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    Middle East
     Dec 4, 2007
Page 2 of 2
Iran turns the charm on its neighbors
By Kaveh L Afrasiabi

issue that has the potential to further alienate Iran and the GCC states precisely at a time when both sides need to build confidence.

Focusing on common interests and concerns makes more sense and the GCC states, which took part at the Annapolis Middle East peace summit, are somewhat pessimistic about the prospects for any genuine breakthrough in the Arab-Israeli stalemate. Even though they regard the US summit as a "positive



development", they are nonetheless afraid that Iran's prediction of the summit's failure will sooner or later prove correct and, in turn, erode the legitimacy of their concert with the US at a "sham summit".

By ingratiating themselves further with Iran, the GCC states simultaneously send a strong signal to the US and Israel that the hidden agenda at Annapolis - forming an anti-Iran alliance - will not be on their agenda.

What is more, the GCC summit will likely adopt a new initiative with respect to OPEC's dollar policy, in light of the growing pressure on the GCC states to dump their peg to the tumbling US dollar. Instead they might "switch to a managed float or peg to a basket, including the euro, sterling and yen", to paraphrase the chairman of the Arab Monetary Fund, Jassem al-Manni. Iran, having already taken concrete steps in this direction, is likely to endorse this proposal and the summit's communique is expected to endorse it.

On the nuclear front, Iran's ability to secure the GCC's support for its nuclear program is key and that means a greater assurance than hitherto seen on Iran's part regarding the entirely peaceful nature of its program. The GCC states have pre-committed themselves to abide by the will of the United Nations and, in case the UN adopts a third round of sanctions, the GCC outlet for Iran will likely dry up. This is one reason why US officials have been touring the region seeking to secure the GCC states' compliance over multilateral sanctions on Iran.

In turn, this raises the issue of Iran's "carrot and stick" policy toward the GCC, which, we may recall, was somewhat successful during the 1980-1988 Iran-Iraq war, in gradually reducing some GCC states, ie Qatar, Oman and the UAE, to "effective neutrality". The question is: Will these GCC states, faced with a much invigorated and more powerful Iran, dare to cooperate with the economic warfare on Iran that is the sanctions regime?

Iran is still optimistic that the UN will end its "illegal" actions against Iran, given a recent letter to UN secretary general Ban Ki-moon by Iran's Foreign Minister Manouchehr Mottaki, and with the right amount of summit "give and take" may manage a GCC statement of support that would be useful for Iran's UN diplomacy.
To achieve this, Iran may need to show greater flexibility on the issue of the three islands, that is, a quid pro quo. After all, so far, despite the lingering disputes, there has been no problem with offshore exploitation around those islets and beyond and both sides can capitalize on the goodwill generated at the GCC summit to work out a quiet diplomacy, instead of resorting to the usual statements of previous years.

Ultimately, the GCC must consider the issue of Iran's, as well as Iraq's, inclusion, recalling the statement of an Omani leader: "The GCC saw no obstacle in the way of a GCC session being held including Iran and Iraq, after the main differences between them are resolved." That was in 1989 and, indeed, much has changed, and, also, much has remained the same. For example, the distrust of Iranian power and intentions by the conservative sheikhdoms, which are now threading the pragmatic realist course of engaging the "regional superpower" - Iran.

But, as an Iranian parliamentarian has aptly pointed out, the GCC states have plenty of territorial and other tensions among themselves, and the GCC's viability as a forum for dialogue and "crisis-prevention" is precisely what makes imperative the need to resurrect the above-cited Omani wisdom.

Note
1. See Chapter Three of the author's book on Iran's foreign policy, New Directions in Iran's Foreign Policy (Westview, 1995), titled "The Making of A New Persian Gulf Policy". 2. See Iran unveils a Persian Gulf security plan Asia Times Online, April 14, 2007.

Kaveh L Afrasiabi, PhD, is the author of After Khomeini: New Directions in Iran's Foreign Policy (Westview Press) and co-author of "Negotiating Iran's Nuclear Populism", Brown Journal of World Affairs, Volume XII, Issue 2, Summer 2005, with Mustafa Kibaroglu. He also wrote "Keeping Iran's nuclear potential latent", Harvard International Review, and is author of Iran's Nuclear Program: Debating Facts Versus Fiction.

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