ALBRIGHT REACHES OUT TO IRAN BUT MISSLE PROGRAM BRINGS SETBACK: Some may think it too little and too late, but Sec. Albright, on June 17 in a speech to the Asia Society, did respond to Iranian President Khatami's February interview on CNN. Her semi-warm words and a Presidential veto followed Congressional action that would sanction foreign companies that provide missile technology to Iran. Strongly supported by the pro-Israel lobby AIPAC, the "Iran Missile Proliferation Sanctions Act" passed by an overwhelming vote of 392-22 in the House and by 90-4 in the Senate. In an effort to head off a Congressional override of its veto, the Administration on July 15 announced it would impose trade sanctions on nine Russian companies that have helped Iran with its missile program. A week later, Iran actually tested a medium-range missile known as the Shehab 3. The New York Times reports a surprising mild response from government officials in both Washington and Jerusalem in speculating that the test is primarily a political signal by Iran that it is a regional power. Clinton said the test is "obviously...an obstacle" to better relations, but he added, "I don't think it's an argument for closing off all avenues of opportunity." This comes on the heels of a report on the threat posed by missiles by a bipartisan commission. Headed by former defense secretary Donald Rumsfield, the panel criticized U.S. "intelligence gaps" including the 1988 purchase by Saudi Arabia of a Chinese medium-range missile system without telling Washington.

U.N.G.A. UPGRADES PALESTINE STATUS AS U.S. RETREATS FROM MEDIATOR ROLE: "What exactly is afoot remains indistinct in the crossfire of hints and denials.." is how the New York Times casts the state of Israeli-Palestinian negotiations. The Administration has retreated from the veiled threat, by Sec. Albright at her May 4 news conference in London, to pressure Israel to accept an American initiative that Clinton put forward in January and Arafat accepted in April. Even as the Administration admonishes Israel and the Palestinian Authority to resolve their differences in direct talks, Ass't Sec. Martin Indyk told the House International Relations Committee, on July 29, that the U.S. plans to re-engage in a move to final status talks following "Israeli refinements of our proposal." Meanwhile, Syrian President Assad went to France for discussion with President Chirac; France and Egypt called for a new international peace conference; and the U.N. General Assembly upgraded the status of the Palestine representation by a vote of 124 to 4 with 10 abstentions. .

AID BILL REDUCES ISRAEL'S ECONOMIC AID/ BOOSTS MILITARY AID: The plan, initiated by Israeli Prime Minister Netanyahu, will phase out over a 10 year period the $1.2 billion annual economic aid that Israel receives. At the same time, Israel's military aid, now at $1.8 billion a year, would be increased resulting in an annual grant of military aid of $2.4 billion by the 10th year. The House Appropriations Foreign Operations subcommittee began the phased change with a vote in late July to provide Israel with $1.08 billion in economic aid (a $120 million reduction) and $1.86 billion in military aid (a $60 million increase) in FY99. The bill's report language with respect to the increase in military assistance to Israel does state that, " the Committee must be clear that it cannot commit future Congresses to the future appropriation of funds." The House also increased by $15 million the amount of military aid that Israel can spend in Israel to $490 million. House appropriators also approved a plan to reduce Egypt's economic aid by $40 million, from $815 million to $775 million, while keeping Egypt's military aid at $1.3 billion a year. A proposal that would have increased Egypt's military aid, thus keeping the restructuring of the two countries' aid packages more proportional, was superceded. The Senate Appropriators approved the same numbers in the Senate's version of the bill. The Administration was chastised for lack of leadership during House committee discussion of the bill. Chairman Sonny Callahan said that when he spoke to Vice President Gore about the need to reduce Israel's aid, he covered his ears with his hands saying, " I didn't even hear that." The Administration's request for an increase of $25 million to the $85 million appropriated in 1998 for the West Bank and Gaza was rejected by the House Committee.

PALESTINIAN LEGISLATORS BRING THEIR CASE TO THE HILL: The Speaker of the Palestinian Legislative Council (PLC) Abu Ala'a and three other Palestinian legislators came to Washington on July 22 and 23 for meetings with Congressional leaders. House Speaker Gingrich had invited them during his controversial visit in May to celebrate Israel's 50th anniversary. The PLC delegation met with Gingrich as well as 21 members of the House International Relations committee including Chairman Ben Gilman, known for his leadership in anti-Palestinian measures. The Palestinian legislators were reported to have felt that the meetings were constructive and positive and to be pleased that a direct dialogue with Congress has begun. The next step being planned is a post-election congressional fact-finding trip with as much time spent with Palestinians as with Israelis.

SANCTIONS ON IRAQ TAKEN UP BY CONGRESS WITH DIFFERING VOICES: Michigan Representatives John Conyers, David Bonior and Carolyn Kilpatrick are circulating a letter to the President regarding the humanitarian situation in Iraq that asks for a reevaluation of the sanctions policy and a "delinking" of economic sanctions from military sanctions. In circulation since early May, their letter now has 30-some signers and will be open for signing until mid-September. But hopes are not high for a change when the U.N. next reviews the sanctions regime in mid-October. A new bill, House Joint Resolution 125, that takes a hard line on Iraq sanctions is expected to be introduced by Gingrich and Gilman. The bill, which is a binding resolution with the force of law, seems to explicitly state that economic sanctions must remain in place and, in calling for the President to take action to "bring Iraq into compliance with its international obligations", implies the use of military force.

RENEWED ATTENTION TO IRAQI OPPOSITION:  Invitations to come to Washington for talks were given to rival Kurdish leaders Talabani and Barzani by senior man from State David Welch during his late July visit to the Kurdish region of northern Iraq. Turkish diplomats accompanied the American diplomats. The presence in northern Iraq of the PKK, long engaged in civil war with the government of Turkey and with ties to Syria , further complicates the situation. The Wall Street Journal reported that the Clinton Administration is seeking approval from Congress for covert operations to weaken and possibly overthrow Iraqi president Saddam Hussein. Using contingency funds in the defense budget, the initiative could involve U.S. military personnel and take more than a year to organize. A U.S. official said in June that the U.S. is working with 73 exiled opposition groups, with funds provided by Congress, to plan a new effort to build up a political opposition.

SENATE BLOCKS BILL TO SANCTION NATIONS FOR RELIGIOUS PERSECUTION: Although the Senate version (Nichols/Lieberman) modified the bill (Wolf/Specter) that was approved in the House by a 375 to 41 vote in May, it was still unacceptable to the Senate's business-minded Republicans. Removed from the Foreign Relations docket on July 23, it is unlikely the measure will be enacted by this Congress. The Administration has opposed both versions. There has been intense international attention to, and criticism of, this legislation that was introduced in May 1997 after a two-year effort to raise the issue by leaders of the Christian Right and the campaign to Free Soviet Jewry. Earlier drafts of the bill focused on the religious persecution of Christians at the hands of Islamic regimes and China, mandated sanctions and elevated religious human rights above other human rights especially for purposes of asylum in the U.S.

AIRLINE TICKETS TO LEBANON CAN BE BOUGHT IN U.S. On June 19, President Clinton issued a "determination" removing the restriction on selling tickets to Lebanon, but direct flights are still prohibited. The travel ban itself was lifted in July 1997.

Corinne Whitlatch
Churches for Middle East Peace (CMEP)