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03/13/2006:

"As Syria's Influence in Lebanon Wanes, Iran Moves In"

BEIRUT, Lebanon, March 6 — Nearly a year ago, not long after the assassination of Rafik Hariri, who was twice prime minister of Lebanon, Syrian troops withdrew from Lebanon, unleashing a wave of patriotism here that prompted many to say that the Lebanese might finally be able to take control of their destiny.

But the intensity of the moment and the rush of emotions eclipsed at least one important and largely unanswerable question: With Syria gone, or at least its troops gone, who would fill the power vacuum?

At the time, Iran did not appear to be the answer. But that is what is happening, according to government officials, political leaders and political analysts here.

Iran, long a powerful player in Lebanon, has been able to increase its influence, partly through its ties to the Lebanese Shiite group Hezbollah. That has given Tehran a stronger hand to play in its confrontation with the United States and Europe over its nuclear program.

Should the nuclear showdown go badly for Iran, the government could rely on its surrogates in Lebanon as well as its influence in Iraq, or use oil for a weapon. In Lebanon, the Iranians could contribute to the kind of retribution they have promised as a payback, from a strike across the border into Israel, to a more forceful flexing that could paralyze the Lebanese government, political analysts and government officials said.
nytimes.com

The Times is war pimpin'.


Syria ignores US sanction on its bank
Syria on Friday brushed aside the U.S. decision to sever links to the state-owned Commercial Bank of Syria (CBS).

The U.S. Treasury Department on Thursday barred American financial institutions from opening or maintaining an account for or on behalf of CBS because the bank "has been used by terrorists" to move funds and has laundered money from the "illicit sale of Iraqi oil".

In a statement to the official SANA news agency, CBS Director General Dureid Dorgham said the U.S. decision "was taken for political reasons to affect Syria" without "logical evidence".

Dorgham pointed out that it has been a "binding decision" to the U.S. banks even before the official announcement.

Meanwhile, he expressed confidence in some other friendly banks which had rejected the U.S. decision to sanction the Syrian bank, noting that these banks would not submit to it.

"Those banks consider the U.S. decision as a political one and is binding to the U.S. banks," he said.

Syria switched state institutions' foreign currency from U.S. dollar to the euro for all transactions a month ago in case Washington imposes more sanctions on it, Dorgham said.

Regarding money laundering, Dorgham said that the bank has formed a specialized committee for this matter and applied all procedures accredited in different countries of the world.

On the Iraqi money, Dorgham said: " The bank has performed its work in this regard and we consider that the Iraqi official circles are the only authorized party to discuss such issue for they are careful on their interests."


Washington seeks explanation for Spain's Syria talks
MADRID (AFP) - Washington is demanding to know why Spanish Foreign Minister Miguel Angel Moratinos held a meeting in Damascus with his Syrian counterpart Walid al-Mouallem.

El Pais quoted "diplomatic sources" as saying US ambassador in Madrid Eduardo Aguirre and another high-ranking US diplomat, Shirin Tahir Kheli, had expressed concern about the rare visit by a senior member of a Western government to Syria.

The Spanish government responded by saying it was "opposed to the strategy of isolating Damascus", El Pais reported Saturday.

"Washington seeks explanation...Washington is demanding to know why..."