullion is only worth $16 million.
The program to replace today’s B61s with a new “mod12,” is being condemned by our allies in NATO, by Congressional budget hawks and of course by the entire arms control community. Even former Vice Chairman of the Joint Chiefs of Staff Gen. James Cartwright has said the bombs are “practically nil” in military value. (Gen. Cartwright only is partly right: Since it seems the Department of Defense is in the business of producing suicides by the thousands, among veterans and active duty soldiers, the suicidal mission of deploying B61s across Europe — for detonation there — seems a perfect fit.)
“This decision represents the triumph of entrenched nuclear interests over good government. The B-61 is no longer relevant for U.S. national security, but continues to rob billions of dollars from programs that would make America safer,” President Joe Cirincione of the Ploughshares Fund told Hans M. Kristensen for the Federation of American Scientists.
Kristensen reported March 12 that the Pentagon has decided that the new B61 will begin its deployment in Europe next year.
This 300-to-500 kiloton “variable yield” thermonuclear device has 24 to 40 times the destructive power of the US bomb that killed 170,000 people at Hiroshima in 1945. Still, this machine’s threat of meaningless, genocidal, radioactive violence is called “tactical.”
Rush to Deploy New H-bomb Before it’s Killed by Public Opposition
The Air Force budget makes it appear that the older B61s will all be replaced — in Turkey, Italy, Belgium, The Netherlands and Germany — by 2020. This rush job is being hustled through the military-industrial-complex in a very big hurry because the broad international condemnation of the program is gaining depth and breadth.
Even the rightwing Senator Dianne Feinstein, D-Calif., along with Rep. Mike Quigley, D-Ill., and Rep Jared Polis, D-Colo., tried to curtail the program last year. Five NATO partners — Belgium, Germany, Luxembourg, The Netherlands and Norway — asked four years ago that all B61s be removed permanently from Europe. In Germany, every major political party has formally resolved to pursue final withdrawal of the 20 remaining B61s at Buchel AFB.
Major US allies in Europe informed Gen. Cartwright’s critical opinion. High-level European politicians have been saying the B61s are “militarily useless” since the end of the Cold War. In a widely published op/ed in 2010, former NATO secretary-general Willy Claes and three senior Belgian politicians said, “The US tactical nuclear weapons in Europe have lost all military importance.”
Still, Kristensen reports, “integration” of the new B61 is supposed to take place on Belgian, Dutch, and Turkish F-16 jets and on German and Italian Tornado fighter-bombers soon.
Another reason for the rush to deploy this perfect candidate for dumb bomb retirement is that Germany is considering replacing its Tornado jets in short order. All the expense of refitting its current Tornadoes to carry the “more accurate” and “more usable” B61-mod 12 would be wasted. New B61 production could also be made expensively moot by progress in arms control.
The “nuclear sharing” arrangement with the five technically non-nuclear NATO partners glaringly contradicts, in Kristensen’s words, “the non-proliferation standards that member countries are trying to promote in the post-Cold War world.” In its 2012 posture review, even NATO’s ministers pledged to work for a world without nuclear weapons.
So as the White House and its Secretary of State wag fingers at Iran, we and our NATO friends openly violate the binding promise made in the Nuclear Non-Proliferation Treaty “not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly.”
Maybe Iran can arrange for some sanctions to be imposed on us.
John LaForge works for Nukewatch, edits its Quarterly, and lives at the Plowshares Land Trust out of Luck, Wisconsin.
Iran slams US court ruling to expropriate NY tower
Press TV – April 19, 2014
Tehran has slammed as illegal a US court ruling to confiscate the assets of Alavi Foundation in Manhattan, saying the move runs counter to the principle of religious freedom for American citizens.
“The recent ruling regarding the forfeiture of the assets belonging to the foundation is, to all appearances, in contradiction to realities, void of legal validity and even in breach of US commitments to guarantee religious freedom for its citizens,” Iran’s Foreign Ministry Spokeswoman Marzieh Afkham said in a Friday statement.
“Contrary to the prosecutors’ baseless allegations and the court’s politically-motivated ruling which was a propaganda fuss, the Alavi Foundation is an independent charity institution in the US which has no links with Iran,” she added.
Afkham noted that Iran has been a victim of terrorism itself, dismissing as ridiculous the US court’s claim that Tehran was involved in the 9/11 attacks.
She argued that the US court verdict brings the credibility of the US judicial system into question.
On Thursday, Manhattan US Attorney Preet Bharara said that federal judge Katherine Forrest approved a deal between the US government and 19 anti-Iran plaintiffs to sell Alavi Foundation’s 36-story Manhattan skyscraper on Fifth Avenue and other properties owned by Iran, following a 2008 lawsuit by the government against the building’s owners.
Under the deal, the US Marshals Service will sell the 36-story building and other so-called Iran-linked property in California, Maryland, Texas, Virginia and the Queens borough of New York. US authorities will also receive the contents of bank accounts of the entities which allegedly served as Iran fronts in the past.
The US government will receive reimbursement for litigation expenses and any costs of the sales and the remainder will be distributed among what the court has called terror-attack victims, including those of the 9/11 attacks and their survivors.
In September 2013, the judge had ruled in favor of the government’s suit, claiming the building’s owners had violated Iran sanctions and money laundering laws.
Prosecutors allege the building’s owners, the Alavi Foundation — a non-profit organization promoting the Islamic culture and Persian language — and Assa Corporation, transferred rental income and other funds to Iran.
Iran won’t have West meddling in defense affairs: Minister
Press TV – April 16, 2014
The Iranian defense minister says the Islamic Republic will by no means negotiate on its defense prowess and missile program in nuclear talks.
Brigadier General Hossein Dehqan made the statement in reaction to comments by top US nuclear negotiator Wendy Sherman who said that Iran’s ballistic capabilities should be addressed as part of a comprehensive agreement in nuclear talks between Iran and the P5+1 group.
“Iran’s missile might is our concern. We are the ones in charge and we will not brook interference from anyone [in this issue],” Dehqan said Wednesday.
The official stressed that the issue is not up for talks under any circumstances.
He said that the West claims that Iran may acquire nuclear warheads for missiles, thus insisting that the issue of the country’s missile program be part of the talks, but he reiterated that nukes have no place in the country’s defense doctrine.
Dehqan said that Iran by no means seeks nuclear arms, citing a fatwa by Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei on the prohibition of building and using such weapons.
Iran and the five permanent members of the United Nations Security Council – the US, France, Britain, Russia, China – plus Germany wrapped up their latest round of the talks aimed at reaching a comprehensive deal on the Islamic Republic’s nuclear energy program last week. Iran and the six countries agreed to meet again on May 13.
The two sides had reached an interim deal in the Swiss city of Geneva on November 24, 2013. The deal took effect on January 20
Russia following UN, not US, in oil deal with Iran
Press TV – April 12, 2014
Russian Finance Minister Anton Siluanov says Moscow will act in accordance with United Nations rules and not US regulations on sanctions against Iran in conducting any “oil-for-goods” transactions with Tehran.
“We act on the basis of the decisions made by the United Nations that set sanctions, set product groups which would be sanctioned and we operate within those decisions,” Siluanov told reporters during the International Monetary Fund-World Bank meetings in Washington on Friday.
“There is a nuance. Our American partners have their own legislation which differs somewhat from the provisions set by the United Nations and they follow their own rules,” he added.
On Thursday, US Treasury Secretary Jack Lew warned the Russian minister that any possible oil-for-goods deal between Moscow and Iran in the future could run afoul of US sanctions.
Lew also said it would run counter to an interim deal reached between Iran and the five permanent members of the UN Security Council – Russia, China, France, Britain and the US – plus Germany over Tehran’s nuclear energy program.
Iran and the six nations reached an interim nuclear deal on November 24, 2013, in the Swiss city of Geneva. The deal took effect on January 20.
Under the Geneva deal, the six countries agreed to provide Iran with some sanctions relief in exchange for Iran agreeing to limit certain aspects of its nuclear activities during a six-month period. It was also agreed that no nuclear-related sanctions would be imposed on the Islamic Republic within the same time frame.
Israel lobby seeks to ruin Iran N-talks: Analyst
Press TV – April 11, 2014
A political analyst says the Israeli lobby is seeking to scuttle efforts aimed at reaching a final comprehensive deal between Iran and the P5+1 over the Islamic Republic’s nuclear energy program, Press TV reports.
In an interview on Thursday, Fo’ad Izadi, a professor at the University of Tehran, pointed to the nuclear talks between Iran and the P5+1 and said the Israeli lobby is hell bent on spoiling attempts at reaching a final agreement. “The Israeli lobby has been working very hard to sabotage this agreement and the people in the US Congress are under a lot of pressure to pass new sanctions laws and create difficulties for this process,” he said.
The analyst also rejected the idea that the ant-Iran sanctions have brought the country to the negotiating table over its nuclear work.
“It would be a mistake for the other side to think that Iran is negotiating because of sanctions. Iran has shown for the last thirty-some years that it has some objectives in terms of its foreign policy, in terms of its scientific advances and Iran will not give up its rights under pressure,” he said.
Full article: http://www.presstv.ir/detail/2014/04/…
Iran must be ready to walk from P5+1
By Finian Cunningham | Press TV | April 9, 2014
Iran should not sweat it over the P5+1 nuclear talks. Any final agreement is simple.
It must recognize Iran’s inalienable right to peaceful nuclear technology, including the operation of uranium enrichment and all existing related facilities in the country. In return for Iranian guarantees over its legitimate nuclear activities, the US and its European allies must cancel the onerous burden of economic sanctions. That is the essence of any deal. And any other add-on issues are irrelevant.
Indeed, Western attempts to alter the framework of a final nuclear deal must be slapped down; or if insisted upon, Iran should reserve the right to walk away from the talks.
Negotiations this week in the Austrian capital Vienna were said to be “constructive”. Next month, discussions move on to a final accord that could pave the way for lifting of sanctions.
The stakes are high for Iran. Of course, Iran wants to see a prompt end to the Western-imposed sanctions regime that has caused economic and social hardship for its people. The morality and legality of such indiscriminate punishment is highly dubious, to say the least, and their continued imposition is a cause of much indignation.
But a final agreement must be based on the essential details: Iran’s inalienable right to civilian nuclear technology; an agreed system of verification; and immediate cancellation of economic sanctions.
If the Western states, in particular the US, Britain and France, begin to add on conditions to those essential details, Iran must not be browbeaten or seduced into making concessions for the sake of concluding a final accord.
Ominously, we saw this duplicitous Western tendency to move the goalposts this week when US Secretary of State John Kerry told a Senate hearing in Washington that sanctions relief for Iran was contingent not just on Iranian guarantees over nuclear weapons, but also on allegations of Iranian involvement in international terrorism and violation of human rights.
Kerry’s comments follow on the move last week by the European Parliament to censure Iran over alleged human rights abuses. It seemed more than mere coincidence that both the US and EU expressions pre-empted the latest round of P5+1 negotiations in Vienna this week.
It is, to be sure, patently ridiculous for the Americans and Europeans to raise issues of human rights and terrorism given their own outrageous transgressions. Just this week we hear of more reports that Washington is to step up supplies of heavy weapons to terrorists running amok in Syria – the same Western-backed terrorists who are implicated in the use of chemical weapons to kill hundreds of civilians in a callous propaganda stunt.
This also follows increasing evidence last week of a decade of American torture – assisted by European collusion – of hundreds of detainees at the Guantanamo Bay concentration camp and countless other US black sites around the globe.
And as far as the Europeans are concerned, this week sees the plight of 12 million Roma people being highlighted for gross mistreatment by governments across the entire 28-nation bloc.
Regardless of the integrity of purported American and European concerns – terrorism and human rights – what needs to be recognized is that the ostensible issues are completely irrelevant to the nuclear dispute and a final accord. These issues are being added on in an ad hoc fashion, which suggests that the P5+1 nuclear impasse is being set up for procrastination on Western terms.
As Iranian Professor Mohammad Marandi told Press TV this week in a debate forum, the issue of alleged human rights violations is being used as a ploy to pressure Iran into making concessions over its nuclear rights. The Western logic would seem to be: if you want a P5+1 deal and an end to trade sanctions, then we want in return closure of this or that nuclear facility (in contravention of Iran’s legal rights), otherwise we are going to keep raising obstacles such as allegations of human rights abuses and international terrorism.
This is a completely unacceptable Western formula for moving the goalposts on its duplicitous terms. It will mean a never-ending impasse aimed at harassing Iran with more and more threats, including threats of war.
The essence of a long overdue nuclear accord with Iran is for the arrogant Western powers to start treating Iran as an equal, in which Iran is able to avail of its inalienable rights as a signatory to the Non-Proliferation Treaty – without condition or exception.
If Western states insist on adding on irrelevant – as well as hypocritical and spurious – issues it is a damning sign of their incorrigible bad faith. In that event, Iran must be prepared to walk away from the P5+1 process.
However, that is not necessarily a reckless option. Given the growing importance of international trade involving Russia, China and other emerging economies – that is, trade without the bankrupt Western states – Iran might find itself better off anyway not having to waste time and energy on these malignant has-been powers.
Iran needs to stay cool, not sweat it, and to turn the tables on the arrogant players by asserting its own rightful demands.
Anti-Iran Hardliners Seek New Excuse
By Paul R. Pillar | Consortium News | April 8, 2014
There exists, right now, a problem with one side’s obligations not being fulfilled as provided for under the preliminary agreement, known as the Joint Plan of Action, that Iran reached with the United States and its negotiating partners (the P5+1) last November. This lack of fulfillment endangers the process of negotiating a final agreement.
It is an understandable source of consternation to the other side, which will increasingly doubt the first side’s ability and willingness to make good on its commitments, including in any final deal. Hardliners on the second side will pounce on any non-fulfillment of the terms of the JPA as a reason to scuttle the whole process.
So is Iran not living up to its commitments under the JPA? Well, we do have hardliners on our own side eager to pounce. In fact, they are so eager that they are trying to pounce even though there isn’t anything to pounce on.
Senators Robert Menendez, D-New Jersey, and Mark Kirk, R-Illinois, who led the recent unsuccessful effort in Congress to impose additional deal-busting sanctions after conclusion of the JPA, have sent a letter to President Barack Obama that bemoans indications of some increased Iranian oil sales and says “If Iran moves forward with this effort to evade U.S. sanctions and violate the terms of oil sanctions relief provided for in the JPA” the United States should in effect renounce its obligation under the JPA to — this is the wording of the JPA — “pause efforts to further reduce Iran’s crude oil sales.”
The senators make it sound as if Iran has some obligation under the agreement to knuckle under to sanctions, don’t they? Otherwise how could Iran “violate” what they are talking about? But Iran has no such obligation.
All the obligations in the preliminary agreement concerning sanctions are obligations of the P5+1 (including that very mild “pause efforts” clause, which does not entail rolling back the existing oil sanctions). All of Iran’s obligations involve restrictions on its nuclear program. According to the International Atomic Energy Agency, Iran so far is in compliance with those obligations.
No, the current problem in implementing the agreement involves another part of the P5+1′s side of the deal, not Iran’s side. Specifically, it involves the unfreezing in installments of a small portion ($4.2 billion out of an estimated $100 billion) of the Iranian money that already was earned from prior oil sales and is sitting in non-Iranian banks.
Iran has been unable to withdraw much of the money that it was supposed to have gained access to by now. It appears the problem is not direct violation of the agreement by the U.S. Treasury or any of the other governments involved. Instead, the banks that are to handle the funds are so deathly afraid of running afoul, however inadvertently, of any continuing sanctions that Treasury is enforcing that they have not made the money move.
The fear is understandable, given how huge and complex the sanctions regime has become and also how huge have been fines that Treasury has levied on transgressors. The marvelous sanctions machine is so powerful that it continues to exude power and have effects even after a switch has been turned off. Treasury needs to do more than just saying “go,” and more than it has done so far to put banks into their comfort zone, for the JPA to be implemented the way it was supposed to be.
Iranian President Hassan Rouhani had a big enough challenge domestically as it was to sell a preliminary agreement that gave the P5+1 most of what it wanted in restricting the nuclear program while getting only modest sanctions relief in return. His selling task is made all the harder when even that modest relief is not properly implemented. And there certainly are hardliners on his side ready to pounce on any such developments.
This issue is a reminder of how an Iranian belief that the West and especially the United States will come through with positive action if Iran makes desired concessions is just as important as (and given how the issue has evolved, has become even more important than) an Iranian belief that it will be hit with still more negative consequences if it does not concede.
The current problem also underscores how much work — political, not just administrative — on the U.S. side remains to be done to prepare for the undoing of sanctions that will be part of any final agreement, and that necessarily will be substantially greater than the minor sanctions relief in the JPA.
Members of Congress are still talking about piling on more sanctions when they ought to be discussing how to take sanctions off the pile. We have already seen how hard it is to redirect the sanctions machine. Aircraft carriers do not turn around on a dime, and neither do sanctions, especially ones as complicated and extensive as the ones on the Iranian pile.
Even if the more optimistic projections of when a deal will be struck in Vienna do not prove true, it is not too soon for Congress and the administration to be working diligently on this and for it to be a subject of public discussion.
Treasury Secretary Jack Lew: “The future of the United States is tied to the future of Israel”
EPJ | March 2, 2014
Below are the remarks of US Treasury Secretary Jack Lew before the 2014 Policy Conference of the American Israel Public Affairs Committee(AIPAC) These are clearly the remarks of the banker for the Empire. It should be noted that Lew’s remarks on Ukraine appear to be in line with those of Rand Paul and though Lew’s comments clearly show that he considers Israel as the 51st, and most important state, his views on sanctions are more moderate than those of Rand.
Read the remarks only if you have a strong stomach. Note the re-introduction of the IMF as key financial enforcer. During a stop over in SF, Lew admitted that the IMF is a tool of the US.
I want to thank President Kassen, incoming President Cohen, the Board of Directors, and everyone for inviting me here today. There are so many familiar faces in this room—friends of many years from my time in Washington, New York, and around the country. It is truly wonderful to be with you.
Before turning to the focus of my remarks, let me say that we are closely monitoring the situation in Ukraine with grave concern. As President Obama told President Putin yesterday, Russia’s clear violation of Ukrainian sovereignty and territorial integrity is a breach of international law. I have spoken several times to the Ukrainian Prime Minister who assures me that the government is prepared to take the necessary steps to build a secure economic foundation, including urgently needed market reforms that will restore financial stability, unleash economic potential, and allow Ukraine’s people to better achieve their economic aspirations.
The United States is prepared to work with its bilateral and multilateral partners to provide as much support as Ukraine needs to restore financial stability and return to economic growth, if the new government implements the necessary reforms.
An IMF program should be the centerpiece of the international assistance package, and the United States is prepared to supplement IMF support in order to make successful reform implementation more likely and to cushion the impact of needed reforms on vulnerable Ukrainians.
Now the reason we are all here is because for more than 40 years, AIPAC has been the indispensable leader in keeping the alliance between the United States and Israel unbreakable. And you have done that through your powerful example of advocacy and activism—you make your voices heard, you take your case to your representatives here in Washington, and you stand up for what you believe in. This is not just your right as Americans. It is your responsibility. It is the essence of our democratic system.
And as everyone here recognizes, the future of the United States is tied to the future of Israel. This is something that every President since Harry Truman has understood.
In fact, in 1948, it took President Truman only 11 minutes to recognize the Jewish state of Israel. And from then on, the American-Israel relationship has not been a Democratic cause or a Republican cause, it has been an American cause.
President Obama has remained true to this proud legacy since the first day he took office, and he has made it clear that for him and for this Administration, America’s commitment to Israel is ironclad. As he said as President-elect, before he even took office: “Israel’s security is sacrosanct. It is nonnegotiable.” And he has never wavered from that position.
Like the President, Israel’s security is not only a public policy conviction for me, it is a personal one. As many of you know, no one grew up with a deeper appreciation for the state of Israel than I did. And I have no doubt that a strong and secure Israel is vital to America’s strength and America’s security.
As we meet, America’s support for Israel’s security has never been stronger. And over the next three days, you’re going to hear about all the things that the Administration is doing to advance Israel’s security—from promoting a lasting peace with the Palestinians to preserving Israel’s military edge so it can protect itself against any threat.
Today, I will discuss one of the most pressing national security concerns for Israel and the United States—and that is Iran’s nuclear program.
Let us not forget that when President Obama took office, Iran was strengthening its position throughout the region and the international community was unable to provide a unified response. But because of President Obama’s leadership, Congressional actions, American diplomacy, which AIPAC has supported, we put in place a historic sanctions regime and Iran now finds itself under the greatest economic and financial pressure any country has ever experienced.
Initially, many claimed sanctions on Iran would never work, but we have proven exactly the opposite. From the beginning, this sanctions program has had one purpose: Persuade Iran to abandon its pursuit of a nuclear weapon. There can be no alternative.
To be clear, we never imposed sanctions just for the sake of imposing sanctions. We did it to isolate Iran and sharpen the choice for the regime in Tehran. And we did it by bringing the community of nations together. We are talking about China, Russia, India, Japan, Europe, Canada, South Korea, and the list goes on.
Having the international community united in opposition to Iran’s pursuit of a nuclear weapon made an enormous difference.
We now have in place the most sweeping, most powerful, most innovative, and most comprehensive sanctions regime in history. And because of the impact of these unprecedented, international sanctions, Iran finally came to the negotiating table seeking relief and fully aware that to get relief, it had to take concrete steps to curtail its nuclear program. Those negotiations led to the Joint Plan of Action, which went into effect in January.
Today, for the first time in a decade, progress on Iran’s nuclear program has been halted and key elements have been rolled back.
The temporary deal struck in Geneva provides us with a six-month diplomatic window to try to hammer out a comprehensive, long-term resolution, without fear that Iran, in the meantime, will advance its nuclear program. Now, I want to emphasize something: Before we agree to any comprehensive deal, Iran will have to provide real proof that its nuclear program, whatever it consists of, is—and will remain—exclusively peaceful.
This deal will only be acceptable if we are certain that Iran could not threaten Israel or any other nation with a nuclear weapon.
Yet make no mistake: Even as we pursue diplomacy, and even as we deliver on our commitments to provide limited sanctions relief, the vast majority of our sanctions remain firmly in place. Right now, these sanctions are imposing the kind of intense economic pressure that continues to provide a powerful incentive for Iran to negotiate. And we have sent the very clear signal to the leadership in Tehran that if these talks do not succeed, then we are prepared to impose additional sanctions on Iran and that all options remain on the table to block Iran from obtaining a nuclear weapon.
We are under no illusions about who we are dealing with. Iran has threatened Israel’s very existence, supports terrorist organizations such as Hezbollah, and has failed to live up to its promises in the past.
Still, it is critically important that we give negotiations, backed by continuing economic pressure, a chance to succeed. I have sat with two presidents as they weighed the enormous decision to send men and women into harm’s way to protect our nation. And while all options must remain available, I believe it is our responsibility to do as much as we reasonably can to reserve force as a last option.
This is as much a strategic obligation as it is a moral one. You see, maintaining the sanctions regime that has crippled Iran’s economy requires international cooperation. No amount of U.S. sanctions would have the same crippling power as this international effort. For other nations to continue to remain steadfast with us, they need to know that we have given negotiations every chance to succeed. And if the moment comes when we have to use force, the whole world needs to understand that we did everything possible to achieve change through diplomacy.
To that end, we do not believe that now is the time to adopt new sanctions legislation. We do not need new sanctions now – the sanctions in place are working to bring Iran to the negotiating table and passing new sanctions now could derail the talks that are underway and splinter the international cooperation that has made our sanctions regime so effective. But as I have said, and as President Obama has said, we continue to consult closely with Congress, and if these talks fail, we will be the first to seek even tougher sanctions.
Now, in the next two days or so, you may hear some say that the very narrow relief in the interim agreement has unraveled the sanctions regime or eased the choke-hold on Iran’s economy. Nothing could be further from the truth. And I want to take a few moments to go through a few basic facts.
The Treasury Department, which administers and enforces the sanctions, monitors the numbers carefully. And when you consider the ongoing sanctions that remain in place, the temporary, targeted, and reversible sanctions relief is extremely limited—totaling an estimated $7 billion. To put that into context, during the same six month period, Iran will lose roughly $30 billion in oil sales alone from the sanctions that remain in place.
Put simply, this relief will not enable Iran’s economy to recover from the deep economic damage inflicted by the sanctions program. The bulk of this relief does not come from suspending sanctions on economic activity like manufacturing or exports. It comes from the measured release of Iran’s own funds that are now impounded in overseas banks. The fact is, because of years of sanctions enforcement, Iran has about $100 billion locked up in overseas banks. The interim agreement allows Iran to access $4.2 billion of these funds.
I want to underscore that Iran’s access to this limited relief is neither immediate nor instantaneous. It will be provided in separate installments on a rolling basis over the six-month period of the Joint Plan, and it will only flow if Iran demonstrates week by week that it continues to comply with its agreement to freeze and rollback its enrichment program.
Other measures amount to less than $2 billion — the limited suspension of sanctions on the export of plastics, the import of parts for Iran’s automotive sector, and tuition assistance for students studying abroad. And the core architecture that makes the program work, oil and financial sanctions, remains in effect fully.
If at any point Iran fails to fulfill its commitments under the Joint Plan, the money will stop, and the suspended sanctions will snap right back into place. And when the six-month deal expires, so does the relief.
The bottom-line is: Promises are not enough—Iran must meet its obligations. This is not a case of trust and verify. This is a case of verify everything.
No matter what, Iran’s economy will continue to feel severe economic pressure from our ongoing sanctions regime. For example, our oil sanctions that remain in place have forced Iran’s oil exports to drop by more than 60 percent over the last two years. And we will continue to enforce them.
All told, the crushing sanctions have deeply damaged economic conditions in Iran. There are four key indicators that tell the whole story: first, last year the economy shrunk by 6 percent and it is expected to shrink again this year; second, the value of its currency, the rial, has plummeted, having lost about 60 percent of its value against the dollar; third, the unemployment rate is over 15 percent; and finally, the inflation rate is about 30 percent, one of the highest in the world.
The economic sanctions have crippled Iran’s economy on many fronts.
Claims that Iran’s economy is undergoing a recovery because of the Joint Plan of Action are just plain wrong. After the election of President Rouhani last June, and well before the Joint Plan took effect, there was a slight drop in the country’s very high inflation rate and small improvements in other economic indicators. This was due to a wave of public optimism that greeted the election of a new president, the appointment of a more capable economic team, and the hope that a deal to lift sanctions would soon materialize.
But the slight improvements in these indicators only mean that a badly wounded economy is not getting worse. It does not mean the economy is getting better. And it certainly does not mean that the Joint Plan has led to a recovery.
Further, if Iran fails to reach a deal with us, business and consumer confidence will quickly erode as will many of the gains the economy has seen over the last few months.
Iran’s economy suffered a serious blow from sanctions, and the impact of sanctions is not being reversed. Iran’s economy remains in the same state of distress that brought the government to the table in the first place. Imagine how any economy would feel, if, by a recovery, it meant leveling off at the bottom of a recession. That is what is happening in Iran today.
There is no question that the relief provided under the six-month plan will not steer Iran’s economy to a real recovery. It is a drop in the bucket. In fact, there will be a net deepening of the impact of sanctions when you consider the new damage that will be inflicted like the $30 billion in additional lost oil sales.
What this relief will do is give the people of Iran and their leaders a small taste of how things could improve if they were to take the steps necessary to join the community of nations. This is a choice for Iran to make. If it wants to pull its economy out of the deep hole it is in, it must remove any doubt that its nuclear program is peaceful and come to a comprehensive agreement with the international community. Until then, we will remain steadfast in our enforcement of U.S. and international sanctions.
Now, when I say we remain firm in our enforcement of sanctions, these are not just words, we are talking about action. For instance, shortly after the Joint Plan went into effect, we moved against more than 30 Iran-related entities and individuals around the globe for evading U.S. sanctions, for aiding Iranian nuclear and missile proliferation, and for supporting terrorism. As President Obama recently said, if anyone, anywhere engages in unauthorized economic activity with Tehran, the United States will—and I quote—“come down on them like a ton of bricks.”
I have personally delivered that message to hundreds of business and banking executives in America and around the world, and we are in regular contact with our international partners—including Israel—to sustain the pressure on Iran’s government.
On top of that, our enforcement officials at the Treasury Department who have been responsible for crafting and implementing this historic sanctions regime have been traveling around the world and putting their expertise and unremitting effort to bear to keep Iran isolated.
Even though I have said this before, it bears repeating: Iran is not open for business. Have no doubt, we are well aware that business people have been talking to the Iranians. We have been very clear that the moment those talks turn into improper deals, we will respond with speed and force. Anyone who violates our sanctions will face severe penalties. Our vigilance has not, cannot, and will not falter.
In closing, let me say, this is a time of great uncertainty. But during difficult times like these, the bonds between the United States and Israel do not grow weaker, they grow stronger.
The U.S.-Israel relationship, which is rooted in our shared story of people yearning to be masters of their own destiny, is as vibrant as ever. And that vibrancy is very much on display here. As I look out across this room, I am reminded of how every year hundreds of young people come to this conference from every corner of the United States. They travel to our nation’s capital because of their boundless hope, their sense of duty, and their unshakeable belief that the future can be brighter, better, more prosperous and more secure. And I am confident that by all of us working together, we can make that happen.
Thank you.
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Lew tells AIPAC: War with Iran still an option
Press TV – March 3, 2014
The US Treasury Secretary, Jack Lew, has told the American Israel Public Affairs Committee (AIPAC) that all options against Iran “remain on the table.”
Lew, who is the highest ranking Jewish member of the administration of President Barack Obama, made the remarks on the opening day of AIPAC’s annual meeting which began on Sunday in Washington, D.C., and will end on Tuesday.
He also assured the most powerful pro-Israel lobby group in the US that “the vast majority of” Washington’s sanctions against Iran “remain in place,” adding “all options remain on the table.”
“You may hear some say that the very narrow relief in the interim agreement has unraveled the sanctions regime or eased the choke-hold on Iran’s economy,” Lew said at AIPAC’s 2014 Policy Conference. “Nothing could be further from the truth.”
In an interview with HuffPost Live earlier this year, Noam Chomsky said Washington’s threats of war against Iran are a violation of the United Nations Charter and there is no justification for the US sanctions against Iran as the US intelligence reports do not prove Iran is pursuing non-civilian purposes in its nuclear energy program.
AIPAC is currently pressing the Obama administration to take a tougher stand against Iran. Prior to its annual meeting, the lobby group distributed a position paper to congressional offices that demanded the dismantling of Iran’s nuclear energy program in order for a final agreement to be reached between Iran and the five permanent members of the UN Security Council – Britain, China, France, Russia, and the US – plus Germany.
AIPAC also released a letter from a bipartisan group of senators to Obama, which said US Congress needed “to rapidly and dramatically expand sanctions” against Iran.
This comes as a new study published by The Iran Project shows that new sanctions against Iran sought by hawkish senators on Capitol Hill would undermine the ongoing negotiations over Iran’s nuclear energy program and “would increase the probability of war.”
Iran and the P5+1 group signed an interim nuclear agreement in Geneva, Switzerland, last November. The deal is aimed at setting the stage for the full resolution of the West’s decade-old standoff with Tehran over its nuclear energy program.
In exchange for Iran’s confidence-building bid to limit certain aspects of its nuclear activities, the six world powers agreed to lift some of the existing sanctions against the Islamic Republic.
The two sides continued their talks in the Austrian capital Vienna last month in order to reach a final agreement. According to Iranian Deputy Foreign Minister Abbas Araqchi, the talks concluded on February 20 with “an agreement on the framework and plan of action for the comprehensive nuclear talks.”
Iranian Foreign Minister Mohammad Javad Zarif has already stated that Iran’s nuclear energy program “will remain intact” while the country is willing to address international concerns about its nuclear activities.
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US penalizes companies for doing business with Iran
Press TV – February 7, 2014
The United States has penalized nearly three dozen companies and individuals in eight countries, accusing them of evading unilateral sanctions against Iran.
The move is aimed at blunting “an atmosphere of optimism” that has resulted from an interim nuclear deal reached between Iran and six world powers late last year, the New York Times reports.
The US Treasury Department said the targeted entities operated in Turkey, Spain, Germany, Georgia, Afghanistan, Iran, Liechtenstein and the United Arab Emirates.
The announcement marks the second time the Obama administration has penalized businesses since the deal was inked on November 24 and put into effect last month.
As part of the current agreement, the West offered Tehran modest sanctions relief in return for Iran taking steps to limit its uranium enrichment activities. The deal called for negotiation of a full agreement within a year.
Many members of Congress and Israel have denounced the agreement, arguing that the easing of sanctions disproportionately favored Iran.
Washington has said it will continue to enforce existing sanctions until a more comprehensive deal is reached. “We strongly believe that sustaining sanctions pressure will be critical,” a senior US Treasury Department official said in a conference call with reporters on Thursday.
A recent visit to Iran by a French delegation of more than 100 businesspeople has greatly irritated senior US officials.
Secretary of State John Kerry called his French counterpart, Laurent Fabius, on Tuesday to express concern about the business delegation.
In testimony to the Senate Foreign Relations Committee on Tuesday, Wendy Sherman, under secretary of state for political affairs and the Obama administration’s top negotiator with Iran, said Kerry and other senior US officials believe these trade visits are “not helpful.”
“Tehran is not open for business because our sanctions relief is quite temporary, quite limited and quite targeted,” Sherman said.
David Cohen, top Treasury sanctions official, also warned that companies or governments still risk heavy penalties under United Nations, US or European sanctions if they expanded trade with Iran.
The Treasury prohibits companies and individuals from carrying out financial transactions with Iran under US jurisdiction.



