FINANCIAL PRESSURE, EUROPEAN STYLE
Of late, a number of European leaders have expressed their support, in principle, for greater economic pressure on Iran. In practice, however, the Old Continent has just dealt a body blow to the Bush administration's efforts to financially isolate the Islamic Republic. On May 29th, the Iran-Europe Commercial Bank began operations on the Iranian island of Kish, where the Islamic Republic has maintained a free trade zone since 2005. The IECB, which will specialize in euro-based foreign exchange services, is the first of six foreign banks slated to open in Iran in the near future. And, in an attempt to counteract possible financial isolation, officials in Tehran are actively courting more; according to Tahmasb Mazaheri, the Director of the Central Bank of Iran, the Islamic Republic is prepared to offer "special incentives" to foreign private banks to entice them to open branches in Iran. (Beijing Xinhua, May 29, 2008)
IRAN’S BAHA’I UNDER FIRE
The Iranian government is continuing its offensive against its Baha’i minority. In what constitutes the most significant official crackdown in recent memory, mid-May security sweeps by the Iranian Intelligence Ministry have landed all seven leaders of Iran’s 300,000 member Baha’i community behind bars. The Iranian regime’s efforts, moreover, are being mirrored on the grassroots level. According to Iranian news sources, a new anti-Baha'i activist organization is now being established within the Islamic Republic, with the explicit goal of combating the “underground activities” of the embattled religious sect. (London BBC, May 19, 2008; asianews.it, May 28, 2008)
SECURING SYRIA
Recent signs that the regime of Syrian president Bashar al-Assad could be edging closer to some sort of a rapprochement with Israel has spurred Iranian officials to engage in some outreach of their own. Syrian Defense Minister Hassan Turkmani's three-day state visit to the Islamic Republic in late May has yielded a new memorandum of understanding on defense issues between Tehran and Damascus. The MoU, a follow-on to a June 2006 agreement between the two countries to protect each other against "common threats," is built on similar logic. "Our cooperation is based on a strategic pact and unity against common threats. We can have a common front against Israel's threats," Turkmani confirmed to reporters following talks with his Iranian counterpart, Mostafa Mohammad Najjar. (Tehran Fars, May 25, 2008; Tel Aviv Ha'aretz, May 27, 2008)
LARIJANI RISING
In what is widely seen as a potential challenge to Iranian President Mahmoud Ahmadinejad, Ali Larijani, the Islamic Republic’s former top nuclear negotiator, has been elected speaker of Iran’s parliament, or majles. Larijani, a vocal critic of Ahmadinejad’s policies, resigned last fall in a public show of disagreement with the Iranian president’s policies and subsequently ran successfully for a parliamentary post. His election as speaker by overwhelming majority (232 to 31) has been taken by observers to signal an important shift in the balance of power between the various conservative factions within the Iranian government. “His election would not have been possible without the consent of the leader and this shows that Mr. Ahmadinejad is losing his support,” Iranian political analyst Saeed Leylaz tells the New York Times.
However, Larijani’s ascendance should not be taken to mean a reversal of course by Iran on vital issues, such as its nuclear program. Indeed, one of his first acts as majles speaker has been to condemn the International Atomic Energy Agency’s latest report on his country’s nuclear effort, and to warn that, unless the nuclear watchdog demonstrates more “balance” in its assessments, the Iranian parliament may be forced roll back Iran’s cooperation with the United Nations on nuclear matters. (London BBC, May 28, 2008; New York Times, May 29, 2008)
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