Tension building in Iran as differences over presidential elections results grow

Iran to switch on Bushehr nuke plant next fall

British paper says Israel preparing for strike targeting Iranian nuke facilities

Fresh int'l sanctions on North Korea over its nuclear file

The United States and India said Monday they had agreed on a defense pact that takes a major step toward allowing the sale of sophisticated U.S. arms to the South Asian nation as it modernizes its military.

Secretary of State Hillary Clinton said Delhi had also approved two sites for U.S. companies to build nuclear power plants, offering American companies the first fruits of last year's landmark U.S.-India civil nuclear cooperation pact.

The announcements gave Clinton tangible accomplishments as she ended a trip to India designed to deepen ties and to demonstrate President Barack Obama's commitment to India's emergence as a player on the global stage.

"We will work not just to maintain our good relationship, but to broaden and deepen it," Clinton said at a joint news conference with Indian External Affairs Minister S.M. Krishna.

In a clear gesture of U.S. favor, Clinton said that Indian Prime Minister Manmohan Singh had accepted an invitation to make a state visit to Washington on November 24 in what would be the first such visit by a foreign leader under Obama.

A key element of Clinton's trip was the announcement that the two sides reached an "end-use monitoring" pact that she said would pave the way to broader defense cooperation.

Required by U.S. law for the sale of sophisticated weapons systems, the pact would let Washington check that India was using any arms for the purposes intended and was preventing the technology from leaking to others.

India is expected to spend more than $30 billion over the next five years on upgrading its largely Soviet-made arsenal, roughly a third of which will be a contract to buy 126 multi-role fighters.

That could prove a boon to U.S. companies like Lockheed Martin Corp and Boeing Co.

The two companies are competing with Russia's MiG-35, France's Dassault Rafale, Sweden's Saab JAS-39 Gripen and the Eurofighter Typhoon, made by a consortium of British, German, Italian and Spanish firms.

The defense pact, unveiled by Indian External Affairs Minister S.M. Krishna and Clinton, was not formally signed because it takes the form of agreed language to be included in contracts for future defense sales, a U.S. official said.

While it is a step toward high-technology U.S. arms sales, at least one other must be concluded on communications and information security to permit such deals.

There is also one more hurdle to overcome before U.S. firms will bid to build nuclear reactors at the two sites approved by India -- liability protection. Clinton said she hoped the Indian government could secure this soon.

U.S. officials estimate the two nuclear sites represent up to $10 billion in business for U.S. nuclear reactor builders such as General Electric Co. and Westinghouse Electric Co, a subsidiary of Japan's Toshiba Corp.

As part their efforts to strengthen ties, the two countries agreed to form a "strategic dialogue" led by Clinton and Krishna who will meet annually. They agreed to make it easier to launch sensitive U.S. technology on Indian rockets.

Analysts said both countries wanted to dispel any belief that the Obama administration might have neglected India in its early months as it focused on getting Pakistan's military to battle insurgents on its western border with Afghanistan.

"This is clearly a response from Washington to the perception in Delhi that the U.S. had forgotten India," said Siddharth Varadarajan, strategic affairs editor of The Hindu newspaper.

Clinton leaves New Delhi Tuesday morning for Bangkok, where she was scheduled to meet Thai officials before traveling to Phuket for a regional conference.

Meanwhile, Mohsen Delaviz, the spokesman for the Atomic Energy Organization of Iran (AEOI), insisted that the Bushehr nuclear power plant will fully come on stream in fall.

Based on the agreement, the Russian contractor must finish off the project by the coming fall, Delaviz told the Islamic Republic of Iran News Agency (IRNA).

He also dismissed any disagreements between the AEOI and the Energy Ministry.

Mark Fitzpatrick, a veteran State Department official who worked on nonproliferation policy toward Iran, says that he is "not at all optimistic" that Iran will agree to return to the negotiating table for discussions on ending its uranium-enrichment program.

But Fitzpatrick says the chance exists that in the aftermath of Iran's disputed presidential election, a "new need for legitimacy could make it more willing to accept some tactical compromise" to resume talks. He says the Obama administration's policy of seeking dialogue with Iran despite the questionable elections--but putting a time limit on how long it is willing to wait for Iran to agree to talks--is "a smart strategy." But he says Iran has a propensity to draw out negotiations without making any agreement.

"I'm not at all optimistic, but I don't rule out the possibility that the regime's new need for legitimacy could make it more willing to accept some tactical compromise to get back to the negotiating table. I'm not optimistic because since April, Iranian President Mahmoud Ahmadinejad has repeatedly said that he won't be negotiating the nuclear portfolio with anyone other than the IAEA [International Atomic Energy Agency]. He says he would only talk about global arms control, disarmament, UN reform, and other global issues with the United States. If you take him at his word, and he's in the past followed through on what he's been saying, that doesn't leave much room for optimism. On the other hand, the situation in Iran is unpredictable, which is all too clear from the results of the June election."

Israel's recent deployment of warships through the Suez Canal is “a clear signal that Israel was able to put its strike force within range of Iran at short notice,” a British newspaper reported.

Two Israeli missile class warships on Tuesday sailed through the Suez Canal 10 days after an Israeli submarine capable of launching a nuclear missile strike in preparation for a possible attack on Iran’s nuclear facilities, The Times reported Thursday.

The newspaper reported that Israeli officials confirmed the deployment.

The Times article pointed out that Israel has strengthened ties with Arab nations that also fear a nuclear-armed Iran.

In particular, relations with Egypt have grown increasingly strong this year over the “shared mutual distrust of Iran,” according to an Israeli diplomat quoted in the report. Israeli naval vessels would likely pass through the Suez Canal for a strike against Iran.

Egyptian Foreign Minister Ahmed Abul-Gheit told the Times that his government explicitly allowed passage of Israeli vessels, and an Israeli admiral said the drills were “run regularly with the full cooperation of the Egyptians.” “This is preparation that should be taken seriously," an Israeli defense official said. "Israel is investing time in preparing itself for the complexity of an attack on Iran.

These maneuvers are a message to Iran that Israel will follow up on its threats.”

In Phuket, Thailand, U.S. Secretary of State Hillary Clinton urged Asia's biggest security community on Thursday to keep the pressure on North Korea to end its nuclear programme and enforce U.N. sanctions against the reclusive state.

Reining in North Korea's nuclear programme, counter-terrorism cooperation and maritime security took centre stage at Asia's premier annual security gathering, the ASEAN Regional Forum.

Myanmar was also in the spotlight after Clinton on Wednesday said Washington was concerned about the possible transfer of nuclear technology from North Korea to the military junta.

"The United States will continue to work through every avenue to persuade North Korea to eliminate its nuclear program and normalise relations with the world," Clinton said in a speech planned for delivery at the meeting.

"The ASEAN Regional Forum can play an important role in achieving this outcome and for continuing to work vigorously to implement Resolution 1874. That means denying North Korean vessels access to any trans-shipment points and cooperating with the enforcement of financial sanctions against those designated entities that support North Korea's efforts to acquire nuclear weapons."

The ARF meeting on the Thai resort island of Phuket has brought together foreign ministers and senior officials from across Asia, Europe and the United States.

North Korea, condemned for recent nuclear and ballistic missile tests, sent low-ranking officials to Phuket. The head of the North's delegation, ambassador-at-large Pak Kun-gwang, has made little comment but told his Thai hosts this week he did not want Pyongyang to be a punchbag at the security talks.

Clinton also planned to deliver a separate statement giving Pyongyang a choice between more sanctions if it refuses to end its nuclear activities and an array of benefits if it does.

"Full normalisation of relations, a permanent peace regime, and significant energy and economic assistance are all possible in the context of full and verifiable denuclearisation," Clinton will say, according to prepared excerpts of her statement.

In one indication of how sanctions have begun to bite North Korea, The Financial Times reported on Thursday that Italy has blocked the sale of two luxury yachts to North korea believed to be destined for leader Kim Jong-il.

The sale of luxury goods to North Kora is banned under Resolution 1874.

China's Foreign Minister Yang Jiechi said while U.N. Security Council resolutions against North Korea should be implemented, all sides should work to avoid an escalation of tensions.

Some 10,000 Thai troops have enforced tight security around the complex but there was a minor scare when a loud blast was heard not from the meeting venue. Thai officials said it was caused by a suspicious motorbike being destroyed by water cannon.

A draft communique to be issued at the end of the meeting said participants wanted ARF to come up with concrete and effective responses to terrorism, transnational crime, nuclear proliferation and maritime security.

The statement, obtained by Reuters, also said the group wanted to "overcome security threats and challenges and prevent escalation of potential conflicts". It made no direct mention of North Korea or Myanmar.

Many experts on North Korea have concluded from the reclusive state's belligerence that Pyongyang wants to be recognised as a nuclear weapons state and will not end its atomic activities.

The poor health of North Korean leader Kim Jong-il, believed to have suffered a stroke a year ago, and uncertainty about who might succeed him has further complicated efforts to persuade Pyongyang to curb its nuclear ambitions.

The United States urged Myanmar to implement the U.N. resolution imposing an arms embargo on North Korea in a rare face-to-face meeting, a senior U.S. State Department official said on Thursday.

The official, who spoke on condition he not be named, said Washington's willingness to improve relations with the military-ruled former Burma will depend partly on the outcome of a trial against pro-democracy leader Aung San Suu Kyi.

Clinton said on Wednesday the United States was worried about possible nuclear technology transfers from North Korea to Myanmar.

Talk of Myanmar-North Korea military ties was fuelled after a North Korean ship, tracked by the United States in June and July on suspicion of carrying banned arms, appeared headed toward Myanmar before turning around.

Iran's supreme leader, Ayatollah Ali Khamenei, on Monday warned the opposition against destabilizing the country's Islamic establishment by directing "the society toward insecurity" with their protests against the recent presidential elections.

"You are being tested. And failing this test will not only mean your failure, it would also mean your fall," Khamenei was quoted as saying by the state-run Islamic Republic News Agency.

He described the disruption of security caused by opposition protests over the disputed election as "the biggest sin," and warned that anyone who directs the society toward insecurity and disorder will be "a hated person in the view of the Iranian nation, whoever he is."

Khamenei was apparently referring to the earlier remarks made by Ali Akbar Hashemi Rafsanjani, a former president and one of Iran's most powerful clerics, and another former president Muhammad Khatami.

While Rafsanjani had proposed several ways of resolving the crisis, including the release of all detained protesters, Khatami had called for a referendum to determine the government's legitimacy.

"Political figures must be vigilant because their words and actions could cause social disturbance and insecurity, which is moving against the path of the nation of Iran," Khamenei said Monday, warning that the Western "enemies" of Iran are using "their media to instruct agitators who are provoking chaos, destruction and violence."

Khamenei's latest remarks is seen as yet another attempt to blame Western nations, particularly the U.S. and Britain, for the recent wide-spread protests over the results of the recent presidential elections that returned incumbent President Ahmadinejad to office.

Thousands of opposition supporters had staged protest marches and demonstrations in the Iranian capital after Ahmadinejad was declared elected in the June 12 presidential elections, amidst allegations of rigging to ensure victory for Ahmadinejad.

However, Iranian authorities managed to quash the post-poll protests by cracking down on opposition supporters. A least 20 people have been reported killed in clashes between the protesters and security forces, while hundreds of opposition activists have been arrested in the crackdown.

Earlier, Khamenei had endorsed the official results of last month's presidential election, in which President Mahmoud Ahmadinejad was declared the winner. He also warned Western leaders against interfering in his country's internal affairs, stating that their recent remarks about the post-poll violence in Iran will have adverse effects on future relations of their countries with Tehran.

Many world leaders, including U.S. President Barack Obama, British Prime Minister Gordon Brown and German Chancellor Angela Merkel, have already expressed their concerns over the allegations of irregularities in the Iranian presidential elections and have condemned the arrests of dozens of opposition activists in the crackdown.