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THE PROGRESSIVE REVIEW - June 28, 2010

US Congress Approves Strong Unilateral Sanctions on Iran
by: Jim Lobe
Inter Press Service-Report

Washington - Escalating Washington's growing confrontation
with Iran, both houses of Congress Thursday approved a
sweeping unilateral sanctions package designed to pressure
Tehran into curbing its nuclear programme.

The package, which President Barack Obama is expected to
sign into law before the Jul. 4 holiday, would punish
foreign companies that do business with Iran's energy
sector, with "key Iranian banks", or with enterprises
believed to be controlled by the Iranian Revolutionary
Guard Corps (IRGC).

Negotiated by a "conference committee" created to reconcile
two versions of sanctions bills passed separately by the
House of Representatives and the Senate earlier this year,
the Comprehensive Iran Sanctions Accountability and
Divestment Act follows approvals by the U.N. Security
Council in early June of a fourth round of relatively mild
multilateral sanctions and by the European Union (EU) of
a stronger set of unilateral sanctions last week.

"The Senate has taken an important step forward today as
we pass a conference report that will impose tough new
sanctions on Iran," Senate Majority Leader Harry Reid
declared shortly before the bill passed unanimously in
the upper chamber.

"We're passing these sanctions because we believe we must
stop Iran from developing a nuclear weapon, a weapon that
would surely threaten the security of the United States
and Israel," he added. "Our goal is to target Iran where
it will hurt the regime the most."

But some critics warned that the sanctions were too broad-
gauged and could harm Iran's general population at least
as much as the regime.

"Congress had an opportunity to stand with the Iranian
people by recalibrating U.S. sanctions to target Iran's
government and ease pressures on innocent Iranians,"
said Jamal Abdi, policy director of the National Iranian
American Council (NIAC).

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"Unfortunately, Congress missed that opportunity and is
moving forward with another sanctions measure that imposes
pain indiscriminately, making no distinction between the
people and the government," he added.

Other Iran specialists warned that the sanctions could
prove counterproductive by provoking a nationalistic
reaction that would strengthen the regime's hard-liners
at the expense of reformists and the opposition Green
Movement.

Approval of the new sanctions legislation comes as hawkish
forces here, particularly those associated with the right-
wing leadership of the so-called "Israel Lobby," escalate
their own campaign to press the administration to prepare
for military action if sanctions fail to achieve their
purpose within a relatively short period.

In a 51-page report released Thursday, the Bipartisan
Policy Centre (BPC) argued that Iran could produce a
nuclear weapon by October. It said that Washington should,
among other steps, urgently "augment the Fifth Fleet
presence in the Persian Gulf and Gulf of Oman, including
the deployment of an additional (aircraft) carrier battle
group and minesweepers to the waters off Iran; conduct
broad exercises with its allies in the Persian Gulf;
...initiate a 'strategic partnership' with Azerbaijan to
enhance regional access..."

"Only the credible threat of a U.S. military strike can
make a peaceful solution possible," said retired ret.
Gen. Chuck Wald, who co-authored the report with former
Sens. Charles Robb and Dan Coats. "Ultimately, a U.S.-led
military strike is a feasible, though risky, option of
last resort."

The report, the latest of a series of three issued by the
BPC's National Security Initiative over the past 20 months,
echoed recent attacks by prominent neo-conservatives on
what it called "the growing belief" that the threats posed
by a nuclear-armed Iran "could be minimised through a
strategy of containment and deterrence".

In addition to undermining U.S. credibility in the region,
it declared, "a nuclear-capable Iran would seek to dominate
the energy-rich Persian Gulf, threaten Israel's existence,
destabilise moderate Arab regimes, subvert U.S. efforts in
Iraq and Afghanistan, embolden radicals, violently oppose
the Middle East peace process, and increase support for
terrorism and proxy warfare across the region."

Reflecting the growing political pressure for confrontation
with Iran, the sanctions bill approved Thursday is signifi-
cantly tougher than either the House or Senate version that
was passed earlier this year. Indeed, the American Israel
Public Affairs Committee (AIPAC), which has made sanctions
its top legislative priority for several years, hailed it
as "the toughest Iran sanctions bill ever to emerge from
Congress..."

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Instead of focusing almost exclusively on penalising
companies that export petrol to Iran, for example, the
bill would punish any foreign enterprise involved with
the country's energy sector. It also bans U.S. banks from
any transactions with foreign banks that do business with
companies believed to be controlled by the IRGC.

Lawmakers also rejected White House appeals to grant Obama
authority to automatically exempt companies based in
countries, notably Russia and China, that are deemed to be
cooperating with U.S. policy on Iran.

With strong commercial interests in Iran, both Russia
and China opposed U.S. efforts to toughen the sanctions
resolution that was approved by the Security Council in
early June.

The administration had argued that punishing their
companies could jeopardise their future cooperation in
the Security Council, where Moscow and Beijing hold veto
power. It also argued that the companies of some European
and other allies could also be negatively affected unless
Obama was given the authority to provide blanket
exemptions.

Ultimately, the administration and the Democratic leader-
ship in Congress worked out a compromise under which Obama
can waive sanctions against foreign companies in "cooperat-
ing countries" on a case-by-case basis so long as he can
show that the waiver serves the "national interest".

Nonetheless, key business sectors opposed the package,
noting, among other objections, that it could undermine
the administration's efforts to maintain international
backing for U.S. policy on Iran.

"Just two weeks ago, the administration successfully
garnered international support and cooperation to impose
additional multilateral U.N. sanctions against Iran," said
Bill Reinsch, president of the National Foreign Trade
Council, a lobby representing more than 300 major multi-
national corporations.

"Given this development, we are deeply concerned about the
timing of this legislation and its unintended consequences
for legitimate global commerce," he added. "We have and
will continue to urge Congress to support the president's
multilateral and multilayered diplomacy with Iran."

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