InsightMag.com


Symposium - June 14, 2001
Q: Should the United States renew the Iran Libya Sanctions Act?

Yes: The Iranian terrorist regime poses a danger to the United States and its allies.
       
       
By Kenneth R. Timmerman
       
       On June 2, a massive blast triggered by a Palestinian suicide bomber ripped through a nightclub in Tel Aviv killing 20 people and injuring more than 80. The terrorist groups Hamas and Islamic Jihad claimed responsibility. Both groups, which are affiliated with the Palestinian Authority of Yasser Arafat, are financed by the government of the Islamic Republic of Iran through official subsidies approved each year by Iranís state parliament, or Majlis.
       Terrorists from Hamas and Islamic Jihad regularly travel to Iran, where they are trained by Iranís Revolutionary Guards and by the Ministry of Information and Security (MOIS) in bomb-making techniques. They are taught how to use false documents, pass border inspections and transfer money worldwide. They are instructed how to maintain clandestine contact with their Iranian government handlers. Without state support from the Islamic Republic of Iran, terrorist attacks such as this latest suicide bombing would be far more difficult.
       On April 12, 1996, the Israelis arrested Hussein Mohammed Mikdad, a Lebanese Shiite who subsequently admitted that his Iranian handlers had instructed him to hand-carry a bomb onto an El Al flight originating in Tel Aviv. The only reason the Israelis caught Mikdad was his own incompetence. While preparing the bomb in his East Jerusalem hotel room, he suffered the misfortune of setting it off in his own lap. Mikdad entered Israel on a forged British passport provided him by Iranian intelligence.
       The Israelis had less luck with the Iranian-trained bomber who drove an explosive-rigged van into an Israeli bus in Gaza on April 9, 1995, killing seven Israelis and one U.S. citizen, a 20-year-old student from New Jersey named Alisa Flatow. Lawsuits filed by her parents led a U.S. court to condemn the government of Iran to pay her family $247.5 million in damages.
       Advocates of lifting U.S. sanctions on Iran argue that the re-election of a so-called ìmoderateî cleric, Mohammed Khatami, as Iranís president on June 8 will end the terror spree and that sanctions only reinforce his hard-line opponents. But since Khatamiís first election as president in 1997, he has met repeatedly in Tehran with the leaders of Hamas, Islamic Jihad and Lebanonís Hezbollah. Iranís subsidies to these groups have continued unabated at the rate of around $100 million per year. In fact, as Ministry of Islamic Guidance in 1983, Khatami was one of the original founders of the worldwide Hezbollah movement.
       Last October, after one such meeting with Hamas terrorists in Tehran, Khatami proclaimed that only the annihilation of the state of Israel would bring peace to the Middle East. ìThey are basically an occupying entity,î he said of the Israeli government. ìNaturally, any government that is based on oppression and injustice may stay in power for a while, but ultimately it is doomed to failure. Ö Real peace can only be achieved through an end to occupation.î
       Inside Iran, the reign of terror has accelerated under Khatamiís presidency. Despite his claims to promote ìliberalization,î Khatamiís security forces have closed reform-minded newspapers, assassinated dissidents and, in May, shut down Iranian access to the Internet.
       On the evening of Nov. 22, 1998, mysterious intruders burst into the Tehran home of secular opposition leaders Darioush and Parvaneh Forouhar, hacking the elderly couple to death and sexually mutilating their corpses. It turned out the murderers were members of Iranís security services, acting on orders from a top deputy of one of Khatamiís key government ministers.
       Since the gruesome murder of the Forouhars, agents of Iranís security services have executed another half-dozen secular writers. Despite his protests of innocence, Khatami has done nothing to stop such killings or to restrain the intelligence services from their reign of terror.
       On the contrary. In July 1999, students at Tehran University revolted against domestic repression and called for greater freedom. In response, the Tehran police stormed student dormitories, killing five students, including at least one person thrown to his death from a three-story window. Instead of backing the students and their calls for reform, the ìmoderateî Khatami called on students to end their demonstrations.
       Many of those who support lifting U.S. sanctions on Iran argue that free trade would subvert the radical Islamic regime by exposing ordinary Iranians to Western culture. But Iranians are very sophisticated, thank you. Many of the current regimeís leaders were in fact educated in the West. Tens of thousands of Iranians travel every year from Iran to the United States, while several times that number travel regularly to Europe and even to Israel. U.S. sanctions did not exclude the sale of consumer goods to Iran until 1995. The reason Western notions of freedom and free trade do not flourish in todayís Iran is not because they are foreign concepts, but because the regime has demonstrated again and again that it brutally will quash any challenge to its monopoly on power.
       Opponents of U.S. sanctions on Iran include some of Americaís largest and most successful multinational corporations. They stand to gain billions of dollars in potential trade should they succeed in getting sanctions lifted. Put politely, their arguments emit a faint odor of self-interest.
       USA*Engage, originally established in 1996 as a mouthpiece for Conoco and Unocal, claims the United States is ìshooting itself in the footî by maintaining trade sanctions on Iran since foreign companies are more than willing to fill the breach left by the U.S. boycott.
       There is some merit to this argument. Russia and China are conducting cash-and-carry sales of modern weaponry and the strategic equipment Iran needs to build ballistic missiles and nuclear-power plants. Some U.S. companies might be tempted to follow in their path. U.S. sanctions block these companies from pursuing sales that clearly violate our national interests. If that is shooting ourselves in the foot, then we should keep shooting.
       Other countries such as France, Italy, Germany and Japan clearly want to help Iran develop its oil and gas fields. But the lack of laws to protect foreign investment in Iran has helped deter many companies from committing major capital to such projects. Do U.S. oil companies want to invest in Iran without protection? Are they prepared to send American citizens to work in Iranian gas fields while pro-regime thugs continue to trample the U.S. flag on the streets of Tehran?
       Added to this high-risk environment are U.S. secondary sanctions, known as the Iran Libya Sanctions Act (ILSA), which is up for renewal this summer. ILSA was passed in 1996 because the U.S. Congress and the Clinton administration agreed it was not in our national interest to help prop up the current regime in Iran by investing in its oil and gas industry.
       The ILSA sanctions have helped to deny Iran the technology and capital it needs to rebuild its oil and gas industries, which still account for some 90 percent of Iranian gross national product. New figures released in May by the International Monetary Fund show Iranís economy has shrunk by 12 percent from its size a decade ago, despite surging oil prices. The figures also show Iran to be one of only 11 countries outside Africa and the former Soviet bloc where per capita income actually fell throughout the 1990s while the rest of the world experienced an economic boom.
       U.S. sanctions were not the root cause of Iranís economic woes: Chronic corruption and mismanagement by Iranian government planners did the trick. But U.S. sanctions have made a significant contribution ó so much so that the Iranian government lodged an official complaint with the International Court of Justice in 1996, accusing the United States of economic ìsabotage.î
       Lifting U.S. sanctions against Iran before significant changes are made in the repressive and terrorist behavior of the Iranian regime only would encourage hard-liners to continue their assault on fundamental freedoms and human decency. Liberalizing trade amounts to a cash advance drawn against the hope of future good behavior by Tehranís ruling clerics.
       The previous administration tried throwing sops to Tehran on several occasions without any improvement in Iranian government behavior. The ban on American imports of Iranian carpets, dried fruits, nuts and caviar was lifted last year. Visa requirements were loosened and academic exchanges encouraged. Before that, the administration quietly allowed the sale of U.S. aircraft spare parts to Iran. So far, the Iranian government has yet to make a single gesture in response.
       Iran continues to build long-range ballistic missiles while pursuing a clandestine nuclear-weapons program. A major influx of U.S. capital and advanced technology would give these efforts a shot in the arm.
       Instead of finding new ways of appeasing a bloodthirsty regime that wishes America no good, the United States should encourage democrats inside Iran to pursue their quest to end the dictatorship of a radical, anti-Western clergy. Lifting sanctions might fatten the bottom line of a few selected U.S. companies, but it would do severe damage to our national security.
       
Timmerman, a senior writer at Insight, is a former writer for Time and other journals. He repeatedly has testified before Congress on issues concerning Iran.
       
       
No: Sanctions only punish American workers and weaken our national security.
       
By Archie Dunham
       
       The Iran Libya Sanctions Act (ILSA) should not be renewed. I said publicly five years ago that it should not be enacted; we now have five years of failed policy and ineffective secondary boycotts against non-U.S. companies that prove the folly of this approach.
       You may think it odd that I ó representing an American oil company ó should oppose a law that purports to level the playing field for us against our international competitors. The fact is, ILSA doesnít help my company, and it certainly doesnít help my country. It is not the highest moral choice, it threatens our national security and it doesnít work because it is the wrong tool for the problem it is supposed to solve. Itís time for Washington to correct its mistake and get to work on real solutions.
       Supporters of ILSAís renewal claim this is the right moral choice, but I believe differently. As I write this, I am in the Middle East. A suicide bomber in Tel Aviv has taken the lives of 20 innocent people. My heart goes out to the families of these victims. It also goes out to the families, known only to God, of those who may pay with their lives if there is retaliation. When the vast majority of peace-loving people in the world witness the atrocious acts of a violent few but seem powerless to exert their will over a small minority to stem the hatred and hostility, what can we do? When each new death, on any side, only deepens the animosities and invites further violence, how do we reverse the momentum and create sustainable conditions of peace, harmony and prosperity?
       I am excited that the United States stands at a crossroads in history where unrivaled opportunity intersects self-inflicted consequence. But how will we choose? On the low road lies the invitation to be just another combatant, abandon whatever facade of evenhandedness remains and support the continuing hostilities with attitudes, words, threats, laws, penalties and even arms. We ride down this road on a high horse, pointing an accusing finger and expecting others to be drawn to our ìprincipledî policy.
       On this path, American morality looks false and empty, as it refuses to understand all sides and to acknowledge the motivation of all interested parties. We expect to exert leadership from a distant fortress, and we disengage from the hard work of real diplomacy and real defense. We try to punish both friend and foe into toeing our line. This course is futile. Who honestly sees any relationship between such behaviors and our nationís founding values and principles?
       On the high road lies the opportunity to lead with a human touch, to engage all sides in discussion, to align exclusively with none and to support all who work peacefully for the good of all. We offer our respect and legitimacy, our active engagement ó including investments, diplomacy, aid and international institutional memberships.
       Americans like to think of themselves as a Godly nation. We therefore should preach a morality that stems from our common ancestor, Abraham, and that embodies Godís commandment to love our neighbor ó even the unlovable one. This is characterized by a humility of which President George W. Bush often has spoken. If we lift up our nationís unifying values, we will draw all people to us, just as our economic system and democratic form of government now serve as a beacon for all yearning peoples.
       But if we try to punish, bully and coerce others into adopting our choices of behavior, we will drive them away. Indeed, we are driving them away. If we try to push with hatred rather than pull with love, our hope for peace and moderation will backfire. In my travels, I find to my dismay that much of the world resents the power of the United States and is not convinced that we use it responsibly and caringly.
       Renewing a sanctions law that has not worked and makes friend and foe both feel victimized only will convince a few million more people that we are uninformed of Middle East culture and values and are not committed to peace in the region. ILSA may be aimed at foreign corporations, but it sends a clear and powerful signal about the prevailing American mind-set toward the world in general, not just toward two critical countries in a region of vital national interest.
       ILSA threatens our long-term energy security. It offers a cheap domestic political vote, but it then damages a range of U.S. national-security interests worldwide ó interests that all Americans share.
       Consider energy. Commercial activity that discovers and distributes energy is a key U.S. national-security interest ó a fact that never is appreciated until supplies run short and a crisis descends. California, the worldís sixth-largest economy, is instructive. Beyond the blackouts yet to come (on the East Coast as well), Californians face challenges to the public safety, business closures and departures from the state, and potential new investors locating elsewhere to avoid the risks caused by inadequate energy supply and source diversity.
       California, long a trendsetting state, is suffering an energy shortfall that highlights the risks faced by the entire nation. Unless America moves quickly to solve its energy-diversity problem, Californiaís predicament could surface in all 50 states. If ILSA is allowed to expire on Aug. 5 ó as is legislated ó and the corresponding presidential Executive Orders that prevent American companies from investing in Iran and Libya finally are rescinded, significant amounts of new energy will be available faster and more plentifully than through any other means. The international-energy industry considers Iran and Libya the two most attractive countries in which to develop new oil resources in the world.
       ILSA will not stop those developments from occurring, no matter what Congress passes, but it will cause a trade war with Europe and seriously complicate diplomacy for the president far beyond the Middle East. And, given the message this law conveys toward the Arab world, how will this action square with the hope for Arab producers to favor the United States with increased production? It is a direct conflict. As always with unilateral sanctions, the only losers will be American consumers, workers, farmers and voters.
       Vice President Richard Cheney correctly has emphasized that conservation will help, as will increasing domestic-energy supplies. But such actions cannot balance energy supply when demand is increasing globally.
       ILSA doesnít work. It has not stopped terrorism or the proliferation of weapons of mass destruction. Nor has it achieved justice and compensation for the Pan Am Flight 103 victimsí families ó the justifications proffered for ILSA. In fact, many experts believe ILSA and, more generally, unilateral sanctions actually worsen these problems. They encourage the offending actors to establish relationships with other groups and states that profess hostile anti-American ideologies or that are eager to sell weapons and technologies.
       The notion that sanctions deprive these states of energy income that they might use for nefarious purposes is conventional wisdom that cannot stand scrutiny. Prices set by global oil markets nullify any impact of sanctions on government revenues in Iran and Libya. While Iranís production was constant throughout the 1990s, its income doubled from 1998 to 2000 in direct relationship to the world price of oil. Paradoxically, to whatever extent sanctions diminish global energy supply, they push up prices, thus increasing the income of sanctioned states. Lawmakers who wish to renew ILSA prefer to ignore these realities.
       Supporters of ILSA need to look carefully at the larger world. Shocks to the global-energy system seem increasingly probable. Because energy supplies are tight, a single shock at any point in the system will have significant negative consequences on all parts and major effects on the most vulnerable (high-consuming) parts unless additional supply is created.
       What if the sanctions-supportersí fantasies came true and Iranís government fell? When that happened in 1979, 2 million barrels per day were wiped off the global market, sending oil prices to $45 per barrel and causing a 2 percent drop in U.S. gross domestic product. Does any member of the U.S. Congress imagine that such a catastrophe could not happen again? Iran, with its population of 70 million people, 70 percent of whom are under the age of 30, should be our friend, not our enemy. We certainly donít have an abundance of friends in the Middle East!
       ILSA is the wrong tool. The Middle East has many problems requiring real solutions, not phony policies offering punishment rather than processes that stimulate change. If we are serious about combating terrorism, letís use instruments that attack terrorism. If we wish to promote political change, economic engagement is a proven, powerful tool, as Secretary of State Colin Powell repeatedly has said. It offers a number of high-road opportunities to re-establish broken relations with countries whose interests ultimately are compatible with our own.
       To anyone prepared honestly to understand Iran and Libya today, itís obvious that both countries wish to enhance their relations with the United States ó not necessarily with our government, but certainly with the American people, whom they like. To any serious watcher of the Middle East, it is obvious that our Arab friends and allies increasingly are becoming distant. They are becoming more aligned with those we choose to demonize and victimize, and they reject our disengagement.
       Members of Congress cosponsoring the ILSA renewal bill should brace for some tough questions from their constituents, who may find themselves in gas lines, in the dark or in suffocating heat or freezing cold. Let those lawmakers explain why they lost the Middle East for ìthe right symbolic voteî or ìthe need to show resolve.î See if the American public buys it.
       The media often caricature energy companies as being greedy, with no concern for the national interest. We are, of course, public corporations owned by millions of American shareholders. But first and most importantly, we love America. We profoundly believe the American spirit of free enterprise has a major contribution to make toward promoting peace and prosperity around the world, and engagement always has been the best approach to diplomacy.
       Even if relations with Iran and Libya remain rocky, working with them, not against them, is essential to U.S. national security. It also is a moral and historic imperative. ILSA is the low road. Letís take the high road.
       
Dunham is president and chief executive officer of Conoco Inc., an international energy company in Houston, and is a longtime critic of unilateral sanctions.
       
       

 

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