Iranian Oil Exchange
                 …Declaration of War?

War-Gaming the Mullahs
By John Barry and Dan Ephron -Newsweek

Sept. 27 issue - Unprepared as anyone is for a showdown with Iran, the threat seems to keep growing. Many defense experts in Israel, the United States and elsewhere believe that Tehran has been taking advantage of loopholes in the nuclear Non-Proliferation Treaty (NPT) and is now within a year of mastering key weapons-production technology. They can't prove it, of course, and Iran's leaders deny any intention of developing the bomb. Nevertheless, last week U.S. and Israeli officials were talking of possible military action—even though some believe it's already too late to keep Iran from going nuclear (if it chooses). "We have to start accepting that Iran will probably have the bomb," says one senior Israeli source. There's only one solution, he says: "Look at ways to make sure it's not the mullahs who have their finger on the trigger."

After the Iraq debacle, calls for regime change without substantial evidence of weapons of mass destruction are not likely to gain a lot of traction. But if the allegations are correct, Iran is only one of the countries whose secret nuclear programs hummed along while America waged a single-minded hunt for WMD in Iraq. Another is North Korea, which hasn't stopped claiming that it's turning a stockpile of spent fuel rods into a doomsday arsenal. And arms-control specialists are increasingly alarmed by Brazil's efforts to do precisely what Iran is doing: use centrifuge cascades to enrich uranium—with a couple of key differences. Unlike Iran, Brazil has never signed the NPT's Additional Protocol, which gives expanded inspection rights to the International Atomic Energy Agency. And unlike Iran, Brazil is not letting the IAEA examine its centrifuges. If the Brazilians go through with their program, it's likely to wreck the landmark 1967 treaty that made South America a nuclear-free zone. But the White House has shown scant concern about the risk.

The Iran crisis is more immediate in the eyes of the Bush administration, in part because Iran is among the president's "Axis of Evil." Israel, which has long regarded Iran as a more dire threat than Iraq, is making thinly veiled threats of a unilateral pre-emptive attack, like its 1981 airstrike against Iraq's Osirak nuclear reactor. "If the state decides that a military solution is required, then the military has to provide a solution," said Israel's new Air Force chief of staff, Maj. Gen. Elyezer Shkedy, in a newspaper interview last week. "For obvious reasons," he added, "we aren't going to speak of specifics." U.S. defense experts doubt that Israel can pull it off. Iran's facilities (which it insists are for peaceful purposes) are at the far edge of combat range for Israel's aircraft; They're also widely dispersed and, in many cases, deep underground.

But America certainly could do it—and has given the idea some serious thought. "The U.S. capability to make a mess of Iran's nuclear infrastructure is formidable," says veteran Mideast analyst Geoffrey Kemp. "The question is, what then?" NEWSWEEK has learned that the CIA and DIA have war-gamed the likely consequences of a U.S. pre-emptive strike on Iran's nuclear facilities. No one liked the outcome. As an Air Force source tells it, "The war games were unsuccessful at preventing the conflict from escalating."

Instead, administration hawks are pinning their hopes on regime change in Tehran—by covert means, preferably, but by force of arms if necessary. Papers on the idea have circulated inside the administration, mostly labeled "draft" or "working draft" to evade congressional subpoena powers and the Freedom of Information Act. Informed sources say the memos echo the administration's abortive Iraq strategy: oust the existing regime, swiftly install a pro-U.S. government in its place (extracting the new regime's promise to renounce any nuclear ambitions) and get out. This daredevil scheme horrifies U.S. military leaders, and there's no evidence that it has won any backers at the cabinet level.

The NPT has never banned uranium enrichment. That didn't stop the United States, France, Germany and Britain from offering a draft resolution at last week's IAEA Governing Council meeting, demanding that Iran immediately cease such activity. Other council members quickly challenged the provision's legality. Some members of President George W. Bush's own party are throwing up their hands at such clumsy doings. "This administration's nonproliferation strategy consists of flailing around with a two-by-four," says one disgusted Republican elder statesman. And even the administration must realize that its Iran options are limited now by the chaos already overtaking Iraq.