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Trita Parsi

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Obama Made the Right Call -- and Everyone Won

Posted: 08/22/2012 8:00 am

Yesterday, President Barack Obama made the right call. The Department of Treasury announced a general license for aid to the earthquake victims in Iran. U.S. sanctions on Iran had prevented private U.S. aid organizations from sending crucial aid to the victims of the two earthquakes that shook northwestern Iran earlier last week. But with the issuance of the general license, these obstacles have been removed and the constraints on the American people's generosity and humanity have been lifted. It was a no-brainer, leaving everyone a winner.

Humanitarian decisions of this kind should not be taken hostage by politics or by conflicts between governments. In fact, despite the abysmal relations between the U.S. and Iran, Washington has on numerous occasions sent aid as well as rescue teams to Iran to help with relief work. And the Iranian government has often -- but not always -- accepted the help.

Last time was in late 2003, after a devastating earthquake hit the ancient city of Bam in Iran, killing more than 25,000 people. President George W. Bush -- who had earlier put Iran in the 'Axis of Evil' -- issued a general license and enabled the American people to send their support to the victims. Numerous U.S. aid organizations such as the American Red Cross, Mercy Corps and Relief International, as well as smaller Iranian-American charities such as Children of Persia and Child Foundation, sent teams to Bam to help in the aftermath of the earthquake.

President Bush's decision earned America significant respect and goodwill among the Iranian people. In their moment of need, humanity trumped politics.

Though Obama took a bit longer to issue a similar license, he nevertheless made the right call. The efforts of Iranian-American organizations to convince the administration to go beyond just the initial promise to expedite license applications were crucial. More than 3,000 letters were sent to the White House through the website of the National Iranian American Council. A coalition of Iranian-American groups came together and spoke with a unified voice on this issue through the leadership of the Iranian American Bar Association. And 14 lawmakers led by Dennis Kucinich weighed in on behalf of the earthquake victims with the White House.

One potential challenge remains, however, before the aid reaches the victims. In spite of an existing sanctions exemption for family remittances and humanitarian efforts, most U.S. banks refuse to transfer money to Iran -- even though it is legal. The reason is that the campaign by the Treasury Department to stigmatize dealings with Iranian banks has been so successful that most banks have decided to completely end all transactions with Iranian banks -- even the permissible transactions. There is also a business calculation here. If any transaction they undertake later turns out to have been impermissible, the banks will be slapped with massive fines. The cost of assessing the risks on a case-by-case basis outweighs the financial gain from conducting the transaction. Consequently, it's simply easier for the banks to cut all connections with Iranian banks and eliminate the risk of hefty fines.

Last week, NIAC contacted 15 major American banks to inquire whether they would conduct a permissible money transfer to Iran under the then-existing sanctions exemptions. Not surprisingly, twelve of them flat out said no. Two of them recounted all the red flags and obstacles, indicating that while it was possible, it was not probable that the funds would reach the intended recipients in Iran. The last bank suggested that it would be faster and safer to have a person fly to Iran with all of the cash (presumably in a suitcase)!

To avoid rendering Obama's general license meaningless, it is crucial that U.S. banks provide transfer services to the U.S. NGOs providing aid to the earthquake victims.

President Obama should be commended for making the right decision. Now it's the banks' turn to do so as well.

_____________________________________

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Yesterday, President Barack Obama made the right call. The Department of Treasury announced a general license for aid to the earthquake victims in Iran. U.S. sanctions on Iran had prevented private U.
Yesterday, President Barack Obama made the right call. The Department of Treasury announced a general license for aid to the earthquake victims in Iran. U.S. sanctions on Iran had prevented private U.
 
 
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HUFFPOST SUPER USER
nelson rivera
Disabled US Veteran hopes we can work together
06:45 AM on 08/26/2012
So it's okay to help Iran but forget about the Syrian people dying everyday for 18 month's. Obama is so kind to Iran.
03:57 PM on 08/23/2012
It would have been interesting to have had someone speak on the TECHNICAL aspects of wire transfers as a result of the sanctions. Because that is, fundamentally, why banks will not do the transfers even after the president's exemption.
HUFFPOST SUPER USER
anton123
12:18 PM on 08/23/2012
This article has lots of what US and Obama need/must to do in name of Iranian people and has nothing about what Iranian government should be also doing to improve relationship.
Only that "And the Iranian government has often -- but not always -- accepted the help." LOL
If this is not biased point of view - what is?
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pepperoniprince
send in the clowns...don't bother, they're here
10:05 AM on 08/23/2012
After Haiti, I can't believe that any aid the US is sending gets to the intended. We'll never know if the aid
has been a help, or not.
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HUFFPOST SUPER USER
nelson rivera
Disabled US Veteran hopes we can work together
06:47 AM on 08/26/2012
You mean Iran can spent the money on other items.
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HUFFPOST BLOGGER
Soul Dancer
HP blog http://huffingtonpost.com/soul-dancer
09:03 AM on 08/23/2012
The more our collective mind can grasp 'one for all and all for one' - an idea that bubbles-up in cases like this - where people naturally want to help those in need - the more we all begin to realize how each word we say, action we take, word we don't say, actions we don't take - makes a difference to all.

In gratitude I bow for every soul who reaches out to be of service to others in balance with maintaining their own health and happiness . . .

:)
(check out my HP blog for more on how to discover this balance . . .)
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charon
Earth, love it or leave it!
07:49 AM on 08/23/2012
I certainly hope the rest of the obstacles are cleared for relief to reach the victims of the quake. The great majority of the people of Iran have no beef with the great majority of the people of the US, and vice-versa, except for those whose judgments have been clouded by propaganda. We are not only children of a common humanity, but we have more in common than most people realize, and we should be allowed to help our brethren in their time of need. Let's hope Obama does the right thing here and pushes the banks to allow transfer of funds.
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HUFFPOST SUPER USER
Nerdiac
07:46 AM on 08/23/2012
I wish he would lift the ban on pistachios from there too :(
02:00 AM on 08/23/2012
Now that President Obama has come forth to "do right", how will US banks behave to the temporary license set forth by the Dept. of Treasury to allow money to be sent to Iranian banks by US aid Organizations? Since these permissible transactions could be risky and involve heavy fines or not be cost effective due to the amount of monitoring each transaction would need, why would banks want to even get involved in a sticky situation like this? I would like to think that the humanitarian component would alone be enough. Or will it. Before sanctions were put into place, Iran through the help of Brazil and Turkey almost completed negotiations regarding their "nuclear program". But why is it that the US will not even allow room for negotiating with Iran at this point? Iran even being as stubborn as a bull has tried to communicate with the US to create some sort of agreement but the chance for action has been missed time and time again by both parties. At this point what can be done to prevent military action in Iran, create a negotiating table, and get Iran to abide by international laws? Something has to be done because if something does not happen now to ignite talks then the only thing that will combust is bombs over old Persia. :(
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paddio
We are men of honor..lies do not become us.
11:34 PM on 08/22/2012
I am happy that the President did the right thing. I am also amused that the government of the people we are aiding had the temerity to say that they had the ability to make war with us.
HUFFPOST SUPER USER
Right Whale
10:33 PM on 08/22/2012
So how does Iran manage to portray America as" the devil" when we rush to their aid like this...did the Obama admin. agree to let Ahmadinejad take credit for it?
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charon
Earth, love it or leave it!
07:56 AM on 08/23/2012
I don't think you really understand the situation very well, or the Iranian people. Most of the aid, as I understand it, will be from private people (mostly Iranians sending money to their relatives) or NGOs, not from the government. Most Iranians I think understand that the conflict is between the governments of America and Iran and not the people of the respective countries. Let's hope that most Americans understand that likewise.
HUFFPOST SUPER USER
Right Whale
09:32 AM on 08/23/2012
America has tried to free repressed people all over the world.It's their governments who use women and children as human shields
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HEXYEBO
What time is it ? Same as usual
10:08 PM on 08/22/2012
Neither IRNA nor Press TV disclosed this in favor of non-ending articles vilifying U.S. that would make Pravda editors blush.

Sadly, Iranian regime isn't interested in ratcheting down tensions between the two states.
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charon
Earth, love it or leave it!
07:58 AM on 08/23/2012
This isn't about aid to the Iranian government, it's about aid to the victims of the quake.
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HUFFPOST SUPER USER
guitartapper
PC is Social PCP
09:17 PM on 08/22/2012
it was a bipartisan decision...and christian churches have sent millions of $$$'s in aid.
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Willard365
"...and sometimes the bahr eats you."
08:34 PM on 08/22/2012
I'm sure despite US banks reluctance to send money directly to iran, NGOs can transfer funds via third-party or intermediary banks, either in turkey, switzerland or Pakistan that could then transfer money into Iran.
08:23 PM on 08/22/2012
Great article. Although I appreciate the urgency of the situation and the need to temporarily remove obstacles in order to aid to those in need, I wonder if now is also a good time, now that we are indeed on the subject of the sanctions, to address the issue of the sanctions as whole. What is the purpose of those sanctions to begin with? Are they achieving that purpose? I feel that the sanctions are hurting ordinary Iranians more than anyone else, thereby precluding the healthy functioning of a civil society.

As to the article, since organizations like NIAC and IABA were so successful in petitioning the government to temporarily remove restrictions for aid relief, what can now be done to persuade banks to heed the governments change in position?
07:19 PM on 08/22/2012
Will Israel or the United States strike Iran before it deploys ballistic tipped nuclear weapons? Why this belated question? Why has America, the most powerful nation in the world, refrained from launching a preemptive strike against a regime whose president has the audacity to scream “Death to America”? Given the deadly attacks on American forces by Iranian proxies in the past, should the malediction by Mahmoud Ahmadinejad be deemed a casus belli and elicit some sort of U.S. military attack on Iran?

Did Nazi Germany attack America before December 11, 1941? It was not till that day that the United States Congress declared war on Germany. Did the U.S. Congress base its declaration of war on international law? Would this have made any difference? Franklin D. Roosevelt understood very well that a Nazi-dominated Europe would have been the gravest threat to the United States. The same may be said of a nuclear-armed Iran, except that the present occupant of the White House is a post-American President, more precisely, a moral relativist. Never mind his exalting Islam, which exudes moral absolutism.

As a moral relativist, Mr. Obama should be morally indifferent to the number of civilian casualties that would inevitably result from a U.S. attack on Iran. Relativism aside, can a people rightly be held responsible for the official acts of its government?
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HUFFPOST SUPER USER
margoharris
I used to be Snow White but I drifted.
07:29 PM on 08/22/2012
Gobblygook from start to finish.
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08:51 PM on 08/22/2012
Take your pills.... relax..