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THE PERSIAN GULF: ISSUES FOR U.S. POLICY, 1999 (CRS Report for Congress)

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Release Date March 17, 1999
Report Number RL30093
Report Type Report
Authors Kenneth Katzman, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
Summary:

The Persian Gulf region contains both challenges and opportunities for the United States in 1999. Since October 1997, the United States and its partners on the United Nations Security Council have faced repeated crises with Iraq over its failure to cooperate with U.N.-mandated disarmament efforts. As 1998 ended, U.N. weapons inspectors from the U.N. Special Commission on Iraq (UNSCOM) reported that they were unable to perform their disarmament mission. They left Iraq just prior to a 70 hour U.S./British bombing campaign against Iraqi sites that could be used to reconstitute weapons of mass destruction (WMD). The United States termed the bombing campaign (Operation Desert Fox) successful in setting back Iraq's missile program and its ability to threaten its neighbors, but this action left the U.N. Security Council divided over how to encourage Iraq to allow UNSCOM back into the country. Although hampered in its mission, UNSCOM was viewed by most experts as the most effective means of determining whether or not Iraq is reconstituting banned WMD programs. The prospects for Iran and the United States to end twenty years of hostility have improved since the unexpected election in May 1997 of a relative moderate, Mohammad Khatemi, as President. However, Khatemi faces opposition internally from those who subscribe to the radical principles of the Islamic revolution. In part because of that internal opposition, a rapid and significant improvement in U.S.-Iran relations has proven elusive. Khatemi has refused a longstanding U.S. offer to begin a political dialogue, but he has approved increased people-to-people contacts as a means of rebuilding trust between the two countries. Iran's government did not take up a June 1998 offer by Secretary of State Madeleine Albright to engage in mutual confidence-building measures with Iran that could provide a "roadmap" to normal relations. The Clinton Administration apparently is waiting for the infighting in Tehran to subside before renewing its overtures, although it did, in December 1998, remove Iran from the list of major drug producing countries. This move was interpreted by some in Congress as a concession to Iran. U.S. efforts to contain the potential threats from Iran and Iraq continue to depend on close alliances with the Persian Gulf monarchy states and on continuing political stability there. Facing internal sympathy for the plight of the Iraqi people, some of the Gulf states have begun to grow more cautious in their support of U.S. efforts to compel Iraq to comply with all applicable U.N. resolutions. Saudi Arabia refused to allow U.S. combat aircraft to fly from Saudi bases to strike Iraq in Operation Desert Fox. The Gulf states, faced with low oil prices since 1997, also are worried about potential political unrest that might result from cutting back the generous social benefits they offer their citizens. To compensate for falling prices, Saudi Arabia, Kuwait, and Qatar are opening their energy sectors to increased foreign investment. All the Gulf states are curbing their appetite for new arms purchases. Although not under significant pressure to do so, some of the Gulf states continued gradual moves to open their political system, in part to spread the burden of difficult political and economic choices.