Bush bans most exports to Syria; oil flow could be slowed

[Diane Monaco <diane.monaco@xxxxxxxxx>]

Bush bans most exports to Syria; oil flow could be slowed
By Associated Press
Wednesday, May 12, 2004 

WASHINGTON - President Bush is tightening the U.S. economic squeeze on
Syria with a ban on all American exports to the Arab country except food
and medicine. 

For years, Syria has been branded an exporter of terror by the State
Department, which automatically prohibits U.S. arms sales and American
economic aid. The executive order Bush signed Tuesday goes further in
exacting punishment. 

Bush accused Syria of pursuing weapons of mass destruction and said that,
coupled with its influence over Lebanon, represents an ``extraordinary
threat to the national security, foreign policy and economy of the United
States.

State Department officials emphasized what they said was Syria's approval
for Palestinian extremist groups such as Hamas to plot attacks on Israel
from havens in Damascus

Meantime, Prime Minister Tony Blair shares U.S. concerns about Syria, but
will continue to pursue a policy of ``critical and constructive
engagement,'' his office said Wednesday. Blair's official spokesman said
the government shared concerns about ``WMD, terrorism, human rights and
cooperation over Iraq.'' 
Both the Syrian and Lebanese governments criticized the decision as wrong
and unfair, but Syria said it still seeks dialogue with the Bush
administration

Lebanese President Emile Lahoud said the sanctions were ``wrong in
content and timing'' and Syria will be able to withstand the ``new
injustice.'' 

Syria has said it has closed the Damascus offices of Palestinian
militants, who it insists are not terrorists but fighters resisting
Israeli occupation of their homeland. The militants did lay low after
Secretary of State Colin Powell visited last May and warned President
Bashar Assad to expel them or face sanctions. After Israel assassinated
Hamas founder Sheik Ahmed Yassin in March and another top leader in
April, the group's new leader, Khaled Mashaal, started openly preaching
revenge.

In Friday's State Department briefing, the officials said under rules
that barred identifying them that U.S. fuel oil imports from Syria, which
amounted to about $200 million last year, could be decreased.

While Syrian exports are not banned, American oil firms will be unable to
import equipment from their factories in the United States, and this
could complicate their operations, the officials said. 

Overall, the United States exported $214 million in goods to Syria last
year and imported $259 million worth. 

In Damascus, Syrian officials minimized the significance of Bush's
action. Still, Ahmed Haj Ali, media adviser to Syria's information
ministry, said the political effects of the sanctions were much bigger
than the economic ones. 

Diplomatic relations were not severed. State Department officials said
one reason was to keep alive any lingering hope that Syria might join
Middle East peacemaking efforts. Haj Ali said Syria was still committed
to dialogue with the Untied States.

The new sanctions include a ban on flights to and from the United States,
although there is no current commercial air traffic between the two
countries.

Also, the Treasury Department was authorized to freeze assets of Syrian
nationals and entities involved in terrorism, production of weapons of
mass destruction, occupation of Lebanon or terror in Iraq.

Restrictions were imposed on banking relations between American banks and
the Syrian national bank.

The sanctions go beyond minimum requirements of the Syria Accountability
Act. That law, which Bush signed into law in December, provides the basis
for his actions Tuesday.

At the same time, the president chose not to take other, more drastic
action under the law, such as barring American companies from doing
business in Syria.

``President Bush did everything within his power to send a message
through diplomatic channels that Syria should not support groups such as
Hamas and Hezbollah, but it has continued to do so,'' said U.S. Rep.
Ileana Ros-Lehtinen, R-Fla., chairwoman of the House International
Relations Middle East subcommittee.

The United States is sending ``a loud and clear message to the leaders of
Syria that we will no longer turn a blind eye to their transgressions,''
said Rep. Eliot Engel, D-N.Y, who co-authored the legislation with
Ros-Lehtinen. ``The ball is now in Damascus' court.'' 

John Kerry, Bush's probable Democratic opponent in November's election,
endorsed the sanctions but said Bush had waited too long to impose
them.

``The administration had previously acknowledged that Syria has failed to
adequately police its border with Iraq, may be developing weapons of mass
destruction and provides support to terrorist groups,'' the Massachusetts
senator said.

``Given all these troubling facts, it is unfortunate that President Bush
failed to impose sanctions until now.'' 

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