Iran the "Central Banker for Terrorism" in Middle East, Rice Says

By Jane Morse, Washington File

Secretary lauds Indonesia for its "voice of moderation" in Islamic world

Even if Iran suspends its nuclear enrichment activities, the United States would be unlikely to agree to bilateral talks, says Secretary of State Condoleezza Rice.

During a March 9 roundtable in Washington with Australian, Indonesian and Latin American journalists, Rice said "Iran has been the country that has been in many ways a kind of central banker for terrorism in important regions like Lebanon through Hezbollah in the Middle East, in the Palestinian Territories, and we have deep concerns about what Iran is doing in the south of Iraq."

Should Iran agree to drop its nuclear ambitions, she said, "that isn't a quid pro quo for anything. It just needs to be done because it's a demand of the international system."

"I don't foresee any reason for broader talks with the Iranians. We have our channels," Rice said. She emphasized that U.S. efforts to isolate the Iranian regime do not extend to the Iranian people. "We want to continue to reach out to the Iranian people in any way possible, which is why we have asked for more resources for broadcasting, more resources for educational and cultural exchanges," she said.

INDONESIA

Regarding Indonesia, Rice praised the peaceful relations among the country's many religions and ethnic groups. Indonesia, she said, is "a place that shows that people of many different faiths and many different ethnicities can live together in a democratic system." She noted U.S.-Indonesian economic cooperation and recently resumed military-to-military contacts.

Rice said the current Indonesian government supports the road map for peace in the Middle East, adding: "Indonesia has been a voice for moderation, and that is perhaps what's needed most." She added that she hoped Indonesia would urge Hamas to renounce violence and recognize Israel.

When asked about the possible rise of extremist Islam in Indonesia, the secretary predicted that as Indonesia's democracy becomes stronger and matures it will permit people "to channel their differences, their interests, into a political process rather than turning to violence."

CHINA

On the increasing power and influence of China, Rice said regional allies "have a joint responsibility and obligation to try and produce conditions in which the rise of China will be a positive force in international politics, not a negative force."

Acknowledging that China will improve its military forces, Rice said China's neighbors and U.S. allies "need to engage the Chinese in dialogue about security in the region." The U.S.-Japan-Australia trilateral dialogue, she said, "is a way of establishing a common understanding of how the region is moving and what the challenges of the region are and then to also have common approaches to managing what is a very dramatic change."

"China is both a challenge and an opportunity," Rice said. "It's clearly a challenge because it's rising so fast, it's changing so fast. Its external policies are moving very quickly throughout the region," she said.

But China's huge population and vibrant economy - one that has the potential to be "a real driver of economic growth in the international system" - provide "an opportunity that we cannot miss," Rice said. She emphasized that "we all have to encourage China to operate in a kind of rules-based international economy. ... So Chinese behavior on currency, Chinese behavior on access to the services sector, Chinese behavior on intellectual property rights, Chinese behavior on what happens to private investment in what is still a huge government sector of the Chinese economy - these are the kinds of issues that we need to understand better."

Rice will be traveling to Chile, Peru, Indonesia and Australia March 10-18. In addition to bilateral meetings at all stops, the secretary will attend the inauguration of President Michelle Bachelet in Chile and hold the first ministerial-level Trilateral Strategic Dialogue with Australia and Japan in Sydney, Australia. (See related article.)

For more on U.S. policy in the Middle East, see Middle East and North Africa.

For more on U.S. policy in East Asia, see East Asia and the Pacific.

A transcript of Rice's remarks is available on the State Department Web site.

Source: U.S. Department of State

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