Archive for the ‘Iran’ Category

Giuliani sought to end prosecution of Turk in Iran sanctions case – Reuters

By Nathan Layne | NEW YORK

NEW YORK Former New York City Mayor Rudolph Giuliani went to Turkey to meet with the country's president and sought meetings with U.S. government officials in an attempt to end U.S. prosecution of a wealthy Turkish gold trader charged with conspiring to violate U.S. sanctions on Iran, Manhattan federal prosecutors said.

The moves were disclosed in a letter on Friday to U.S. District Judge Richard Berman, who is overseeing the case in which the trader, Reza Zarrab, is accused of conspiring with others to conduct illegal transactions through U.S. banks on behalf of Iran's government and other Iranian entities.

The new disclosures highlight the politically charged nature of a case that expanded in scope earlier this week with the arrest in New York of an executive at a Turkish state-owned bank charged with conspiring with Zarrab to evade sanctions.

Zarrab, a dual national of Iran and Turkey, had been arrested in 2013 in a corruption probe of people with close ties to Recep Tayyip Erdogan, who was prime minister of Turkey at the time. Erdogan is currently president.

In the letter prosecutors said Giuliani and former U.S. Attorney General Michael Mukasey - both recently added to Zarrab's legal team - traveled to Turkey shortly after February 24 to meet with Erdogan to discuss ways to end the prosecution. Giuliani informed the office of Attorney General Jeff Sessions about the planned trip, according to the letter.

Acting U.S. Attorney Joon Kim in Manhattan said that Mukasey and Giuliani, who is a close ally of President Donald Trump, had also sought to meet with other officials in the U.S. government on the issue. "Mr. Giuliani and Mr. Mukasey's efforts are aimed at reaching a disposition in the case," Kim wrote in the letter.

Kim has sought to question whether Giuliani and Mukasey should be allowed to represent Zarrab given the potential conflicts of interest. Zarrab allegedly victimized at least eight large banks which are current or former clients of Giuliani and Mukasey's law firms.

Kim had called earlier this week for a special hearing to make sure Zarrab understands the potential conflict.

Benjamin Brafman, an attorney for Zarrab, responded in a letter to the court on Friday, saying he would consent to a limited hearing but stressed that he believed the prosecution had no right to question the actions of Giuliani and Mukasey.

"That information quite frankly is none of the Government's business," Brafman wrote.

(reporting by Nathan Layne; Editing by Cynthia Osterman and Mary Milliken)

WASHINGTON President Donald Trump has neither a clear White House tax plan nor adequate staff yet to see through a planned tax reform, according to interviews with people in the administration, in Congress and among U.S. tax experts.

BEIJING/WASHINGTON Beijing sought to play down tensions with the United States and put on a positive face on Friday as the U.S. administration slammed China on a range of business issues ahead of President Xi Jinping's first meeting with President Donald Trump.

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Giuliani sought to end prosecution of Turk in Iran sanctions case - Reuters

From the Iran file – Power Line (blog)

Wall Street Journal reporter Jay Solomons new book is The Iran Wars: Spy Games, Bank Battles, and the Secret Deals that Reshaped the Middle East. Solomon has broken many stories on the Iran beat for the Journal. His new book is must reading on the critical national security challenge presented by the regime of the mad mullahs that is on a glide path to the acquisition of nuclear weapons with the invaluable assistance of the Obama administration.

Solomons new book is reviewed in the current issue of the Jewish Review of Books, which I just received in the mail yesterday. I think I have attentively followed the news regarding Iran, but I somehow failed to absorb the details of the story with which Jordan Chandler Hirsch opens his review:

In April 2009, a young Iranian, Shahram Amiri, disappeared in Medina, Saudi Arabia. Ostensibly there to perform the hajj, Amiri had in fact brokered a deal with the CIA to provide information on Irans nuclear program. Leaving his wife and child behind in Iran and a shaving kit in an empty Saudi hotel room, Amiri fled to America, received asylum, pocketed $5 million, and resettled in Arizona. Formerly a scientist at Malek Ashtar University, one of several institutes harboring Irans nuclear endeavors, Amiri conveyed the structure of the program and intelligence about a number of key research sites, including the secret facility at Fordow.

The story might have ended there. But according to Jay Solomon, chief foreign affairs correspondent for the Wall Street Journal and author of The Iran Wars, what happened next emerged as one of the strangest episodes in modern American espionage. A year after Amiri defected, he appeared on YouTube, claiming that the CIA had drugged and kidnapped him. In fact, Iranian intelligence had begun threatening his family through their intelligence assets in the United States [Ed. note: Solomon reports in the book that Iranian threats against Amiris wife and son left in Iran had been conveyed to Amiri through a sophisticated network of assets maintained in the United States]. Buckling under that pressure, Amiri demanded to re-defect. In July 2010, he returned to a raucous welcome in Tehran, claimed he had been working for Iran all along, and reunited with his son. Of course this was not the end of the story. Amiri soon disappeared, and in August 2016, shortly after Solomons book was published, he was hanged.

Solomon reported on Amiri for the Journal in a 2010 article that is accessible online here. This past August David Sanger reported on Amiris execution for the New York Times in How an Iranians spy saga ends, 6 years later: Hes executed.

Hirschs JRB review of Solomons book is posted online here.

Via Mosaic Editors Picks.

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From the Iran file - Power Line (blog)

Iran Military Tells US to Get Out of Persian Gulf – Newsweek

Iran's defense ministercalled on the U.S. Thursday to leave the Persian Gulf, apparentlyin response to recent accusations from a top U.S. military official that Iran's foreign policy had a negative influence in the region.

Iranian Defense Minister Brig. Gen. Hossein Dehghan said Washington behaved like an "insane armed robber" by establishing dozens ofbases in the Gulf and conducting military operations on foreign soil, Iran's Mehr News Agency reported. A day earlier,U.S. Army Gen. Joseph Votel, head of the U.S. Central Command,called Iran "the greatest long-term threat to stability" in the Gulf. Dehghan questioned the U.S.role in the region and urged Washington to withdraw.

What are Americans doing in the Persian Gulf? They had better get out of this region and not cause nuisance for the regional countries, Dehghan said, according to a press release published by Iran's Tasnim News Agency.

The U.S. has allied itself diplomatically and militarily with majority-Sunni Muslim Gulf Arab nations such as Saudi Arabia, Bahrain and Qatar, all of which have expressed concern over majority-Shiite Muslim Iran's influence in the Middle East. The Gulf Arab faction, especially Saudi Arabia, has been engaged in a proxy war of regional influence with Iran, with both sides sponsoring opposing combatants in conflicts in Syria and Yemen and opposing political movements throughout the region.

Under former President Barack Obama, the U.S. and Iran signed a landmark nuclear treaty that would lift years of sanctions on Iran in exchange for Tehran limiting its nuclear development program. This deal was sharply criticized by conservatives in both countries and President Donald Trump has threatened to renegotiate or abandon it altogether. Dehghan was a proponent ofthis agreement.

Tensions have recently risen between the U.S. and Iran over a series of Iranian missile tests. Both nations have conducted multiple military exercises on opposite sides of the Gulf since the beginning of the year.

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Iran Military Tells US to Get Out of Persian Gulf - Newsweek

Iran provides a rare moment of bipartisanship – Washington Post (blog)

At Mondays Senate Foreign Relations Committee hearing on Iran there was, given the political environment, rare and welcomed unanimity. Ranking member Sen. Benjamin L. Cardin (D-Md.) remarked that although he voted against the Joint Comprehensive Plan of Action on Iran, he doesnt think it would be wise to withdraw. He continued:

Having said that, Irans activities today are as bad as they have ever been and probably worse. They are certainly increasing their terrorist sponsorship in the Middle East as we see in so many different countries in that region. Their record on violating the ballistic missile obligations are well known and well understood. Their human rights violations against their own citizens are horrible, one of the worst countries in the world. They violate the arms embargo and the list goes on and on. So, it is appropriate to get this Committee to look at what we can do to make sure that first, the Iran nuclear agreement is honored so that Iran does not become a nuclear weapons state, but then secondly, look at those activities that were not covered under the JCPOA as to how we can play a stronger role.

Chairman Sen. Bob Corker (R-Tenn.) had a similar take:

One of my criticisms of the JCPOA was that it would become our de facto Middle East policy and Iran would expand their destabilizing activities. I think we are seeing a lot of that today.Regionally, weve seen an escalation in Iranian intervention.Iran, along with its allies in Russia, has continued to prop up Assad at the cost of countless lives in Syria.Irans support to the Shia militias in Iraq threatens the interests of Sunnis and Kurds alike, not to mention the Shia in Iraq that dont subscribe to the anti-American, zero-sum politics of the militias that are there.

Iran is arming the Houthis in Yemen, who are in turn attacking our Saudi allies and targeting our ships.Yemen now faces a humanitarian crisis unprecedented in its history. Iran remains the foremost state sponsor of terrorism. It counts Lebanese Hizballah an organization that has killed hundreds of Americans as among its closest allies.

Meanwhile, over at the AIPAC Policy Conference, Sen. Robert Menendez (D-N.J.) reminded the audience that as I said when I voted against that deal, if Iran is to acquire a nuclear bomb, it will not have my name on it. He too sees a worsening of Irans conduct: Many of us rightly predicted that an Iranian regime that prioritized funding terrorism over the well-being of its own citizens would see sanctions relief as a cash windfall for their terrorist proxies across the region. And on terrorism, we feared that much of Irans new economic capacity would be used to propagate violence against Jews. He added, It is no surprise then that Iran has not suddenly transformed into a responsible member of the international community. Rather it remains an agent of instability throughout the Middle East, a nefarious actor that continues to undermine American national security interests and our efforts to partner with countries throughout the region working to protect civilians and build democratic governance structures.

Congressional Democrats speaking at the 2017 American Israel Public Affairs Committee conference, March 28, warned of acts of prejudice against Jewish people and people of other religions around the world. (Sarah Parnass/The Washington Post)

Given this shared assessment of Iran the JCPOA is not going away but the United States needs to confront Iran in other arenas its not surprising that a bipartisan bill,the Countering Irans Destabilizing Activities Act of 2017, with seven co-sponsors from each party, was introduced last week. These are not isolated pinpricks akin to those announced by then-national security adviser Michael Flynn after Iran launched another illegal missile test. (As the Jewish Telegraphic Agency wrote, The act establishes new sanctions targeting Irans testing of ballistic missiles and its backing for terrorism, and also seeks to block the property of any entity involved in the sale of arms to or from Iran. It does not reintroduce sanctions lifted from Iran as part of the 2015 nuclear deal.) In a summary released last week, senators described potentially far-reaching measures including mandatory sanctions on those involved with Irans ballistic missile program, new sanctions against theIslamic Revolutionary Guard Corps and a requirement for the president to block the property of any person or entity involved in specific activities related to the supply, sale, or transfer of prohibited arms and related material to or from Iran.

The administration has yet to take a position on the bill, but President Trump would be hard-pressed to come up with reasons to oppose the bill. Should he seek to trim the Senates sails either to preserve executive discretion or to avoid a clash with Russia he in all likelihood would find himself outmatched by a veto-proof majority in favor of the bill. In other words, Trump would do well to follow the bipartisan leaders on the Hill on this one. It may be the only win he chalks up anytime soon.

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Iran provides a rare moment of bipartisanship - Washington Post (blog)

Iran and Turkey Pose Problems for Trump in Syria – Lawfare (blog)

While the worst violence of Syrias six-year-long war may be over, a credible settlement is still far off. The Trump administration has boosted the U.S. military presence in Syria. While this enhances Washingtons leverage, it will not alone assure long-term U.S. interests: The destruction of the Islamic State, a cessation of Syrias destabilizing refugee flow, and an end to Syrias transformation into a logistical hub for expanding Iranian and perhaps Russian influence.

To achieve these aims, Washington needs a more holistic approach toward external powers now involved in the Syrian conflict. During the campaign, Trump suggested working with Russia to fight the Islamic State; his secretary of defense seems disinclined to follow through on that proposal. But much of U.S. policy will hinge on the influence of other regional players, Iran and Turkey. Both have vested interests in Syria that do not align well with those of the United States, and the Trump administration will have to manage these unreliable actors carefully as the conflict continues.

Regional Rivalries Persist

Both Iran and Turkey vested in the outcome of the war and justify their military interventions on grounds of national security. The Iranians, relentless backers of Bashar al-Assads regime, tout that the 30,000-man armed force they say they directly control are engaged in an existential struggle against the Islamic State. In reality, Tehran has overwhelmingly fought non-Islamic State opposition forces along the border with Lebanon, in effect consolidating a land bridge for Hezbollah, Tehrans most cherished Arab proxy.

Irans multi-billion dollar campaign to save Assad is far more about maintaining Syria as a forward base for Tehrans broader regional ambitions than defeating the Islamic State. Recent amassing of Iran-backed forces on the border with Israel has nothing to do with the Islamic State and everything to do with the Islamic Republics ideological desire to threaten the Jewish state.

But what about Turkey? Historically, Turkish-Syrian relations have been tense. Two decades ago, the two countries almost went to war over Hafez al-Assadthe father of Syrias current leaderproviding safe-haven to the Kurdistan Workers Party (PKK), a Kurdish group fighting for a homeland in southeastern Turkey. But, as part of his quest to reset relations with his neighbors in the early 2000s, Turkeys leader Recep Tayyip Erdogan became one of Assads biggest boosters. Prior to the outbreak of civil war in Syria, the two leaders vacationed together on Turkeys Mediterranean coast, even as Erdogan told Israeli officials he was too busy to meet.

For Erdogan, a Sunni sectarian ideologue at heart, this made sense: He thought he could empower Syrias Sunni majority population and perhaps win new contracts for Turkish companies.

That amity did not last long once the civil war broke out in 2011. Simply put, Erdogan may have believed his friend to be doomed and made a cynical call to support the opposition. For Erdogan, a Sunni sectarian ideologue at heart, this made sense: He thought he could empower Syrias Sunni majority population and perhaps win new contracts for Turkish companies. But, as so often happens with Erdogan, whatever he touches turns to lead. Assad held on tenaciously to power. Erdogan may have fanned the flames of Sunni radical groups, never realizing the conflagration could burn out of control. Meanwhile, Syrian Kurds many of whom sympathize with the PKK seized advantage of the vacuum to expand their territory and, for the first time in Syria, create an autonomous Kurdish entity. Turkey, which also opposed Iraqi Kurdish federalism until the potential for trade and oil-export agreements became lucrative enough change minds in Ankara, sees the expansion of Kurdish self-rule in Syria as a bridge too far.

For all the talk about renewed realism and reconciliation coming from Ankara, the gulf between Turkey on one hand and Iran and Russia on the other remains wide. Ankaras July 2016 about-face and turn to pro-Assad Moscow as a partner not only failed to deliver concrete results for Turkey, but also may have eroded Turkeys position. Last week, the Syrian Kurds announced a military basing agreement with Russia, effectively throwing Erdogan under the bus for the sake of Turkeys Kurdish enemies.

U.S. Policy and the Regional Politics of Syria

As Trump advances a new Syria strategy, he will need to both stabilize Syria and neutralize the threat an empowered Assad might pose to the wider region. Credibility matters. Turkeys cynical policy and willingness to switch sides has undermined its influence among all parties and ultimately may have condemned it to face its worst-case scenario: an empowered Assad bitter about Turkeys betrayal and a permanent Kurdish safe-haven reinforced by the international community.

If Trump can't work through Turkey, there may be other options. Saudi Arabia and other Gulf states may not worry as much about Russian influence in Syria, but they are concerned about Iran consolidating greater control. Faced with lackluster U.S. commitment, however, the Gulf states have instead chosen to focus first on confronting growing Iranian influence closer to home and invested deeply in their military intervention in Yemen.

Credibility matters. Turkeys cynical policy and willingness to switch sides has undermined its influence among all parties and ultimately may have condemned it to face its worst-case scenario...

If Trump shows that he will not defeat the Islamic State only to cede Syria to Iran, then the Gulf Arabs might return to the fray. As their leaders converged on Washington last week for Trump's summit of the coalition fighting the Islamic State, they advocated for a stronger U.S. commitment against Iran and, according to numerous roundtables Arab leaders held on the sidelines, urged the White House to close the door on President Obama's more accommodating policy toward Iran. While Trump argued throughout his campaign that the United States cannot be the worlds policeman, by showing a firm commitment to allies the United States can avoid that role while still achieving its aims.

As a priority, the Trump White House needs to consolidate the anti-Assad powers to weaken the hand of Iran and Russia. It should not default to the parallel diplomatic negotiations in Astana, which were engineered by Russia mostly to marginalize the United States and its allies.

But while the United States engages in this renewed alliance building effort with an eye to safeguard long-term U.S. interests in the Middle East, it should be clear-eyed about potential pitfalls. In the case of Iran, Trumps case is straightforward. The Iranians dont want to be marginalized this late in the Syrian war. They see their military presence on the ground in Syria as entitling them to play a central role in deciding the makeup of future power structure in Damascus.

The notion that Iran is an altruistic power that wants only to defeat the Islamic State is naive. During the Obama administration, officials seemed willing to accept Irans help on the ground with Iraqi militias and forces without adequately considering what Iran might expect after the Islamic States defeat. Indeed, this is a concern often raised by Iraqi officials privately, if not publicly. While Trump looks to hash out a new Syria strategy, a basic truth should not be lost on him: that any meaningful U.S.-led effort has much to benefit from the support of the Gulf Arab states. They, in turn, have a basic litmus test for Trump: his readiness to stand up to Tehran.

In the case of Turkey, Erdogan will remain a loose cannon. He wavers and hedges his betsfrom turning to Russia and now looking to rekindle Turkeys ties with Israel to counter Iran in Syriabut his inclination to play the anti-American card when expedient should not be lost on the Trump national security team. At best, his erratic behavior has made him an unreliable partner within the NATO alliance. Turkey can be a part of any new Trump strategy, but it should never be its lynchpin.

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Iran and Turkey Pose Problems for Trump in Syria - Lawfare (blog)