CSPAN is livestreaming audio from the Iran hearing

[karynnj]

Click on the room number - next to foreign relations (It's not livestreamed from the SFRC site - though it will be archived.)

(forgot link - http://www.capitolhearings.org/)

[karynnj]

1. Kerry's opening statement - which is not on the SFRC site

Kerry said regime change is NOT the current policy.

He also said that sanctions are a blunt instrument.

He is now speaking of Llyod's bank had a manual for people telling them how to evade US law.

The Iran report will be out today or tommorow. They worked with treasury and others on this.

Lots of praise for Morgenthau - said that criminals around the world fear him - mentioned that he worked with him on BCCI. Said that even as assistant DA, he and others modeled their efforts on Morgethau's.

Said Burns, who is now teaching at Harvard in his home state.

Great statement

[karynnj]

2. Morgenthau up now

Importance of sunlight. He spoke of answering Kerry's question (before his committee) of whether the Bank of England was cooperating. He answered, "No" and it was in all the papers. The next day, (name) of Bank of England called and offered assistance - demonstrating that people will not do in the light what they did in the dark. He then spoke of the current Iran/lloyd's bank.

He then spoke of the things that Iran has been getting through these illegal paths. He then spoke of the importance in the committee shedding light on what they found. Iran is making good progress.

Kaufman
Lloyd's bank gave Iranian banks the ability to make contracts around the world. Because the contracts are in dollars, they need to move through US banks - but any transaction that mention Iran were investigated and stopped. Lloyd's offered a service to Iranian banks where the Iranian info is stripped out so Iran is not mentioned when it goes through the US. He gave an example showing the original swift (?) message then the resulting replacement that made it look like it came from a Lloyd's customer - with no mention of Iran. They were doing this with Liberia and Sudan as well. The fines may make this less likely in the future.

Kerry - Could other bank's in other countries take this up - such as Bahrain.

Kaufman - If the banks think they will get caught, they might be less likely to do it.

Kerry - Can the US banking system do more?

Morgethau - The US banks asked responsibly - it is some foreign banks, but shining a spotlight has stopped it at that point.

Kerry - trying to get ideas for international reform to add more sunlight to prevent it from even happening.

Morgenthau - said Lloyd's was a major bank activity, not a rogue action. Found it looking at the allawi (ph) foundation and found the Lloyd's transactions.

Kaufman - says that they have been battling the lack of transparency for 35 years. Said, at Kerry's prompting, that transparency would be the single best tool. Spoke of money going to international drugs and Hamas. Trade off of transparency vs not hindering international finances.

Kerry - spoke of people working doing a good job but needing more resources. Kerry spoke of rules put in at Basel(ph) that required reporting for tranactions over $10,000.

Kaufman - spoke of new rules going in that will help to some degree.

[beachmom]

3. Not sure what screen you are talking about. On the front page of c-span?

[karynnj]

4. Here

http://www.capitolhearings.org/ - over on the right where they have "Senate Hearing Room"

(in haste - I forgot the link - which was pretty brain dead)

[karynnj]

5. More

Kerry and Morgenthau spoke of wanting the records they uncovered on transactions to inform their knowledge of where Iran is on nuclear.

Burns sees Iran as a threat - they really are working to become a nuclear power and funder of terrorists. Spoke of how since Carter we have not had any normal relations with them - and that it is time for engagement, which has happened - not just in Bush's year, but since Carter. Makes good argument against using force.

He against a third war after 30 years without diplomacy.

Good start for Obama. We need to negotiate from a point of strength. Argues for agreement before hand with China and Russia. Says that we can't take force off the table. Without diplomacy, you can't know if it could work. Going to war, without it would be wrong because then we have more credibility internationally.

We need to be patient enough to allow it to work. There will be attacks in Iran on this - and from RW here. Mentioned that there may be a new government in June. Argues for Iranian students to come here and hopes Congressmen/journalists should go to Iran.

Kerry asked about Russia and China. Burns - Russia dragged its food - they have the most to risk, but held back. When Kerry asked why they did this when they say they don't want Iran to have a bomb - Burns wouldn't work with Bush, might work with Obama. Re-emphasized that the most important diplomacy on the Iranian problem is with Russia and China.

Kerry says they need parallel paths - need Iran to see outreach genuine.

Feingold we need to continually re-evaluate threat. Spoke of all the problems Iran presents. What can be expected as marginal improvements.

Burns - 3 problems
1) Nuclear
2) supporting terrorism
3) Influence on Iraq and Afghanistan

Will be hard to get the needed international support on the sanctions.

Cardin - Iran as nuclear power is a game changer. Asked how much time we have? Quotes Israel's Lieberman (worse than ours) saying 3 months.

Burns - been out of gov't for a year - no one other than Lieberman has said 3 months - argues there is more time, but argues that there should be a deadline on time for negotiations before sanctions are imposed if no progress. Mentions that Israel's security is important.

Kauffman - asks what are the common interests. Says that Iran was helped by removal of Saddam and Afghanistan. Said HRC good in inviting Iran to the narcotics forum. Need to make clear that we have no goal of regime change.

Kerry - Were there other issues (Georgia, missile defense etc) that kept Russia for not helping. Burns agreed that they linked those issues and they might have feared that Russia misread the US fearing that we intended to use force and they didn't want to be on our side.

Kerry said time is important and they have to deal with the nuclear issue right away.

Kerry pointed out that in 2001, Iran helped vs the Taliban.

(Kerry has to leave to go to the floor for amendment)

Risch - Asks if Iran understands that Israel won't let them keep nuclear weapons. Says he doesn't know what Iranian leaders things. Says Israel has said this and we should make it never happen. Says that Iran needs to see how angry and fearful its neighbors (including Arabs) are.

[karynnj]

6. The amendment Kerry left for was to allow renters to stay in

properties that are foreclosed on through the lease or have 90 days to vacate. It is being voted now. Yep, Republicans are voting against it.

Edited to say that it passed with 57 votes.

[karynnj]

7. On SFRC site now

http://foreign.senate.gov/hearings/2009/hrg090506a.html

This is really worth hearing. My comments do not reflect the important pieces of this anywhere near as well as the hearing does - and it is complicated.

My overall take away
1) Iran is making serious progress in creating a bomb
2) Regime change is NOT the current policy
3) Burns speaks of the non-engagement policy being not just Bush's, but all Presidents since Carter (clearly spreading the blame there - but it seems fair)
4)Burns has some optimism that Obama can get Iran and Russia to deal with him when they wouldn't with Bush.
5) Morgenthau and Kaufman were awesome in explaining the skirting of US law by the British bank. Kerry and Morgethau clearly have enormous respect for each other. (Here Morgethau's office did an incredible job - stopping something very dangerous and their records will inform what the government knows on Iran's effort. Kerry praised him for taking on these efforts over his career - and that is praise well deserved.)
6)There are efforts to increase transparency in international transactions

[beachmom]

8. Thanks, I will have to check it out. I ended up not listening to

the audio. I got caught up in a stupid Kos diary. Advice for all: don't bother venturing into autism/vaccine diaries. Even if you agree with people, they still insult you. Never again. Wish one could hide diaries there the way one can hide threads here.