File 025041
Email Forwarding Washington Post Articles on Obama's State of the Union Address (File 025041)
Email from Jeffrey Epstein to Larry Summers forwarding Washington Post editorial coverage of President Obama's February 2013 State of the Union address, discussing economic policy, defense spending, and foreign policy priorities.
Summary
Jeffrey Epstein sends Larry Summers Washington Post articles analyzing President Obama's 2013 State of the Union address. The first article critiques Obama's approach to deficit reduction, debt management, and economic growth initiatives including tax reform, entitlement reform, and education policy. The second article by Aaron David Miller examines Obama's foreign policy strategy, characterizing him as the 'Extricator in Chief' for his focus on withdrawing troops from Afghanistan rather than pursuing new military interventions in Syria and the Middle East.
From:Sent:To:Subject:rtcle 1.Jeffrey Epstein [jeeyacation@gmail.com]2/15/2013 12:42:34 AMLarry Summersas you askedThe Washington PostIn State of the Unionaddress, Obama lays outhis second-term agendaEditorialFebruary 13, 2013 -- TWO DOMESTICconcerns towered above all others asPresident Obama addressed a joint sessionof Congress on Tuesday night on the stateof the union. One was stubbornly sloweconomic growth. The other was the long-term threat to prosperity posed by thestructural mismatch between the federalgovernment's projected revenue and itsspending commitments. A successfulsecond term for Mr. Obama will requireboth credible proposals for overcomingthose related challenges and thedetermination to carry them through.The president addressed the deficit anddebt first, and at some length. This wasfitting, giving that the most pressing pieceof business facing Washington is what todo about the impending $85 billion across-the-board spending cut. 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Banks hate this!www.thecreditsolutionprogram.comHOUSE OVERSIGHT 025041in declaring that this so-called sequesterthreatens the military as well as domesticprograms. But his plan to avoid it basicallyrepeated the offer of a "balanced approach"— unspecified tax hikes and spending cuts— which Republicans have alreadyrejected.Somewhat more substantively, he called fora larger deficit-reduction deal built aroundloophole-closing tax reform and what hecalled "modest" reforms to Medicare andentitlements. In an apparent effort to rallyDemocrats to this cause, he called on"those of us who care deeply aboutprograms like Medicare" to "embrace"reform.Yet in promising the same amount ofMedicare savings as the Simpson-Bowlescommision proposed, Mr. Obama did notmention that this would be a mere $341billion over 10 years. All told, he envisionsshaving an additional $1.5 trillion offprojected deficits over 10 years, whichwould leave the national debt at ahistorically aberrant 70-odd percent ofgross domestic product. In short, hedeclined to push back against the mind-setwithin his party that considers acceptable"stabilizing" the debt at this level by thetime Mr. Obama's second term ends. Atbest, that would buy a respite of a fewyears before the debt resumed its upwardclimb.HOUSE OVERSIGHT 025042As for raising the economy's growthpotential, the president was morepersuasive. His emphasis on reforming thetangled and counterproductive corporatetax code was especially welcome, andrelatively likely to draw GOP support. Heoffered several promising ideas oneducation, including a promise of "high-quality preschool" for all children, thoughhow that would square with his promise notto increase the deficit by a single dimewent unexplained. He sounded a ringingcall for greater federal attention to collegecost containment. "Taxpayers can't keep onsubsidizing" spiraling tuition, he said,candidly and correctly.As European trading partners had hoped,the president endorsed negotiations for atransatlantic free-trade zone, which wouldhelp America's export industries and thejobs that depend on them. Coupled with anagreement that Obama is promoting for thePacific region, the proposal has thepotential to make his second term fruitfulfor global trade. He also suggested raisingthe federal minimum wage, from $7.25 perhour to $9 — although the precise amountis less important, in our view, than thepresident's call for annual cost-of-livingadjustments.In keeping with Mr. Obama's theme ofnation-building at home, foreign policyplayed a secondary role in his speech. Hepromised to bring home half of theHOUSE OVERSIGHT 025043remaining U.S. troops in Afghanistanwithin the next year. But officials said thewithdrawal would be weighted towardyear's end, leaving most of the troops topartner with Afghan troops for much of thisyear. The president said the United Stateswould support democratic transitions in theMiddle East, "keep the pressure on [the]Syrian regime" and "do what is necessaryto prevent" Iran from obtaining a nuclearweapon — but he offered no specifics.Mr. Obama pressed his case for reform ofimmigration laws and for action to slowglobal warming — and, in especiallymoving terms, tougher gun laws. In eachcase, there may be measures he can takethrough executive action, but new laws willbe needed for substantial progress.Mr. Obama was right when he pointed tothe survivors and grieving relatives of gunviolence victims and insisted, "Theydeserve a vote."Article 2Foreign PolicyThe world is no longerAmerica's problemAaron David MillerHOUSE OVERSIGHT 025044February 13, 2013 -- If you want to knowwhat an American president's foreignpolicy is likely to be, particularly in asecond term, don't listen to his State of theUnion speech. You'd probably have moreluck playing with Tarot cards, or readingtea leaves or goat entrails. But not this year.Barack Obama's fourth such address left atrail of foreign-policy cookie crumbs thatlead directly to some pretty clear, if hardlysurprising or revolutionary, conclusions.His first term contained no spectacularsuccesses (save killing Osama bin Laden),but no spectacular failures either. Andmore than likely, that's what the presidentwill settle for in a second, even as the Arabworld burns and rogues like Iran and NorthKorea brandish new weapons. He's nothingif not a cautious man.Behold: I am the Extricator in ChiefAfghanistan -- the "good war" -- has beenpretty much MIA in Obama's speechessince he became president. He's alternatedbetween spending a few words on themission there (2009) or a paragraph (2010,2011, 2012). If his words have been brief,the message has been stunningly clear: It'sabout the leaving. And tonight was noexception. Not more than two minutes in,the president spoke about America's menand women coming home fromAfghanistan.HOUSE OVERSIGHT 025045Obama's signature is indeed that of theextricator. And he broke the code early (the2009 surge was designed politically to getin so that he could get out with a clearerconscience). He is the president who haswound down the longest and among themost profitless wars in American history,where victory was never defined bywhether we can win, but by when can weleave. It is his legacy, and one about whichhe has reason to be proud. Obama has lefthimself and his military commandersplenty of discretion about the pace ofextrication. But that's fine with thepresident so long as they're heading for theexits.Not the Destroyer and Rebuilder of WorldsSurprise, surprise: There was scant mentionof Syria in the president's speech -- just onethrowaway line about supporting Syria'sopposition. Obama did not disengage fromIraq and Afghanistan only to plungeAmerica into new black holes in theMiddle East.Obama isn't worried about boots on theground in Syria. That was never on thetable. Instead the question is this: Given theuncertainty about the end state in Syria andthe risks of providing serious weapons tothe rebels (and a no-fly zone) that mightalter the arc of the fight against the regime,the president saw and continues to see nopurpose in America providing arms ofHOUSE OVERSIGHT 025046marginal utility. That course would eitherexpose him to be truly weak and ineffectualor lead to calls to do more. So he's going toprovide non-lethal support and isapparently prepared to take the hits fromcritics who see the president's policy aspassive, cruel, and unforgiving, particularlynow that we know that members of his owncabinet clearly wanted to do more. TheIranian nuclear issue, the other potential tarbaby in the SOTU, followed a prettypredictable rising arc of concern in the listof presidential foreign-policy worries. In2009, in Obama's address to a joint sessionof Congress (a speech some regard as aSOTU), Iran wasn't even mentioned. In the2010 SOTU, Obama threatened that if Iranignored its international obligations, therewould be consequences; in 2011, he did thesame; and in 2012, he made it clear that hewould prevent Iran from acquiring anuclear weapon and take no option off thetable. Obama repeated half of what he saidin 2012 about preventing Iran from gettinga nuclear weapon, but instead of saying alloptions were on the table, he spoke of theimportance of diplomacy. I suspect he'll goto extreme lengths to avoid war, and won'tgreenlight an Israeli attack either until thearc of diplomacy has run its course. Andthen Obama would likely act only if themullahs push the envelope by acceleratingtheir uranium enrichment program andHOUSE OVERSIGHT 025047other military aspects of the nuclearenterprise.Seizing the Nuclear High Road with Littleto LoseEven as he confronts a real bomb in NorthKorea (very bad options there) and apotential one in Iran (bad options theretoo), Obama is trying to make good on alongstanding commitment to reduceAmerica's own nuclear arsenal. Backed bythe military chiefs and likely by the publictoo (getting rid of nukes equals savingmoney), but opposed by Republicans inCongress, Obama will try to work aroundthe political obstacles by seeking a dealwith yes ... you got it ... his old friend VladPutin. It's worth a try. If Putin balks orRepublicans get in the way, the presidentcan always advocate unilateral cuts -- notsomething he wants to do. But if he can'thave his way on nukes, he can alwaysblame it on the Russians and theRepublicans with little to lose. The road togetting rid of nukes is a long one. Let thenext guy (or gal) worry about it.A Little Leg on Palestine?Obama hasn't mentioned the Israeli-Palestinian conflict in a SOTU speech since2009. And that's no coincidence. His ownpoorly thought-through initial effortcrashed and burned, leaving the presidentpretty frustrated and annoyed with bothHOUSE OVERSIGHT 025048Israelis and Palestinians, particularly IsraeliPrime Minister Benjamin Netanyahu.But hey, that was then. A second-termpresident has committed himself early in2013 to a trip to Israel and has an Energizerbunny in Secretary of State John Kerry,who wants to do the right thing and keepthe two-state solution alive. Obama clearlykept his distance from the issue again onTuesday night. He spoke of standing withIsrael to pursue peace, but didn't mentionPalestinians or the peace process. Hementioned his own trip to the Middle East,but missed an opportunity to give whatmight be a trip to the region by his newsecretary of state higher profile. It's just aswell. The paradox of the Israeli-Palestinianissue is that it's too complicated toimplement right now and too important toabandon. It's in this space that Obama willbe forced to operate. And while the odds ofsuccess are low, Obama will be tempted inhis final term to do something bold,perhaps laying out a U.S. plan ofparameters on the key final-status issues.It's the Middle Class, Not the Middle EastSpoiler alert: Barack Obama might still bea consequential foreign-policy president ifhe's lucky, willful, and skillful. But it's hisdomestic legacy that will make or break hispresidency. Health care -- his signaturelegacy issue -- will look much better if theeconomy improves, driven by a revivedHOUSE OVERSIGHT 025049housing market and rising employment,and of course if some broader deal can bestruck on entitlements and taxes.Immigration reform and gun-controllegislation driven by a functionalbipartisanship would cement that legacy.He'd be an historic rather than a greatpresident.Two clocks tick down in a president'ssecond term: the drive for legacy and thereality of lame duckery. Obama's politicalcapital will diminish quickly. Where, how,and on what he wants to spend it is critical.The Middle East is violent and volatile andmay yet suck him in, but if he can avoid it,he'll try. This was a State of the Unionaddress that stressed fixing America'sbroken house, not chasing around the worldtrying to fix everyone else's. The future ofAmerica isn't Cairo or Damascus; it'sChicago and Detroit.Aaron David Miller is a distinguishedscholar at the Woodrow WilsonInternational Center for Scholars.Article 3.Agence GlobalCan the United StatesStrike a Deal with Iran?HOUSE OVERSIGHT 025050Patrick Seale12 Feb 2013 -- Negotiations with Iran areonce more on the international agenda.After an eight-month break, the fivepermanent members of the UN SecurityCouncil plus Germany -- the so-calledP5+1 -- are due to hold a meeting with Iranon 25 February in Kazakhstan. What arethe prospects of success? In a nutshell, thatwould seem to depend more on the climatein Washington than in Tehran. Iran isgesturing that it wants to negotiate, butWashington has not yet signalled anygreater flexibility than in the past.In a major speech in Tehran last Sunday,President Mahmoud Ahmadinejadaddressed the United States: "Take yourguns out of the face of the Iranian nationand I myself will negotiate with you," hedeclared. Meanwhile, the Iranianambassador to Paris told French officialsthat, provided a work plan was agreed, Iranwas ready to allow inspectors of theInternational Atomic Energy Agency(IAEA) to visit Parchin, a military facilitywhere Iran is suspected of having donework on atomic weapons. Ahmadinejadhimself has said repeatedly that Iran wasready to stop enriching uranium to 20% ifthe international community agreed tosupply it instead to the Tehran researchreactor for the production of isotopesneeded to treat cancer patients.HOUSE OVERSIGHT 025051The only recent encouraging word from theUnited States was a hint by Vice-PresidentJoe Biden at last week's Munich securityconference that the time may have comefor bilateral U.S.-Iranian talks. Iran'sForeign Minister Ali Akbar Salehiresponded positively to Biden's offer,although he added that Iran would look forevidence that Biden's offer was 'authentic'and not 'devious'.The road to a U.S.-Iranian agreement islittered with obstacles -- grave mutualdistrust being one of them. There is littleoptimism among experts that abreakthrough is imminent. For one thing,Iran is almost certain to want to defer anymajor strategic decision until a newPresident is elected next June to replace thesharp-tongued Mahmoud Ahmadinejad. Tostrike a deal with Iran, the United Stateswould also need to assure its Arab allies inthe Gulf that they would not fall underIranian hegemony or lose Americanprotection. Guarantees would no doubthave to be given.Israel, America's close ally, poses a moresubstantial obstacle. It is totally opposed toany deal which would allow Iran to enrichuranium, even at the low level of 3.5%.Wanting no challenge to its ownformidable nuclear arsenal, Israel's long-standing aim has been to halt Iran's nuclearprogramme altogether. To this end it hasassassinated several Iranian nuclearHOUSE OVERSIGHT 025052scientists and joined the United States inwaging cyber warfare against Iraniannuclear facilities. Its belligerent primeminister, Binyamin Netanyahu, has foryears been pressing Obama to destroyIran's nuclear programme and -- better still-- bring down the Islamic regimealtogether.Faced with these obstacles, it is clear thatany U.S. deal with Iran would requirecareful preparation. Obama would need tomobilize strong domestic support if he is toconfront America's vast array of pro-Israeliforces. They include Congressmen eager todefend Israeli interests at all costs (as wasvividly illustrated by the recent ChuckHagel confirmation hearings), powerfullobbies such as AIPAC, media barons,high-profile Jewish financiers like SheldonAdelson, a phalanx of neo-con strategists inright-wing think tanks, influential pro-Israelis within the Administration, andmany, many others. The cost in politicalcapital of challenging them could be verysubstantial. Nevertheless, elected for asecond term, he now has greater freedomand authority than before.Obama is due to visit Israel on March 20-21, something he did not do in his firstterm. This visit will be the first foreign tripof his second term -- in itself a sign of itsimportance. Although the White House isanxious to play down suggestions that hewill announce a major initiative, either onHOUSE OVERSIGHT 025053the Israeli-Palestinian conflict or on Iran,there are issues he cannot avoid. He may,however, choose to raise them in privatetalks with Israeli leaders rather than inpublic. His message is expected to betwofold: Israel should not delay in grantingstatehood to the Palestinians, howeverpainful that choice may be, and it should becareful not to make an eternal enemy ofIran. Both conflicts have the potential toisolate Israel internationally and threaten itslong-term interests, if not its actualexistence.In his first term of office, Obama resistedNetanyahu's pressure to wage war on Iran.This was no more than a semi-success,however, since he managed to bluntNetanyahu's belligerence only by imposingon Iran a raft of sanctions of unprecedentedseverity. They have halved Iran's oilexports, caused its currency to plummetand inflation to gallop, severed its relationswith the world's banks and inflicted severehardship on its population.The key question today is this: What areObama's intentions? Is he seeking to bringdown Iran's Islamic regime, as Israelwould like, or is he simply seeking to limitits nuclear ambitions? If 'regime change' ishis aim then sanctions will have to betightened even further and extendedindefinitely. But if Obama's aim is to strikea deal with Iran over its nuclear programmethen he must give it at least some of what itHOUSE OVERSIGHT 025054wants: such as sanctions relief; acceptanceof its right under the Nuclear Non-Proliferation Treaty to enrich uranium to alow level for peaceful purposes;recognition of its security interests, of thelegitimacy of its Islamic regime born out ofthe 1979 revolution, and of its place in theregion as a major power.The P5+1, which are due to meet Iran laterthis month, remain so divided that they areunlikely to improve substantially on theirprevious miserly offer, which was toprovide Iran with some airplane spare partsif it gave up uranium enrichment to 20% --its trump card. It is the paralysis of Iran'sdealings with the P5+1 that has lentcredence to the idea that the best hope of abreakthrough may lie in bilateral U.S.-Iranian talks -- perhaps even a summitmeeting between President Obama andAyatollah Khomeini.For such a summit to be successful theUnited States would have to change itsapproach. Iran's supreme leader has madeclear that Iran will not negotiate underthreat of attack. There would have to begive and take. Above all, Iran wants to betreated with respect. This is the challengefacing Obama.It is worth remembering that there is as yetno evidence whatsoever that Iran hasdecided to build nuclear weapons. Nor hasit developed a reliable delivery system.Instead, it has focussed its efforts onHOUSE OVERSIGHT 025055medium-range missiles unable to reachIsrael. It has no second strike capability. AsPresident Ahmadinejad stressed during hisvisit to Cairo last week, Iran has nointention of attacking Israel. Its posture ispurely defensive.If Obama were to act with boldness andvision, he could defuse a nagging problemwhich has plagued the region for years. It issurely time for the United States to drawIran into the regional community of nationsand put an end to 34 years of unremittinghostility.Patrick Seale is a leading British writer onthe Middle East. His latest book is TheStruggle for Arab Independence: Riad el-Solh and the Makers of the Modern MiddleEast (Cambridge University Press).Article 4.The Washington PostWhat path now for Syria?David IgnatiusFebruary 12, 2013 -- Syrian oppositionfighters appear to be making significantgains on the battlefield this week,following an offer by their top politicalleader for negotiations with the regime ofPresident Bashar al-Assad.HOUSE OVERSIGHT 025056This military and diplomatic news mayappear positive. But Syrian sources cautionthat the battlefield advances may acceleratemovement toward a breakup of the country,as Alawite supporters of the regime retreatto their ancestral homeland in thenorthwestern region around Latakia. Andthere's no sign that either Assad or hisRussian patrons are paying any more thanlip service to a political settlement.One potential game-changer is a request forU.S. help in training elite rebel units, whichhas been drafted by Brig. Gen. Salim Idriss,the new commander of the opposition FreeSyrian Army. In a letter dated Feb. 4, heseeks U.S. assistance in "training for: (1)special operations; (2) internationalhumanitarian law; and (3) ... in chemicalweapons security."Idriss requested various supplies for theseelite units, including: "(1) combat armor;(2) night vision goggles; (3) hand heldmonocular and longer range spottingequipment; (4) strategic communications;(5) winterization packs; and (6) tacticalcommunications."This request for assistance was made justafter the Assad regime had rebuffed anoffer by Sheik Ahmad Moaz al-Khatib, thehead of a new opposition coalition, tonegotiate with government representatives.The rebels' recent military successes havecome mostly in northern Syria; the attacksHOUSE OVERSIGHT 025057were made by different battalions thatappear to operate with little centralcommand and control. The gains include:*The al-Jarrah air base, about 30 miles eastof Aleppo, which appears to have beenoverrun by fighters from Ahrar al-Sham, abattalion based in Idlib. Videos postedTuesday by the rebels showed themwalking past derelict Syrian warplanes andinside a fortified hangar containing whatappeared to be two Czech-built groundassault planes. On camera, the rebelsdisplayed dozens of bombs racked in awarehouse, and other ammunition andspoils of war.*The Thawra hydroelectric dam on theEuphrates, which is one of Syria's biggestpower-generating facilities. Rebel sourcessaid the Syrian army gave up the strategicdam after army positions there wereoverrun. The rebels negotiated a surrenderwith regime loyalists who remained. Thesesources said the dam continues to operateand provide power — a positive sign forthose who worry that Syria's infrastructurewould collapse if the rebels took over.*The Aleppo International Airport,southeast of the city, is close to falling.Free Syrian Army sources said Tuesdaythat their fighters, including allies in theextremist al-Nusra Front, had captured anaccess point near the airport known as"Liwa 80." Syrian sources said rebels thereHOUSE OVERSIGHT 025058had seized large amounts of ammunition,including some shoulder-fired anti-aircraftmissiles.*Damascus and its suburbs, where therebels are tightening their squeeze onaccess points to the capital. Syrian sourcessaid fighters are converging on Damascusfrom different parts of the country,expecting a decisive battle there soon."Regime forces are suffering from very lowmorale, whereas FSA soldiers have beenencouraged by recent positivedevelopments," asserts one FSA reportfrom Damascus.The al-Nusra Front has been a catalyst andbeneficiary of the rebels' success.According to Syrian sources, al-Nusra isgaining strength in Homs, a city in centralSyria where the group was never strong.One Syrian source told the StateDepartment: "They have money, they arehelping people with everything includingdaily living supplies. I heard that somefighters are leaving their [former] brigadesand joining [Al-Nusra], some of themselling their weapons to feed theirfamilies."One Syrian who works closely with theFree Syrian Army explained how creatingan elite commando force could help checkSyria's drift toward becoming a failedstate: "We still believe FSA on the groundis still needed badly to tip the power andHOUSE OVERSIGHT 025059support other parallel solutions, includingthe political one. But FSA [has] become ajungle. ... My recommendation is ... tostart working on elite [forces that can] ...initiate key attacks plus help as a bufferfrom potential warlords and fights amongfragmented FSA factions. Plus, this unitcan handle other key tasks, like securingchemical weapons."This Syrian strategist argues in anothermemo that the rebels must "speak to thesilent majority, many who did not careabout the revolution, and they want theirlife back." He said that such a negotiatedsettlement requires more pressure on theUnited States, Russia and the UnitedNations "to find a way out of thedeadlock."Article 5Foreign PolicyWhy Does EuropePretend Hezbollah Has aGood Side?Matthew LevittHOUSE OVERSIGHT 025060February 12, 2013 -- Bulgaria's interiorminister announced on Feb. 5 the result ofhis country's investigation into the July2012 bombing of a bus filled with Israelitourists in the city of Burgas, which killedfive Israelis and the vehicle's Bulgariandriver. Two of the individuals who carriedout the terrorist attack, he said, "belongedto the military formation of Hezbollah."It was not by chance that his statementfingered only the military wing ofHezbollah, not the group as a whole.Within the European Union, the findings ofthe Bulgarian investigation have kicked offa firestorm over whether to add theLebanese militant organization -- in whole,or perhaps just its military or terroristwings -- to the EU's list of banned terroristgroups. But are there in fact distinct wingswithin the self-styled "Party of God"?Hezbollah is many things. It is one of thedominant political parties in Lebanon, aswell as a social and religious movementcatering first and foremost -- though notexclusively -- to Lebanon's Shiitecommunity. Hezbollah is also Lebanon'slargest militia, the only one to keep itsweapons and rebrand its armed elements asan "Islamic resistance" in response to theterms of the 1989 Taif Accord, whichended the Lebanese Civil War.While the group's various elements areintended to complement one another, theHOUSE OVERSIGHT 025061reality is often messier. In part, that has todo with compartmentalization ofHezbollah's covert activities. It is also,however, a result of the group's multipleidentities -- Lebanese, pan-Shiite, pro-Iranian -- and the group's multiple andsometimes competing goals tied to thesedifferent identities.Hezbollah's ideological commitment toIranian Ayatollah Ruhollah Khomeini'srevolutionary doctrine of velayat-efaqih (guardianship of the jurist), whichholds that a Shiite Islamic cleric shouldserve as the supreme head of government,is a key source of conflict. The group isthus simultaneously committed to thedecrees of Iranian clerics, the Lebanesestate, its sectarian Shiite community withinLebanon, and fellow Shiites abroad.The consequences of these competingideological drivers was clear in July 2006,when Hezbollah dragged Israel andLebanon into a war neither state wanted bycrossing the U.N.-demarcated borderbetween the two countries, killing threeIsraeli soldiers, and kidnapping two morein an ambush. They came to the fore againtwo years later, when Hezbollah took overWest Beirut by force of arms, turning itsweapons of "resistance" against fellowLebanese citizens. When the chips aredown, Hezbollah's commitment to IranHOUSE OVERSIGHT 025062trumps its identity as a Lebanese politicalmovement.The ties that bind Hezbollah's politicalleadership with its international illicitactivities are also unmistakable. Accordingto a CIA document, even before HassanNasrallah rose to the position of secretary-general in 1992, he was "directly involvedin many Hizballah terrorist operations,including hostage taking, airline hijackings,and attacks against Lebanese rivals."Time and again, Hezbollah's politicalpersonalities have been tied to the group'sterrorist and criminal activities. Consider amajor case in the United States: In 2008,while Hezbollah operative Ali Karaki wasplanning a Hezbollah attack in Azerbaijan'scapital, Baku, his brother, Hasan AntarKaraki, was helping lead a broad criminalconspiracy to sell counterfeit and stolencurrency in Philadelphia. Luckily, HasanAntar Karaki sold his wares to anundercover FBI informant posing as amember of the Philadelphia criminalunderworld. Hasan Antar Karaki proved tobe a major figure in Hezbollah's forgeryoperations, and he provided an FBI sourcewith fraudulent British and Canadianpassports.Meanwhile, in meetings in Lebanon andthe United States, Hasan Antar Karaki'sassociate, Hassan Hodroj, a Hezbollahspokesman and the head of its PalestinianHOUSE OVERSIGHT 025063issues portfolio within the group's politicalechelon, sought to procure a long list ofsophisticated weapons in a black-marketscheme involving Hezbollah operativesacross the globe. According to courtdocuments, Hodroj wanted "heavymachinery" for the "fight against Jews andto protect Lebanon." But move forwardwith caution, Hodroj counseled anundercover FBI source, because someonein the United States could "go to jail for100 years" if caught dealing withHezbollah.In light of cases like this one, in whichpeople overtly affiliated with Hezbollah'spolitical activities are engaged in criminaland terrorist activities, it becomesincreasingly difficult to separateHezbollah's overt activities from its covertbehavior. "Little is known about [theHezbollah military wing's] internalcommand hierarchy," a Westerngovernment report noted in 2012, "due toits highly secretive nature and use ofsophisticated protective measures."The structure and manpower of Hezbollah'sterrorist operation, which is responsible forits financial and logistical activities as wellas its terrorist operations abroad, aresimilarly opaque. We do know, however,that Hezbollah's terrorist network, theIslamic Jihad Organization (IJO), wasformally founded in 1983 when Hezbollahmaster terrorist Imad Mughniyeh fled toHOUSE OVERSIGHT 025064Iran after orchestrating the October 1983bombing of the U.S. Marine Corps andFrench military barracks in Beirut with hisbrother-in-law, Mustafa Badreddine.This much is clear: Since its founding,Hezbollah has developed a sophisticatedorganizational and leadership structure.The overall governing authority, the Majlisal-Shura (Consultative Council), wields alldecision-making power and directs severalsubordinate functional councils. Eachfunctional council reports directly to theMajlis al-Shura, which, as HezbollahDeputy Secretary-General Naim Qassemwrote in his book, is "in charge of drawingthe overall vision and policies, overseeingthe general strategies for the party'sfunction, and taking political decisions."U.S. assessments echo Qassem'sdescription. "Hezbollah has a unifiedleadership structure that oversees theorganization's complementary, partiallycompartmentalized elements," reads aCongressional Research Service report.The secretary-general, currently Nasrallah,presides over the Majlis al-Shura andfunctions as the group's leader under theauthority of the "jurist theologian"Ayatollah Ali Khamenei, Iran's supremeleader. Five administrative bodies,organized around thematic responsibilities,run Hezbollah's political, military (jihad),parliamentary, executive, and judicialHOUSE OVERSIGHT 025065activities. The Majlis al-Shura considers allelements of the group's activities, includingits political and military wings, as part ofone holistic entity.According to Hezbollah's top officials, thisunity of purpose among the group's diverseactivities is essential to its success. "If themilitary wing were separated from thepolitical wing, this would haverepercussions, and it would reflect on thepolitical scene," Qassem told a Lebanesepaper in 2000. "Hezbollah's secretary-general is the head of the Shura Counciland also the head of the Jihad Council, andthis means that we have one leadership,with one administration."The Jihad Council is the functional councilunderneath the Majlis al-Shura responsiblefor all military matters. Qassem writes thatit "comprises those in charge of resistanceactivity, be that in terms of oversight,recruitment, training, equipment, security,or any other resistance-related endeavors."To accomplish its mission, the council isdivided into several smaller units in chargeof protecting the leadership and carryingout internal and external surveillance, aswell as overseas operations. The party'ssecurity branch is further broken down intothree subgroups: central, preventive, andoverseas security. In 2000, a dedicatedcounterintelligence branch was reportedlyfounded as well.HOUSE OVERSIGHT 025066Under this structure, Hezbollah's militiaand terrorist activities, along with itssecurity organ, all report to the JihadCouncil. Until he was killed, Mughniyehwas Hezbollah's top militant commanderand reportedly led the Jihad Councilhimself By some accounts, he also held aseat on the Majlis al-Shura, which wouldbe typical for the party's standing militarycommander.Unlike its sister councils, however, theJihad Council enjoys strategic ambiguity.Neither the majority of Hezbollah officialsnor the party's elected parliamentarians areaware of the details of their party's covertmilitary and terrorist activities, which aredecided on by the most senior leadership.According to the U.S. government, theseactivities are "executed" by the leadershipof Hezbollah's military apparatus, knownas the Islamic Resistance and led byBadreddine, and by the IJO, led by TalalHamiyah, and they are "overseen" byNasrallah.Europe's approach to Hezbollah has beenvaried. Many European governments haveresisted international efforts to designatethe organization as a terrorist group bydistinguishing between Hezbollah'spolitical and military wings. Britaindistinguishes among Hezbollah's terroristwing (the Islamic Jihad Organization),military wing, and political wing, and thecountry banned the IJO in 2000 and theHOUSE OVERSIGHT 025067military wing in 2008. The Netherlands,however, designated Hezbollah a terroristentity in 2004 without distinguishingbetween the group's political and militarywings. A 2004 Dutch intelligence reporthighlighted investigations that show"Hezbollah's political and terrorist wingsare controlled by one co-ordinatingcouncil."The European Union has taken actionagainst Hezbollah's interests in the past. InMay 2002, the European Union froze theassets of a non-European terrorist group forthe first time by adding seven Hezbollah-affiliated individuals, includingMughniyeh, to its financial sanctions listfor terrorism. It did not, however, sanctionHezbollah as an organization. On March10, 2005, the European Parliament passed anonbinding resolution recognizing that"clear evidence exists of terrorist activitieson the part of Hezbollah" and calling on theEuropean Council to take "all necessarysteps to curtail them."But the necessary steps did not occur.Instead, most European countries preferredto make convenient distinctions betweenthe different parts of Hezbollah, even whenthe group's own leadership does not.Today, as European leaders considerwhether to label Hezbollah a terroristgroup, they should judge the group by thetotality of its actions. Hezbollah cannot beHOUSE OVERSIGHT 025068forgiven its criminal, terrorist, or militantpursuits simply because it also engages inpolitical or humanitarian ones. As theBurgas bus bombing demonstrates, theParty of God can and has mobilizedoperatives for everything from criminalenterprises to terrorist attacks well beyondLebanon's borders.And though Hezbollah is composed ofmultiple committees and branches, itoperates as a single entity. Hezbollah, theU.S. intelligence community hasdetermined, is "a multifaceted, disciplinedorganization that combines political, social,paramilitary, and terrorist elements" and isone in which decisions "to resort to arms orterrorist tactics [are] carefully calibrated."Hezbollah's Qassem, speaking in October2012, concurred: "We don't have a militarywing and a political one; we don't haveHezbollah on one hand and the resistanceparty on the other.... Every element ofHezbollah, from commanders to membersas well as our various capabilities, are inthe service of the resistance, and we havenothing but the resistance as a priority," hesaid.Maybe it is time Western leaders finallylistened to him.Matthew Levitt directs the Stein programon Counterterrorism and Intelligence at theWashington Institute for Near East Policy.HOUSE OVERSIGHT 025069He is author of "Hizballah and the QodsForce in Iran's Shadow War with the West"and the forthcoming book Hezbollah: TheGlobal Footprint of Lebanon's Party ofGod.Article 6.The AtlanticA Middle-Class Paradisein Palestine?Armin RosenFeb 11 2013 -- The sole outlet to Rawabisits off a dizzying two-lane highwayflanked by round, scraggly hills. In this partof the West Bank, just north of where theJerusalem suburbs thin into a dry, granite-gray wilderness, the mountains seem to aidin the illusion that Israeli and Palestinianspheres of authority can remain perfectly,even harmoniously separate. Arabs use theroad to get to the Palestinian-controlledcities of Bir Zeit and Ramallah, for JewishIsraelis, the road connects the JerusalemHOUSE OVERSIGHT 025070area to settlements deep inside the northernhalf of the West Bank.Ramallah's skyline is barely discernible ona hazy day. Ateret, a red-gabled settlementof about 90 families that sits high above theRawabi junction -- a community whichwould likely either be vacated orincorporated into a Palestinian state under afuture peace agreement -- flickers in andout of view with every delirious knot in theroad. Even a concrete pillbox looming overthe highest point along the highway isabandoned, its connection to the territory'soddly invisible occupying army markedonly by a tattered Israeli flag that no onehas bothered to steal or replace.Last year was the first since 1973 in whichno Israeli citizen was killed in a terroristattack originating from the West Bank. Ason the newly-pacified Gaza-Israel border, atense quiet pervades things here, although abright red sign at the junction reminds onecategory of motorist not to feel toocomplacent. "This road leads to Area 'A'Under the Palestinian Authority," it readsin Arabic, Hebrew, and broken English."The entrance for Israeli citizens isforbidden, dangerous to your lives and isagainst the Israeli law." At the Rawabijunction these warnings of latent danger arealmost comically off-base, partly becauseof the only other marker at the turnoff: aHOUSE OVERSIGHT 025071light-green arrow sagging off of a nearbypost.No one lives at the end of the road, whichis every bit as wavy and disorienting as theadjoining highway. It empties into a scenethat seems engineered for maximumbewilderment: three high-rise cranes,topped with fluttering Palestinian flags,tower over massive stone and concretebuilding frames. Cement-mixers, paintedthe same shade of light green as the arrowat the turnoff and marked with the project'slogo -- a wiry oval with a cute little convexloop at the end, like a child's drawing of aheart that could also be a tree -- line up toreceive material from a buzzing, state-of-the-art plant. The construction site, acouple turns up-road of the cement factory,is swarming with workers in greenhardhats. Spotless SUVs with the Rawabilogo on the door speed from one side of thesite to another.Rawabi, which will be the first Palestinianplanned city in the West Bank, runs fromthe top of the mountain to the valley below,with its highest point sitting at an elevationslightly higher than Ateret, which is nowconstantly visible. In contrast, the chaos ofRamallah, stronghold of an insolvent andsclerotic Palestinian Authority, feels distantin more senses than one.Rawabi represents something totally new --a visionary Palestinian-directed privateHOUSE OVERSIGHT 025072sector project, with support from bothIsraeli businesses and a major Arabgovernment. It has the potential to shift theconversation on the region's future on bothsides of the Green Line. It could convincePalestinians -- and the rest of the world --that the future of the West Bank shouldn'tbe shackled to Ramallah or Jerusalem'svacillating willingness to hash outfundamental issues. It could prove thatthere's an appetite, both among Palestinianconsumers and foreign donors, for thecreation of a social and economic existencein the West Bank that's de-coupled,insomuch as currently possible, from theMiddle East's tense and labyrinthinepolitics.It would also help solidify the benefits ofthe current cessation in hostilities. Indeed,Palestinian leader Mahmoud Abbas'sprogress in fostering the end of violentresistance in the West Bank in the yearsafter the bloody Second Intifada, coupledwith Palestinian Prime Minister SalaamFayyad's widely-respected institution-building initiative, could get a crucialprivate sector assist through Rawabi'seventual success.And Rawabi gets at something even morefundamental. "It touches upon all of thecore issues of control and sovereignty,"says Robert Danin, a fellow at the Councilon Foreign Relations who, as head of theQuartet mission in Jerusalem from 2008 toHOUSE OVERSIGHT 0250732010, witnessed some of the politicaldiscussions that accompanied the project'screation. "This could be a huge, iconicvictory for the whole strategy of buildingPalestine from the bottom up rather thantrying to build it at the negotiating table,"he says.Its success would prove just how muchpower Palestinians can, and indeed alreadydo, have in shaping their future. And itsfailure could prove the exact opposite.I visited Rawabi two weeks ago with agroup of national security professionals, aspart of a trip organized by the Foundationfor Defense of Democracies, a Washington,DC-based think tank. (All of the photos inthe body of the article are mine.) We weretaken around the construction site by ayoung Palestinian engineer who conveyedthe vast ambition underlying the project:When the city is completed, she said, it willhouse 45,000 people in 23 distinctneighborhoods with innocuous, nature-based names like "Flint," and "Hard Rock".(Rawabi is Arabic for "Hills".) There willbe eight schools -- some of them built withthe help of the U.S. Agency forInternational Development -- a "hugepark," a convention center, an 850-seatindoor theater, and a 20,000-seatamphitheater carved into a hillside.Most ambitiously, there will be acommercial center that developers hopeHOUSE OVERSIGHT 025074will bring in between 3,000 and 5,000permanent jobs within the next five years --hopefully, we were told, in theinformational technology sector (anaspiration that might imply a certaincooperation with the burgeoning techindustry on the other side of the GreenLine). The engineer said that Rawabi hadalready created 3,000 construction jobs forWest Bank Palestinians. The city isPalestinian-designed and Palestinian-built -- making the surfeit of Qatari flags at theconstruction site somewhat puzzling atfirst. And while the project does notpurchase materials from Jewish settlementsin the West Bank, the engineer was hardlyshy in explaining that Rawabi would addan estimated $85 million to the Israelieconomy.As we drove around the construction site,the engineer's talk made few demands onthe imagination. The sheer scale of theproject is already obvious. Within the next18 months, the first phase, which includessix neighborhoods, a mosque, theamphitheater, and two-thirds of the city'scommercial center, will be complete, and3,000 people are scheduled will move intoRawabi by the end of 2013. Apartmentblocks built of a local white stone --"Rawabi stone," the engineer called it -- arealready rising out of a network ofconcentric ring-roads centered on the top ofthe hill. Most of these roads have alreadyHOUSE OVERSIGHT 025075been paved, and there are terraced retainingwalls, built out of thick stacks of localsandstone, running all the way to thebottom of the valley. No bleachers havebeen installed in the amphitheater yet, butit's fairly far along, with the future seatingarea fanning into a wide notch in themountainside. There are attractive stonesigns bearing the stylized Arabic names ofneighborhoods that haven't been built yet.The future commercial center is also wellon its way to completion. Situated on ashelf slightly below the summit of the hill,the complex of office buildings, hotels,theaters, and a convention center willhuddle around a broad outdoor plaza,which will be connected to the lowerneighborhoods through a wide flight ofstairs. The stairs, plaza, and centralbuildings are already past their skeletalphase, and the high-rise apartments ringingthe city center look like they're almostcomplete. For now, the commercial core isa jumble of dust and brutal concretesurfaces, but in the future, someonelingering in the cafés near the staircase willenjoy phenomenal views of the rugged hillcountry, and perhaps even glimpses of theJordan River Valley on a clear day.It is still possible to remain unconvinced ofRawabi's reality -- doubtful as to whetherthat café will ever be built, or whether anymiddle class-Palestinian desirous of ageneric middle class existence will everHOUSE OVERSIGHT 025076linger there. There's abundant reason forskepticism. The project's future depends onthe Israeli authorities' willingness to allowfor the construction of access roads in"Area C," or West Bank territory under thedirect control of Israel. The sole existingroute into the city only exists because theIsraeli government, after years ofbureaucratic and high-level diplomaticwrangling, granted Rawabi's developers apermit for a "temporary" road. Technically,they will have to destroy the road when thecurrent permission expires. And even if theIsraelis agree to make the road permanent,one two-lane route is hardly adequate for acity of 45,000 people. Developers claim itisn't even adequate to the needs of thecurrent construction site.Water is another challenge. Negotiationswith Israel and the Palestinian WaterAuthority are ongoing, and developers saythey have held in excess of 100 meetingswith Israeli officials on water-related issuesalone. Developers admit that they aren'tsure where the city's water resources willeventually come from, and the constructionsite only got running water two monthsago.And they'll admit that attracting jobs to thesite is an even bigger challenge than Israel'sWest Bank regime. Rawabi isn't meant tobe a bedroom community of Ramallah. It'smeant to be a self-contained city, withoffice and retail space. The jobs haven'tHOUSE OVERSIGHT 025077quite materialized yet (although thedevelopers have a slight head start:between 200 and 300 call center-type jobscurrently based in Ramallah are scheduledto move into Rawabi when the first phaseof construction is complete). If the politicalor security situation seriously deteriorates -- if the checkpoints return, if the Israelis areforced to re-occupy urban areas ceded tothe Palestinian Authority under the OsloAccords, as happened during the SecondIntifada; if Hamas wages a violent takeoverof the Palestinian government -- all bets areoff The developers don't seem to bebothered by those possibilities right now.At the showroom, built at the very top ofthe hill, the future is nothing but bright.I chatted with another site engineer as wewalked through a scale-model mock-up ofa typical Rawabian street, where happyfamilies in western dress waved from littlevideo screens inset in plastic apartmentwindows. I asked her about the Qatari flagsI had seen around the construction site.Qatar's state investment fund is footing twothirds of the nearly $1 billion project bill,she said. "This is the biggest investment inthe history of Palestine," she explained aswe stepped over a fake valley in the nextroom, walking past a mock-up of astunning hilltop view contained inside amock-up of a future apartment suite. TheRawabians will apparently own large flat-screen TVs and stylish coffee tables, andHOUSE OVERSIGHT 025078their living spaces will be kept mercilesslyclean.What, of that $1 billion investment, wasgoing to Israel, I asked? Israeli companieswere providing cement powder and sand,she said, and the project had consulted with"Israeli experts." "In some cases, you haveto do that," she said, alluding to thecomparative difficulty of importingbuilding materials through neighboringJordan. In other words, working with theIsraelis was a necessary business decisionfor a project this large and complex.The fake street, fake valley, fakeapartment-display ended in a pleasant sky-lit lobby, where representatives of theCairo Amman Bank, Arab Islamic Bank,and Arab Bank sat in logoed glass cubicles,available to discuss financing for futurepurchases. And for the still-skeptical,there's a six-minute 3-D movie, where thecity appears in its completed glory -- aplace where families picnic, men inbusiness dress greet each other amidbustling plazas, and fireworks crest oversoaring apartment towers topped with solarpanels. The architecture is tasteful. Thesearen't dachas plunked on fake islands offthe coast of Dubai. It's the kind of placewhere I, or just about anyone in the worldwith middle or even upper-middle classaspirations, would want to live. And itlooked weirdly familiar.HOUSE OVERSIGHT 025079The group had a chance to visit withBashar Masri, the Nablus-born founder andCEO of Massar International, thePalestinian conglomerate financing a thirdof Rawabi. Massar and Qatar Diar, the realestate investment arm of the government ofQatar's sovereign wealth fund, jointlycreated Bayti Real Estate InvestmentCompany -- Palestine to build and marketRawabi. But if two-thirds of the project'smoney is coming from Qatar, the visionbehind Rawabi is Masri's.Massar owns a private equity fund thatinvests in Palestinian agriculture andnatural gas distribution. It runs travelagencies in Jordan and brokerage firms inSerbia. Massar invests in Harvest Export,which sells Palestinian produce toconsumers in Russia and Western Europe --as well as in Israel. Two years ago, Masrimade headlines when he attempted topurchase a bankrupt Jewish housingdevelopment in East Jerusalem. He helpedcreate an online trading and brokerageplatform for Palestine's stock exchange.Masri has lived outside of Palestine forperiods of his life, and is, by all accounts,largely untainted by connections to thePA's notoriously rent-seeking inner circle.He's a trim middle-aged man, smartly-dressed, friendly and approachable. Thereseemed no more appropriate a place to talkto him one-on-one than on a wide terraceoverlooking the construction site, withHOUSE OVERSIGHT 025080hills, valleys, and rising apartment blocks --the future he was in the process of building-- stretched out in front of him."On a good, clear day, you can see TelAviv, Ashdod, and Ashkelon," he told me."One-third of Palestine and Israel." Rawabiis in the second-largest, yet most sparsely-populated Area A in the West Bank -- fromthe terrace, which faces away from Ateret,you can see expanses of mostly-emptyhills. Perhaps in Masri's mind, they areawaiting Rawabis of their own. When Ireturned to Washington, I asked him in aphone interview if he viewed his project asthe first of many such planned cities inPalestine. "I always say our success ismeasured not by how many homes we sell.It is measured when a second Rawabi isestablished," he told me.Standing on the terrace, I asked him if hiswillingness to undertake such a massiveproject reflected any optimism about thecoming years -- no one invests this muchtime, money, and energy into something ifthey expect war is on the horizon. "Thisproject is built for today's politics," hereplied. "If it gets a little worse, or a littlebetter -- fine. If it gets really bad, we're introuble. If it doesn't, then great. We're notwaiting on a breakthrough."He estimated that Israeli obstruction haddelayed the project by a year and a halfThe bureaucratic inertia could continue:HOUSE OVERSIGHT 025081For instance, developers were surprised tofind out that, by a quirk in the West Bank'snotoriously Byzantine and palimpsesticlegal codes, they required the approval of ajoint Israeli-Palestinian water commissioncreated through the Oslo Accords to build asewage treatment plant in an Area A,approval that they recently received.There's also the still-unresolved matter ofthe access road. But thus far, Rawabi hadflourished in spite of delays andinconveniences.Could it survive its isolation, though --could this hilltop off of a two-lane highwayget enough water and electricity to support45,000 people living at a middle classstandard? "There is nothing here at all.We're out in the boondocks," he conceded."We're building everything from scratch."One needed only to glance at the busyconstruction site below to understand thatMasri considers this a point of pride, farfrom a potential death-sentence for hisproject.I asked Masri about something that hadjumped out at me during the 3-D video.The finished Rawabi, I'd noted, had thesame terraced garden parks, stoic, modularapartment design, and concentric hilltoproads that I had seen in Talpiyot Misrach, anew neighborhood on the fringes of WestJerusalem. His city looked very, well,Israeli.HOUSE OVERSIGHT 025082"This place is influenced by Reston,Virginia," he said -- Masri is a VirginiaTech alumnus, and had lived in theWashington, DC area earlier in life. It was,he said, influenced by planned suburbsoutside of Cairo. "And it's influenced byModi'in," he added, explaining that thesite's engineers and designers (who wereentirely Palestinian, we had been toldearlier), had traveled to the Israeli city,which is built around similar topography,for inspiration.Palestinians have long understood that awestern-style standard of living waspossible in their part of the world. Theyknew that places like Rawabi alreadyexisted minutes from their own homes, butdidn't think that the quality of lifeepitomized by hilltop settlements and citiesin Israel -- places they weren't allowed tovisit without an official permit from themilitary -- was accessible to them.During our phone interview, Masri talkedabout the astonishment that Palestiniansfeel when they visit the construction site."When [Palestinians] come to Rawabi, andthey go through the showroom and they seewhat we have planned for them, and theysee it actually being built, they say, 'Wow,this can't be for us. This is not for us. Thisis too high of a standard for us because weare supposed to live miserably under theoccupation'. Then they come to the otherHOUSE OVERSIGHT 025083side of the showroom and see the city beingbuilt, and reality starts sinking in."It's a type of living closely associated withthe Palestinians' neighbors in Israel. "Theyknow very well that just a 20-minute driveaway, there's a community with a muchhigher standard of living. And thatcommunity happened to be onerepresenting the occupier, quote-unquotethe 'enemy.' But they would love to livelike that. And that's why when they cometo Rawabi some of them don't believe thisis for them initially. The first thing thatgoes through their mind is that this couldbe for the Israelis."But it is for them. Rawabi's significancecould lie in something more mundane thanbasic issues of sovereignty and control inthe West Bank. It lies in the common,human desire -- powerful on either side ofthe Green Line -- for a comfortable anddignified existence.In some quarters, this idea of workingwithin the present and less-than-idealpolitical and economic framework toachieve this goal is nothing short ofinflammatory. The U.S.-based, anti-peaceprocess website Electronic Intifada hassmeared Masri as an Israeli collaborator,and there have been scattered accusationsthat the project actually legitimizes Israelicontrol over the West Bank.HOUSE OVERSIGHT 025084Danin says that Masri is faced with adifficult balancing act. "On the one handyou're denying the occupation, and you'resaying you do not accept its legitimacy," hesays. "But that doesn't mean you won'twork with Israel in order to improve thePalestinian situation with the goal ofremoving the occupation. That's a difficultmessage to convey successfully."Masri rejects the notion that he abetting aproblematic status quo. "The vast majorityof Palestinians understand and knowreality," he said. "There is no home inPalestine without Israeli cement and parts.Every construction project in Palestinemust have components from Israel. So it'snot like I'm doing something different."Of course, he doesn't like that Israel has somuch control over Palestinian imports, andthe West Bank economy in general. "Thisis the occupation," he said. "I'm not happyabout that and that's why we strive for astate of our own." But he likenedboycotting Israeli products to boycottingproducts from the United Kingdom, theUnited States, or other countries supportiveof Israel -- something he wouldn't consider.The only people he won't buy from are theWest Bank settlers.Luckily, Masri's vision has the backing of apowerful regional government -- one thatdoes not officially recognize Israel, andwhose actions have often had the effect ofHOUSE OVERSIGHT 025085strengthening some of the Jewish State'ssworn enemies.The Gulf kingdom of Qatar has done morethan simply buy into the Rawabi paradigm:It's also funding two-thirds of the project,to the tune of over $600 million. This isenough money to single-handedly financethe Fatah-dominated Palestinian Authority-- which is effectively broke, thanks topenalties imposed by the Israeli and U.S.governments after Mahmoud Abbas'ssuccessful push for a U.N. GeneralAssembly vote on Palestinian U.N.membership, and a freeze in financial aidfrom Gulf State donors, most notably SaudiArabia -- for the better part of a year.Instead, the Qataris have not only bypassedthe PA, but channeled money into a projectthat seems to prove the PA's uselessness."It's like an island inside the traditionalinfrastructure of the PA," says JonathanSchanzer, vice president of research at theFoundation for Defense of Democraciesand author of a book on Palestinian internalpolitics. "It shows everyone what you cando if you don't go through the PA. The PAreceives $600 million a year [in foreignaid] and they have not done something likethis."Masri says that the leadership of the PA hasbeen fully supportive, but that Rawabi hasbeen hurt by the Palestinian government'slack of capacity. "We should not beHOUSE OVERSIGHT 025086building public schools. We should not bebuilding a waste water treatment plant orwaste water networks or water reservoirs,"he told me. "Unfortunately we have to dothat because the Palestinian Authority doesnot have the funding and the donors let [thePA] down."There might be a political calculationbehind Qatar's decision to throw an amountof money equivalent to two years of U.S.financial aid to the PA behind a singleprivate-sector figure like Masri. Qatarrecently announced plans to invest nearly$400 million in the Hamas-controlled GazaStrip, and in October of 2012, Qatari EmirSheikh Hamad bin Khalifa al-Thanibecame the first head of state to visit theStrip after the Islamist militant group's2007 takeover. Hamas politburo chiefKhaled Meshaal lives in Doha, and QatarDiar is financing a major development inSudan, whose cash-strapped governmentenjoys close relations with Iran, and hasfacilitated the transfer of long-rangerockets to Hamas. In short, Qatar supportsan E.U. and U.S. listed terroristorganization bitterly opposed to both Israeland the current PA leadership. And it alsohas no problem investing in Rawabi.According to Kamran Bokhari, vicepresident of Middle Eastern and SouthAsian affairs for Stratfor, Qatari support forHamas is part of the sheikhdom's larger,post-Arab Spring strategy of siding withHOUSE OVERSIGHT 025087the Middle East's Islamists, and specificallythe Muslim brotherhood, whom the Qatarisview as the region's rising power. "TheQatari strategy is that the situation haschanged, and we need to fend for ourselvesand ensure that the regional anarchy is notgoing to impact us," says Bokhari. TheQatari investment in Rawabi -- which feedsan $85 million investment in the Israelieconomy, and which could not havehappened without some degree of officialIsraeli approval -- is an example of thislarger geopolitical strategy, which is drivenmore by perceived self-interest than by anideological affinity for political Islam."Investments in the region are about thereturn on political influence," adds GregoryGause, a professor at the University ofVermont and a non-resident senior fellowat the Brookings Institution-Doha. Henoted the presence of a large Americanairbase in Qatar, and the country's closerelations with the United States.In the Palestinian territories, as in thebroader region, the Qataris are supportingsecular and religious forces in a way thatwill maximize their influence and keep theregional balance as favorable for them aspossible. In a sense, the same strategiccalculus that convinces Qatar to supportHamas allows them to cooperate with Israeland the West Bank private sector as well.HOUSE OVERSIGHT 025088"I think Qatar is going by the groundreality," says Bokhari. "Fatah, the rulingfaction of the PA, is essentially tanking. It'sreally in a state of decline because ofcorruption and charges of embezzlement.It's got an aging leadership. There's nodynamism left in the group. There's a lot offactionalism. It's almost like an oligarchy."Rawabi could be Qatar's way ofencouraging the currently-calm status quoin the West Bank, but without obviouslyupgrading their ties to Israel, or throwingtheir money behind a politicalestablishment that they don't fully trust."On one end they need to make sure Fatahdoes not completely collapse or weaken tothe point where they're no longer coherent,"says Bokhari, "and Hamas needs to beshaped and contained and shepherded in away that it doesn't grow into anythinglarger."Though there are politics underlyingQatar's investment in Rawabi, it is still,inevitably, a financial decision. "You haveserious people who have a lot at risk here,"Danin says. "Their goal is not primarily tomake a political point. Their goal is torecoup their investment and make somemoney." Even resource-rich Qatar, whichwants to diversity its holdings in order tohedge against long-term shifts in the oiland natural gas market, cares whether itsinvestment choices pay offHOUSE OVERSIGHT 025089Danin believes that Rawabi's Palestinianand Qatari investors made a wise decision.Housing in Ramallah is expensive, andDanin says that there is a sizable andhighly-educated Palestinian middle class inneed of an alternative to the West Bank'sde-facto capital. He expressed little doubtwhen I asked him if the West Bankeconomy could support Rawabi. "This is aPalestinian national project," he said. "It isthe best of what is possible in that it'sprivate sector-led, and it's profit-makingled."And it has supporters in high places. WhenPresident Barack Obama met with Israeliofficials in Washington in September of2010, Rawabi was on the agenda.From one perspective, Rawabi is a historicinvestment in Palestine, as well as anunusually open point of cooperationbetween Israel and an Arab government. Itcould improve the lives of Palestinians,while convincing Israelis that they havenothing to fear from their neighbors'prosperity. But any attempts to changethe status quo in the West Bank are fraughtwith difficulties.There's Israeli bureaucracy to overcome."In Israel, if the Minister of Defense says Iwant something, it's not that the systemthwarts it. But the system is sodecentralized that ultimately it takes a lotof steps to get it translated into action,"HOUSE OVERSIGHT 025090says Danin. Israeli officials are positivelydisposed towards Rawabi, but it's still takenyears to resolve sovereignty andgovernance issues around necessities likewater, and a single access road. SuchIsraeli inertia was apparently at the heart ofObama's concerns back in 2010, andsources say that the president has discussedthe issue of the access road with IsraeliPrime Minister Benjamin Netanyahu onmultiple occasions.Back in Washington, I asked Masri if hebelieved the Israelis understood thepotential importance of Rawabi. "I reallydon't know," he said. "Their statements areneutral to positive. But their actions areneutral to negative."And then there's the larger inertia. Whatmeaning does a place like Rawabi have if itsits in the middle of a still-unresolvedconflict, or if Palestinian economic self-improvement stands in contrast to an all-pervading political stasis -- or evenpolitical backsliding? Today, Rawabi issignificant because of its novelty. But ifthere's a breakthrough in the Israeli-Palestinian peace process, perhaps enabledby a growing West Bank economy and apermanent end in terrorism, it could take onan importance much larger than itselfOn the drive out of the valley, where thehighway swerves past the pillbox with theHOUSE OVERSIGHT 025091beaten Israeli flag and past the turnoff forAteret, the picture is still mixed.Armin Rosen writes for and produces TheAtlantic's International Channel.',11:4142,Click here to Reply or ForwardWhy this ad?Ads —Teach English WorldwideBecome an English Teacher Overseas Earn Your TESOL Onlineat USC.rossieronline.usc.edu22.3 GB (10%) of 210.1 GBManage©2013 Google - Terms & PrivacyLast account activity: 0 minutes agoDetailsTeach English Worldwide***********************************************************The information contained in this communication isconfidential, may be attorney-client privileged, mayHOUSE OVERSIGHT 025092constitute inside information, and is intended only forthe use of the addressee. It is the property ofJeffrey EpsteinUnauthorized use, disclosure or copying of thiscommunication or any part thereof is strictly prohibitedand may be unlawful. If you have received thiscommunication in error, please notify us immediately byreturn e-mail or by e-mail to jeevacation@gmail.com, anddestroy this communication and all copies thereof,including all attachments. copyright -all rights reservedHOUSE OVERSIGHT 025093