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Tuesday, July 12, 2016

Can Obama be stopped from locking in Iran deal

Writing in the Wall Street Journal, Bret Stephens reports that despite German intelligence reports last week that Iran has attempted to purchase nuclear technology in Germany since signing the JCPOA, the Obama administration appears determined to 'lock in' the Iran deal to prevent a future President from unraveling it.
All this was enough to prompt Angela Merkel to warn the Bundestag last week that Iran “continued to develop its rocket program in conflict with relevant provisions of the U.N. Security Council.” Don’t expect German sanctions, but at least the chancellor is living in the reality zone.
As for the Obama administration, not so much. For the past year it has developed a narrative—spoon-fed to the reporters and editorial writers Ben Rhodes publicly mocks as dopes and dupes—that Iran has met all its obligations under the deal, and now deserves extra cookies in the form of access to U.S. dollars, Boeing jets, U.S. purchases of Iranian heavy water (thereby subsidizing its nuclear program), and other concessions the administration last year promised Congress it would never grant.
“We still have sanctions on Iran for its violations of human rights, for its support for terrorism, and for its ballistic-missile program, and we will continue to enforce those sanctions vigorously,” Mr. Obama said in January. Whatever.
The administration is now weighing whether to support Iran’s membership in the World Trade Organization. That would neutralize a future president’s ability to impose sanctions on Iran, since WTO rules would allow Tehran to sue Washington for interfering with trade. The administration has also pushed the Financial Action Task Force, an international body that enforces anti-money-laundering standards, to ease pressure on Iran, which FATF did last month by suspending some restrictions for the next year.
And then there’s the Boeing deal to sell $17.6 billion worth of jets to Iran, which congressional Republicans led by Illinois’s Pete Roskam are trying to stop. Iran uses its civilian fleet to ferry weapons and fighters to its terrorist clients in Syria and Lebanon.
“The administration is trying to lock in the Iran deal and prevent a future president from doing anything, including pushing back on Iran’s malign behavior,” says the Foundation for Defense of Democracies’ Mark Dubowitz, who knows more about Iran sanctions than anyone in Washington. “Instead of curbing Iran’s worst behavior, the administration effectively facilitates it.”
Last night, the House of Representatives voted to ban US aircraft sales (i.e. Boeing's) to Iran.
The first amendment [to the Appropriations Bill] prevents the Office of Foreign Assets Control from using funds to authorize the license necessary for the aircraft to be sold to Iran. The second one blocks loans from U.S. financial institutions for the purchase of planes that can be adapted for military use.

"Iran systemically uses commercial aircraft to spread death, destruction and mayhem, and we can do something about it," [Representative Peter] Roskam [R-Il] said on the House floor.

...

Airbus had reached an agreement in January to sell Tehran 118 planes. Because some of the aircraft components are made in the U.S., the deal was awaiting approval from the U.S. Office of Foreign Assets Control.

The day after the approval of the amendments, an Iranian foreign ministry spokesman said step was "incompatible" with the country's nuclear deal with the U.S. Under the deal, America lifted the economic sanctions previously levied on Iran in return for Tehran curbing its nuclear ambitions.

“We have nothing to do with U.S. internal affairs,” Bahram Ghasemi was quoted as saying by the official IRNA news agency. “We consider the government of the United States to be responsible for implementing the country’s commitments” under the accord.
Of course, the bill still has to pass the Senate, which effectively approved the Iran deal last year in a party-line vote. And then it might have to override an Obama veto. And Obama doesn't need Congressional approval to approve Iran joining the WTO, although Congress can make it difficult for him according to Northwestern University law professor Eugene Kontorovich, whom I asked that question.

My bet is that sometime between November 8 and January 20, Obama will allow those jet sales to go ahead and announce US support for Iran's application to join the WTO. After all, it's part of his legacy.

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Tuesday, September 01, 2015

How the US taxpayer may subsidize the purchase of Boeing jets by Iran

If you're an American taxpayer, you may be subsidizing the purchase of Boeing jets by Iran through the Export-Import Bank.
The Ex-Im bank provides government loan guarantees to a handful of major corporations — coincidentally, major political donors — that allow them to sell goods to foreign countries without worrying about whether or not they’ll actually get paid.  If a country should fail in its obligations, Uncle Sam will make the debts good.  The American taxpayer ends up on the hook for the cost of expanding corporate business in suspect nations with wobbly economies.  Yet the small number of corporations who benefit from the Ex-Im bank are all quite wealthy, and capable of obtaining loan guarantees privately through insurance.  The taxpayer is made to do what the market is ready to do just because it saves these corporations money.
One country where the Ex-Im bank has not operated in recent years is Iran.  This is because of the American sanctions that will be rejected as a part of approving the Iran Deal.  The Congressional Research Service has recently published a document detailing the ways in which the Ex-Im bank will be freed to undertake loan guarantees with Iran.  The CRS piece was written by one of their research specialists in foreign policy legislation, Dianne Rennack.  The complete report can be viewed at the end of this post.
...
According to the report, restrictions on the Ex-Im bank working with Iran are going to be released by the repeal of a number of executive orders (E.O.).  E.O. 13590 prohibits the Ex-Im bank from entering into relationships with individuals named personally in the sanctions, such as Qassem Suleimani, the head of Iran’s unconventional warfare program.  The Iran deal will repeal this order.
E.O. 13622 authorizes sanctions on foreign financial organizations associated with Iran’s state sponsorship of terrorism.  That will also be repealed under the deal.
E.O. 13628 freezes money and property owned by named human rights violators.  Under the deal, their property will be returned to them, and loan guarantees from the Ex-Im bank will also become available to them.
Finally, the repeal of E.O. 13645 will allow loan guarantees related to Iran’s oil industry.  Petroleum companies will be able to fund their operations in Iran without worrying about whether Iran will pay them, because the American taxpayer will.
...
Iran has announced that is planning to buy 80 to 90 Boeing and Airbus aircraft every year. Boeing is one of the corporations that benefits from the Ex-Im bank, and it has held the threat of moving its business offshore over the head of the Congress during debates about the bank.  Humanitarian safety concerns about Iran’s aging aircraft have already impelled the United States to waive restrictions on sales of repair parts for older aircraft.  The Senate might permit Iran being allowed to buy new commercial aircraft on the same basis.  Having those aircraft financed not by Iran but by the American taxpayer, however, will remain controversial.
 And those of you who voted for President Soetro have something else of which you can be ashamed.

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Tuesday, November 25, 2014

Hmmm....


A Joint Direct Attack Munition (JDAM) is a guidance kit that converts unguided bombs, or "dumb bombs" into all-weather "smart" munitions. JDAM-equipped bombs are guided by an integrated inertial guidance system coupled to a Global Positioning System (GPS) receiver, giving them a published range of up to 15 nautical miles (28 km). JDAM-equipped bombs range from 500 pounds (227 kg) to 2,000 pounds (907 kg). When installed on a bomb, the JDAM kit is given a GBU (Guided Bomb Unit) nomenclature, superseding the Mark 80 or BLU (Bomb, Live Unit) nomenclature of the bomb to which it is attached.
The JDAM is not a stand-alone weapon, rather it is a "bolt-on" guidance package that converts unguided gravity bombs into Precision-Guided Munitions, or PGMs. The key components of the system consist of a tail section with aerodynamic control surfaces, a (body) strake kit, and a combined inertial guidance system and GPS guidance control unit.

The JDAM was meant to improve upon laser-guided bomb and imaging infrared technology, which can be hindered by bad ground and weather conditions. Laser seekers are now being fitted to some JDAMs.

From 1998 to August 20, 2013, Boeing delivered 250,000 JDAM kits, producing over 40 guidance kits per day.
250,000 in 15 years - or about 16,000 per year. That ought to put this number in perspective (Hat Tip: Michael Yon).
Nov 24/14: Israel. Israel is buying 3,000 JDAM tail kits with “the ultra-tightly coupled capability,” using a maximum $82.6 million firm-fixed-price contract modification. This isn’t Israel’s first buy (q.v. Dec 12/10 request, April 12/13).
Work will be performed at St. Louis, MO, and is expected to be complete by Nov 30/16. The USAF Life Cycle Management Center at Hill AFB, UT (FA8213-15-D-0002, DO 0001, MOD 02).
 Yon asks whether Hamas is tracking this order. I think it might be of even more interest to Iran. Heh.

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Sunday, April 06, 2014

Sanctions that pay: US Treasury allows Boeing to sell spare parts to Iran

The Obama administration promised us that they could reimplement sanctions on Iran whenever they want to reimplement them. The Obama administration lied.

On Friday, the Washington Times reported that the US Department of the Treasury has given Boeing Corp. - the world's largest airplane manufacturer - permission to sell spare parts to Iran.
The U.S. Department of the Treasury has granted permission to the world’s largest manufacturer of commercial jetliners and military aircraft to start sending its spare parts to Iran.
Boeing Co. said Friday that it would begin contacting Iranian officials, Reuters reported. The impetus for the move comes from the temporary sanctions relief the Obama administration and its allies offered the Middle Eastern nation as part of January’s nuclear deal.
The license, which Boeing applied for in February, does not allow the company to sell new aircraft to Iran, Reuters reported.
What could go wrong?

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Monday, March 17, 2014

Israel overcomes Obama, upgrades Apache helicopters

A report at the website Before It's News indicates that Israel has upgraded its own Apache AH-64 attack helicopters after the Obama administration prevented Boeing from doing the job (Hat Tip: Sunlight).
The sources said the Air Force was equipping the Apaches with two new electronic warfare systems developed in the Jewish state.
“They are based on the huge operational experience of the force in using the Apache Longbow in a variety of combat scenarios,” an officer, identified only as Maj. Yonatan, said.
The upgrade has been developed amid the U.S. refusal to modernize Israel’s Apache fleet, employed in attacks on the Hamas-ruled Gaza Strip.
The sources said the administration of President Barack Obama blocked Israeli efforts to modernize the Apaches or purchase new helicopters from Boeing.
The new Israeli systems were cited by the official magazine of the Air Force. The sources said the sensors underwent trials in early 2014 and would be integrated on the Apaches later this year.
The sources said the Air Force would enhance the AH-64A helicopter to D configuration. They cited such capabilities as avionics, EW and advanced munitions, including the AGM-114 Hellfire, produced by the U.S. firm Lockheed Martin.
“The upgraded Apaches now also carry several new Israeli missiles,” a source said.
The sources said the modernization, conducted in the air force base of Ramon, was also meant to ensure interoperability between the Apaches as well as fixed-wing aircraft and ground assets.
They cited communications and common digital maps of the helicopters and the Merkava Mk-4 main battle tank.
Smart Jews. 

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Sunday, November 11, 2012

Turkish dollars trump Israeli sense again

Apparently under pressure from Boeing Corp. (which announced massive layoffs from its defense division right after last week's US election), Israel Aircraft Industries has agreed to resume manufacture of spy systems for the Turkish Air Force's Boeing 737's (Hat Tip: Asher G).
Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) unit ELTA Systems has decided to restart the manufacture of electronic measures systems the Turkish Air Force's Boeing’s 737 early warning and control Systems spy aircraft, "informed sources" have told Turkey's "Hurriyet Daily News."
The newspaper added that the decision paves the way for the release of Boeing’s long-delayed four 737 planes, which were built for a total of $1.6 billion. The Turkish daily also speculated that the decision to supply the critical devices may also mean an end to Israel's two-year defense exports ban for Turkey. The sources said that with the decision to continue production recently, the manufacture of a third plane approached completion. ELTA had finished the production of the EMS systems for the first two aircraft years ago.
"Hurriyet Daily News" recounted that in 2002, Turkey’s defense procurement agency, ordered four 737-700 AEW&C aircraft from Boeing, ground radar and control systems, plus ground control segments for mission crew training, mission support and maintenance support. Under the agreement the four aircraft were supposed to be released in 2006. But the integration of the planes took much longer. ELTA is building the EMS systems for four aircraft and its Turkish systems are expected to cost more than $100 million.
The ELTA decision follows Boeing’s efforts to urge the Israeli company to restart this Turkish manufacturing. Elta is the single producer of the EMS systems for Boeing’s 737 aircraft. The 737 Boeing AEW&C aircraft are to be used as part of Turkey’s NATO capabilities.
What could go wrong?

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Thursday, November 08, 2012

It starts: Boeing announces huge layoffs in defense division

That sure didn't take long. In a 'cost-cutting' measure, Boeing announced that it will lay off 30% of its management employees and close facilities in California. What's unstated is that the move is undoubtedly motivated by anticipation that the Obama administration will further cut defense spending. According to Wikipedia, Boeing has 65,014 employees in its defense divisions and 22,650 employees in California. So 22,000 layoffs (Hat Tip: Memeorandum)?
Boeing, the Pentagon's second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company's costs by $2.2 billion since 2010, according to the memo.
The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.
In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015.
"We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," Muilenburg said.
He said the total savings would reach $4 billion, making the company healthier and better able to deal with a tougher marketplace.
He said Boeing would cut the number of executive jobs an additional 10 percent by the end of 2012, bringing overall cuts in its executive team to 30 percent for the past two years, a move that would result in a 10 percent cut in management costs.
Oh, and get this....
Boeing said the changes were not a response to the threat of additional, across-the-board U.S. budget cuts due to take effect on Jan. 2, or the outcome of U.S. elections, but represented another step in its continuing drive to "be more competitive while investing in technologies and people."
Right....

Anyone want to make aliya?

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