Iran Watch: The myth behind Israel's attack on Osiraq

Iran Watch, part 5 - a response to some nonsense from Guido Fawkes.

Iran Watch, part 5 - a response to some nonsense from Guido Fawkes.

In a tweet to me this morning, libertarian blogger and Iran-war-agitator Paul Staines (aka "Guido Fawkes") claimed:

@ns_mehdihasan Israel bombed Saddam's nuclear reactor and ended his nuclear ambitions. Thank God.

I once told Staines that he should stick to blogging about bond markets and deficits and stay away from foreign affairs and, in particular, the Middle East. I wish he'd taken my advice.

"Ended his nuclear ambitions", eh? Staines is referring to the Israeli bombing of Saddam Hussein's Osiraq nuclear reactor in 1981 - codenamed "Operation Babylon". He couldn't be more wrong about the fallout from that now-notorious "preventive" attack on Iraq - and the lessons that we should learn from it now, three decades on, in relation to Iran's controversial nuclear programme.

Professor Richard Betts of Columbia University is one of America's leading experts on nuclear weapons and proliferation. He is a senior fellow at the Council on Foreign Relations and a former adviser to the CIA and the National Security Council. Here he is writing in the National Interest in 2006:

Contrary to prevalent mythology, there is no evidence that Israel's destruction of Osirak delayed Iraq's nuclear weapons program. The attack may actually have accelerated it.

...Obliterating the Osirak reactor did not put the brakes on Saddam's nuclear weapons program because the reactor that was destroyed could not have produced a bomb on its own and was not even necessary for producing a bomb. Nine years after Israel's attack on Osirak, Iraq was very close to producing a nuclear weapon.

Here's Malfrid Braut-Hegghammer, a post-doctoral fellow at Harvard's Kennedy School and an expert on weapons of mass destruction, writing in the Huffington Post in May 2010:

The Israeli attack triggered Iraq's determined pursuit of nuclear weapons. In September 1981, three months after the strike, Iraq established a well-funded clandestine nuclear weapons program. This had a separate organization, staff, ample funding and a clear mandate from Saddam Hussein. As the nuclear weapons program went underground the international community lost sight of these activities and had no influence on the Iraqi nuclear calculus.

And here's Emory University's Dan Reiter, an expert on national security and international conflict, writing in The Nonproliferation Review in July 2005:

Paradoxically, the Osiraq attack may have actually stimulated rather than inhibited the Iraqi nuclear program. The attack itself may have persuaded Saddam to accelerate Iraqi efforts to become a nuclear weapons power. . . Following Osiraq, the entire Iraqi nuclear effort moved underground, as Saddam simultaneously ordered a secret weapons program that focused on uranium separation as a path to building a bomb.

. . . In short, before the Osiraq attack, both the French and the IAEA opposed the weaponization of Iraq's nuclear research program, and had a number of instruments to constrain weaponization, including control over, including control over reactor fuel supply and multiple and continuous inspections. After the Osiraq attack, the program became secret, Saddam's personal and material commitment to the program grew, and the non-proliferation tools available to the international community became ineffective.

[Hat-tip: MediaMatters]

Then there's the Duelfer Report, released by the Iraq Survey Group in 2004 (and praised by the neoconservatives!), which admitted that

Israel's bombing of Iraq's Osirak nuclear reactor spurred Saddam to build up Iraq's military to confront Israel in the early 1980s.

Oh, and there's also the well-informed Bob Woodward, who wrote in his book State of Denial:

Israeli intelligence were convinced that their strike in 1981 on the Osirak nuclear reactor about 10 miles outside Baghdad had ended Saddam's program. Instead [it initiated] covert funding for a nuclear program code-named 'PC3' involving 5.000 people testing and building ingredients for a nuclear bomb.

So the clear lesson from Osiraq is the exact opposite of what Staines and others on the pro-Israeli, bomb-Iran, chickenhawk right want us to believe: bombing Iran's nuclear facilities is likely to increase, not decrease, the prospect of an illicit Iranian nuclear weapons programme. So far, there is no evidence of such a programme - see the IAEA's last report - but an illegal Israeli or American air attack on Iranian nuclear facilities would give the Iranian government the perfect excuse to take its nuclear programme underground, out of sight and out of reach. Don't take my word for it - here's the former CIA director Michael Hayden speaking in January:

When we talked about this in the government, the consensus was that [attacking Iran] would guarantee that which we are trying to prevent -- an Iran that will spare nothing to build a nuclear weapon and that would build it in secret.

On a related note, the Osiraq attack was followed, as I noted in an earlier blogpost, by a UN Security Council Resolution which condemned the Israeli government and called upon it "urgently to place its nuclear facilities under IAEA safeguards" - something Messrs Netanyahu and Barak continue to refuse to do. Why don't we ever talk about this particular aspect of the 1981 raid?

On an unrelated note, Staines and co continue to try and label opponents of military action as "friends of Ahmadinejad" - despite the fact that these include, among others, the afore-mentioned former director of the CIA as well as the ex-head of Mossad. It's a cheap, smear tactic to try and close down debate on this all-important, life-and-death issue and is a perfect reflection of how poor and weak the hawks' arguments are.

Finally, if you haven't read it yet, please read and share Harvard University professor Stephen Walt's excellent and informed blogpost on the "top ten media failures in the Iran war debate" and Israeli novelist David Grossman's Guardian column on how "an attack on Iran will bring certain disaster, to forestall one that might never come".

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

Getty
Show Hide image

Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation