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TOPIC: U.S. Seeks to Offer a Balm to Iran for Sanctions' Sting (NY Times 8/8/10)

Jen the Michigander

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Date: Aug 9, 2010

U.S. Seeks to Offer a Balm to Iran for Sanctions' Sting (NY Times 8/8/10)	Permalink

http://www.nytimes.com/2010/08/08/world/middleeast/08sanctions.html?_r=2&emc=tnt&tntemail1=y President Obama and Secretary of State Hillary Rodham Clinton, arguing that an orchestrated series of global sanctions has brought more economic pain than Iran’s government anticipated, are making a renewed appeal to Iranian leaders to reopen negotiations on the country’s nuclear program. The administration’s opening to Iran comes as evidence mounts that gasoline shipments to the country have slowed; that at least some banks, from Europe to Pakistan, have cut off dealings with the country for fear that they will lose access to the United States financial system; and that Iranian officials have been unable to get foreign investment for several multibillion-dollar oil and gas projects. Much of that evidence has been reported by the local news media in the Persian Gulf region and is difficult to confirm, but officials with the United States Treasury Department say they also believe that Iran is having trouble attracting investment for oil and gas projects. Mrs. Clinton argued that “the scope and reach” of sanctions adopted over the past two months in the United States, Europe and parts of Asia “have had real bite,” and have given the West new leverage. Still, both Mrs. Clinton, in a 20-minute telephone conversation on Friday, and Mr. Obama, in an unusual assessment to editorial writers and columnists at the White House last week, acknowledged that Iranian leaders might be unwilling to give up the nuclear program — a huge source of national pride — despite the escalating cost. Mr. Obama’s and Mrs. Clinton’s back-to-back public statements appeared to be part of an effort to signal to the Iranian people that the country would continue to suffer if their government did not find what Mrs. Clinton called “a pathway” to negotiations. A senior White House official, who spoke on the condition of anonymity, said that in coming days, the administration would stress its view that “the economic difficulties experienced by the public” in Iran are being caused by choices the Iranian government is making. The White House appears to be hoping that continuing economic pressure could drive already disgruntled small business owners in Iran’s influential bazaars to join forces with Iranians who have been agitating for political change since last year’s disputed presidential election. Mr. Obama and Mrs. Clinton have long talked about a “two track” system of economic pressure on Iran and continued diplomatic openings, but for a time the focus had been squarely on sanctions. The statements last week, however, indicated a move to re-emphasize opening diplomatic channels, and Mrs. Clinton said that the United States had sent “very clear messages” to the Iranian leadership through European officials in recent weeks. Mr. Obama said, however, that there had been no direct communications with either President Mahmoud Ahmadinejad or Iran’s supreme leader, Ayatollah Ali Khamenei. Neither Mr. Obama nor Mrs. Clinton defined with any precision what steps Iran’s leaders would need to take to build confidence that they were willing to negotiate. Other administration officials, who declined to speak on the record, cited several major demands made by the United Nations Security Council, all of which Iran has rejected for more than four years. They include a full suspension of all uranium enrichment and providing complete access for international inspectors. These days, American officials appear to be spending almost as much time trying to assess the impact of economic sanctions as they are to trying to measure Iran’s nuclear progress. So far the reports of the financial effects are largely anecdotal, but taken together they suggest the country is feeling some pain. __________________ Nobody puts THIS baby in the corner!

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