3. Dealing with Iran and Syria

Dealing with Iran and Syria is controversial. Nevertheless, it is our

view that in diplomacy, a nation can and should engage its adversaries

and enemies to try to resolve conflicts and differences consistent

with its own interests. Accordingly, the Support Group should actively

engage Iran and Syria in its diplomatic dialogue, without

preconditions.

The Study Group recognizes that U.S. relationships with Iran and Syria

involve difficult issues that must be resolved. Diplomatic talks

should be extensive and substantive, and they will require a balancing

of interests. The United States has diplomatic, economic, and military

disincentives available in approaches to both Iran and Syria. However,

the United States should also consider incentives to try to engage

them constructively, much as it did successfully with Libya.

Some of the possible incentives to Iran, Syria, or both include:

i. An Iraq that does not disintegrate and destabilize its neighbors

and the region.

ii. The continuing role of the United States in preventing the Taliban

from destabilizing Afghanistan.

iii. Accession to international organizations, including the World

Trade Organization.

iv. Prospects for enhanced diplomatic relations with the United

States.

v. The prospect of a U.S. policy that emphasizes political and

economic reforms instead of (as Iran now perceives it) advocating

regime change.

vi. Prospects for a real, complete, and secure peace to be negotiated

between Israel and Syria, with U.S. involvement as part of a broader

initiative on Arab-Israeli peace as outlined below.

RECOMMENDATION 9: Under the aegis of the New Diplomatic Offensive and

the Support Group, the United States should engage directly with Iran

and Syria in order to try to obtain their commitment to constructive

policies toward Iraq and other regional issues. In engaging Syria and

Iran, the United States should consider incentives, as well as

disincentives, in seeking constructive results.

IRAN. Engaging Iran is problematic, especially given the state of the

U.S.-Iranian relationship. Yet the United States and Iran cooperated

in Afghanistan, and both sides should explore whether this model can

be replicated in the case of Iraq.

Although Iran sees it in its interest to have the United States bogged

down in Iraq, Iran's interests would not be served by a failure of

U.S. policy in Iraq that led to chaos and the territorial

disintegration of the Iraqi state. Iran's population is slightly more

than 50 percent Persian, but it has a large Azeri minority (24 percent

of the population) as well as Kurdish and Arab minorities. Worst-case

scenarios in Iraq could inflame sectarian tensions within Iran, with

serious consequences for Iranian national security interests.

Our limited contacts with Iran's government lead us to believe that

its leaders are likely to say they will not participate in diplomatic

efforts to support stability in Iraq. They attribute this reluctance

to their belief that the United States seeks regime change in Iran.

Nevertheless, as one of Iraq's neighbors Iran should be asked to

assume its responsibility to participate in the Support Group. An

Iranian refusal to do so would demonstrate to Iraq and the rest of the

world Iran's rejectionist attitude and approach, which could lead to

its isolation. Further, Iran's refusal to cooperate on this matter

would diminish its prospects of engaging with the United States in the

broader dialogue it seeks.

RECOMMENDATION 10: The issue of Iran's nuclear programs should

continue to be dealt with by the United Nations Security Council and

its five permanent members (i.e., the United States, United Kingdom,

France, Russia, and China) plus Germany.

RECOMMENDATION 11: Diplomatic efforts within the Support Group should

seek to persuade Iran that it should take specific steps to improve

the situation in Iraq.

Among steps Iran could usefully take are the following:

--Iran should stem the flow of equipment, technology, and training to

any group resorting to violence in Iraq.

--Iran should make clear its support for the territorial integrity of

Iraq as a unified state, as well as its respect for the sovereignty of

Iraq and its government.

--Iran can use its influence, especially over Shia groups in Iraq, to

encourage national reconciliation.

--Iran can also, in the right circumstances, help in the economic

reconstruction of Iraq.

SYRIA. Although the U.S.-Syrian relationship is at a low point, both

countries have important interests in the region that could be

enhanced if they were able to establish some common ground on how to

move forward. This approach worked effectively in the early 1990s. In

this context, Syria's national interests in the Arab-Israeli dispute

are important and can be brought into play.

Syria can make a major contribution to Iraq's stability in several

ways. Accordingly, the Study Group recommends the following:

RECOMMENDATION 12: The United States and the Support Group should

encourage and persuade Syria of the merit of such contributions as the

following:

--Syria can control its border with Iraq to the maximum extent

possible and work together with Iraqis on joint patrols on the border.

Doing so will help stem the flow of funding, insurgents, and

terrorists in and out of Iraq.

--Syria can establish hotlines to exchange information with the

Iraqis.

--Syria can increase its political and economic cooperation with Iraq.

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