Monday, May 29, 2006

U.S. urges financial sanctions on Iran

Washington Post- The Bush administration is pressing Europe and Japan to impose wide-ranging sanctions designed to stifle the Iranian leadership financially if diplomatic efforts fail to resolve an impasse over the country's nuclear program, according to internal government memos and interviews with three U.S. officials involved.

The plan is designed to curtail the financial freedom of every Iranian official, individual and entity the Bush administration considers connected not only to nuclear enrichment efforts but to terrorism, government corruption, suppression of religious or democratic freedom, and violence in Iraq, Lebanon, Israel and the Palestinian territories. It would restrict the Tehran government's access to foreign currency and global markets, shut its overseas accounts and freeze assets held in Europe and Asia.

The United States, which has imposed unilateral sanctions on Iran for nearly three decades, would shoulder few of the costs of its ambitious new proposal. But internal U.S. assessments suggest that the sanctions could not hurt Tehran without causing significant economic pain for Washington's friends. That calculation has made the plan a difficult sell, especially in capitals such as Rome and Tokyo, which import significant quantities of Iranian oil.

With Britain, France, Germany, Italy and Japan on board, collective sanctions would "isolate the Iranian regime" and see it "shunned by the international financial community," according to one internal Bush administration memo.

Under the plan, the major allies involved would freeze Iranian government accounts and financial assets in their countries, much as the United States did after Iranian students took over the U.S. Embassy in Tehran in 1979. Iranian officials who appear on lists being drawn up by U.S. officials would be prevented from opening accounts, trading on foreign markets or obtaining credit.

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