[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] ASSESSING THE IRAN DEAL ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON NATIONAL SECURITY OF THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ APRIL 5, 2017 __________ Serial No. 115-23 __________ Printed for the use of the Committee on Oversight and Government Reform [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.fdsys.gov http://oversight.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 26-555 PDF WASHINGTON : 2017 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. Committee on Oversight and Government Reform Jason Chaffetz, Utah, Chairman John J. Duncan, Jr., Tennessee Elijah E. Cummings, Maryland, Darrell E. Issa, California Ranking Minority Member Jim Jordan, Ohio Carolyn B. Maloney, New York Mark Sanford, South Carolina Eleanor Holmes Norton, District of Justin Amash, Michigan Columbia Paul A. Gosar, Arizona Wm. Lacy Clay, Missouri Scott DesJarlais, Tennessee Stephen F. Lynch, Massachusetts Trey Gowdy, South Carolina Jim Cooper, Tennessee Blake Farenthold, Texas Gerald E. Connolly, Virginia Virginia Foxx, North Carolina Robin L. Kelly, Illinois Thomas Massie, Kentucky Brenda L. Lawrence, Michigan Mark Meadows, North Carolina Bonnie Watson Coleman, New Jersey Ron DeSantis, Florida Stacey E. Plaskett, Virgin Islands Dennis A. Ross, Florida Val Butler Demings, Florida Mark Walker, North Carolina Raja Krishnamoorthi, Illinois Rod Blum, Iowa Jamie Raskin, Maryland Jody B. Hice, Georgia Peter Welch, Vermont Steve Russell, Oklahoma Matthew Cartwright, Pennsylvania Glenn Grothman, Wisconsin Mark DeSaulnier, California Will Hurd, Texas John Sarbanes, Maryland Gary J. Palmer, Alabama James Comer, Kentucky Paul Mitchell, Michigan Jonathan Skladany, Majority Staff Director William McKenna General Counsel Sharon Eshelman, National Security Subcommittee Staff Director Ari Wisch, Professional Staff Member Sharon Casey, Deputy Chief Clerk David Rapallo, Minority Staff Director ------ Subcommittee on National Security Ron DeSantis, Florida, Chairman Steve Russell, Oklahoma, Vice Chair Stephen F. Lynch, Massachusetts, John J. Duncan, Jr., Tennessee Ranking Member Justin Amash, Michigan Virginia Foxx, North Carolina Jody B. Hice, Georgia James Comer, Kentucky C O N T E N T S ---------- Page Hearing held on April 5, 2017.................................... 1 WITNESSES Lieutenant General Michael Barbero, U.S. Army, Retired, Advisory Board Member, United Against Nuclear Iran Oral Statement............................................... 5 Written Statement............................................ 7 Mr. David Albright, President, Institute for Science and International Security Oral Statement............................................... 13 Written Statement............................................ 15 Mr. Mark Dubowitz, Chief Executive Officer, Foundation for Defense of Democracies Oral Statement............................................... 27 Written Statement............................................ 29 Ray Takeyh, Ph.D., Hasib J. Sabbagh Senior Fellow for Middle East Studies, Council on Foreign Relations Oral Statement............................................... 55 Written Statement............................................ 57 Jim Walsh, Ph.D., Senior Research Associate, Security Studies Program, Massachusetts Institute of Technology Oral Statement............................................... 62 Written Statement............................................ 64 APPENDIX Response from Lieutenant General Barbero, United Against Nuclear Iran, to Questions for the Record.............................. 90 Response from Mr. David Albright, Institute for Science and International Security, to Questions for the Record............ 92 Response from Dr. Dubowitz, Foundation for Defense of Democracies, to Questions for the Record....................... 97 Response from Dr. Takeyh, Council on Foreign Relations, to Questions for the Record....................................... 108 ASSESSING THE IRAN DEAL ---------- Wednesday, April 5, 2017 House of Representatives, Subcommittee on National Security, Committee on Oversight and Government Reform, Washington, D.C. The subcommittee met, pursuant to call, at 2:19 p.m., in Room 2154, Rayburn House Office Building, Hon. Ron DeSantis [chairman of the subcommittee] presiding. Present: Representatives DeSantis, Russell, Gosar, Hice, Comer, Lynch, Demings, and Welch. Also Present: Representative Jordan. Mr. DeSantis. The Subcommittee on National Security will come to order. Without objection, the chair is authorized to declare a recess at any time. We will have some additional colleagues that are not here now. I will recognize them and waive them in when they are here. On July 14, 2015, the United States, United Kingdom, France, Germany, Russia, and China reached an agreement with Iran called the Joint Comprehensive Plan of Action, widely known as the Iran nuclear deal. The Obama administration pushed an agreement giving Iran massive and immediate sanctions relief. In return, the world's largest state sponsor of terrorism agreed to temporarily pause its pursuit of nuclear weapons. Shortly after announcing the deal, then-President Obama called it, quote, the strongest nonproliferation agreement ever negotiated, and promised it, quote, cuts off all of Iran's pathways to a bomb. But over a year and a half later, those words ring hollow. Instead of cutting off a path to the bomb, the JCPOA gives Iran a clear road to the bomb. The nuclear deal's sunset clauses phased out most of its significant restriction on Iran's nuclear agreement over the course of the next 10 or 15 years. Once this happens, Iran will have access to a large-scale nuclear program powered by advanced technology and vastly increased resources due to the lifting of sanctions. President Obama acknowledged that lifting sanctions would give Iran access to advanced centrifuges, and by year 15 of the deal, the time it takes for Iran to, quote, break out and create a nuclear weapon will, quote, have shrunk down almost to zero, end quote. This is a bad deal. That's why President Trump called it the worst deal ever negotiated. It's also why Senate Minority Leader Schumer and the Democratic ranking members of the House Foreign Affairs Committee and Senate Foreign Relations Committee all opposed it. And that's only part of the story. After the JCPOA was adopted, the Obama administration made a bad deal even worse through its feeble implementation. The Obama administration failed to penalize Iranian violations, gave Iran exemptions from the JCPOA's nuclear restrictions, weakened sanctions far beyond the terms of the agreement, allowed Iran's ballistic missile launches and regional aggression to go unchecked. Not only did the Obama administration give Iran a pass, Secretary of State John Kerry actually served to lobby on behalf of Iran, flying to London and pitching European bankers that Iran was, quote, open for business, as his staff pressed Governors across the country to drop their State's Iran's sanctions. Thankfully, the Trump administration signaled the beginning of a different approach this February. When Iran continued pursuing an agenda of regional aggression against us and our allies, the new administration responded by putting Iran, quote, on notice, and imposing new sanctions. This hearing will highlight the numerous problems with the Iran nuclear deal that demand correction by the new administration, as well as Iran's destabilizing activities throughout the Middle East. The Obama administration failed to hold Iran to the JCPOA's nuclear restriction on critical issues like uranium, heavy water, and centrifuge restrictions. Independent experts have identified numerous ways in which Iran has been allowed to violate the deal's provisions, exploit loopholes, and being granted secret exemptions with no penalty. There are also serious questions about the effectiveness of the IAEA's verification process and the degree of access its inspectors are receiving. There are other serious problems with the deal besides the implementation of its nuclear provisions. After numerous U.S. sanctions on Iran were lifted on implementation day, Department of Treasury officials continue to weaken the sanctions. Treasury changes official guidance on a Friday evening before a holiday to allow foreign companies to do business with entities controlled by the Iran Revolutionary Guard Corps, IRGC, process on dollar transactions involving Iran and loosen due diligence standards. Treasury also removed a number of entities tied to Iran's ballistic missile program and the IRGC from its sanctions list. For example, Treasury lifted sanctions on Bank Seppa, which it previously called the financial linchpin of Iran's missile procurement network. Despite all these concessions, the deal failed to quiet Iran's belligerence. Just last week, the head of U.S. Central Command testified before Congress that, quote, we have not seen any improvement in Iran's behavior since the deal was finalized in July of 2015. This is evident from Iran's numerous ballistic missile tests conducted in defiance of U.N. restrictions and its escalating aggression towards the U.S. Navy in the Persian Gulf. The State Department has identified Iran, still to this day, as the world's foremost state sponsor of terrorism. And now the funds Iran has gained through the deal sanctions relief are flowing in part to terrorists and insurgent groups, something former Secretary of State Kerry admitted would likely happen. The IRGC continues to use terror and insurgency to expand Iran's influence throughout the Middle East, including support for the Assad Government in Syria, radical Shiite militias in Iraq, Hezbollah in Lebanon, and Houthi rebels in Yemen. Simply put, the deal, along with the way it has been implemented, is not a viable course of action going forward. The U.S. must make clear that Iran's nuclear violations, illicit financial networks, ballistic missile tests, and otherwise malignant activities will not be tolerated. This hearing will specifically identify where these problems originate, and discuss what we need to do to fix them. And with that, I will now recognize the ranking member of the subcommittee, Mr. Lynch, for his opening statement. Mr. Lynch. Thank you very much, Mr. Chairman. I'd also like to thank you for holding this hearing to examine the continued implementation of the Joint Comprehensive Plan of Action, otherwise known as the Iran nuclear agreement. I'd also like to thank today's witnesses for helping the subcommittee with its work. As reported by director--former Director of National Intelligence, Jim Clapper, in 2016, worldwide threat assessment, Iran remains the, quote, foremost state sponsor of terrorism and presents an enduring threat to U.S. interests because of its support to regional terrorists and militant groups and the Assad regime, as well as its development of advanced military capabilities. Similarly, the most recent State Department counterterrorism report issued by the Obama administration in 2016 again underscored that Iran has been designated as a state sponsor of terrorism since 1984, and is maintaining its terrorist-related activity through support for Lebanese Hezbollah, Iraqi Shia terrorist groups in Iraq, Palestinian militant organizations in Gaza, and Iraqi, Afghan, and Pakistani Shia fighters aiming to bolster the Assad regime in Syria. There is no doubt that Iran is a destabilizing force in the Middle East and continues to provide arms, financing, and training to terrorist groups in the region. It also remains unequivocally clear that we cannot trust the Iranian leadership, given these subversive military and foreign policy objectives. That is precisely why the U.S., the United Kingdom, France, Russia, China, Germany, and Iran sought to contain them. For these same reasons, successful implementation of the Iran nuclear agreement is not dependent on our trust that Iran will simply abide by the terms of the deal and limit its nuclear program and nuclear weapons capabilities. A key advantage we gained is the ability to place inspectors and investigators on the ground in Iran. In referencing adversarial nations in the nuclear arms race in his 1960 inaugural address, President Kennedy remarked that the sincerity of negotiations, quote, ``is always subject to proof,'' close quote. And to this end, a determination of whether Iran is living up to its commitments under the nuclear agreement is entirely based on the proof in the form of on-the- ground, realtime, robust nuclear inspections conducted by the independent International Atomic Energy Agency. On March 8, the IAEA director general, Yukiya Amano, released his latest report on Iran's compliance with the nuclear agreement and corresponding U.N. Security Council Resolution 2231. As reported by the IAEA, Iran has already permanently disabled the core of the heavy water reactor at its water plant--heavy water plant in Iraq by filling it with concrete, quote, ``such that the agency was able to verify that it is not useable for a future nuclear application,'' close quote. In addition, all existing uranium pellets and fuel assemblies related to the original design of the Iraq reactor remain under continuous IAEA supervision. This is solid verified proof that Iraq has abided by its commitment under the Iran nuclear agreement to render the Iraq reactor inoperable so they can no longer produce weapons grade plutonium. According to the IAEA, Iran is thus far abiding by its commitment to refrain from producing or attaining uranium enriched at a level greater than 3.67 percent for 15 years, and is far less than the approximate 90 percent enrichment level of weapons grade uranium and the 20 percent level of uranium that Iran had previously stockpiled. The IAEA also reports that there are currently no more centrifuges at the Natanz Fuel Enrichment Plant than are in accordance with Iran's obligation to dismantle two-thirds of its centrifuges to enrich uranium for the next 10 years. The IAEA enjoys unprecedented and open access to Iran's nuclear facilities. It conducts formal reviews on at least a quarterly basis, and has determined that Iran has met its commitments in every one of its reports. This is a vast improvement over previous international ballpark estimates to try to assess Iran's nuclear capabilities based on hypothetical breakout times. It is in light of the critical and continued work of the IAEA to verify Iranian compliance with the nuclear agreement that we must make every effort to ensure that the agency is able to carry out its inspections and verification workload. Director General Amano recently stated that absent a 2.1 percent increase to its operating budget in 2018, or $400 million from its contributing member states, the IA will not be able to implement the verification and monitoring activities required in Iran. In stark contrast, the budget blueprint recently submitted to Congress by President Trump proposes a nearly 29 percent, or $10 billion, cut to the State Department budget. This could drastically decrease our estimated $200 million annual contribution as the IAEA's largest contributor, given that our typical 25 percent share of IAEA funding comes from the State Department. While I understand that members on both sides of the aisle may have concerns with the rationale behind the agreement itself, I strongly believe we must continue to support the IAEA's work of inspection that the Iran nuclear deal is in place. Mr. Chairman, I look forward to discussing with today's witnesses what additional steps we can take in furtherance on the sole purpose of the agreement, and, quote, ``that under no circumstances will Iran ever seek, develop, or acquire any nuclear weapons,'' close quote, as required in the agreement. Thank you, Mr. Chairman, and I yield back the balance of our time. Mr. DeSantis. Thank you. I'll hold the record open for 5 legislative days for any members who'd like to submit a written statement. We'll now recognize our panel of witnesses. I'm pleased to welcome Michael Barbero, retired lieutenant general, United States Army, and advisory board member for United Against Nuclear Iran; Mr. David Albright, president of the Institute for Science and International Security; Mr. Mark Dubowitz, chief executive officer at the Foundation for Defense of Democracies; Mr. Ray Takeyh, Ph.D., the Hasib Sabbagh senior fellow for Middle East Studies at the Council on Foreign Relations; and Mr. Jim Walsh, Ph.D., senior research associate for the Security Studies Program at MIT. Welcome to you all. Pursuant to committee rules, all witnesses will be sworn in before you testify. Can you please rise and raise your right hands? Do you solemnly swear the testimony you're about to give will be the truth, the whole truth, and nothing but the truth, so help you God. Okay. Please be seated. All witnesses answered in the affirmative. In order to allow time for discussion, we'd appreciate it if you limit your testimony to 5 minutes. Your entire written statement will be made part of the record. We now recognize General Barbero for 5 minutes. WITNESS STATEMENTS STATEMENT OF LIEUTENANT GENERAL MICHAEL BARBERO General Barbero. Chairman DeSantis, Ranking Member Lynch, and members of the subcommittee, thank you for the opportunity to appear before you today to discuss the threat posed by the ever-expanding ambitions of the Islamic Republic of Iran. I served as an infantry officer for 38 years, including a total of 46 months in Iraq over three combat tours from 2003 to 2011. And as a soldier and commander in Iraq, along with my good friend, Congressman Steve Russell, I witnessed Iran's subversive activities, hegemonic ambitions, and the direct targeting of American troops. In the 3 years since my retirement from the Army, I've made more than 20 trips to the region, meeting with many senior government and business leaders, witnessing the spreading domination of the Iranian regime from Tehran to the Mediterranean Sea. Just 2 weeks ago, I was part of an international group in Israel to review the situation on the ground and assess the threat of Hezbollah and meet with national security leaders, including Prime Minister Netanyahu. In the next few minutes, I'd like to highlight how Iran is directing its proxies, specifically those in Lebanon and Iraq, to successfully pursue a strategy of regional hegemony and carving a permanent zone of control. And I believe the actions of Iran and its proxies in Iraq and Lebanon present the most imminent challenge to the United States interests in the region. In Lebanon, as we all know, Hezbollah is a creation of Iran, and today, it's funded by Iran to the tune of estimates of $800 million annually. Until September 11, 2001, Hezbollah was responsible for killing more Americans than any other terrorist organization. Iran's military support to Hezbollah in Lebanon has only grown over time. In 2006, the last time Israel--hostilities broke out between Hezbollah and Israel, Hezbollah had approximately 13,000 mid- to short-range missiles and rockets. Since then, Hezbollah's influence and capabilities have increased dramatically. According to Israeli estimates, Hezbollah now has an expanded arsenal of over 100,000 rockets and missiles, including long-range systems that possess greater precision, lethality, range, greatly threatening Israel population centers and critical infrastructure. Also, Hezbollah has fully integrated itself into Lebanon's political, social, and military and security apparatus. In recent combat operations in Syria to support the Assad regime, Hezbollah has gained important conventional capabilities, and is now a hybrid military power that is stronger than many conventional armies, including Lebanon. In Israel, the universal accepted view is that the third Lebanon war is not a question of if, but when, and that when is very short-term. Turning to Iraq. The good news on Iraq is that ISIS is being driven from Mosul. The bad news comes the day after Mosul, when Iraq is sunk into endless sectarian strife fueled by Iran's support for brutal Shia militias, and the inability of the Iraq Government to control them. The Badr Organization, Kata'ib Hezbollah, Asaib al-Hak, these and other Iranian proxies fighting in Iraq are commanded by Qasem Suleimani, the commander of Iran's Quds Force, and have evolved into a permanent force in Iraq. In a post-ISIS Iraq, these Iranian proxy forces represent the greatest threat to stability and security. The well- documented sectarian actions of Iranian-backed Shiite militias are establishing the de facto sectarian partition of Iraq. The brutal treatment of Sunnis and other minorities by these militias has served to deepen sectarian divisions and increase Sunni alienation from Baghdad Government, thereby damaging the prospects for post-ISIS political reconciliation in Iraq. Our closest ally, the Kurds, have already clashed with these militias, and Kurdish leaders say their next fight is with these Iranian-controlled militias. If unchallenged, these well-resourced Iranian proxy forces will serve in the vanguard of the Hezbollahization of Iraq. The Iranian resourcing and control of these militias and other proxy forces operating in Syria, Yemen, and Bahrain is part of a well-established strategy following the Hezbollah model. More than a year after signing the deal to postpone its ability to acquire nuclear weapons, as its actions across the region clearly demonstrate, Iran's desire is to dominate rather than be a positive force in the Middle East. Unfortunately, with the lifting of sanctions that accompanies the signing of the Iran nuclear deal, Tehran's resourcing of its proxy forces has continued unrestricted. And as we have seen in its aggressive and subversive actions across the Middle East, Iran will continue to pursue its strategic goals at the expense of regional stability, the security of our allies, and most importantly, at the expense of American strategic interests. I thank you, and look forward to your questions. [Prepared statement of General Barbero follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. DeSantis. Thank you. Mr. Albright, you're up for 5 minutes. STATEMENT OF DAVID ALBRIGHT Mr. Albright. Thank you, Mr. Chairman, Ranking Member, and other members of the committee. Thank you for inviting me to testify today. The Iran deal needs to be implemented more effectively and its nuclear conditions strengthened and better verified. At its core, the Iran deal is a bet that by the time the nuclear limitations end, Iran, the region, or both will have changed so much that Iran will no longer seek nuclear weapons. But despite immense sanctions relief, Iran has been increasing its conventional military power in efforts at establishing regional hegemony. The bet does not appear winnable under the current circumstances, and Iran's current trajectory is a threat to the United States and its allies in the region. Armed with substantial funds and a growing economy, Iran is challenging the U.S. in the region and appears as committed to maintaining the capability to pursue a nuclear weapons path as before, just a longer path. A solution needs to be thought through and a remediation path developed that will strengthen and fix the JCPOA, but as this longer term process develops, the deal needs to be better enforced and verified. A priority is knowing how Iran has been violating the deal and associated U.N. Security Council Resolution 2231. Also important is understanding how Iran exploits loopholes in the deal and pushes the envelope of tolerated behavior. In my written testimony, I conclude that Iran is not in full compliance with the Iran nuclear deal and is flirting with violations in several areas. It is fair to conclude that Iran is not in compliance with the arms and ballistic missile provisions of Resolution 2231. However, it is difficult to argue that Iran has so violated the Iran deal, nuclear deal or the Resolution 2231's provisions as to justify snapping back sanctions. Based on available information, certain patterns of Iranian noncompliance are clear. Iran often conducts small scale cheating on the nuclear deal's limitations, such as we were able to identify at least two cases involving centrifuge research and development. It misinterprets clauses to justify actions that should be viewed as violations. Iran policy to deny IA inspectors access to military sites should be viewed as fundamentally inconsistent with the nuclear deal and, in fact, renders its weaponization development ban, called section T, unverifiable. A damaging pattern developed during the Obama administration where Iran could create a crisis over a potential violation, the United States and allies would find-- would have to find a, quote, solution, and Iran would cynically demand compensation as part of that solution. A far more effective approach would have simply been the United States insisting that Iran solve its own compliance issues or simply be in noncompliance with the JCPOA. The deal's implementation under the Obama administration was too permissive and tolerant of Iran's violations of the deal, its exploitation of loopholes, and its avoidance of critical verification requirements. The result was that Iran was able to push the envelope of allowed behavior in directions harmful to the U.S. national security. Moreover, U.S. actions muddied the waters of determining compliance with the JCPOA. Until today, the Trump administration has continued to implement the deal, and I hope that policy continues. However, that does not mean that the Trump administration should continue the previous administration's overly permissive way of implementing the deal and its avoidance of dealing with the deal's shortcomings. I certainly expect the Trump administration to chart a new path forward that better protects U.S. interests in national and Middle East regional security. A key part of a new approach is looking again at compliance. As the leading negotiator of the JCPOA, the United States has a special responsibility to thoroughly evaluate Iran's compliance with the nuclear deal and Resolution 2231. The Trump administration can look freshly at the issue and provide a more objective review than done previously. If the nuclear deal is to succeed, let alone survive, the Trump administration will need to take aggressive actions to adequately enforce the nuclear deal and Resolution 2231 toward a policy of stricter enforcement. The administration should announce that the United States will strictly interpret these deals, it will demonstrate zero tolerance for Iranian violations, and will respond both within and outside the context of these agreements. Where violations are significant, the United States should start the process of snapping back U.S. and U.N. sanctions. Thank you. [Prepared statement of Mr. Albright follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. DeSantis. Thank you. Mr. Dubowitz, you're recognized for 5 minutes. STATEMENT OF MARK DUBOWITZ Mr. Dubowitz. Thank you. Chairman DeSantis, Ranking Member Lynch, members of the committee, on behalf of the FDD and our Center on Sanctions Illicit Finance, thank you for the invitation to testify. At the heart of the JCPOA is a fatal flaw. Iran does not need to cheat to reach threshold nuclear weapons capabilities. By following the deal and waiting patiently for key constraints to sunset, Tehran can emerge as a threshold nuclear power with an industrial-size enrichment program; near-zero breakout time; an easier clandestine sneak-out pathway; an advanced long-range ballistic missile program, including ICBMs; access to advanced heavy weaponry; greater regional dominance; and a more powerful economy, which will be increasingly immunized against our ability to use sanctions. The U.N. snapback is deal ending, which makes it highly ineffective against Iran's incremental cheating strategy that Dr. Albright has outlined. Since the announcement of the nuclear agreement in July 2015, Iran has received a significant economic stimulus through sanctions relief and additional unilateral concessions from the Obama administration. In spite of or because of these economic benefits, Iran's destabilizing and malign activities have only accelerated. To address these threats, Congress and the new administration need to follow in the footsteps of Ronald Reagan. In the early 1980s, President Reagan instructed his National Security Council to develop a comprehensive strategy to undermine the Soviet Union. We need a similar plan now, one that uses both covert and overt economic, financial, political, diplomatic, cyber, and military power to subvert and roll back the Iranian threat. The administration, with assistance from Congress, needs to reinvigorate the sanctions regime aimed at deterring Iran's support for terrorism, ballistic missile development, human rights abuses, war crimes, and destabilizing activities throughout the Middle East. It's very clear that these nonnuclear sanctions are fully consistent with the JCPOA. In particular, Congress should apply the terms of Executive Order 13224, the terrorism executive order to the IRGC, and require the Treasury Department to expand the number of IRGC entities designated from the current 68 to the thousands of entities it owns or controls. There is overwhelming evidence to support this designation. Congress should reject the argument that this designation will provoke the IRGC to threaten or commit violence. To do so would hold American policy hostage. Since 2013, the conclusion of the interim agreement and through the final agreement, there has been enormous increase, particularly in Syria, in Iran-related terror attacks, again, terror attacks that deliver the use of violence against civilians with a political objective. Iran has perpetrated and supported these attacks through the IRGC, Hezbollah, and Iranian-backed militias. This is part of the reason why the State Department calls Iran the leading state sponsor of terrorism. Congress should also require the administration to investigate whether or not Iran Air is supporting Iran's malign activities in Syria, Yemen, and elsewhere. As the first slide indicates, since implementation day on January 16 of last year, there have been 696 flights from Iran to Syria. Of those flights, 114 were Iran Air, including some to and from an IRGC resupply base in Abadan, Iran. On the second slide, you'll see an example of a flight that is supposed to travel between Tehran and Damascus, but is actually flying by the IRGC resupply base in Abadan. If Iran Air is complicit in Tehran's illicit behavior, as I believe it is, Iran Air should face new sanctions, U.S. licenses for aircraft sales should be revoked, and the Boeing and Airbus deals with Iran Air should be canceled. When Washington implements stricter sanctions, international banks and companies will think twice about working with the Iranian entities engaged in this malign conduct, especially with the IRGC. I agree with Mr. Albright. We need to rigorously enforce the deal, but it presents a bedeviling paradox. The greater the focus on enforcement, the higher the likelihood that Iran will take a patient pathway to nuclear weapons capability as a result of the agreement's sunset provisions and the lack of an effective mechanism to physically inspect Iranian military sites. To address this, as Mr. Albright has recommended, the Trump administration should work with Congress to design a statutory architecture that freezes the Iranian nuclear program where it is today, and impose new crippling sanctions if the nuclear breakout time drops under 1 year. To achieve this, Iran's advanced centrifuge research, development, and deployment levels, for example, need to be significantly constrained, and IAEA's physical access to military sites must be guarantied. There is no compelling reason for Iran to have a breakout time of less than 1 year. The Trump administration also needs to put Iran on notice that the U.S. will use force to counter Iranian aggression. Sanctions without the credible threat of military action will always be insufficient to change the regime's calculus. And, finally, the administration must make it clear to the Europeans, the Chinese, and the Russians that it is prepared to negotiate a follow-on agreement that addresses the fatal flaws of the original deal. Iran still struggling to attract foreign investment because of its continued malign activities could benefit from such an offer if it is prepared to halt its subversive behavior. Thank you for the opportunity to testify. I look forward to your questions. [Prepared statement of Mr. Dubowitz follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. DeSantis. Thank you. Mr. Takeyh, you're up for 5 minutes. STATEMENT OF RAY TAKEYH, PH.D. Mr. Takeyh. Thank you, Mr. Chairman, Ranking Member, for inviting me. And it's a privilege to be here with my co- panelists. I actually come with good news. The Islamic Republic is at an impasse. It is an ideological experiment born in the 20th century that has managed to crawl into this century, but this journey will end and the theocratic dictatorship will join their radical counterparts in the dustbin of history. In some ways, Iran today resembles the Soviet Union of the 1970s, a bloated state that avoids reforms and eventually brought about its own collapse. The foremost function of U.S. policy, therefore, is to continuously weaken the wobbly foundations of the clerical regime by pressing it both internally and in the region. The theme of today in Washington today, these days, is to push back on Iran. I think it is important to remember that pushing back on Iran must begin in Iran itself. The summer of 2009 and the rise of the green revolution will always be recalled as a watershed moment after which things are not the same. No less than Supreme Leader Ali Khamenei has confessed that the movement brought Iran, quote, to the edge of the cliff. General Mohammad Jafari, the Commander of the Guards, has suggested that the Green Movement was a greater danger for the system and the Islamic revolution, and we went to the brink of the overthrow and the sedition. Sedition is the pejorative term they use for the Green Movement. The regime's security services proved unreliable, dissension spread within the Guards, a number of commanders had to be dismissed, the ruling elites, which had perfected the strategy of staging counter- demonstrations, failed to do so for 6 months. The Islamic Republic was never and is never a typical totalitarian state. Its electoral processes and institutions provided the public at least with a veneer, an impression of democratic representation. That republican element of the regime evaporated in 2009, and with it vanishes legitimacy. The task of American diplomacy is, as Mr. Dubowitz suggested, is similar to that as Ronald Reagan facing the Soviet Union, not just negotiate or renegotiate a better arms control agreement, but devise a comprehensive strategy that undermines the regime. As the administration at that time did with Solidarity in Poland and other such organizations, we should find a way of establishing ties with opposition movements within Iran. Given the Islamic Republic's cruelty and corruption, the opposition spans the entire social spectrum. The Iranians have given up, not just on the Islamic Republic, but on religious observance itself, as most mosques are empty during most Shia commemoration days. Three decades of theocratic rule has transformed Iran into one of the most secular nations in the Middle East. The middle class, the working poor are equally hard pressed by the regime's incompetence and corruption. Even some of the senior members of the clergy are beginning to recognize the toll that politics has taken on religion. America has ready allies in Iran and must make an effort to empower them. Economic sanctions, in my view, are a critical part of any strategy of pressuring Iran. The experience of the past few years has shown that the United States and its partners have real capacity to shrink Iran's economy. The fewer resources that the regime has at its disposal, the less capable it is of sustaining a cadre whose loyalty today is purchased, and the guardians of the revolution are well aware of that. Once deprived of money, the state will find it difficult to fund patronage networks that are essential to its rule and its imperial ventures. For Iran's leadership to yield to international norms, all the walls around them have to close in, so it is important to stress its economy, divide the society, but also to push back on its influence in the Middle East, as was mentioned before. By contesting Iran's gains, Washington can pose additional costs on the regime and contribute to regional stability. Iran's leaders believe that the vitality of the revolution mandate its exports, and it is that export that must be negated as means of undermining that revolution. The best arena to push back on Iran, I think, still remains in the Gulf. Iran and Saudi Arabia are locked into the regional conflict. We should assist all Gulf allies. Iraq, as was mentioned, is also a place where the United States can potentially have steady allies if it rehabilitates that country's institutions and the military. Iraq cannot be whole and free so long as Iran interferes in its affairs. A commitment by the United States to Iraq will go far to diminishing its ties to Iran. Some in Washington believe that the Iran problem is secondary to violent jihadists. For all their achievement, those movements do not yet possess the resources and capability of a large sophisticated state. It must be noted that the Iranian regime was the original Islamic revolutionary state. Its successes inspired a wave of radicals across the Middle East. At the most basic level, this is a confrontation between a super power and a second rate autocracy, and therefore, we should emulate Ronald Reagan's famous injunction in dealing with them: We win, they lose. Thank you, Mr. Chairman. [Prepared statement of Mr. Takeyh follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. DeSantis. Thank you. Mr. Walsh, you're up for 5 minutes. STATEMENT OF JIM WALSH, PH.D. Mr. Walsh. Mr. Chairman, Mr. Ranking Member, members of the committee, it's an honor to be here today to discuss the implementation of the nuclear agreement with Iran and our P5+1 international partners. Let me begin first by looking at Iran's compliance with the JCPOA. The JCPOA is a nuclear agreement. It's not an agreement on regional relations, human rights, or other issues, and it's a nuclear agreement for good reason. Denying Iran nuclear weapons is the uncontested single most important American objective in the Gulf. Yes, Iran supports policies that run contrary to American interests, but the only thing worse than an Iran that does bad things is an Iran that does bad things and has nuclear weapons. It's also worth noting, as I have explained in past testimony, that the JCPOA is arguably the strongest multilateral nonproliferation agreement negotiated in the nuclear age. No country has been subjected to the kind of intrusive inspection and verification embodied in this agreement. Today, IAEA has more inspectors on the ground in Iran than ever before. To assess Iran's compliance, I use a variety of metrics. One, Iran's implementation of specific provisions. Did Iran remove 98 percent of its uranium stockpile? Yes. Did Iran dismantle two-thirds of its centrifuges? Yes. Did it destroy the calandria of the Arak reactor? Yes. Time does not permit me to go through the whole list, but I think you get the idea. Next, I look at, two, assessments by others. The International Atomic Energy Agency, the U.S. intelligence community, our European partners, including Britain, France, Germany, and the EU, have all concluded that Iran is in compliance with its obligations. The Israeli military, for its part, has changed its threat assessment as a result of the nuclear agreement. Let me turn now to Iran's regional activities. Iran's regional activities pose problems for U.S. interests in the region, but by way of context, few countries in the Middle East have been shy about meddling in the affairs of their neighbors. Saudi Arabia, Qatar, Turkey, and Egypt, for example, have all recently intervened in other countries, directly or through proxies. Moreover, these practices have been a prominent feature in the region for decades. Now, none of this means that Iran's unwanted behavior should be simply accepted; it shouldn't. What it does suggest, however, is that regional meddling is not new, it is unlikely to go away any time soon by any of the players, and it should be judged in context and not in isolation. In short, this is the Middle East, and it has been like this for a very long time. But when it comes to Iran, ambition is one thing, capability is another. And even when one looks at the Iranian-Saudi rivalry, it's pretty clear who has the upper hand. In this competition, the Kingdom is supported by the Gulf Emirates, Pakistan, Egypt, and the U.S., among others. The Iranian side is poor and weak by comparison. It includes Lebanon, a weak state, Syria, in the middle of a civil war, and possibly Iraq, although I doubt that for the long-term, but is also fighting a war on its own territory. Saudi Arabia alone, without counting its many allies, is far wealthier than Iran and outspends its rival on defense. The International Institute for Strategic Studies reported that Saudi Arabia spends almost four times as much on its military as Iran. It goes on to conclude that, quote, Saudi Arabian Armed Forces remain the best equipped of all of the states in the region except Israel. So while Iran may have aspirations of hegemony, it lacks the economic and military capabilities to achieve that status, particularly in a region where Sunnis vastly outnumber the Shia. Terrorism. Iran is said to be the largest state sponsor of terrorism in the world, though some experts would instead point to Pakistan and Saudi Arabia. Critics of the agreement have suggested that it would free resources that Iran would use for increased terror activity. As my past testimony explains, there are reasons to doubt this. In addition, I went back and tested the proposition using the University of Maryland's global terrorism database. I examined terror attacks for all four groups that Iran has supported in the past. The results are striking and surprising. First, terror attacks by the most active groups are all significantly down from their historic highs. More tellingly, attacks are all down beginning around 2013, 2014, that is to say, with the JPOA and the JCPOA. Now, one will have to keep an eye on this to see if it changes, but to date, the data is clear: the rise in terror attacks by Iranian-backed groups predicted by critics simply did not happen. Ballistic missiles. Under the Security Council resolution, Iran has, quote, called upon not to carry out ballistic missile tests of nuclear-capable missiles. To be clear, the language in the resolution does not mandate that Iran end missile tests, and the resolution actually provides for missile technology transfers in the agreement. Since the time its cities were attacked by ballistic missiles by Iraq during the Iran-Iraq war, Iran has viewed missiles as a defense need, not surprisingly, and has achieved virtual self-sufficiency in that program. Sanctions cannot change that reality. Only a reduction of regional tensions can do that, but until then, the U.S. has other options at its disposal. In conclusion, I believe that Congress has an important role to play in the JCPOA's implementation, and I stand ready to work with this committee to make sure we achieve our common goal and our first priority: ensuring that Iran never acquires nuclear weapons. Thank you very much. [Prepared statement of Mr. Walsh follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. DeSantis. Thank you. The chair now recognizes himself for 5 minutes. General Barbero, you mentioned, which we don't mention enough, I think, the number of U.S. troops that were killed at the hands of Iran while we were in Iraq. And by my estimate, it was definitely hundreds and may have been over a thousand. Do you agree that those numbers are accurate? General Barbero. I agree, Mr. Chairman. Mr. DeSantis. And these are attacks that are directed by, in many cases, Iran's Quds Force, correct? General Barbero. They were active in equipping, training, and directing these attacks. Mr. DeSantis. And has there ever been any type of remorse or anything, Iran take responsibility, this deal, anything for all the American deaths? General Barbero. Absolutely not. Mr. DeSantis. Now, Iran is pursuing this ballistic missile program. What type of a threat does that pose to the United States and how should we respond to it? General Barbero. Well, I'm not the expert on ballistic missiles, but as a leader in the Middle East just described, the combination, the continued advancing of certain related technology, such as their centrifuge, and linking them with the long-range ballistic missile program is not good for the United States in the future, and that this deal is further described as zero nukes today, 100 nukes tomorrow. Mr. DeSantis. Mr. Dubowitz, 2231 has restrictions on ballistic missile activity. It talked about missiles designed to be capable of delivering nuclear weapons. How do you define a nuclear-capable missile? Is there a difference between that and conventional? Because what you'll hear people who defend Iran will say is, yeah, they did this ballistic missile, but that's not necessarily anything having to do with nuclear. They're just testing missiles. So how do you make that distinction, or do you? Mr. Dubowitz. Well, I think the key point, there are missiles that are capable of delivering a nuclear warhead, and many of Iran's missiles already are capable of delivering a warhead. And certainly Iran has a very active long-range ballistic missile program and an ICBM program that they are working on, not only by themselves, but always important to remember the extensive cooperation between Iran and North Korea on missiles and the long progress that North Korea has made on their ICBM program. Mr. DeSantis. And so what--is there a different purpose that would be reasonable for this ballistic missile program other than to deliver a nuclear payload? Mr. Dubowitz. Well, there's certainly no reason to have an ICBM, unless you're interested in delivering a nuclear payload. And the long-range ballistic missile program that Iran has is getting more sophisticated, more lethal, ranges are increasing. And it is absolutely clear, as you know, Secretary Kerry testified to the Senate Foreign Relations Committee in 2015, that the U.N. Security Council Resolution 2231 was designed to prohibit Iran from testing and developing those missiles. Mr. DeSantis. So how close is Iran, in your estimation, right now to developing an ICBM that could reach the United States? Mr. Dubowitz. Well, according to open source information, it's not imminent and still may be years away, but it's important to remember that the way Iran has structured and architected this nuclear deal is that there are multiple pathways. And what Mr. Walsh is not telling you is he--it's not the status quo today, it's the trajectory, it's Iran's trajectory on the nuclear side because of sunset provisions to an industrial size nuclear enrichment program; it's the trajectory on missiles, to a long-range ballistic missile program with an ICBM; and it's the economic trajectory, where they'll continue to fortify their economy against our ability to use economic pressure. It's the trajectory; it's the patient pathway to nuclear weapons capability, long-range ballistic missiles and an ICBM. Mr. DeSantis. So the lifting of sanctions, has that helped to boost the ballistic missile program? Mr. Dubowitz. The lifting of sanctions has helped to boost all of Iran's malign activities, because Iran is now--has resources that are available to it. The $100 billion in frozen oil money that was released, access to oil markets, the lifting of sector-based sanctions on key strategic sectors of the economy. Iran in 2013 was 4 to 6 months away from a severe balance to payments crisis. They were ready to collapse. So they were making very, very painful budgetary decisions at the time. Those decisions are a lot less painful when their economy is growing at 7, 8 percent, as it is today, inflation is down to single digits, and Iran's foreign exchange reserves are at least five or six times greater. Mr. DeSantis. So can additional sanctions imposed by Congress help rein in the ballistic missile program, and if so, how should they be targeted? Mr. Dubowitz. Congress needs to design a secondary sanctions regime that's predicated on Iran's ballistic missile malign activity, it needs to designate key entities that are in the ballistic missile supply chain, both foreign and domestic, and it needs to provide punishing sanctions against any foreign entity or any foreign bank that does business with any Iranian entity in support of that ballistic missile program. We are a long way from that, but I think the legislation that was introduced in the House and the Senate begins that process. Mr. DeSantis. And, finally, my last question. Mr. Takeyh, you talked about Iran, really this regime is on unstable foundations. You mentioned the 2009 Green Movement. What does this administration need to do to kind of further erode some of these foundations so that the Iranian people could have a better pathway forward? Mr. Takeyh. Well, I do think that it's very important to focus as much on human rights infractions as it is on nuclear infractions and terrorism. Iran is also member of various international bodies and has to adhere to international conventions on human rights behavior, which it is egregiously in violation of. I would actually support a sanctions regime along the lines of Mark that actually targeted human rights and human rights abuses that are ongoing in the country so there will be actual punishment. As I mentioned, our task is to continuously weaken the regime's coercive power and the regime itself. That actually now relies on the transactional relationship with its cadre. It essentially gives them money as enforcers. If it has less money, it has less capacity for enforcement. Mr. DeSantis. Thanks. My time's expired. I'll now recognize the ranking member, Mr. Lynch. Mr. Lynch. Thank you, Mr. Chairman. Mr. Walsh, thank you for your testimony. I'm going to give you a couple of comparisons. We have a situation with Pakistan where they have nuclear weapons; not only that, they're fixated on India, they have mobile nuclear weapon capacities. So they keep--as a matter of defense, they keep moving their nuclear weapons around to avoid any first strike vulnerabilities. In the meantime, the Taliban and various warlords in those areas, they're not on the eastern border of Pakistan, they're more on the western part that is controlled, in large part, by the Taliban. And then we have North Korea that has nuclear weapons capacity already and highly unstable leadership, to say the least. What is greater risk right now? Is it North Korea that has nuclear weapons and, you know, like I say, a very unstable--I'm being generous here--a very unstable leader, Pakistan that has nuclear weapons and is moving them back and forth, or Iran that is stuck in a freeze here. And just--I just want to go through the checklist here. Did Iran remove 98 percent of its lightly enriched uranium stockpile? Yes, it did. Did Iran dismantle two-thirds of its centrifuges? Yes, it did. That's all been verified. Did Iran destroy the calandria at the Arak reactor? Yes. Our inspectors were there. They filled it with concrete. It cannot be used. That was a big step. That was a lot of research and effort on their part. Did Iran cap its level of enrichment to 3.67 percent? Yes. Did Iran convert the Fordow underground facility? Yes, it did, mid-construction. Did Iran submit to 24/7 International Atomic Energy Agency inspections of its sensitive facilities? Yes, it did. And is it reprocessing plutonium? No, it is not. So, again, what's the greatest danger here? Mr. Walsh. Yeah. Number one by far, I think--first of all, India, Pakistan, and North Korea are in a class by themselves in terms of nuclear danger. They're nuclear weapon states. You can only have a nuclear war if you have nuclear weapons. Mr. Lynch. Right. Mr. Walsh. And, frankly, the India-Pakistan situation has deteriorated recently. Even though it doesn't get as much play as this other stuff, I think it's far more serious. And then I worry about North Korea, having been to North Korea and studied it for years. I don't think Kim Jong-un is going to start a war on purpose, because he knows he's going to lose, but I fear that we're one dead fisherman away from some crisis that escalates. Because everyone is leaning forward, it's a very escalatory environment. Iran doesn't have a nuclear weapon. It's not going to have one for 15 years. I, frankly, think it's going to be a lot longer than that. I don't think these things compare. And let me say, within the region, you know, Iran is not 10 feet tall. It's not the Soviet Union. It's not even the most powerful country in its own region. By my estimation, Israel, Turkey, Saudi Arabia are all far stronger by GDP, military expenditures, quality of weapons. It's--if it's fourth, it's lucky. Mr. Lynch. Let me ask you, recently President Trump tweeted out, this was his tweet: ``Iran has been formally put on notice for firing a ballistic missile,'' close quote. Is there--is there a--is there a legal or defense terminology to being put on notice? Is there any technical thing that I'm missing there? Mr. Walsh. I--it's not my job to interpret the tweets of the President. It certainly doesn't add up to a policy. Listen, most of the experts you've talked to, Michael Elleman, who's a missile expert, others, they'll say that the program is largely indigenous. Its purpose is asymmetric deterrence. It fears an attack by another state. It has no ICBM program, I'm going to have to disagree with my good friend, Mark. And if you look at my testimony, there are footnotes to that effect. It hasn't flight tested an ICBM. You can't have an ICBM program if you haven't flight tested a missile. So I think that's a missile program. I wish they didn't have missiles, I wish no one had missiles, but I don't think sanctions are going to somehow change the defense needs. Mr. Lynch. I have to reclaim my time. And I appreciate your remarks. And also ballistic missile control is an aspirational statement within the agreement; it's not a requirement. Mr. Walsh. Right. Mr. Lynch. Just yesterday, North Korea, a nation, again, with dangerous nuclear weapons, fired a ballistic missile that was just the latest in a series of test firings. Here's what Secretary Tillerson said: ``North Korea launched yet another immediate-range ballistic missile. The United States has spoken enough about North Korea. We have no further comment,'' close quote. So, you know, there are some dangers out there, but I don't think giving Iran back the ability to develop nuclear weapons is the way to go. I yield back. Mr. DeSantis. The gentleman yields back. The chair now recognizes the vice chairman of the subcommittee, Mr. Russell, for 5 minutes. Mr. Russell. Thank you, Mr. Chairman. And thank you, gentlemen, for being here today. General Barbero, it's great to see you. I guess my first question, I'm a little taken aback that Iran does not present a significant imminent, unusual threat to U.S. interests. How would you characterize Iran as a threat? Do you agree with that statement? General Barbero. I don't agree with that, Congressman. You know, Iran's actions have been diametrically opposed to U.S. interests in the region, and they're acting on those and executing a strategy. Mr. Russell. And in one of your capacities, you took a lot of interest in explosively formed projectiles, IEDs, and the destruction that they caused on U.S. soldiers in theater. Who was behind most of the EFPs? General Barbero. These were copper plates that were used and designed for one purpose: to burn through American armor, and they were used exclusively targeting American vehicles and forces, causing, you know, casualties across the board. There is intelligence that forensically links and tracks these plates back to their factories in Iran by lots, and we're now starting to see the same type of plates in Bahrain being used by the Iranian proxies there. Mr. Russell. And so I just--you know, we've stood on the same turf together on some very dark days, and I--I just kind of take--you know, I'm taken aback that Iran is not an imminent, unusual, or significant threat, or somehow because the neighborhood is a bad neighborhood, that they are justified in their criminal activity. I think that that is absurd. Mr. Walsh, Iran signed the Nuclear Non-Proliferation Treaty. So they promised that they wouldn't proliferate nuclear weapons. Why didn't we just leave it at that? Mr. Walsh. Well, we didn't leave it at that, sir. We have extensive safeguards arrangements that have grown more intrusive over time and now have been expanded again under the JCPOA. We--normally, we don't take people at their word. Mr. Russell. Well, in your initial testimony, you talked about that this was the best safeguard to prevent them from the quick track of developing nuclear weapons, but they signed the nonproliferation treaty, so why didn't we just take them at their word? We're taking them at their word now. Why isn't their word good enough by them signing the treaty? Mr. Walsh. Well, we've never taken any country at its word on nonproliferation. As I said, we have safeguards agreements that came with the NPT and we have verification measures in Iraq. I mean, we have 24/7 electronic monitoring of their most sensitive nuclear facilities. Their---- Mr. Russell. Unless they're military, right? The IAEA is not granted access to military---- Mr. Walsh. That's not true, sir. Under the additional protocol, they are absolutely granted---- Mr. Russell. Under the protocols they are. How is that access going with them? Mr. Walsh. Well, I know of no instances in which the IAEA has demanded access to a military site and not received it. Now, if they did, they are---- Mr. Russell. You stated in your testimony, sir, that they were denied access, but that they were given, as I read the testimony, because I realize that we didn't have time to go through all of it, but they were given assurances from the Iranian Government that everything was okay at those facilities. So we're taking them at their word, yes or no? Mr. Walsh. I think that's David's testimony, not mine. Mr. Russell. Oh, David. My apologies, Mr. Walsh. Is it still true? Mr. Walsh. Well, under the agreement, the IAEA both under the initial protocol and the agreement has access to it. And if they feel that they are not getting satisfaction, then they're able to take that directly to the U.N. Security Council and U.S. snapback sanctions. And by the way, the U.S. has its own intelligence community, the Israelis have an intelligence community, the Russians have an intelligence community. If they find that--if they think that there's cheating, I'm pretty sure you're going to see a file before the U.N. Security---- Mr. Russell. Well, we're already seeing evidence of a lot of cheating, which is why we're all ready for a little snapback. And, I guess, two things with regard--ballistic missile tests not being part of a threat, and yet you are one of the most accurate writers of the dangers and the imminent threat of North Korea. Why are we even concerned that they launched a missile yesterday? Shouldn't--I mean, if missiles don't really matter, why are we concerned about North Korea's missiles? Mr. Walsh. Well, I think we're worried about North Korea's missiles because they're going to mate a nuclear weapon to them. That's not going to happen in the case of Iran because we have the JCPOA. I also---- Mr. Russell. Can they at the end of 10 years? They can do whatever they like. It's wide open. Mr. Walsh. It's not 10 years. And some of the restrictions of the JCPOA go in perpetuity, they last forever. Like, they're not bringing the calandria back, right? That's destroyed forever. Some of the restrictions go for 20 years, 25 years. Mr. Russell. Well, in my remaining time, Mr. Chairman, I just want to make the statement that as far as Iran just being part of the--you know, its bad neighborhood, no one is a greater proliferator of terrorism than Iran. They've killed more Americans since 1979 than any other state. We have seen repeated attacks. General Joseph Votel, commander of CENTCOM: Iran poses the most significant threat to the central region and to our national interests and the interests of our partners and allies. We've seen the Director of National Intelligence 2016 report: Iran presents an enduring threat to U.S. national interests because of its support to regional terrorism. And I would argue that any dropoff in terrorist activity, Mr. Chairman, has not been because of goodwill of the JCPOA; it's been because they're fighting in Yemen and Syria and in militias in Iraq. Hopefully, we'll get a round two. And I appreciate your indulgence. I'm out of time. I yield back, Mr. Chairman. Mr. DeSantis. The gentleman's time has expired. Mr. Walsh, what would you say, I mean, with the Syria deal, with the chemical weapons? The administration heralded it, they're gone. Even the Israelis said, oh, it was good. Well, it turned out not to be the case. And so we--and I agree with you, there are Israelis you talk to, and they think that from what they can tell, they may have been in check, but we don't know what we don't know, and that's what I'm concerned about. In Syria, a lot of people thought that that had been taken care of, and obviously, tragically this week we found out it didn't. Mr. Walsh. Yeah. I think it's way easier to produce a chemical weapon, which is basically just using industrial chemicals and weaponizing it, than to make a nuclear weapon and a miniaturized warhead. They're just in terms of the capacity required, you know, night and day. So I think it was a good thing to get all that agent out. Had we struck Syria, we might have sent a weak deterrent message, but all that agent would have been there. We got a lot of it out, but they went back to making it. Mr. DeSantis. All right. And I will now recognize the gentleman from Vermont for 5 minutes. Mr. Welch. Thank you very much. Thank you, Mr. Chairman, for this hearing, and Ranking Member Lynch. First, I want to say thank you to General Barbero and also to his colleague and fellow soldier, my colleague, Mr. Russell, for your service. And let me tell you, listening to both of you is very powerful, because you were on the receiving end of a lot of malign behavior from Iran. So how can I express my appreciation for that, we all are. But I know that you also appreciate that this is about a policy that is important to the U.S. and its allies. And the question for me on this whole Iran nuclear deal was not whether I was going to turn a blind eye to what you experienced, it was whether in the longrun the region would be safer with a malign but nonnuclear Iran than with a malign and nuclear Iran. And we had a lot of debate here and will continue to have disagreement about whether the Iran deal was a good deal or a bad deal, but where we're at now is we have a deal, and I share the concern about wanting it to be enforced. The concern I have is that some folks who are of the view that it was a bad deal, from my perspective, may go too far in using enforcement arguments as a way to try to unravel it, but that's a--that's in the eye of the beholder. I think we're all in agreement that we have to enforce this deal. One of the questions I have, you know, President Trump, as you know, thought it was a terrible deal, he said that during the campaign. But the budget that he's proposing is going to significantly cut State Department funding. I saw that General Mattis said that we need State Department funding, because the less money they get, the more I have to ask for for ammunition. But that's going to directly affect the boots on the ground of the IAEA. And I'll just ask you, General Barbero, I know you oppose the agreement, but do you think it would jeopardize our capacity to monitor and enforce if we have a significantly reduced budget for the enforcement agency? General Barbero. Well, I think it would damage our abilities to monitor this deal. But if I could, Congressman, you know, this is not--hopefully, do not come across as an old soldier who is bitter about what happened. Mr. Welch. I didn't hear that. General Barbero. But this is about American national interests---- Mr. Welch. Right. General Barbero. --and currently in the region, and what I here from leaders, where are--where is the United States? This is a zero-nukes-today-100-nukes-tomorrow deal. This is a postponement, not a cessation. And we should look--we should not sacrifice other American interests in the region at the expense of this deal. And it seems from the capitals there that America has pulled back and American leadership is lacking in confronting this real, and in some cases, existential threat to our friends and allies in the region. Mr. Welch. A lot of people agree with what you just said. But, you know, if we're honest with ourselves, this is a tough situation. It's not like there's a definitive answer. And a lot of times, the American people want a military response, partly because they trust the military, and partly because when something really bad happens, they want a definitive action that is going to make it go away. But we saw it with our engagement in the Middle East, and I think President Trump talked about this during the campaign, that some of those decisions didn't work out the way it was hoped. You know, we did nation building in Afghanistan and Iraq; it didn't work. We aided people in Libya, and it was a mess. And we stayed out of Syria, and that's a mess. So I'm just asking all of you, even with your point of view, which is I think different than mine, to acknowledge that there is not an easy call for the President, whether it was Obama or it's Trump. General Barbero. If I could go further? Mr. Welch. Sure. General Barbero. I agree. This is not an easy challenge, but the argument is not to, you know, reinvade and 100,000 troops and do nothing. There are plenty of actions we could take. Sanctions, declare the IRGC a terrorist--a foreign terrorist organization, which they clearly are. Go after the financing of the IRGC and their---- Mr. Welch. I note that Mr. Lynch is very active in the financing. General Barbero. --and work with our allies in the region. General Jones, Jim Jones, former national security adviser, SACEUR, said let's lead the way in formulating a NATO-like defense agreement and body within the Gulf--with the Gulf States and Saudi Arabia. I think they're ready for that. So there's a number of things we can do. Mr. Welch. My time is up. But thank you, General. Mr. DeSantis. The gentleman's time has expired. We have a procedural vote, but I'm not going to stop the hearing for it, so members can go and come back. We're going to keep it going, because I think it's just one vote and done. These are not our actual votes that we had scheduled at 4 o'clock. And I don't want to have to adjourn twice in 30 minutes. So with that, I will now recognize Mr. Comer for 5 minutes. Mr. Comer. Thank you, Mr. Chairman. My question is for Mr. Albright and Mr. Dubowitz. Are the joint comprehensive plan of actions current, inspection and transparency measures sufficient to verify Iran is abiding by its terms? Mr. Albright. In theory, the international inspectors have tremendous rights of access. It's given by what's called the comprehensive safeguards agreement. Unfortunately, Iran's policy is to deny access to military sites, and it has done so on multiple occasions. And even in the example of the Parchin site, which was finally accessed by the IA, it only got one visit, and it got partial access. If you take bans in the JCPOA against nuclear weapons development activities inside Iran, those need inspections of military sites. And they are not--those military inspections or the visits to the military sites are not happening. So I would say that parts of the JCPOA are not verified. Parts of it have not been tested yet, that in the sense that the IA is going to ask to go to military sites, and the expectation is that Iran is going to say no, because that's been its policy. So I think that the bottom line is, is that parts of the JCPOA are unverified, parts are untested. The parts that are well verified are the declared sites. Mr. Walsh referred to those as sensitive. They're the known sites. And so those have been verified quite a bit, but the IA is still unable to answer the basic question: Does Iran have undeclared nuclear activities? It still does not know the answer to that question. And when it tries to do that, it very well could be there's going to be a major confrontation with Iran over access. Mr. Dubowitz. Well, I mean, I agree. I mean, Supreme Leader Ali Khamenei, quote, ``Inspection of our military sites is out of the question.'' Foreign Minister Zarif before the Iranian parliament: We've successfully achieved the goal of preventing IAEA access to military facilities. Ali Velayati, an adviser to Khamenei, quote, ``Entry into our military sites is absolutely forbidden.'' And Mr. Albright mentioned Parchin. Remember, the IAEA didn't get physical inspection of the Parchin military site. It got self-inspection, where the Iranians were providing samples. Interestingly enough, even when providing samples to the IAEA and not letting them in through the gates, naturally, manmade uranium particles were actually discovered. The IAEA should have insisted, under the comprehensive safeguards agreement, for a follow-on physical inspection. They did not. So now you have to the Parchin precedence, which is-- you know, it's not the name of some Robert Ludlum novel. It is what the Iranians will invoke the next time we want to go into their military sites. They'll say, you're not getting in. And maybe at the end of the day they'll let in another self- inspection. But I think as Mr. Albright, as my colleague, Dr. Olli Heinonen has said, it is insufficient. And unless you get into these sites, into these small sites, you're not going to be able to confirm whether there are weaponization activities taking place. Mr. Comer. Mr. Dubowitz, let me ask you this: How did updates to the Department of Treasury's OFAC frequently asked questions weaken sanctions on Iran? Mr. Dubowitz. So in three major ways. One, it provided explicit permission for Iran to use dollars outside of the U.S. financial system and clear dollars in offshore dollar clearing facilities. Again, that was a concession not negotiated by Iran as part of the JCPOA. Second, it weakened the restrictions on doing business with the Revolutionary Guards in providing more--more of a space for foreign companies to do business with entities where they were not majority controlled by the IRGC. And third, it lowered the know-your-customers customer due diligence requirements, which had been a longstanding feature of U.S. anti-money laundering and counter-financing of terrorism laws. Again, all three concessions unilaterally given by the Obama administration in exchange for nothing from Iran and not part of the JCPOA's explicit text, as far as I can find. Mr. Comer. Okay. Thank you, Mr. Chairman. I yield back. Mr. DeSantis. The gentleman yields back. Do we have--I guess the Dems have left the building. Let me just--we're going to go out for votes. But, Mr. Albright, you pointed out Iran is basically doing serial violations, but they're doing it kind of up to the point before it would lead to an actual response. And that's concerning, because it seems like they can get away with a lot bit by bit. What would it take for them to do--to engage in conduct that would actually lead to snapback sanctions? Because my sense is that a lot of the Europeans, who are a part of the deal, don't have a lot of appetite for that. Mr. Albright. In fact, it's actually--even though it appears to have been a very strong part of the deal, it's actually one of the problems of the deal, is that if the IA, let's say, really gets aggressive and asks to go to the military sites, it has a list that it would like to look at for various reasons, it has to worry that it will bring down the entire deal. And so I think part of the challenge for the Trump administration is to--how to enforce this deal more effectively within the context of the deal. And I think the Europeans would actually be interested. I mean, there's a whole range of issues that are on the table in these discussions among the P5+1 where Iran is, I would say, violating the deal. It's on heavy water. It's on centrifuge research and development. It's on--it is on the IA ability to do its inspections. I mentioned section T on weaponization bans. I mean, they do need to verify that this-- this part of the JCPOA is being agreed--abided by by Iran. So I think the mechanisms will probably be in the joint commission within the procurement working group, but I think a critical thing would be for the Trump administration to make it very clear that it is going to--it is going to enforce this deal strictly, and it's no longer going to tolerate, essentially, what is Iranian games to push the limits of the deal and at the same time get compensation for those. It could be in the form of money for sales of heavy water or in terms of uranium imports. It's short on uranium, and it has been able to use the deal to increase its uranium supply. Mr. DeSantis. So given some of the deficiencies that you've outlined, I think it's really good stuff. I mean, is it--is it correct to say for certain we know Iran is--that this deal has worked? I mean, it seems to me that even if some of the areas that people discussed, even if you take that at face value, there's still stuff we don't know. So can we definitively say that the deal has worked? Mr. Albright. I think you can say that the deal has accomplished certain objectives. And Mr. Lynch went through-- went through several of them, and those are important. But will the deal succeed in preventing Iran from building nuclear weapons? I think that's a very open question, and it's a worrisome question given the current trajectory of this deal. And I think it really is a time to get much tougher on Iran and to make sure that it's going to abide by it, and that--and that, in addition--and Mark discussed this--we have to fix the weaknesses in the deal, particularly in the long term. And that--and that--but we first have to get the deal in order, strictly enforce it, and then we have to start looking at how do you improve this deal to make sure that Iran does not have a huge nuclear weapons capability that starts to grow in year 10. Mr. DeSantis. Well, thank you. We--I was actually wrong about we're going to do the rest of the votes for the day. We're--the members have left because of that, so I know we had others who wanted to participate. I think it was a very informative panel. I want to thank you guys for coming, offering your views, and answering the questions. And clearly, this is going to be an issue that this administration is going to deal with and that we in the Congress are going to have to deal with in one form or another. So with that, the hearing is now adjourned. [Whereupon, at 3:31 p.m., the subcommittee was adjourned.] APPENDIX ---------- Material Submitted for the Hearing Record [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]