Friday, June 24, 2016

Eye on Iran: Boeing's Historic Deal with Iran Rests on Shaky Foundations







Join UANI  
  FacebookFollow Us on Twitter View our videos on YouTube
   
   
Top Stories

AP: "Boeing Co.'s historic $25 billion deal with Iran Air potentially rides on hopes that Tehran would stop its past practice of using the airline's planes to ferry fighters and weapons across the Middle East. Exactly five years ago, the Obama administration imposed sanctions on the Iranian company for a number of infractions. Iran Air used passenger and cargo planes to transport rockets and missiles to places such as Syria, sometimes disguised as medicine or spare parts, the Treasury Department said at the time. In other instances, members of Iran's Revolutionary Guard Corps took control of flights carrying sensitive cargo. Although U.S. officials never have said such conduct ended, the administration used a technicality to drop those penalties as part of last year's seven-nation nuclear deal. The agreement also allowed the Treasury Department to license American firms to do business in Iran's civilian aviation sector... Yet the deal is not without risk, something the administration acknowledges. State Department spokesman John Kirby said that the sale and any possible follow future deals depend on Iran's good behavior. The U.S. could revoke the license for the deal if planes, parts or services are 'used for purposes other than exclusively civil aviation end-use' or if aircraft are transferred to individuals or companies on a U.S. terrorism blacklist, Kirby said. Any suggestion 'that we would or will turn a blind eye to Iran's state sponsorship of terrorism or their terrorist-supporting activities is completely without merit,' Kirby said. But speaking to reporters Thursday, he refused to spell out why the U.S. removed sanctions on Iran Air... if Iran Air continues supporting Iranian military or Revolutionary Guard operations, it would put the Obama administration or any successor in a bind." http://t.uani.com/28RWyjI

WSJ: "The White House is pushing to ease the way for companies to complete deals with Iran, aiming to cement the landmark nuclear agreement reached last year and make it difficult for future administrations to undo it, senior U.S. officials said. The effort, which borrows from President Barack Obama's playbook for solidifying U.S. relations with Cuba, got a boost this week when Boeing Co. reached a $17.6-billion deal with Iran to sell commercial jets to the country's main airline. A Boeing spokesman declined to comment on any specific effort by the administration. In a letter Thursday responding to criticism of the deal from two Republican lawmakers, the company's senior vice president for government operations, Tim Keating, said the administration had made it clear in consultations with Boeing that 'the ability to provide Iranian airlines with U.S. and European replacement commercial passenger aircraft for their aging fleets was key and essential to reaching closure on the agreement.' ... Administration officials have said they are seeking in Mr. Obama's final months in office to make his policies toward Cuba and Iran, which have been controversial, difficult for his successors to unravel. U.S. officials are also exploring what they say are other ways of integrating Iran into the global economy, with more announcements expected in the months before Mr. Obama leaves office in January. Among them is a process for giving Iran limited access to the U.S. dollar, which administration officials said has made some progress... The administration's moves to integrate Iran into international business and financial markets, although limited to the terms of the nuclear deal, have drawn criticism from U.S. lawmakers and stoked concerns among America's Middle East's allies. It is also causing friction between the State and Treasury Departments, U.S. officials say. Secretary of State John Kerry, the administration's point man on Iran, has been the most forward-leaning on ways to aid Iran's economy." http://t.uani.com/28UuPmE

Reuters: "An international group that monitors money laundering worldwide said on Friday it was suspending counter-measures on Iran for 12 months, but left it on a list of high-risk countries. The Financial Action Task Force said it would monitor Iran's progress tackling anti-money laundering and terrorism financing following a recent political commitment from Tehran to do so. In the meantime, the Paris-based body urged its 37 members and other countries to 'continue to advise their financial institutions to apply enhanced due diligence to business relationships and transactions' with Iran firms and people." http://t.uani.com/28Rlxn0

U.S.-Iran Relations

NYT: "The Boeing Company on Thursday offered new details on its proposed passenger aircraft deal with Iran and rejected suggestions that it had not done sufficient homework in identifying end users of the planes. In a letter to congressional critics of the politically delicate deal, Boeing said Iran Air, the national airline, intended to buy 80 passenger planes in a variety of models worth $17.6 billion and lease 29 of the company's 737s, with deliveries projected to begin as early as next year. The letter, by Tim Keating, vice president of government operations, also said 'we have a vigorous compliance mechanism at Boeing with regard to the screening of all parties with which we do business.' Mr. Keating wrote that Boeing had strictly adhered to dealings with Iranian entities approved by United States sanctions monitors. 'We could not, as a corporation, be reasonably expected to have better intelligence resources than that of the U.S. government,' Mr. Keating wrote. 'Therefore, we do rely upon the U.S. government to provide the information needed for us to remain compliant.' ... Mr. Keating was responding to a June 16 letter from two Republican congressmen, Peter Roskam of Illinois and Jeb Hensarling of Texas, who have been highly critical of any steps toward more normalized dealings with Iran after more than four decades of mutual hostility and mistrust." http://t.uani.com/291UTut

Congressional Action

Free Beacon: "U.S. lawmakers and foreign policy insiders are calling on the international community to re-open its 'flawed' investigation into Iran's past nuclear weapons research, according to conversations with multiple sources who say the extent of Iran's past nuclear work is likely much larger than previously believed. The calls to reinvestigate Iran's nuclear work come on the heels of revelations by anonymous U.S. officials who said the Obama administration held onto evidence showing the Islamic Republic performed extensive nuclear weapons research-a finding that contradicts findings by international monitors and longstanding claims by Iranian officials. Administration officials made no mention of the finding when International Atomic Energy Agency (IAEA) inspectors first discovered it in December, but now say the evidence is proof Iran worked to build nuclear weapons as recently as 2003. The discovery has prompted lawmakers to demand that the IAEA re-open its currently closed investigation into Iran's past nuclear weapons work. 'The Obama administration's contradiction of both Iran and the IAEA on this uranium issue calls for a re-examination of the flawed potential military dimensions report,' Rep. Mike Pompeo (R., Kansas), a member of the House's intelligence committee, told the Washington Free Beacon. 'The IAEA cannot claim to have an accurate accounting of the situation while nuclear particles are unaccounted for.'" http://t.uani.com/28SlatG

Business Risk

Gulf News: "Business between the UAE and Iran is yet to pick up despite lifting of sanctions on the Islamic republic earlier this year, experts and Iranian Business Council in Dubai said. 'Things have not changed much as primary sanctions still remain and banks in the UAE are reluctant to deal with the Iranians or companies which have Iranian partners for fear of being penalised for violating sanctions related regulations,' said Hussain Asrar Haghighi, executive vice president of the Iranian Business Council in Dubai, told Gulf News... Meanwhile, companies in the UAE are waiting for banking procedures to be more clearer before investing in Iran. Indian Business and Professional Council (IBPC) in Dubai said there is a lot of interest among business community to invest in Iran. 'It may take some time before investment moves into Iran. People are very positive about developments in the country,' said Kulwant Singh, President of IBPC." http://t.uani.com/28Uu5xU

Sanctions Relief

FT: "Iran has confirmed the names of five Iranian companies that it has identified as partners for international energy majors seeking to invest in the Islamic republic, taking it a step closer to opening up its oil and gasfields to western investment. Gholamreza Manouchehri, the deputy head of the National Iranian Oil Company (NIOC), told the Financial Times that the companies already selected included government-backed Petroiran, Petropars and Mapna Group. But he said that a complete list was still being finalised. The names of the companies has been eagerly awaited by western energy companies such as BP, Total and Eni, as they hope to gain access to the Opec member's oil and gas reserves after years of sanctions... Bijan Namdar Zanganeh, Iran's oil minister, said on Sunday that Iran, once the second largest Opec producer, expected to sign a first post-sanctions oil contract with a foreign company within three months." http://t.uani.com/28XGeld

Foreign Affairs

Reuters: "The Shanghai Cooperation Organisation (SCO), a China-led security bloc, refused to initiate Iran's accession on Thursday despite a request from Russia which backs Tehran's bid, indicating possible divisions between Beijing and Moscow. The bloc has served a platform for Moscow and Beijing to project influence in the region. But unlike Russia, China may be reluctant to give it a strong anti-Western flavor. Iran has long knocked at SCO's door and Russia has argued that with Western sanctions against Tehran lifted, it could finally become a member of the bloc which also includes four ex-Soviet Central Asian republics." http://t.uani.com/28TH5W3

Domestic Politics

FT: "When Iran sealed its historic nuclear agreement with world powers, it was hoped that a dividend of the deal would be Tehran damping tensions with Arab states and using its influence to help solve regional crises. But six months after the deal came into effect, the Islamic republic is sending out conflicting signals that highlight differences between moderate and hardline forces over whether to retain the status quo or soothe relations with Sunni Arab rivals and the US. This week a decision by Mohammad Javad Zarif, the pro-reform foreign minister, to appoint a new deputy minister for Arab affairs triggered speculation that moderates had gained a small victory. Mr Zarif, who has pledged to prioritise finding diplomatic solutions to Middle East crises, on Sunday replaced Hossein Amir Abdollahian, who is reputed to be affiliated to the elite Revolutionary Guards, with Hossein Jaberi Ansari, a more moderate figure. Yet a day later, a rare and belligerent statement by Major General Ghassem Soleimani, the shadowy commander of the guards' arm for overseas operations, dashed those hopes. Following Bahrain's decision to revoke the nationality of the kingdom's most senior Shia cleric, Maj Gen Soleimani warned the move 'could trigger flames of fire in Bahrain and the whole region.'" http://t.uani.com/28XFYCP

Opinion & Analysis

The Economist: "The Supreme Leader, Ayatollah Ali Khamenei, is not happy. 'Anyone who has ever trusted the Americans was eventually slapped by them,' he declared earlier this month. 'The experience of nuclear talks proved that even if we compromise, the United States will not stop its destructive role.' This was the latest in a stream of attacks by Iranian hardliners on the deal reached a year ago. Some of this is politics: they never wanted the deal and have tried to sabotage it in order to damage their rival, Iran's reformist president, Hassan Rohani. But the charge that the West has failed to honour its side of the bargain-lifting most sanctions in return for strong curbs on Iran's nuclear programme-is growing. It is also wrong. Even the most hawkish critics of Iran agree that it has done its bit. Within months of the deal being signed last July, Iran began to dismantle almost all of its centrifuges, which could be used to enrich uranium to weapons-grade purity, and to move its stockpile of low-enriched uranium out of the country. That work has been speedily completed. Iran's apparent compliance with the intrusive inspection regime under the deal has also been a milestone for non-proliferation. The West, too, has kept to the letter of the deal. The sanctions imposed on Iran as its nuclear programme intensified in the 2000s have been lifted. Iran is increasing its production of oil and foreign investment is rising. The problem lies outside the accord. Iran has tested nuclear-capable ballistic missiles and is waging wars, directly and by proxy, around the Middle East. America maintains its unilateral sanctions, which were imposed long before the nuclear crisis. They concern Iran's dire human-rights record; its support for terrorist organisations, including Hamas in Gaza and Hizbullah in Lebanon and Syria; and its development of long-range missiles. These sanctions were excluded from the nuclear negotiations. For Iran to suggest otherwise is untrue... the burden falls mostly on Iran. It must clean up its opaque corporate culture. It should bring its accounting and banking rules up to date, so that investors know whom they are dealing with. If that pushes the Guards out of business, so much the better. For Iran to find jobs for millions of educated, underemployed young Iranians, it will have to give up the hardliners' cherished idea of a 'resistance economy'. Ironically, sanctions could yet prove a route to prosperity." http://t.uani.com/28RTpRp

Eli Lake in Bloomberg: "Almost a year after the Iran nuclear deal, we're getting a clearer picture of the coalition of activists who fought for the agreement, sparring with the 'warmongers' in Congress. It is a broad coalition. There are, of course, the peace activists and arms-control experts, who were vocal in support of the deal. There were also quieter members of this campaign, like the corporation that makes the B-52 bomber and the V-22 Osprey. The Daily Beast's Betsy Woodruff reports that a former Boeing vice president and senior State Department official, Thomas Pickering, lobbied hard for the Iran deal while cashing checks as a consultant for the aerospace giant. Yet when Pickering wrote op-eds and signed public letters urging approval of the Iran agreement, he often neglected to mention his previous and ongoing connections to Boeing. Now it's obvious why Boeing would have wanted the Iran deal. This week the corporation announced that it had reached a $25 billion deal to sell airliners to Iran, a move that was welcomed Tuesday by the State Department spokesman. Close watchers of the Iran debate understood that the lifting of sanctions on Iran would potentially allow major U.S. companies like Boeing back into the Iran market. But this is not how the White House and its allies sold the Iran deal last summer. One of their sharpest arguments was that the Iran agreement was a way to avoid a war that opponents of the agreement wanted. As I reported last month, this was not an accident. The nonprofit known as the Ploughshares Fund gave money to a network of advocates and experts and urged them to paint opponents of Iran diplomacy as 'pro-war,' as early as 2011." http://t.uani.com/28RnI9Z
       

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

No comments:

Post a Comment