Monday, October 21, 2013

Eye on Iran: Iran Parliament Chief Warns over Nuclear Pressures







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AP:
"Iran's parliament speaker warned Sunday that lawmakers could call for stepped-up atomic work if the West presses too hard for concessions in ongoing nuclear negotiations. The message from Ali Larijani - less than a week after talks resumed - appears aimed at both envoys from the West and Iran's negotiation team, which is led by Foreign Minister Mohammad Javad Zarif. It also highlights the political jockeying inside Iran between backers of moderate-leaning President Hassan Rouhani and hard-liners wary of his outreach to Washington... Larijani, meanwhile, told Iran's representatives that parliament would not permit world powers to impose 'special measures' on the country beyond the obligations laid out by the U.N. treaty overseeing nuclear activity, such as U.N. monitoring and inspection... On Sunday, Rouhani told a Cabinet meeting to be careful about foreign enemies' plans for damaging unity in the country, the official IRNA news agency reported. Rouhani said Israel is trying to undermine the ongoing nuclear negotiations. 'Zionists were resorting to sabotage and trouble-making inside or outside the country whenever Iran was achieving a success,' Rouhani was quoted as saying." http://t.uani.com/18BmfRT

LAT: "The six world powers negotiating with Iran over its disputed nuclear program asked Tehran in an opening proposal earlier this week to slow, rather than halt, low-level uranium enrichment at its two enrichment facilities, a hard-line website in Iran reported. The Mashregh website said the six countries proposed in a meeting in Geneva on Tuesday and Wednesday that Iran also slow the installation of gas centrifuges, the machines that produce enriched uranium, at the Natanz and Fordo nuclear facilities... The Farsi-language website said the six countries proposed that Iran convert its stockpile of medium-enriched nuclear material - which can be easily turned into nuclear bomb fuel - into low-enriched material, which is used in civil reactors and is seen as less threatening. It said the diplomatic group asked that Iran limit its stockpile of low-enriched material to 10,000 kilograms, or about 22,000 pounds. The remainder of the stockpile should be turned into fuel rods, a form that can't be used as bomb fuel, the group reportedly proposed. It also asked that Iran sign an international protocol that would allow United Nations nuclear inspectors to more closely monitor the expanding nuclear program." http://t.uani.com/1a6zWZg

Reuters: "Iran believes it can wrap up negotiations with world powers over its disputed nuclear program in one year or less, Iranian media quoted its chief nuclear negotiator as saying. At talks last week, the first since moderate President Hassan Rouhani's election in June, Tehran offered a three-phase plan it said could yield a breakthrough in the stand-off after years of diplomatic paralysis and increasing confrontation. 'If we see the same seriousness in future negotiations which we saw in the (October 15-16) Geneva negotiations, we believe that within six months to one year we can conclude the negotiations,' Deputy Foreign Minister Abbas Araqchi said in an interview with the state-owned, Arabic-language Al Alam television channel. 'Perhaps within three months or six months we can reach a conclusion regarding the first step,' he said, in remarks that were published on Monday by ISNA news agency." http://t.uani.com/H6jWw0
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WSJ: "The revival of nuclear talks between Iran and world powers has carved a new divide among Tehran's hard-line leaders over whether to bend to Western demands in exchange for relief from the sanctions that have crippled their economy. As Iran's new president and his foreign minister have shown a willingness to end their country's nuclear stalemate and improve relations with the West, high-ranking conservatives have both praised and condemned these initiatives. On one side is the familiar rhetoric aired by the senior cleric leading the Friday prayer service in Tehran, who said the West was using nuclear negotiations to wage war against Islam. On the other, a cleric close to Supreme Leader Ayatollah Ali Khamenei publicly questioned at prayers in Isfahan whether it was wise to continue chanting 'Death to America' at public gatherings if Iran was going to normalize relations with the U.S." http://t.uani.com/19moqYP

Haaretz:
"Iran's proposal at the Geneva summit meeting last week, though general and open to question, indicated Tehran's willingness to scale back its uranium enrichment program and discuss issues it had previously rejected out of hand, according to a high-ranking Israel official who was briefed on the talks. United States Undersecretary of State Wendy Sherman, who led the U.S. delegation to the talks, called National Security Adviser Yaakov Amidror on Thursday and briefed him on the substance of the talks. In addition, members of the British delegation came straight to Israel from Geneva for talks with their Israeli colleagues. The U.K. delegation met with Strategic and Intelligence Affairs Minister Yuval Steinitz and other top Israel officials on Friday. Prior to that, senior French and German officials spoke by phone with their Israeli counterparts about the talks... The Iranian proposal, as conveyed to Israel by the world powers was formulated as a two-phase plan, consisting of confidence-building measures by both sides, followed by negotiations toward a comprehensive agreement ending the nuclear crisis. The Iranian representatives explicitly said Tehran was willing to cease uranium enrichment to 20 percent and to exchange its stores of 20-percent-enriched uranium for nuclear fuel for its experimental reactor in the capital, Tehran. Iran expressed willingness to discuss the quantity and scope of its enrichment of uranium to 5 percent and the number of centrifuges running in its enrichment facilities. According to the Israeli source, the Iranians said they were open to discussing the future of the heavy-water reactor in Arak and the underground enrichment site in Fordo. 'The Iranians said they can't scrub the entire program but implied that a compromise was possible,' the source said, adding, 'they're not willing to completely shut down these sites but they are willing to greatly restrict and limit them.' According to the source, the Iranian representatives did not rule out Tehran's ratification of the Additional Protocol of the Nuclear Nonproliferation Treaty, allowing the International Atomic Energy Agency to make unannounced inspections of suspicious nuclear facilities in Iran. 'The Iranians told the international delegations in Geneva, Don't expect us to shut down our entire nuclear program, but we are willing to discuss measures that will reassure you.'" http://t.uani.com/1fPtCcL

AFP:
"Israeli Prime Minister Benjamin Netanyahu said Sunday world pressure on Iran must be maintained, as an Israeli delegation travelled to Washington to be briefed on talks on Iran's nuclear programme... Netanyahu's remarks came as a senior Israeli delegation was on its way to Washington for updates on talks between the major powers and Iran over its nuclear programme which resumed in Geneva on Tuesday. Strategic Affairs Minister Yuval Steinitz and a team of officials from intelligence services and the foreign and defence ministries were to participate in the bi-annual strategic dialogue, a statement from his office said." http://t.uani.com/16m03fN

Times of Israel: "Speaking at a cabinet meeting, Rouhani said Iran must be careful about foreign enemies' plans for damaging unity in the country, the official IRNA news agency reported. Rouhani added Israel was trying to undermine the ongoing nuclear negotiations. 'The Zionists have resorted to sabotage and creating incidents at home and abroad,' he said, adding that the history of the Islamic Revolution showed that this ostensibly happened every time the Islamic Republic was close to a breakthrough in the international arena. Rouhani praised his government's diplomatic efforts, saying his administration actively took the initiative in the global arena and 'won the battle in the court of public opinion in the countries that have imposed sanctions on Iran,' according to Tehran Times. He added that his administration has already achieved diplomatic success by stopping additional sanctions on Tehran and by engaging constructively with world powers... The Iranian president concluded by saying that the 'the dignified path of the Iranian nation is clear, and the goals that have been set out by the Supreme Leader of the Revolution for the development of the country will be vigilantly pursued.'" http://t.uani.com/1a6K0BL

Sanctions

FT: "As Iranian and western negotiators hunkered down for talks on Tehran's nuclear programme in Geneva last week, oil traders and analysts went into their own war rooms - estimating the speed and quantity of oil the country can bring back to the market should sanctions be lifted. A rapid return of Iranian barrels could push Brent below $100 a barrel and force Opec countries to confront the US shale revolution, which has been kept at bay by production shortfalls in Iran and elsewhere in the cartel. Two post-sanction scenarios are dominating discussions: the Iraqi model, where production has only recently recovered to 1990 levels, a decade after the end of the Iraq war, and the Libyan model, where production returned to 1.4m b/d within months of the end of the country's civil war in 2011. The key variable is the way production was shut in. In an orderly shutdown, wells are plugged and equipment left in place, with minimal geological damage to the fields. The other extreme is Iraq where fields were abandoned in the face of military invasions and suffered physical damage. Most analysts think Iran falls into the first category. No bombs have fallen on the country, and the sanctions programme was well telegraphed, giving the government plenty of time to adjust down production as it lost markets." http://t.uani.com/1a7z0DZ

VOA:
"U.S. Treasury Secretary Jacob Lew says talk of a possible easing of U.S. sanctions against Iran is premature, despite last week's discussions in Geneva on the country's disputed nuclear program. The White House has described the recent talks between Western diplomats and Iran as displaying a new level of 'seriousness and substance.' But, appearing on NBC's Meet the Press program, Secretary Lew gave no indication the Obama administration is contemplating a pullback on sanctions, at least not yet. 'It is premature to talk about the easing. I think the sanctions are working, and that is why the discussions have started. We need to see that they [Iranian officials] are taking the steps to move away from having nuclear weapons capacity,' said Lew. 'We need to see real, tangible evidence of it. And we will not make moves on the sanctions until we see those kinds of moves [from Iran].'" http://t.uani.com/15WCpUE

USA TODAY: "Republican senators say they will defy President Obama and push for a bill to toughen sanctions against Iran despite White House objections that any new legislation should wait until after the current round of talks run their course... Sen. Mark Kirk of Illinois, a junior member of the Senate banking committee that is considering the bill, said the end of talks in Geneva this week with no change in Iranian behavior means the Senate should move forward on toughening sanctions despite White House objections. Kirk released a statement together with Sens. Lindsey Graham of South Carolina and Kelly Ayotte of New Hampshire responding to a report in Friday's New York Times that the Obama administration is considering easing sanctions on Iran by releasing Iran's frozen overseas cash. 'Now is a time to strengthen--not weaken--U.S. and international sanctions,' the senators said. 'The U.S. should not suspend new sanctions, nor consider releasing limited frozen assets, before Tehran suspends its nuclear enrichment activities.' The White House did not deny the Times report, but Bernadette Meehan, a spokeswoman for President Obama's National Security Council, said 'Discussion of specific types of sanctions relief is premature and speculative.' Meehan said new sanctions should wait while talks show promise and that Congress should match its actions to the White House negotiating strategy. 'We believe it will be helpful to allow the ongoing diplomatic negotiations to move forward before we consider any new sanctions legislation,' Meehan said... The proposed legislation is likely to be discussed in the Senate banking committee after the Senate reconvenes from its recess Oct. 28." http://t.uani.com/16m5F9X

AP: "Sen. Mark Kirk of Illinois, a key proponent of Iran sanctions, plans to introduce an amendment to a new package of international restrictions on commerce with Iran that would seek to provide the administration with more sticks and carrots for talks through Iran's cash reserves, a Senate aide said. Kirk's plan would freeze any remaining assets overseas that Iran can still access by threatening to cut off from the U.S. market any foreign banks that continue doing business with Iran. At the same time, it would also give Obama the flexibility to allow Iran to access some of the money it can only use for limited purposes today, said the Senate aide, who wasn't authorized to speak publicly on the pending legislation and demanded anonymity. There's a catch, however. Kirk's legislation would allow Iran to get the money only if it agrees to end all uranium enrichment and reprocessing, activities that even Rouhani's new reformist government has vowed to continue." http://t.uani.com/19mpOKY

Reuters: "China's daily crude oil imports from Iran were the third-highest so far this year at 475,521 barrels per day in September, up 24 percent from the same month last year, official customs data showed on Monday. The figure was 9 percent higher than August's 436,300 bpd level and kept the daily average for Iranian crude imports so far this year above an unofficial target for 2013. China and other Asian importers of Iranian crude have to keep reducing the shipments to win waivers to U.S. sanctions aimed at curbing the country's disputed nuclear programme... China, Iran's largest oil client, bought 16.01 million tonnes Iranian crude oil in the first three quarters of the year, or an average of 428,160 bpd, up 1.4 percent versus the same period a year ago. That is above an unofficial maximum target of 416,400 bpd for 2013. Chinese oil officials estimated late last year that domestic refiners would cut their Iran shipments 5-10 percent this year from the 438,450 bpd average for 2012. China's average daily Iran oil imports for 2013 need to fall into a 394,600-416,400 bpd range to meet that target... Iranian supplies made up 7.6 percent of China's total September crude oil imports, which hit a new high of 6.25 million bpd." http://t.uani.com/1a1XEYw

Human Rights

Guardian: "Hopes have been raised for the life of the Iranian man who survived a hanging only to be condemned to be re-executed, after one of the country's oldest and most respected Islamic scholars appeared to question the ruling. The extraordinary case of Alireza M, a 37-year-old father of two who was convicted of drug smuggling three years ago, has caused controversy around the world and divided Iranians... Among the arguments was a fatwa, or ruling, from the religious writings of grand ayatollah Lotfollah Safi Golpaygani, a sharia law expert, which stated that execution was viable even after a convict had come back to life. But now the 94-year-old ayatollah has posted an oblique reference to the case on his website, suggesting that, as it concerns a case of drug smuggling, not among crimes seen as an act against God, his earlier fatwa need not apply... There are also concerns that Iran is botching hundreds of executions, leaving people to die slow, agonising deaths, because the sheer volume of killings being carried out means they are not being done 'professionally'. According to Amnesty International, at least 508 people may have been executed in Iran this year." http://t.uani.com/1c8FTIT

Domestic Politics

NYT: "As Iran's new president, Hassan Rouhani, steers the country away from its confrontational posture toward the West, he is inevitably calling into question the bedrock anti-American ideology of the Islamic republic. That is turning the revolution's leading slogan, 'Death to America,' into a political battleground. 'These three words are the blood of our ideology,' said one of those leaving Friday Prayer, Mohammad Jahanbi. He said he had been a political prisoner during the reign of Shah Mohammed Reza Pahlavi and was a veteran of the bloody eight-year war with Iraq. 'We must hold on to Death to America; otherwise, our revolution will be lost.' But the current government has been calling for reasoned actions rather than slogans. 'We can stand against powers with prudence rather than with slogans,' Mr. Rouhani said recently... And so they marched, a couple of hundred people in this capital of 12 million. American flags were burned, children waved portraits of President Obama with Dracula-like fangs, and security officers holding walkie-talkies tried to look inconspicuous. While many, if not most, Iranians in the capital scoff at the 'Death to America' crowd, anti-Americanism remains an important part of the Islamic republic's ideology and legitimacy." http://t.uani.com/172X5eA

RFE/RL: "Heard the one about the ayatollah who wanted to marry war widows? It's the type of joke that doesn't get many laughs in Iran, even if told by the grandest ayatollah of them all -- Ruhollah Khomeini, the founder of the Islamic republic. The 1980-88 war with Iraq remains a painful memory for Iranians, and the tens of thousands of soldiers lost their lives in the conflict are honored as martyrs. So when a one-liner attributed to the late Khomeini appeared on his granddaughter's Facebook page, controversy ensued. Khomeini's granddaughter, Naeimeh Eshraghi, denies posting the joke, which recently appeared on the comments section of her Facebook page, under her ID. 'Another joke we used to tell the Imam, and he always jokingly recalled, is this: Imam Khomeini: Hey Pasdaran [Revolutionary Guards Corps members], marry the widows of the martyrs ... I wish I were a Pasdar.' Amid the outcry, Eshraghi has closed her account on the social-networking site." http://t.uani.com/1fJ350H

AP: "Iran's media says President Hassan Rouhani has named three candidates for ministerial posts to replace nominees who were rejected by the conservative-dominated parliament. Shortly after Rouhani was inaugurated in August, lawmakers attacked his proposed Cabinet for its members' Western educations, their alleged ties to the opposition, and their supposed lack of experience. But in the end Parliament rejected only three out of his 18 nominees. State TV said Sunday that the president named Reza Faraji Dana to be Science, Research and Technology Minister, Reza Salehi Amiri to fill the Sports and Youth portfolio and Ali Asghar Fani to head the Education Ministry. The parliament will discuss the nominations next week." http://t.uani.com/1gxi6UM

Foreign Affairs

AP: "An accord reached with world powers over Iran's controversial nuclear programme could help Tehran foster better ties with Europe, visiting members of the European Parliament said here Sunday. 'It is of great importance for the European Union to reach an agreement with Iran,' said Hannes Swoboda, head of a three-member MEP delegation from the socialist and democrat faction visiting Tehran. Accompanied by Ana Gomes and Veronique de Keyser, he made the remarks in a meeting with Iranian parliament speaker Ali Larijani, the ISNA news agency reported." http://t.uani.com/1fPjG3a

Opinion & Analysis

Michael Singh in WashPost: "With the first round of nuclear talks with Iran's new, and newly pragmatic, negotiating team in the books, the Washington policy debate about Iran has shifted from whether a deal is possible to what sort of deal is acceptable. While such discussions can often seem a miasma of centrifuge counts and enrichment levels, there are, in fact, two distinct paths to a nuclear deal with Iran. The first path is one in which Tehran would receive relief from sanctions in exchange for putting strict limits on its nuclear activities, such as restricting uranium enrichment to low levels. The success of such an agreement would depend on ensuring that Iran could not use declared nuclear activities as a cover for covert activities aimed at developing a nuclear weapon. It would also depend on ensuring that the deal was not easily reversible, so Tehran could not renege once pressure had been alleviated. There are ways that sanctions relief could be made more easily reversible - for example, channeling oil payments to Tehran through a single mechanism that could be blocked in the event of noncompliance - but none of these is fail-safe. The efficacy and durability of a deal over limited enrichment would rest on Iranian transparency. To be meaningful, transparency measures would have to include allowing inspectors unfettered access to sites of their choosing, not just those declared by Iranian officials, and a comprehensive accounting of Iran's past and present nuclear work, including the military elements of its nuclear program, such as weaponization research. Coming clean in this manner is a prerequisite for the success of any deal that leaves in place dual-use nuclear capabilities. Countries that have divulged their nuclear secrets, such as South Africa, have proceeded to cooperate peacefully with the international community on atomic energy. Those that continued to obfuscate despite agreements, such as North Korea, experienced deeper isolation and external tensions. Iran appears to prefer the latter model. While its officials profess a desire for cooperation, they continue to dismiss as 'unfounded allegations' evidence deemed 'credible' by the International Atomic Energy Agency that Iran has engaged in nuclear work related to weapons. Iran continues to deny inspectors access to suspected nuclear sites and key personnel, and it seeks to constrict their activities within the bounds of its declared nuclear program. Even in the best circumstances, it would take time to establish confidence that Iran had truly given up its nuclear weapons aspirations. Allies such as Israel and the Gulf states would distrust Iranian intentions, while Iranians would bristle at the intrusiveness of inspections. Absent a strategic shift by Iran, a deal on limited enrichment is more likely to increase those tensions than to defuse them: Iran would seek to hide or deny activities for which the United States and its allies have convincing evidence; Iran's adversaries would seek to match its nuclear capabilities; and erstwhile allies such as Russia and China would drift away from the unlikely coalition currently led by Washington. The unlikelihood of a change of heart by Iranian leaders suggests a second, more straightforward path to an agreement: requiring Iran to dismantle its nuclear program in exchange for any relief from sanctions, which would be increased should Tehran refuse to yield. In this model, Iran would have to suspend enrichment- and reprocessing-related activities as demanded by the U.N. Security Council, dismantle its underground enrichment facility at Fordow and export its stockpiles of enriched uranium, among other steps. The obvious objection to such a deal is that it may be too difficult to achieve; even U.S. negotiators have characterized this stance as 'maximalist.' But any deal must be evaluated in comparison to plausible alternatives, not in isolation, and Iran's alternatives are bleak. Iran's economy is under severe strain because of the sanctions. If Iran tried to 'break out' for a nuclear weapon, the United States and Israel have made clear that they would strike a devastating military blow. And contrary to conventional wisdom, time is not on Iran's side. With each passing day, Iran's economic predicament deepens and its nuclear program expands. But while the former threatens Iran's well-being, the latter does not improve it. Adding to its centrifuge inventory and uranium stockpile merely edges Iran closer to Western 'red lines' while making it no less vulnerable to attack. The United States possesses powerful leverage in the nuclear talks: Its negotiating position is eminently reasonable. The West is offering Iran something it desperately needs - sanctions relief - in exchange for something it has little ostensible use for - enrichment and reprocessing - given its disavowal of nuclear weapons. That's hardly a maximalist position." http://t.uani.com/19mAw4e

Katerina Dalacoura in FT: "Iran's positive attitude in its negotiations with the US, Britain, France, Germany, China and Russia over its nuclear programme marks a clear shift in policy. This welcome development, seen during the past week in talks in Geneva, follows Tehran's willingness to go along with the Russian-initiated deal on chemical weapons in Syria - where Iran is backing the Assad regime. The Islamic Republic appears to be softening its longstanding policies in favour of a more conciliatory approach. The shift is caused by the country's long-term decline in the Middle East - and Tehran's recognition that it must act on this decline. Iran's stance will hold the key to a number of interlocking regional conflicts, so identifying its cause helps shape policy responses to it. If an agreement with Iran does come to pass, many will argue that economic sanctions, imposed by the UN Security Council, the EU and the US, have achieved their objective. President Hassan Rouhani was elected this year with a mandate to ease the economic plight of his people. Ali Khamenei, the supreme leader, has at least partly conceded that the country needs to achieve this by proffering an olive branch to the international community, and the US in particular. But the economic factor is only part of a bigger picture. Iran is slowly but perceptibly losing the struggle for power in the Middle East. The messages it has propagated in various forms since the 1979 revolution are sounding tired and losing popularity at home and abroad. Its attempts to lead anti-western and anti-Israeli resistance fail to excite as they used to. The Sunni-Shia conflict, which now seems to permeate the politics of the region, has reduced Shia Iran to the status of a sectarian power. Ayatollah Ruhollah Khomeini, the leader of the revolution whose vision was of Iran at the forefront of the entire Islamic world, would be turning in his grave... But Iran's failing fortunes in the region should not be gauged only in material terms. Its bid for regional leadership has never rested solely on such crude measures. At its core was a self-appointed role as Islamic champion of the anti-western camp, forged in the 1979 revolution. It is on this most crucial ideological front that Iran is losing out. The Arab uprisings of 2011 revealed this most poignantly to anyone in Tehran who cared to look. When the revolts broke out, the Iranian leadership hoped that they signified a popular turn to Islamism as they understood it. However, it soon became clear that the rebellious youth were neither driven by an anti-western animus nor by a desire for an Islamist system. In Egypt and Tunisia, Islamist movements capitalised on the fall of presidents Hosni Mubarak and Zine al-Abidine Ben Ali. However, even in these countries (especially Egypt), their popularity declined rapidly. As the impact of the Arab uprisings reverberated through the Middle East, the Islamic Republic continued to lose out. The Assad regime's brutal tactics have delegitimised it in the eyes of many in the region, even those who had sympathised with its longstanding anti-western, anti-Israeli stand. Hizbollah's support of the Assad regime has similarly dented its legitimacy. Gone are the days when Hassan Nasrallah, its secretary-general, was the hero of the Arab street - Sunni and Shia - for his position at the forefront of the struggle against Israel. If anyone has taken over that role, at least until recently, it is Recep Tayyip Erdogan, Turkey's prime minister. Iran's appeal has been tainted by the brutal tactics of its allies, in Damascus and Beirut, who may remain strong materially but have lost out in terms of image and ideas. The long-term decline of the Islamic Republic in the Middle East presents an opportunity for peace in the region, particularly in Syria. However, when it comes to the nuclear issue, it may prove a double-edged sword: opting for nuclear weapons can be seen as the only way to avoid being pushed into a corner." http://t.uani.com/1c8FkyB

Zachary Keck in The Diplomat: "Even as the U.S. considers Iran's nuclear program as its most immediate threat, a consensus has emerged in the U.S. foreign policy establishment that China's rise poses the biggest long-term strategic challenge to the country. There is little indication that a similar consensus has taken hold among Iranian elites. It will. Indeed, as Iran has been preoccupied with the U.S. and its allies over the past decade, China has quietly established a growing presence along all of Iran's borders. In none of these places are Iran and China's interests perfectly aligned. In some cases, particularly the Middle East, they are starkly at odds. Consequentially, should Iran avoid a conflict with the U.S. in the next few years, it's likely to find China to be its most menacing threat in the future. Some may find the prospect of a clash between the Islamic Republic of Iran and the People's Republic of China farfetched. After all, the countries share many similarities. Each can legitimately claim to be the heir of one of the great ancient empires of the world, as well as of a nation that more recently suffered a century of humiliation at the hands of Western powers. The interplay between their divergent ancient and modern histories formed the basis of the revolutions that brought the current regimes to power, and have shaped their worldviews ever since. In the post-Cold War era, this worldview has expressed itself most prominently in their shared hostility to Western cultural hegemony in general, and the U.S. in particular. Not surprisingly, then, the PRC and IRI have enjoyed friendly and growing relations since the latter came to power. During Iran's war with Iraq in the 1980s, China was one of the only countries to provide Iran with material support. This continued throughout most of the 1990s when Beijing provided Iran with military and nuclear assistance. More recently, China's insatiable appetite for energy has led to a rapid expansion in economic ties, with Sino-Iranian bilateral trade rising from US$12 billion in 1997 to US$28 billion in 2009, the same year that China became Iran's largest trading partner. Since then, as sanctions have continued to push Western energy companies out of Iran, Chinese companies have readily filled the vacuum. Consequently, bilateral trade has reached US$45 billion in recent years. But this ostensibly friendly relationship masks a level of mistrust that runs particularly deep on the Iranian side. Tehran has long perceived China as playing a double game toward it. For example, although Beijing provided Iran with desperately needed arms during its war with Iraq (1980-1988), it provided Baghdad with well over double the amount of arms during the same period. Similarly, from Tehran's perspective, China has used Iran as a pawn and source of leverage in its dealings with the United States, always willing to sell it out for the right price. Thus, after years of U.S. pressure, China agreed in 1997 to halt its nuclear assistance to Iran and the sale of certain types of arms to reduce Beijing's existing tensions with the U.S. This decision included Beijing cancelling a US$4 billion contract for missiles and nuclear technology. More recently, U.S. concessions in other areas have led China to support five UN Security Council resolutions against Iran over its nuclear program. While China watered these down enough to preserve its own interests in Iran, it was less insistent on preventing Western companies from fleeing the country. Economic relations have also proved to be a source of tension. Although Chinese oil companies have signed numerous multi-billion dollar contracts to develop Iran's energy industry, Tehran has later terminated many of these over Beijing's repeated delays. As a 2011 Atlantic Council report noted, 'Of the $40 billion in announced China-Iran energy investment deals, less than $3 billion appears to have actually been provided.' Additionally, Iranian markets have been flooded with cheap Chinese goods in recent years, further devastating Iran's domestic industry. This has increasingly angered ordinary Iranians and forced the government to claim it was taking measures to reduce imports of non-essential goods from Chinese... In short, Iran rightly considers the U.S. as its greatest security threat in the near-term. Given America's desire to scale back its presence in the Middle East, and the possibility of an U.S.-Iranian rapprochement on the horizon, China's expansion in the Middle East ultimately poses the greatest threat to Iran over the long term. The U.S. will undoubtedly share Iran's concern with Beijing's more assertive Middle East policy, and this could be an additional impetus for them to put aside their bitter rivalry. Regardless if that occurs or not, it is clear that as China seeks to deepen its presence in the Middle East, it will increasingly have to contend with Iran." http://t.uani.com/1da8flE

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

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

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