T H E A M E R I CA N I S R A E L P U B L I C A F FA I R S C O M M I T T E E
NEAR EAST REPORT
DECEMBER 2016 • WWW.AIPAC.ORG/NER
PHOTO: AP IMAGES
The 114th Congress concluded its work and recessed on Dec. 10. While the last two years have been marked by significant
partisanship, the U.S.-Israel relationship remains one of the few imperatives that brings together members of Congress from
both sides of the aisle.
In This Edition
Pro-Israel Accomplishments of the 114th Congress .............................................................2
Interview—Eric Trager on Egypt’s Political Instability ......................................................5
Funding the “Party of God”: Hezbollah’s Global Criminal Enterprise ...............................8
Book Review—Ike’s Gamble: America’s Rise to Dominance in the Middle East
By Michael Doran ..............................................................................................................11
Washington Brief: A Recap of News from the Hill and Beyond ...................................... 14
E-ISSN 1947-4458
Published by the American Israel Public Affairs Committee (AIPAC).
Funded in part by The American Israel Education Foundation (AIEF), the charitable organization
affiliated with AIPAC.
I.L. Kenen, Founder, 1905–1988
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FY 2017 National Defense Authorization Act
(NDAA), which authorizes $600.7 million
for U.S.-Israel missile defense cooperation
and $10 million for anti-tunneling efforts.
The authorization of these programs is the
first in a two-step process; actual funding
will be allocated through the Congressional
appropriations process.
Pro-Israel
Accomplishments of
the 114th Congress
T
he 114th Congress concluded its work and
recessed on Dec. 10. While the last two
years have been marked by significant
partisanship, the U.S.-Israel relationship
remains one of the few imperatives that brings
together members of Congress from both
sides of the aisle. Below is a roundup of proIsrael provisions enacted by strong, bipartisan
majorities of the 114th Congress.
PUSHING BACK AGAINST IRAN
Congress also led efforts to push back against
Iran both before and after the implementation of
the Iran nuclear accord, also known as the Joint
Comprehensive Plan of Action (JCPOA).
Lawmakers passed The Iran Nuclear Agreement
Review Act of 2015, which established a
procedure for congressional review of any
nuclear agreement with Iran. Though Congress
was ultimately unable to stop the JCPOA from
going into effect, the law provided legislators
the ability to comment and vote on the
agreement.
SECURING BILLIONS IN SECURITY
ASSISTANCE
Lawmakers secured vital security assistance to
Israel to help the Jewish state defend itself—by
itself—against mounting regional threats.
In late 2016, Congress voted overwhelmingly
to extend the Iran Sanctions Act (ISA)—with a
unanimous 99-0 vote in the Senate and a 419-1
vote in the House of Representatives. Originally
set to expire at the end of 2016, this critical
legislation constitutes the core of American
sanctions on Iran and will ensure that there are
sanctions in place to “snap back” should Iran
violate the nuclear deal. Failure to reauthorize
would have removed important American
leverage to ensure long-term Iranian compliance
with the deal.
Congress provided Israel with $3.1 billion in
security assistance in Fiscal Year (FY) 2016
and is on track to do the same in FY 2017.
This figure reflects the agreed-upon funding
levels for years eight and nine of the 10-year
Memorandum of Understanding signed by the
United States and Israel in 2007.
Israel also received $487 million in vital missile
defense assistance in FY 2016. This aid helps
fund the three tiers of Israeli missile defense:
short-range Iron Dome, medium-range David’s
Sling, and long-range Arrow-3. Additionally,
Congress appropriated for the first time $40
million for joint U.S.-Israel anti-tunneling
cooperation efforts.
The FY 2017 NDAA also includes several
provisions that address Congress’ concern
with Iranian behavior. Namely, the NDAA
requires a quarterly report on any confirmed
Iranian ballistic missile launches and on U.S.
In December 2016, lawmakers passed the Fiscal
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plans to reinstate sanctions in response to these
launches. Additionally, the legislation requires
information on Iran’s cyber capabilities to be
incorporated into the annual report on Iranian
military power mandated under existing law.
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that boycott, divest from, or sanction Israel. The
bill was adopted as an amendment by the Senate
Appropriations Committee, but was unable
to reach the House or Senate floor. With 46
cosponsors in the Senate and 167 in the House,
the legislation is likely to be reintroduced in the
next Congress.
COMBATTING THE BOYCOTT SANCTIONS
AND DIVESTMENT (BDS) MOVEMENT
PUSHING BACK AGAINST UNILATERAL
PALESTINIAN EFFORTS
The 114 Congress also stepped up efforts to
combat the global BDS movement.
th
Furthermore, Congress repeatedly expressed
opposition to increased Palestinian efforts to
bypass direct negotiations with Israel and impose
a one-sided solution to the conflict on Israel.
In 2015, lawmakers passed the Trade
Promotion Authority (TPA), which provided
the administration authority to conduct
and conclude a trade agreement with the
European Union (EU) conditioned on certain
trade objectives that Congress specified. The
only amendment accepted to the TPA was a
provision instructing American negotiators to
make halting European BDS against Israel a
key objective in the ongoing free trade talks.
In November 2016, the House passed by
voice vote H. Con. Res. 165, a bipartisan
resolution opposing one-sided U.N. Security
Council actions against Israel and urging the
administration to veto any such measures. The
House and Senate sent bipartisan letters signed
by overwhelming majorities to the president in
April 2016 and September 2016 respectively,
conveying this same message.
Other important anti-BDS efforts enacted in the
TPA include:
• Providing critical legal protection to
American businesses operating in Israel or
territories under its control;
Congress also included provisions in this
year’s State, Foreign Operations and Related
Programs appropriations bill conditioning or
restricting aid to the Palestinian Authority (PA).
Specifically, these provisions would:
• Expressing Congressional opposition to
BDS; and
• Creating new administration reporting
requirements on an array of global BDS
activities.
• Cut off aid to the PA if it takes action
against Israel at the International Criminal
Court (ICC), or if it seeks statehood or an
elevated status at the U.N. or other U.N.
agencies;
Progress was also made toward passage of the
Combatting BDS Act of 2016. Authored by
Sens. Mark Kirk (R-IL) and Joe Manchin (DWV) and Reps. Juan Vargas (D-CA) and Bob
Dold (R-IL), the bipartisan legislation will
protect state and local governments’ right to
disassociate pensions and contracts from entities
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• Mandate the closing of the PLO office in
Washington if the Palestinians go to the
U.N. or ICC; and
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• Reduce aid to the Palestinians in dollar-fordollar equivalents to what they provide in
payments to terrorists and their families.
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development program at the U.S. Department
of Homeland Security, and expands it to include
cybersecurity technologies. Currently, the focus
of the program is wearable technologies for first
responders.
ENHANCING U.S.-ISRAEL WATER
COOPERATION
In December 2016, Congress passed three
substantive U.S.-Israel water provisions as part
of the Water Infrastructure Improvements for
the Nation Act.
The three provisions will:
• Restructure the federal desalination
grant program in a manner incentivizing
cooperation with Israel;
• Require the White House Office of
Science and Technology Policy to
develop a coordinated strategic plan with
certain allies, specifically Israel, for the
development of new water technologies;
and
PHOTO: AP IMAGES
Lawmakers passed the U.S.-Israel Advanced Research
Partnership Act, which will deepen U.S.-Israel
cybersecurity cooperation by permanently authorizing an
already-existing joint research and develoment program,
and expanding it to include cybersecurity technologies.
Another U.S.-Israel cybersecurity bill—the
United States-Israel Cybersecurity Cooperation
Enhancement Act of 2016 (H.R. 5843)—passed
the House by voice vote on Nov. 29, but was
unable to clear the Senate before Congress
adjourned. This legislation would establish a
cybersecurity grant program for joint researchand-development opportunities between Israeli
and American entities. The bill is likely to be
reintroduced in the next Congress.
• Authorize the Army Corps of Engineers to
engage in technology transfer and research
and development with Israel and other
allies for the purpose of the development of
water resources.
Taken together, these provisions will help foster
greater collaboration with Israel in the federal
government’s approach to water technologies.
DEEPENING U.S.-ISRAEL CYBERSECURITY
COOPERATION
These two pieces of legislation signal a growing
Congressional consensus that Israeli technology
and expertise will play a crucial role in U.S.
cybersecurity efforts.
Finally, lawmakers passed on Dec. 10 the
United States-Israel Advanced Research
Partnership Act, which will deepen U.S.-Israel
cybersecurity cooperation.
The 114th Congress has proven to be a strong
supporter of the U.S.-Israel relationship,
advancing a number of pro-Israel pieces of
Specifically, the law permanently authorizes an
already-existing three-year joint research and
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legislation: Lawmakers funded annual security
assistance to Israel, pushed back against Iran,
took a stand against BDS and Palestinian efforts
to impose a one-sided solution on Israel, and
expanded cooperation in emerging key areas
like water and cybersecurity cooperation.
Together, the United States and Israel are
stronger and more secure.
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Brotherhood followed by the rise of Gen. elSisi have had a major effect on Egyptian society
and the region in general. Joining the Near East
Report to discuss these developments and their
impact is Middle East expert Eric Trager—
author of the newly published book Arab Fall:
How the Muslim Brotherhood Won and Lost
Egypt in 891 Days.
INTERVIEW
Eric Trager on
Egypt’s Political
Instability
I
n February 2011, Egyptian President
Hosni Mubarak’s 30-year reign came to
an end in the wake of widespread popular
protests sparked by the Arab Spring. His fall
shook many of the foundations of the Middle
East and led to the rise of the once outlawed
Islamist group the Muslim Brotherhood,
whose candidate Mohammad Morsi won
the June 2012 presidential election. The
Brotherhood, however, would quickly discover
that governing a nation is far different than
running a political campaign, and its president
and disciples was swiftly removed from office
by the Egyptian military, backed by millions
of civilian demonstrators, one year after its
election victory. Subsequently in May 2014,
the Egyptian Minister of Defense and leader of
the coup that deposed the Muslim Brotherhood,
General Abdel Fattah el-Sisi, was elected
president winning 96 percent of the vote.
Q: Egypt has seen three governments since
the fall of the Mubarak regime six years ago.
What is the status of the current government
of President Abdel Fattah el-Sisi?
A: President el-Sisi was widely viewed (and
depicted in the mostly pro-government media)
as a national hero when he responded to
mass protests by toppling Mohamed Morsi’s
Muslim Brotherhood-dominated government
The falls of Hosni Mubarak and the Muslim
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in July 2013. He later rode this support to an
overwhelming victory in the barely contested
May 2014 presidential elections, and used his
mandate to enact subsidy reforms, sign major
deals to upgrade Egypt’s electrical grid and
undertake massive infrastructure projects.
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reserves. As a result, successive governments
struggled to defend the currency peg, and the
capital controls catalyzed episodic commodity
shortages. Finally, in early November, Cairo
announced that it would float the pound, and
the International Monetary Fund responded by
announcing a $12 billion package to Egypt on
Nov. 11. While this cash infusion and further
economic reform should put Egypt on the right
track in the long term, in the short term these
moves entail considerable pain for ordinary
Egyptians. Indeed, when the government
announced that it was floating the pound, the
currency dipped in value from roughly 9 to 15.6
to the dollar, meaning a significant rise in prices
across the board.
Nearly three years into his presidency,
however, el-Sisi’s support has declined due
to ongoing—and worsening—economic
and security challenges, while his regime’s
ever-broadening repressiveness has alienated
key political and societal interests that once
supported him. Still, his regime appears durable
for the time being for three reasons. First,
the core state institutions—particularly the
military and security services—strongly support
him, meaning that there are no perceptible
fissures within the regime for the opposition to
exploit, as happened during the 2011 and 2013
uprisings. Second, given the severe crackdown
on the Muslim Brotherhood and other
opposition movements, the political opposition
is too disorganized to mobilize another uprising.
Third, given the political uncertainty of the
previous six years as well as the broader
regional instability, many Egyptians fear that
another uprising would only make things worse.
On the other hand, until there is economic
improvement, it will be impossible to entirely
discount the possibility of renewed upheaval.
PHOTO: AP IMAGES
The Muslim Brotherhood could reemerge in the future,
but the longer the current crackdown persists, the
harder it will be for the Brotherhood to rebuild the
nationwide hierarchy that was so essential to its prior
political success.
Q: What are the major challenges facing
Egypt and how is the government working to
address them?
Egypt also faces significant security challenges,
as evidenced by the recent terrorist attacks on
a police checkpoint in Giza and on the Coptic
cathedral in Cairo. While the government has
fought jihadists in the Sinai Peninsula and
Western Desert for the past three years, the
A: The core challenge is the economy. Ever
since the January 2011 uprising, Egypt’s
cash reserves have fallen considerably due
to the decline of tourism and foreign direct
investment, while Egypt’s expensive food
and fuel subsidy programs also drained the
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persistence of these attacks suggests that there
is still much work to be done.
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very secretly or not at all, given that the
government regards the Brotherhood as a
terrorist organization. And those Brotherhood
leaders who fled into exile are deeply divided:
They disagree on whether the organization
should violently oppose el-Sisi’s government,
or whether it should focus on outreach (dawa)
work and defer its power ambitions for the
time being. The Brotherhood could reemerge
in the future, but the longer the current
crackdown persists, the harder it will be for the
Brotherhood to rebuild the nationwide hierarchy
that was so essential to its prior political
success.
Q: What kind of an organization is the
Muslim Brotherhood and what role does it
play in today’s Egypt?
A: The Muslim Brotherhood seeks to control
Egypt, and ultimately the Muslim world,
according to its narrow interpretation of sharia.
To ensure that all of its members are committed
to this cause, it subjects them to a five-toeight-year indoctrination process known as
tarbiyya, during which every Muslim Brother
is vetted as he ascends through various ranks of
membership. At the end of this process, every
member takes an oath to “listen and obey”
leaders’ orders, rendering them foot soldiers
for the organization. The Brotherhood then
organizes these cadres into cells of roughly five
to 10 members, all of which march to the orders
of the central leadership, which was historically
based in Cairo. These cells were responsible
for building local support for the Brotherhood
through preaching, recruitment and social
services. And since only the Brotherhood
possessed this kind of nationwide hierarchy, it
was able to win every election that followed
Hosni Mubarak’s February 2011 ouster.
Q: What is the state of Israel-Egypt relations
under the current government?
A: Egyptian-Israel relations are excellent.
The two countries share a significant interest
in defeating Sinai-based jihadists, and Cairo
particularly appreciates the extent to which
Israel has permitted it to mobilize its military
in the Sinai despite the troop restrictions that
were implemented under the 1979 peace treaty.
The two governments are also aligned against
Hamas, which Cairo views as hostile since
Hamas is the Palestinian wing of the Muslim
Brotherhood. However, this remains a cold
peace: While intelligence sharing and top-level
diplomatic contacts remain strong, there is still
little in the way of cultural exchange.
Since Morsi’s ouster in July 2013, however,
the Egyptian government has repressed the
Brotherhood severely. It decapitated the
Brotherhood by arresting almost all of its
top and provincial leaders, and it also killed
perhaps over 1,000 Muslim Brothers who were
protesting Morsi’s overthrow. As a result,
the Brotherhood’s hierarchy is in shambles.
While there are still many Muslim Brothers
within Egypt today, they are laying low: They
no longer receive regular commands from
their leaders, and they are either meeting
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Q: What is the state of U.S.-Egypt relations
under President el-Sisi?
A: President el-Sisi is a complicated partner
for Washington. On one hand, he’s a strategic
partner maintaining a peace treaty with Israel
and fighting terrorists in both the Sinai and the
Western Desert. On the other hand, he came
to power by ousting a democratically elected
president, and governs quite repressively. As a
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result, the Obama administration has struggled
to define its relationship with el-Sisi’s Egypt:
It withheld portions of the military aid from
October 2013 to March 2015 to protest el-Sisi’s
crackdown on pro-Morsi protests, but ultimately
continued the aid program in most respects and
undertook a “strategic dialogue” with Cairo, all
while occasionally criticizing Egypt’s human
rights abuses.
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experience of the previous two administrations
that attempts to promote or support political
change in Egypt rarely produce the intended
results, and ultimately alienate a partner that the
United States needs if it hopes to project power
in the Middle East.
Eric Trager is the Esther
K. Wagner Fellow at The
Washington Institute for
Near East Policy. He is an
expert on Egyptian politics
and the Egyptian Muslim
Brotherhood in Egypt. He
was in Egypt during the 2011
anti-Mubarak revolts and returns frequently
to conduct firsthand interviews with Egyptian
public figures. His writings have appeared in
numerous publications, including the New York
Times, Wall Street Journal, Foreign Affairs, the
Atlantic, and the New Republic.
This ambivalence irks Cairo. From its
standpoint, it is locked in a kill-or-be-killed
struggle with the Muslim Brotherhood, and
it views criticisms of its domestic abuses as
de facto support for those who seek to topple
it. Cairo was especially unnerved by the
administration’s decision to withhold military
aid in October 2013, which came just as the
Egyptian military was moving full force against
jihadists in the Sinai. From its standpoint, it
would prefer that the relationship be based
strictly on shared regional and strategic
interests, rather than on what it deems to be
interference in its politics.
Q: Do you have any recommendations for the
new administration on U.S. policy towards
Egypt?
Funding the “Party
of God”: Hezbollah’s
Global Criminal
Enterprise
A: While Egyptian politics have swung
from Mubarak to the military to the Muslim
Brotherhood and back to the military during
the past six years, American interests in Egypt
have not changed. The United States still
needs Egypt to cooperate in counterterrorism,
maintain its peace treaty with Israel, and
provide preferred Suez Canal access and
overflight rights for equipping U.S. bases in the
Persian Gulf for fighting ISIS and containing
Iran. The next administration should focus
squarely on bolstering Cairo’s commitment to
these interests. It should further learn from the
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H
ezbollah has always relied on
multiple streams of income to fund its
operations. In addition to taxes, fees,
and extortion levied against the hundreds of
thousands of Lebanese Shia who live under its
jurisdiction, Hezbollah counts on a huge hand-
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out from Iran—now totaling $1 billion annually.
And for decades, the terrorist group has also
developed and profited from a sophisticated
network of criminal activities abroad, which
now forms a financial network that operates
worldwide. While an ongoing international
effort is underway to halt this flow of illicit
money to Hezbollah, America must redouble its
involvement and prioritize this effort to better
protect its strategic interests.
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Argentina and Paraguay converge. The U.S.
intelligence community regards the area a
“free zone for criminal activity,” from which
$10 million annually is sent back to Lebanon.
In 2004, the United States sanctioned Assad
Ahmad Barakat, a key terrorist financier
in South America. “From counterfeiting to
extortion, this Hizballah sympathizer committed
financial crimes and utilized front companies
to underwrite terror,” said Juan Zarate, then a
senior U.S. Treasury Department official.
CRIMINAL ACTIVITY IN LATIN AMERICA
Some of Hezbollah’s most lucrative illicit
activities are based in Latin America, where
the group earns $60 to $100 million annually.
Hezbollah maintains close business relations
with South American drug cartels such as the
Columbia-based “La Oficina de Envigado”—
formerly the violent enforcement arm of
Pablo Escobar’s Medellin Cartel that has since
become an independent organization—which
smuggles large quantities of cocaine to the
United States and Europe.
PHOTO: AP IMAGES
Hezbollah’s extensive illegal activities in Latin America
pose a direct threat to U.S. homeland security, as the same
operatives and organizations that move money for drug
cartels also move money for terrorists.
In February, the U.S. Drug Enforcement
Agency (DEA) uncovered a complex drug
and money laundering scheme, known as
the Black Market Peso Exchange, in which
Hezbollah’s External Security Organization
Business Affairs Component (BAC) was found
to be working with various Latin American
partners—including “La Oficina.” DEA Acting
Deputy Administrator Jack Riley has described
the BAC as a drug trafficking and laundering
operational unit tasked with “provid[ing]
a revenue and weapons stream for an
international terrorist organization responsible
for devastating terror attacks around the world.”
Since then, the United States has been targeting
Barakat’s network, even as it tries to evade U.S.
sanctions. In 2006, the Treasury Department
sanctioned additional members of Barakat’s
network, calling it “a major financial artery
to Hizballah in Lebanon.” In 2010, the U.S.
Immigration and Customs Enforcement targeted
three Miami-based businessmen accused of
exporting PlayStation video games and other
electronics to the U.S.-sanctioned Galleria Page,
a shopping center in Paraguay’s Ciudad del Este
described by the Treasury Department as “the
central headquarters for Hezbollah members in
One of Hezbollah’s oldest and strongest
redoubts in Latin America is the loosely
regulated tri-border area (TBA), where Brazil,
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the TBA.” Hezbollah members operate a variety
of retail businesses that directly support the
Shiite militia out of this location.
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Africa include tapping into Lebanese expatriate
communities to finance cover companies,
blood diamond transactions, tax fraud and arms
smuggling.
Furthermore, Hezbollah’s extensive organized
crime and terrorist activities in Latin America
pose a direct threat to U.S. homeland security,
as the same operatives and organizations
that move money for drug cartels also move
money for terrorists. For instance, in October
2016, a DEA sting operation uncovered three
Hezbollah-linked men suspected of laundering
$500,000 of cocaine money for a Columbian
cartel through banks in Miami.
In Europe, the DEA and the U.S. Customs and
Border Protection (CBP) work closely with
international law enforcement agencies to
combat Hezbollah’s nefarious activities, such as
when the two agencies collaborated with their
Belgian, Italian, French and German counterparts
in “Operation Cassandra,” culminating in a
February 2016 announcement regarding the
arrests top leaders of a European BAC cell.
It will be recalled that in 1992, Hezbollah
terrorists bombed the Israeli Embassy in Buenos
Aires, killing 29 people and injuring 242,
while in 1994, Hezbollah attacked the Jewish
community center in the Argentinian capital
with even more devastating results: 85 people
were killed and more than 300 injured.
WAYS THE UNITED STATES CAN COMBAT
THIS THREAT
One of the most effective U.S. government
weapons against Hezbollah is designation by
the Treasury Department of specific Hezbollahaffiliated individuals and businesses as terrorists
or terrorist entities, which subjects them to
sanctions. In October 2016, the Treasury
Department imposed new sanctions on four
individuals and one organization, all for their
connection to the Iranian proxy group. Yosef
Ayad, Muhammad al-Mukhtar Kallas, Hasan
Jamal al-Din, Muhammad Ghaleb Hamdar and
Global Cleaners S.A.R.L. were all designated for
their links to ties to Hezbollah External Security
Organization (ESO) member Adham Tabaja. The
ESO is responsible for planning and executing
Hezbollah terrorist attacks around the globe.
CRIMINAL ACTIVITY IN EUROPE AND AFRICA
Hezbollah also engages in criminal activities
in Africa and Europe. In 2011, Lebanese
financial institutions, including the Lebanese
Canadian Bank SAL (LCB), ran a successful
money laundering operation through the U.S.
financial system for Hezbollah. The Beirutbased bank wired funds to the United States
for the purchase and shipment of used cars
to West Africa. The profits—along with
proceeds from narcotics trafficking—were then
funneled through Lebanese exchange houses
by Hezbollah-controlled money couriers, who
diverted substantial portions of the cash to
Hezbollah. The scheme was ultimately exposed
by interagency counterterrorism efforts, resulting
in the Treasury Department’s designation of
LCB as a “financial institution of primary money
laundering concern.” Other criminal activities in
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A F F A I R S
In a similar case, the Treasury Department—
building on a DEA investigation—designated
in January 2016 an individual named Mohamad
Noureddine as a “specially designated global
terrorist” for transferring funds directly to
Hezbollah. It also designated Noureddine’s
Lebanese-based company, Trade Point Intl
S.A.R.L. And two months earlier, the Treasury
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Department blacklisted China-based Adel
Mohamad Cherri and his company, Le-Hua
Electronic Field Co., for facilitating Hezbollah
efforts to acquire dual-use technologies and
electronics from China for transfer to the proIran Houthi Shia rebels in Yemen.
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financial network remains strong. Hezbollah’s
complexity—the group has many of the
resources of a sovereign state—and secrecy
make it challenging to uncover, track and disrupt
its multiple criminal activities. Former DEA
Operations Chief Michael Braun told the House
Financial Services Committee on June 8 that
Hezbollah “has metastasized into a hydra with
international connections that the likes of the
Islamic State and groups like al Qaeda could
only hope to have.” The organization continues
to use these international criminal connections
to secure funds to support its war in Syria, plan
terrorist attacks and prepare for another war with
Israel. Accordingly, the current and incoming
administrations, Congress and the intelligence
community must continue to ensure that
countering Hezbollah—on all fronts—remains a
top priority.
Furthermore, Congress has led efforts to
combat Hezbollah’s international criminal
activities through the Hezbollah International
Financial Protection Act (HIFPA) of 2015. The
law—spearheaded by Sens. Marco Rubio (RFL) and Jeanne Shaheen (D-NH), along with
House Foreign Affairs Committee Chairman
Ed Royce (R-CA) and Ranking Member Eliot
Engel (D-NY)—requires the president to report
regularly on the group’s “significant transnational
criminal activities” and to brief Congress on a
planned procedure to designate Hezbollah as a
“significant transnational criminal organization”
pursuant to Executive Order 13581. Moreover,
the legislation requires all Lebanese and
international banks to freeze or suspend any
account held by individuals listed by the
Treasury Department’s Office of Foreign Assets
Control (OFAC) as affiliated with Hezbollah.
Upon passage, Rep. Royce said that “years ago
Hezbollah was a limited, regional threat. Today,
it is a global threat conducting terrorist and
criminal activities all over the world…To cut
Hezbollah’s international reach, and deny it the
funds needed for its terrorist activities, we must
effectively target its financial networks.”
BOOK REVIEW
Ike’s Gamble:
America’s Rise to
Dominance in the
Middle East—By
Michael Doran
And already, the law is having an effect: It has
significantly impacted Hezbollah’s finances,
contributing to the closure of at least 100 bank
accounts connected to the terrorist organization.
“Those who cannot remember the past are
condemned to repeat it.” -George Santayana
T
he Near East Report does not usually
review works of history. With the
bookshelf relating to Israel, the United
States and the Middle East already groaning
under the weight of masses of unread tomes
THE WORK CONTINUES.
Despite the aggressive efforts of the United
States and its allies, Hezbollah’s criminal
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purporting to provide policy guidance for the
here and now, why take time for a book that
examines the Eisenhower administration’s
experience in the Middle East over 60 years
ago? For one very good reason: For all the talk
of the Arab Spring having turned the Middle
East upside down, many of the challenges
facing the United States in the region today are
not without precedent. We do not need to take
Santayana’s warning literally to nevertheless
recognize that some examples from history
provide such striking parallels for today that we
ignore them at our own peril.
A F F A I R S
C O M M I T T E E
Washington did nothing when Nasser acquired
arms from the Soviet bloc; pressured London
to leave the Suez Canal in 1955; and used the
United Nations to force Israel, France and Great
Britain to scuttle their military operation to
retake the canal after Nasser nationalized it in
the famous 1956 “Suez Crisis.”
Ike’s Gamble explores how America replaced
Great Britain and France as the dominant
outside power in the Middle East following
World War II. The author—an accomplished
scholar and Washington think-tank denizen who
also served in the George W. Bush White House
and Defense Department—focuses on one large
overriding question: What were Eisenhower’s
regional objectives and how did they evolve
over time?
The key protagonists—the president and his
Secretary of State, John Foster Dulles—worried
that Washington’s close association with former
colonial powers in the Middle East and with the
new state of Israel were “millstones around our
neck” (page 74) that prevented Arab nationalists
(incarnated by President Gamal Abdel Nasser in
Egypt) from supporting the United States. They
wanted to ally with Arab nationalism to achieve
the larger U.S. Cold War goals of excluding the
Soviet Union from the region and cementing
Western access to oil deposits.
Nasser convinced Eisenhower and Dulles that
he was at heart a pro-Western “moderate” who
had to take radical anti-Israel, pro-Soviet and
Third World postures to keep his extremist
domestic rivals at bay. Eisenhower and Dulles
calculated that, given room to maneuver, Nasser
would eventually side with Washington against
Moscow and become a bulwark of stability in
the Middle East.
Doran expertly dissects how Eisenhower’s
strategy of making concessions to Egypt
during the mid-1950s failed utterly to sate
Nasser’s nationalist and anti-Western appetite.
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It was not to be. Nasser thanked Eisenhower
for saving him at Suez by redoubling his
radicalism at home and abroad. He employed
propaganda and subversion to undermine the
region’s authentically pro-Western Arab states
(Jordan, Saudi Arabia and Iraq); allowed the
USSR to finance the Aswan High Dam—his
presidency’s greatest domestic achievement;
worked to position the so-called Non-Aligned
Movement behind Soviet goals; took a
consistently hardline against Israel; and turned
both Egypt and Syria (which briefly merged into
one state under his control) into anti-Western
authoritarian redoubts armed and supported by
Moscow.
C O M M I T T E E
befriend Jerusalem or the Arabs—not both. By
1958, Eisenhower was already arguing in policy
meetings that Israel was an asset in helping the
United States defend Jordan from Nasser and
was musing in his diary that, “I know of no
reason why we should not make…a treaty with
Israel” (page 163). In his later years Eisenhower
regretted having forced Israel to evacuate the
Sinai Peninsula precipitously in 1956, telling
Richard Nixon that Suez “was his major foreign
policy mistake” (page 242).
Doran’s tale, fortunately, is not just one of
policy failure. Eisenhower eventually concluded
correctly that Nasser’s goals were inimical to
U.S. interests, which Egypt directly sabotaged
by fomenting unrest in Jordan and helping kill
the Baghdad Pact, a league of pro-Western
nations including Turkey, Iraq, Iran and
Pakistan. This process culminated in 1958 when
Eisenhower landed U.S. troops in Lebanon to
prevent this crucial ally from succumbing to
Nasserite subversion.
PHOTO: AP IMAGES
Most tellingly, Eisenhower abandoned the discredited
“linkage” theory, which asserted that Israel caused most
of the Middle East’s problems and that Washington could
either befriend Jerusalem or the Arabs—not both.
In short order Eisenhower refashioned a Middle
East policy along completely new lines. He
replaced efforts to court the entire Arab world
with the more modest—but achievable—goal of
aligning the non-radical states with Washington.
He substituted appeasement with strength,
justifying intervention in Lebanon with the need
“to take a strong position rather than a Munichtype position” (page 229).
What is the relevance of Eisenhower’s Middle
East learning curve for today? Doran is too
scrupulous an historian to make the lessons
explicit; however, Ike’s Gamble implies the
following lessons for a new administration:
• Judge your adversaries by their deeds,
not their words.
Today the Iran-Russia-Syria-Hezbollah
axis is playing the aggressive anti-Western
role in the Middle East once filled by
Nasser, the radical Arab nationalists and
the Soviet Union. Iran’s development of
Most tellingly, Eisenhower abandoned the
discredited “linkage” theory, which asserted
that Israel caused most of the Middle East’s
problems and that Washington could either
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an independent nuclear program and its
subversion in Lebanon, Syria, Iraq and
Yemen pose similar threats to the United
States, Israeli and allied Arab interests. The
soothing rhetoric from Iran surrounding
the nuclear deal was a negotiating tactic;
since then both Tehran and Moscow
have accelerated their brazen attempts to
dominate the region.
C O M M I T T E E
prudently employing—our power when justified
by our interests can be costly. In today’s
Middle East, a resource-weak but aggressive
and nimble Russia-Iran alliance has exploited
the situation to enhance its influence to the
detriment of the United States, Israel and our
Arab allies.
• Beware of “moderates” bearing gifts.
Nasser falsely claimed that he needed to
take anti-Western or anti-Israel actions to
placate domestic “extremists.” Likewise,
so-called Iranian “moderates” and their
backers abroad argue that they can curb
the regional imperialism pushed by Iran’s
“hardliners” only if Washington and
Europe help by engaging commercially and
diplomatically with Tehran. It didn’t work
with Nasser and it is not working with
Tehran.
Washington Brief: A
Recap of News From
the Hill and Beyond
FIRST F-35 STEALTH FIGHTER JETS ARRIVE IN
ISRAEL
• Washington can befriend both Israel and
the Arabs.
Eisenhower originally saw good U.S.Israel relations as a “millstone” that
would encumber cooperation with the
Arabs. Later he realized that Washington
could work with Israel while maintaining
strong ties to Jordan, Lebanon and Saudi
Arabia. The Arab-Israeli dispute was not
at the core of Middle Eastern politics in
the 1950s and is even less so today, when
Israel has formed a tacit alliance with the
Sunni Arab states arrayed against Iranian
expansionism.
On Dec. 12, the first two of Israel’s F-35 stealth
fighter jets touched down at Nevatim Air Base.
Israel is the first country after the United States
to receive the fifth-generation aircraft and has
agreed to purchase a total of 50 from U.S.
defense company Lockheed Martin.
The F-35s departed from a Lockheed Martin
facility in Texas last week, briefly stopped
near Portugal, and spent the weekend in Italy.
After a brief weather-related delay, the planes
touched down Monday evening in Israel and
were greeted by a ceremony attended by Israeli
President Reuven Rivlin, Prime Minister
Benjamin Netanyahu, Defense Minister Avigdor
Liberman, U.S. Secretary of Defense Ash Carter
and U.S. Ambassador Dan Shapiro.
Perhaps the most significant lesson to be
gleaned from this book, however, is that
while Washington must not fritter away
military, economic and diplomatic strength
through thoughtless intervention overseas,
the consequences of hoarding—rather than
DEC. 2016
A F F A I R S
“The aircraft will change the rules of the game,”
said Rivlin. “Our enemies already know that
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Israel is not worthwhile to harm.”
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C O M M I T T E E
United States “will continue to provide Israel
with the most advanced capabilities, including
more F-35s to sharpen Israel’s military
qualitative edge. With the turmoil in the region,
we are more dedicated than ever before to
Israel’s security and America’s pledge to defend
Israel’s security remains unwavering.”
The stealth aircraft is one of the most advanced
in the world and has a high price tag—costing
approximately $100 million per unit (not
including maintenance and additional support
equipment). Israel’s purchase of the F-35 is
made possible in part due to security assistance
provided by the United States each year, which
in turn is largely spent in the United States.
“As of today Israel is our only friend in the
region flying the F-35,” he added. “The F-35s
will help the U.S. and Israel air forces operate
more jointly and more effectively. And together,
we will dominate the skies.”
CONGRESS PASSES THE IRAN SANCTIONS
EXTENSION ACT
On Dec. 1, the Senate unanimously passed the
Iran Sanction Extension Act by a 99-0 vote. The
House of Representatives previously passed the
bill on Nov. 15 with a 419-1 vote.
Authored by House Foreign Affairs Committee
Chairman Ed Royce (R-CA) and Ranking
Member Eliot Engel (D-NY), the legislation
reauthorizes the Iran Sanctions Act (ISA) and
maintains the United States’ current sanctions
architecture on Iran.
PHOTO: AP IMAGES
“The F-35s will help the US and Israel air forces operate
more jointly and more effectively,” said U.S. Secretary of
Defense Ash Carter. “And together, we will dominate
the skies.”
Netanyahu thanked President Barack Obama,
Congress and the American people for helping
to make Israel “stronger today.”
ISA was signed into law in 1996 and targets
investments in Iran’s energy sector, the leading
segment of the Iranian economy. The law played
a major role in pushing the Iranian regime to the
negotiation table on its illicit nuclear program,
culminating in the 2015 Joint Comprehensive
Plan of Action (JCPOA). The extension of ISA,
which was set to expire on Dec. 31, will help
ensure that there are sanctions in place to “snap
back” should Iran violate the JCPOA.
“I want to be clear: Anyone who thinks of
attacking us, will be attacked. History has
taught us that only strength brings deterrence,
only strength brings peace and respect,” he said.
The F-35 will allow the Israeli Air Force to
operate in hostile areas defended by advanced
anti-aircraft technology, including the Russianmade S-300, which Iran has recently acquired.
Members of Congress from both parties have
praised the passage of the Iran Sanctions
Extension Act.
Secretary of Defense Carter stated that the
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“The Iranian regime continues to finance
terrorism, test-fire ballistic missiles, abuse its
people, and, as recently as last week, violate the
nuclear agreement. Today’s bipartisan vote will
help maintain our ability to immediately reinstate
sanctions against Iran over the next decade.
I appreciate Chairman Royce and his entire
committee for their work on this important bill,
and hope the president will agree to sign it,” said
Speaker of the House Paul Ryan (R-WI).
C O M M I T T E E
mind—when they launch ballistic missiles
emblazoned with the words in Hebrew, ‘Israel
must be wiped out.’ That we will—we must
not, they must not think that we will look the
other way when they smuggle weapons to the
Houthis in Yemen, who last month fired two
cruise missiles at a U.S. naval destroyer, ” said
Ranking Member Engel.
“Given Iran’s continued pattern of aggression
and the country’s persistent efforts to expand its
sphere of influence across the region, preserving
these sanctions is critical,” said Senate Majority
Leader Mitch McConnell (R-KY).
“Iran’s theocratic leaders continue to threaten
Israel and Americans in the region. They
continue, as well, to pursue ballistic missile
technology that destabilizes the region, and its
regime has held Americans captive for years
as bargaining chips in negotiations over its
compliance with basic international law and
norms,” echoed House Democratic Whip Steny
Hoyer (D-MD).
“With our vote today, Congress will make
clear that the United States will not hesitate to
maintain sanctions on Iran and those that seek
to provide the world’s largest state sponsor of
terrorism with weapons of mass destruction,”
stated Sen. Gary Peters (D-MI). “This sanctions
regime is how we hold Iran accountable,
strengthen our security, and deter Iranian
hostility toward our allies, especially the State
of Israel, which Iran has singled out as a target
for destruction.”
“Congress needs these sanction authorities to
respond to Iran’s violations and check Iran’s
growing influence in the region. Sanctions are
what brought Iran to the table, and they can
bring Iran to heel again,” stated House Majority
Leader Kevin McCarthy (R-CA).
“I am pleased by the overwhelming support
this bill received in both the House and Senate
and look forward to continuing our work to
hold Tehran accountable,” said Senate Foreign
Relations Chairman Bob Corker (R-TN).
“Time is of the essence, as this critical law
expires on December 31st—unless Congress
acts—as we are doing today,” urged Chairman
Royce. “The other body should quickly take
up this bill and send it to the President’s
desk, keeping a critical tool in place for the
next Administration while it reevaluates the
dangerous track that U.S. policy toward Iran has
been on.”
“I rise to voice my support of the extension
of the Iran Sanctions Act,” said Sen. Bob
Menendez (D-NJ). “We need to send a signal
to Iran that the United States, while meeting
its obligations under the JCPOA, will continue
to respond to other threatening and dangerous
activities the Iranian regime has taken.”
“We don’t want to let the Iran Sanctions Act
lapse. We don’t want Iran’s leaders to think
we’ve lost focus on their other dangerous
activities around the world. That we don’t
mind—don’t want them to think that we don’t
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“Iran must be held accountable for its dangerous
and destabilizing behavior throughout the
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Middle East,” said Sen. Rob Portman (R-OH).
“Iran is the world’s number one state sponsor
of terrorism, and this legislation contains
important tools to deny it the resources to
support terrorism and the pursuit of weapons of
mass destruction.”
C O M M I T T E E
launches. Additionally, the legislation requires
information on Iran’s cyber capabilities to be
incorporated into the annual report on Iranian
military power mandated under existing law.
The leadership of Senate Armed Services
Committee Chairman John McCain (R-AZ) and
Ranking Member Jack Reed (D-RI), along with
House Armed Services Committee Chairman Mac
Thornberry (R-TX) and Ranking Member Adam
Smith (D-WA) ensured these critical programs and
provisions were included in the legislation.
“The Iran Sanctions Extension Act shows Iran
and the world that we are ready, willing and
able to hold Iran accountable,” stated Sen.
Richard Blumenthal (D-CT).
CONGRESS APPROVES $600.7 MILLION FOR
U.S.-ISRAEL MISSILE DEFENSE COOPERATION
HOUSE REAFFIRMS SUPPORT FOR DIRECT
ISRAELI-PALESTINIAN PEACE NEGOTIATIONS
On Dec. 8, the Senate joined the House of
Representatives in passing the Fiscal Year 2017
National Defense Authorization Act (NDAA),
which authorizes $600.7 million for U.S.-Israel
missile defense cooperation.
On Nov. 29, the House of Representatives
adopted by voice vote H. Con. Res. 165, a
bipartisan resolution that reaffirms support for
direct Israeli-Palestinian peace negotiations
leading to a sustainable two-state solution. The
measure also reiterates opposition to United
Nations (U.N.) Security Council efforts that
would impose a solution to the conflict.
The legislation specifically authorizes $268.7
million in research-and-development funding
for U.S.-Israel cooperative missile and rocket
defense programs; $62 million for procurement
of the Iron Dome rocket defense system; $150
million for procurement of the David’s Sling
missile defense system; and $120 million for
procurement of the Arrow-3 missile defense
system. The bill also mandates a report on the
potential for the United States and Israel to
collaborate on directed energy technologies to
defeat rockets and missiles.
Spearheaded by House Foreign Affairs
Committee Chairman Ed Royce (R-CA) and
Ranking Member Eliot Engel (D-NY), the
resolution states that “it is the long-standing
policy of the United States Government that
a peaceful resolution to the Israeli-Palestinian
conflict will only come through direct, bilateral
negotiations between the two parties.”
It also reiterates that “efforts to impose a
solution or parameters for a solution can make
negotiations more difficult and can set back the
cause of peace.”
Beyond-missile defense funding, the legislation
also authorizes $10 million for joint anti-tunnel
cooperation.
Other provisions address Congress’ concern
over Iranian behavior. Namely, the NDAA
requires a quarterly report on any confirmed
Iranian ballistic missile launches and on U.S.
plans to impose sanctions in response to these
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A F F A I R S
The resolution further urges the U.S.
government to “oppose and veto United
Nations Security Council resolutions that seek
to impose solutions to final status issues, or are
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one-sided and anti-Israel,” and “support and
facilitate the resumption of negotiations without
preconditions between Israelis and Palestinians
toward a sustainable peace agreement.”
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achieved through direct, bilateral negotiations.”
Rep. Brad Sherman (D-CA) stated: “This
resolution reaffirms longstanding American
policy that can be summarized in five points:
talks must be direct and bilateral; a solution
cannot be imposed on the parties; both sides
must be willing to make important compromises;
disagreements should be resolved privately;
and the United States should work closely with
the State of Israel. This resolution deserves the
support of those on both sides of the aisle.”
Members of Congress praised the passage of H.
Con. Res. 165.
“U.S. policy has long and wisely been that only
Israelis and Palestinians can work out a peace
agreement between themselves, and that efforts
to impose one would be counterproductive,”
said Chairman of the House Foreign Affairs
Committee Ed Royce (R-CA). “Whatever
‘parameters’ the U.N. established would be
unacceptable to any Israeli government, left or
right—making it impossible to see any future
peace.”
In September, 88 senators signed a bipartisan
letter urging President Obama to maintain longstanding U.S. policy and veto any one-sided
U.N. Security Council resolutions on the IsraeliPalestinian issue.
“Republicans and Democrats agree that a
lasting peace between Israelis and Palestinians
can only be achieved through direct
negotiations,” stated Speaker of the House
Paul Ryan (R-WI). “Today, the House urged
the Obama administration to forcefully oppose
any unilateral moves by the U.N. to impose a
solution to the conflict. These efforts, which
almost always place disproportionate pressure
on Israel, only push the parties further apart and
undermine the cause of peace.”
CONGRESS PASSES KEY U.S.-ISRAEL
CYBERSECURITY BILL
On Dec. 10, the Senate joined the House of
Representatives in passing the United StatesIsrael Advanced Research Partnership Act of
2016 (H. R. 5877).
The bill permanently authorizes an alreadyexisting three-year joint program between
the U.S. Department of Homeland Security
and Israel’s Ministry of Public Security, and
expands it to include cybersecurity cooperation.
Currently, the focus of the program is wearable
technologies for first responders.
Ranking Member of the House Subcommittee
on the Middle East and North Africa Ted
Deutch (D-FL) said: “There should be no pause
or hesitation in the minds and hearts of Israelis
that the United States Government and a unified
Congress stand steadfastly with Israel. This
means that we must continue to block any effort
to impose a settlement of the conflict from the
outside. This resolution reaffirms the position
by the U.S. House of Representatives that this
conflict will not be resolved by a UN resolution
or unilateral declaration. Peace will only be
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Another U.S.-Israel cybersecurity bill—the
United States-Israel Cybersecurity Cooperation
Enhancement Act of 2016 (H.R. 5843)—passed
the House by voice vote on Nov. 29, but was
unable to clear the Senate before Congress
adjourned. This piece of legislation would
establish a cybersecurity grant program for
joint research and development opportunities
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between Israeli and American entities. The bill
is likely to be reintroduced in the next Congress.
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Authored by Sens. Tim Scott (R-SC) and Bob
Casey (D-PA), the Anti-Semitism Awareness
Act of 2016 (S. 10) addresses the “sharp
increase” of anti-Semitic incidents occurring on
college campuses throughout the country.
The two bills were cosponsored by Reps. John
Ratcliffe (R-TX) and Jim Langevin (D-RI)
following a trip to Israel last May, where they
met with Israeli cybersecurity leaders in the
public and private spheres.
“There is simply no place in our country for
this kind of intolerance,” said Sen. Scott. “It
falls on us to stand up and do more to stamp
out anti-Semitism and other forms of religious
discrimination. We must hold to the ideals
that our nation was founded on and promote
freedom of religion. We must protect that
freedom and encourage it.”
“Israel is a vital strategic partner, and I’m
pleased to be working closely with Rep.
Langevin to preserve and strengthen this
important bond through joint cybersecurity
efforts. Cybersecurity is national security, and
enhancing joint research and development
efforts between the United States and Israel will
improve our countries’ ability to deter malicious
cyber actors,” said Ratcliffe, chairman of the
House Homeland Security Subcommittee on
Cybersecurity, Infrastructure Protection and
Security Technologies.
“The rise in incidents of religious
discrimination and religiously-motivated hate
crimes is completely unacceptable. We have
to not only condemn it, but work to stop it,”
said Sen. Casey. “This legislation is aimed at
a particularly troubling manifestation of the
growing problem of anti-Semitism: when antiSemitic views lead to discrimination against
students of Jewish faith or Jewish ancestry.”
“My trip to Israel with Congressman Ratcliffe
was an illuminating experience, and reinforced
my belief that our countries have much to
learn from one another when it comes to
cybersecurity,” said Langevin, co-founder and
co-chair of the Congressional Cybersecurity
Caucus. “Our legislation will further
strengthen the U.S.-Israel relationship and
drive innovative, collaborative thinking about
homeland security priorities.”
In the House, Reps. Peter Roskam (R-IL)
and Ted Deutch (D-FL) introduced similar
legislation (H.R. 6421) regarding the
implementation of federal antidiscrimination
laws concerning education programs or
activities related to anti-Semitism.
“I’m pleased that this legislation moved forward
and call on the House of Representatives to
quickly send it to the President’s desk,” said
Sen. Casey.
SENATE UNANIMOUSLY APPROVES ANTISEMITISM AWARENESS ACT
On Dec. 1, the Senate unanimously passed a
bipartisan bill that presents guidelines for the
definition of anti-Semitism to be considered
by the Department of Education during antidiscrimination investigations into violations of
Title VI of the Civil Rights Act of 1964.
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CONGRESS PASSES KEY U.S.-ISRAEL
PROVISIONS IN WATER INFRASTRUCTURE
LEGISLATION
On Dec. 10, the Senate joined the House of
Representatives in passing three substantive
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U.S.-Israel water provisions as part of the Water
Infrastructure Improvements for the Nation
(WIIN) Act.
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while using innovative technologies to save
lives,” said BIRD Executive Director Eitan
Yudilevich. “The program extends and enhances
the successful collaboration that already exists
between the U.S. and Israel in science and
technology in the homeland-security sector.”
First, the bill fundamentally restructures the
federal desalination grant program in a manner
incentivizing cooperation with Israel.
The $12 million in funding will be financed
through both private and public sector
contributions and disbursed over three years.
Grant proposals are eligible to receive up to 50
percent of their total R&D budget, not to exceed
$1 million.
Second, the legislation requires the White
House Office of Science and Technology
Policy to develop a coordinated strategic plan
with certain allies, specifically Israel, for the
development of new water technologies.
Finally, it authorizes the Army Corps of
Engineers to engage in tech transfer, as well
as research and development with Israel and
other allies, for the purpose of developing water
resources.
The BIRD Foundation was founded in 1977 and
has since awarded grants to over 900 projects,
resulting in over $10 billion in sales.
U.S.-ISRAEL FOUNDATION TO INVEST $12
MILLION IN JOINT R&D PROJECTS
The U.S.-Israel Binational Industrial Research
and Development Foundation (BIRD)
announced in November that it will invest $12
million to fund projects that advance emergency
services technology.
The “NextGen First Responder Technologies”
program—jointly administered by the Israeli
Ministry of Public Security and the U.S.
Department of Homeland Security’s Science
and Technology Directorate—fosters research
and development (R&D) in fields critical to
first responders such as communications, data
analysis, explosives and hazards detection,
protective clothing, sensors, simulation and
training, situational awareness and wearable
technologies.
“This binational cooperation creates synergistic
capabilities to handle emergency situations
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