Wednesday, June 25, 2008


Condoleezza Rice has told the Iranians that Americans want permanent friends not permanent enemies. This week, proposals have surfaced in regard to an quasi-embassy in Iran. About the same time, Condi's signature appeared on the latest UN 5+1 offer. This offer includes the concession to allow Iran to continue to refine fuel at the current rate while negotiating the final agreement. A Qatar Minister says that Iran will respond to the latest offer "soon".

Yesterday, the British Foreign Secretary, David Miliband, said, "There is a massive prize for Iran on offer... if Iran is willing to behave...". He says the offer includes "tough measures balanced by generous incentives". It is wonderful to know that so many countries are working toward a peaceful settlement.

Iran could probably work many years and not reach the current proficiency of nuclear refinement by GE. The problem is that Iran only needs a few small nuclear bombs to wreck havoc. It is know that Iran has the plans to build small bombs and it has the rockets to deliver them. From an economic point of view, it makes no sense for Iran to waste years of effort on a process that is no where close to the efficiency of the GE process. The UN offer includes free uranium fuel for Iran!

Should there be a quasi-embassy in Iran, it will help to lower the bomb, bomb, bomb Iran mentality. While we do not want war with Iran, we cannot risk allowing them to build nuclear bombs. The threat of war must be left on the table, however, the threat of war could be reduced by paring a fuel production limit with the establishment of a quasi-embassy. The Iranians would gain comfort from seeing the presence of Americans in country. Full diplomatic relations must come only after a comprehensive treaty is signed. It is nice to know the potential agreements have reached the stage where Condi is willing to sign off!

The price of oil is down $4+ this morning. Inventories increased even while two of the largest Iranian fields are "sequestered". We can get along without Iranian oil if we must. We cannot get along with Iranian nuclear bombs or terrorist bombs.