/ 25 October 2007

US slaps new sanctions on Iran’s military

Ratcheting up the pressure on Tehran, the United States on Thursday designated Iran’s Revolutionary Guard Corps a proliferater of weapons of mass destruction and its elite Qods force a supporter of terrorism.

In total, Washington slapped sanctions on more than 20 Iranian companies, major banks and individuals as well as the Defence Ministry, in a bid to pressure Tehran to halt its nuclear programme and curb its ”terrorist” activities.

”Today, Secretary Paulson and I are announcing several new steps to increase the costs to Iran of its irresponsible behaviour,” said Secretary of State Condoleezza Rice, who made the announcement alongside Treasury Secretary Henry Paulson.

But Rice said the US is committed to a diplomatic solution and urged Tehran to accept an offer made by major powers last year to give up sensitive nuclear work in exchange for incentives, including direct talks with Washington.

”We will be open to the discussion of any issue. But if Iran’s rulers choose to continue down a path of confrontation, the United States will act with the international community to resist these threats,” she said.

Among the Iranian banks affected are Bank Melli, Iran’s largest bank, Bank Mellat and Bank Saderat, said another senior US official. The sanction effectively bans international banks from doing business with them.

”Doing business with the Iranian regime is not worth the risk,” said a senior US official on a conference call with reporters.

Infighting

The US accuses the elite Qods force of arming and training militants in Iraq who in turn attack US forces. Tehran charges that Washington has destabilised Iraq. It also says the Qods is providing ”material support” for Hezbollah in Lebanon, the Taliban in Afghanistan and Hamas in the Palestinian Territories.

The Bush administration had been considering the new measures for months, but there had been bureaucratic infighting over when and how far to go with the sanctions.

It is the first time the US sought to take such punitive measures against another country’s military and is opposed by allies like Russia who believe dialogue rather than more punishment or military action is the way forward.

Talk of US military action has been more intense in recent months, particularly from some US conservatives who would like to see US President George Bush act against Iran before he leaves office in January 2009.

But Rice, while stressing that the president keeps ”all options on the table”, has insisted that the impasse can be resolved diplomatically through more financial pressure.

”We are taking this action now because we believe we are at a time when, if diplomacy is going to succeed, it needs to be stronger. There needs to be greater pressure on the Iranian government,” said the senior US official, who spoke on condition of anonymity.

The US is also pushing for a third United Nations Security Council sanctions resolution against Tehran over its nuclear programme, but veto-wielding China and Russia oppose such a move.

The West believes Iran is seeking to build an atomic bomb, while Tehran says its nuclear programme is for peaceful power purposes.

The Revolutionary Guard Corps has about 125 000 members and is the most important wing of Iran’s military. It also has sprawling financial concerns and US officials says it uses these companies to buy nuclear technology. — Reuters

Additional reporting by David Lawder