US rethink on sanctions,
Buoyed by a reformist victory in Iran and signs of an "older and wiser" Muammar Gaddafi in Libya, US President George W. Bush's administration is hoping to convince Congress to agree a compromise over extending the Iran Libya Sanctions Act (ILSA), which runs out in early August.
A US State Department official said that a two-year extension of ILSA was more appropriate than the five years sought by Congress. The two houses of Congress have tabled proposals to roll over and toughen ILSA, introduced in 1996 to prevent non-US companies from investing more than $20 million a year in the oil and gas industries of Iran and Libya.
A shorter extension would give Bush another chance to look at sanctions during his current term, said administration officials. The administration, supported by US oil companies that want to return to the two countries, had wanted to allow ILSA to lapse, but pro-Israeli and other lobbies in Washington want continued sanctions.
The State Department official said the US government had started to reassess Libyan leader Gaddafi, who has become "older and wiser and more mellow in his old age".
Referring to Iran's presidential election on 8 June, State Department spokesman Richard Boucher said the vote there showed a longing for change. An official later welcomed the re-election of President Mohammad Khatami, saying he hoped for further reforms.
Khatami won a second term in office with a majority of 77% in a turnout of 67% of the electorate of 42 million. The turnout was lower than the 83% recorded in 1997 but Khatami's margin of victory increased from 69%. His nearest rival, conservative former labour minister Ahmad Tavakoli, came a distant second with 15.6%.
Khatami is considered to have received a strong enough mandate from the electorate to speed up reforms against opposition from right-wing and conservative factions.
In the past, Khatami has tried to prevent confrontations, allowing the right wing to undo many of his political reforms following a crackdown in April last year.
In his first public comment after the election, Khatami said his first priority was to foster democracy, but he called for moderation. His supporters in parliament warned him not to cave in to conservative pressure.
They promised new laws to bring the right-wing judiciary under control and end the conservative monopoly of state radio and television. They also demanded a strong reformist cabinet for the president's second term. Khatami is expected to carry out a thorough cabinet reshuffle, bringing in as many new faces as possible.
A merger of the oil and energy ministries is also expected. There is no indication if Bijan Zanganeh will head the new ministry or even survive the reshuffle.
Upstream 14.06.2001 |