Syria: Background and U.S. Relations
Jeremy M. Sharp
Specialist in Middle Eastern Affairs
April 26, 2010
Congressional Research Service
7-5700
www.crs.gov
RL33487
CRS Report for Congress
P
repared for Members and Committees of Congress
Syria: Background and U.S. Relations
Summary
Despite its weak military and lackluster economy, Syria remains relevant in Middle Eastern
geopolitics. Syria plays a key role in the Middle East peace process, acting at times as a “spoiler”
by sponsoring Palestinian militants and facilitating the rearmament of Hezbollah. At other times,
it has participated in substantive negotiations with Israel. Syria’s longstanding relationship with
the Iranian clerical regime is of great concern to U.S. strategists. As Syria grew more estranged
from the United States throughout this decade, Syrian-Iranian relations improved, and some
analysts have called on U.S. policymakers to woo Syrian leaders away from Iran. Others believe
that the Administration should go even further in pressuring the Syrian government and should
consider implementing even harsher economic sanctions against it.
A variety of U.S. legislative provisions and executive directives prohibit direct aid to Syria and
restrict bilateral trade relations between the two countries, largely because of Syria’s designation
by the U.S. State Department as a sponsor of international terrorism. On December 12, 2003,
President Bush signed the Syria Accountability Act, H.R. 1828, as P.L. 108-175, which imposed
additional economic sanctions against Syria. In recent years, the Administration has designated
several Syrian entities as weapons proliferators and sanctioned several Russian companies for
alleged WMD or advanced weapons sales to Syria. Annual foreign operations appropriations
legislation also has contained provisions designating several million dollars annually for
programs to support democracy in Syria.
In recent months, the Obama Administration and the 111th Congress have increased calls for
greater U.S. engagement with Syria. Several Congressional delegations have visited Syria, and
Administration officials recently held talks with their Syrian counterparts. Whether or not this
dialogue will lead to substantial changes in the U.S.-Syrian bilateral relationship remains to be
seen.
H.Res. 1285, which was referred to the House Committee on Foreign Affairs on April 21, 2010,
“strongly condemns the Government of Syria for transferring Scud missiles and other advanced
weapons and missile systems to the Hezbollah terrorist organization” and, among other things,
“urges the President to reevaluate the nomination of Robert Ford as Ambassador to Syria.”
This report analyzes an array of bilateral issues that continue to affect relations between the
United States and Syria.
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Contents
Overview of U.S.-Syrian Relations.............................................................................................. 1
Chronology of Key Events in U.S.-Syrian Relations 2009-2010 .................................................. 2
Syria’s Relations with Iran .......................................................................................................... 9
Syrian Support for Terrorist Activity ........................................................................................... 9
U.S. Sanctions........................................................................................................................... 10
General Sanctions Applicable to Syria................................................................................. 11
Specific Sanctions Against Syria ......................................................................................... 12
The 2003 Syria Accountability Act ................................................................................ 13
Targeted Financial Sanctions ......................................................................................... 14
Effect of U.S. Sanctions on Syria’s Economy ................................................................ 16
Internal Political Scene ............................................................................................................. 17
Pillars of the Regime........................................................................................................... 18
The Alawite Sect ........................................................................................................... 18
The Ba’th Party............................................................................................................. 18
The Military and Security Establishment ....................................................................... 18
The Syrian Opposition ........................................................................................................ 19
The Syrian Muslim Brotherhood ................................................................................... 19
The Damascus Declaration............................................................................................ 20
Syrian Dissidents, Exiles, and Defectors Abroad ........................................................... 20
Future Prospects........................................................................................................................ 20
Tables
Table 1. U.S.-Syrian Trade Statistics 2005-2009 ........................................................................ 17
Contacts
Author Contact Information ...................................................................................................... 21
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Syria: Background and U.S. Relations
Overview of U.S.-Syrian Relations
Since taking office, President Obama has attempted to normalize U.S.-Syrian relations and
distance U.S. policy from the harsh, anti-Syrian rhetoric expressed during the Bush
Administration. Although some critics of this approach have compared U.S. engagement with
Syria to appeasement of the Asad regime, the Administration has insisted that its more diplomatic
tone does not mask U.S. firmness and insistence in seeking serious and verifiable changes in
Syrian behavior in order to advance bilateral relations. In addition, as part of its overall attempt to
jumpstart the Middle East peace process, the Obama Administration has sought to enlist Syrian
support for its efforts through a series of high level meetings and private, behind-the-scenes
shuttle diplomacy between Syrian, Israeli, and other regional governments.
Nevertheless, despite the nomination of a U.S. ambassador and the dispatching of a number of
diplomatic missions to Syria, there appear to have been few substantive changes in Syrian
government policy over the last year. Therefore, many observers argue that the United States
should await positive steps from Damascus that would warrant further improvement in bilateral
relations. Syria continues to support Hamas and Hezbollah, maintain its diplomatic alliance with
Iran, harbor Iraqi Baathists (and possibly Al Qaeda in Iraq operatives as well), and obstruct the
investigations of the International Atomic Energy Agency (IAEA) into the alleged nuclear site
that Israel bombed in Syria in 2007.
From Syria’s standpoint, while it has applauded the Obama Administration’s more robust
diplomatic approach, the government asserts that its fundamental grievances with U.S. policy,
i.e., the maintaining of U.S. sanctions, have not been addressed. According to President Bashar al
Asad, “What has happened so far is a new approach. Dialogue has replaced commands, which is
good. But things stopped there.”1
More importantly, Israeli-Syrian peace talks remain stalled. Although the Obama Administration
would like to see the Israeli-Syrian peace track revived, both parties continue to differ over the
framework for a resumption in either direct or indirect negotiations. Israel insists that any new
negotiations with Syria should be conducted without preconditions (such as an Israeli pledge to
withdraw fully from the Golan Heights) and has ruled out a return to Turkish-mediated talks,
several rounds of which were conducted in 2007. Syria would like Turkey to mediate indirect
talks with Israel before moving on to direct talks. In the fall of 2009, French President Nicolas
Sarkozy separately hosted the leaders of Israel and Syria in the hopes of reviving talks, but no
positive results were apparent.
Syria has blamed Israel for the lack of traction on the peace process. Overall, though Syria has
made amends with Saudi Arabia, drawn closer to Turkey, intervened less forcefully in Lebanon,
and improved relations with France, ultimately, further improvement in U.S.-Syrian relations
depends in part on positive movement in the Arab-Israeli peace process, a prospect that seems far
off at the moment.
Now, with new allegations surfacing that Syria may have either transferred its own modified Scud
missiles or facilitated the transfer of these missiles from Iran to Hezbollah in Lebanon, the Obama
1 "Syria Says U.S. Is Slow to Act," Wall Street Journal, November 16, 2009.
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Administration may face increased pressure to take a more hard-line stance toward Syria and
temper the frequency or tone of U.S. diplomatic engagement. Some lawmakers may object to
sending Ambassador-designate Robert S. Ford to Syria in the current climate, perceiving it as an
ill-timed good-will gesture toward a rogue regime. The Administration has argued that having an
ambassador in Damascus boosts U.S. leverage with the Syrian government and provides the U.S.
government access to high level Syrian officials to address sensitive issues, such as new
allegations of missile transfers.
Figure 1. Map of Syria
Source: Map Resources. Adapted by CRS.
Chronology of Key Events in U.S.-Syrian Relations
2009-2010
• Syria’s Reaction to Operation Cast Lead. The Obama Administration came to power
soon after indirect Syrian-Israeli talks were suspended. Syria firmly opposed Israel’s
2008-2009 Operation Cast Lead in Gaza. Soon after the start of Israeli air strikes, Syria
said that Israel's December 2008 attack “closed the door on the Syrian-Israeli indirect
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talks.” After both Israel and Hamas declared a cease-fire, Syria called on its fellow Arab
countries to suspend the Saudi-sponsored Arab Peace Initiative and demanded, along with
Hezbollah and Iran, the unconditional opening of all Israeli crossings into Gaza, echoing
Hamas’s stance.
• U.S. Sanctions. In a possible early good-will gesture, on February 9, 2009, the U.S.
Department of Commerce approved an export license for Boeing 747 spare parts2 to
Syria’s national air carrier, Syrian Air.3
• Syrian Ambassador Meets Feltman. On February 26, 2009, then Acting Assistant
Secretary of State for Near Eastern Affairs Jeffrey Feltman4 held a meeting at the State
Department with Syrian Ambassador Imad Mustapha. After the meeting, State
Department spokesman Robert Wood noted that “We want to engage Syria but we do
have a lot of concerns.... We want to take a new path in the Middle East, we want to
engage Syria, but Syria has to take some steps.”5
• U.S. Delegation Visit. In March 2009, then Acting Assistant Secretary of State for Near
Eastern Affairs Feltman and National Security Council Middle East Director Daniel
Shapiro traveled to Syria for meetings with high level Syrian officials. According to
Ambassador Feltman, “I don’t want to go into a lot of detail in what was discussed in
diplomatic channels today or elsewhere, but you know, you’ve heard the Syrians say that
they want a stable, secure Iraq.... Both sides say they want a unified Iraq. There are areas
like this where our interests coincide.... And these are areas that we can explore...”6
• U.S. Delegation Returns. In early May 2009, Feltman and Shapiro returned to Syria for
additional consultations. According to Feltman, “We noted in our discussions
improvement in our ability to work bilaterally with the Syrians since our last visit here
two months ago…. To be sure, Syria and United States share some mutual interests. Syria
and United States also have some differences in our points of view on certain important
issues…. We came here today as part of President Obama’s commitments to use
diplomacy and to use dialogue in order to try to see where we can move forward, where
our interests overlap, and to see where we can try and work together to bridge the
2 In 2008, Syrian Air and European aerospace manufacturer Airbus tentatively agreed to a sale of up to 54 commercial
aircraft; however, the completion of the sale may be complicated by U.S. sanctions since the Airbus planes use U.S.
components.
3 Executive Order 13338, which implements the Syria Accountability Act, states that the Secretary of Commerce shall
not permit the exportation or re-exportation to Syria of U.S. products “except to the extent provided in regulations,
orders, directives, or licenses issued pursuant to the provisions” of the order. U.S. Department of Commerce Bureau of
Industry and Security regulations [Code of Federal Regulations, Title 15, Chapter VII, Part 742.9(b)] state U.S. export
licensing policy with regard to Syria. According to the BIS regulations, “applications for export and re-export to all
end-users in Syria... will generally be denied,” including licenses for aircraft, helicopters, engines, and related spare
parts and components, “except that parts and components intended to ensure the safety of civil aviation and the safe
operation of commercial passenger aircraft will be reviewed on a case-by-case basis, with a presumption of approval.”
4 On August 18, 2009, Ambassador Jeffrey Feltman was sworn in as Assistant Secretary of State for Near Eastern
Affairs (NEA). Ambassador Feltman had been praised for his work as Ambassador to Lebanon during the height of
U.S.-Syrian tensions there in the aftermath of the Hariri assassination. His appointment was viewed positively in
Washington by advocates of a firm U.S. policy approach toward Syria.
5 "Clinton: Too soon to Predict Thaw with Syria," Reuters, February 26, 2009.
6 U.S. Department of State, "Acting Assistant Secretary Feltman Briefs on Meetings With Syrian Officials," press
release, March 7, 2009.
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differences that remain in some of our policies…. I would describe our meeting today as
constructive.”7
• U.S. Sanctions. On May 7, 2009, nearly coinciding with the Feltman and Shapiro visit,
the Obama Administration renewed the annual declaration of a National Emergency with
respect to Syria (as called for in the National Emergencies Act) in order to maintain
certain targeted financial sanctions against Syrian individuals, including key government
leaders and security personnel.8
• First Mitchell Visit. One week after Lebanon held successful parliamentary elections in
June 2009, U.S. Special Envoy for Middle East Peace Senator George Mitchell arrived in
Syria for the first time for meetings with President Asad and other top officials. After his
visit, Ambassador Mitchell remarked that “Syria has an integral role to play in reaching
comprehensive peace…. I've held substantive discussions with President Asad and on the
full range of serious issues in our bilateral relationship…. We seek to build on this effort
to establish a relationship built on mutual respect and mutual interest.”9
• CENTCOM Delegation. In June 2009, a delegation from the U.S. Central Command
(CENTCOM) visited Syria for discussions on stemming the flow of foreign fighters to
Iraq and enhancing Syria’s efforts to monitor its own borders.10
• Possible Return of a U.S. Ambassador. In late June 2009, the Administration informed
Syria that it intended to return a U.S. ambassador to Damascus in the coming months.
• U.S. Sanctions. In July 2009, the Obama Administration pledged to grant more waivers
under the Syria Accountability Act to allow for increased U.S. export to Syria of goods
related to information technology, telecommunication equipment, and civil aviation
components.
• U.S. Sanctions. On July 30, 2009, President Obama reissued a “Continuation of the
National Emergency with Respect to the Actions of Certain Persons to Undermine the
Sovereignty of Lebanon or its Democratic Processes and Institutions,” thereby extending
the President’s authority to enforce Executive Order 13441, which blocks the property of
persons undermining the sovereignty of Lebanon. In the past, the U.S. Treasury
Department has designated several individuals reportedly affiliated with the Syrian
regime's efforts to reassert Syrian control over the Lebanese political system. The
President’s July 2009 declaration stated that:
“Despite some positive developments in the past year, including the establishment of
diplomatic relations and an exchange of ambassadors between Syria and Lebanon, the
actions of certain persons continue to contribute to political and economic instability in
7 "US envoy on new 'Constructive' Visit to Syria," Agence France Presse, May 7, 2009.
8 The President, "Continuation of the National Emergency with Respect to the Actions of the Government of Syria," 74
Federal Register 21765, May 8, 2009.
9 "Mitchell Cites Syria's Role In Mideast Peace Effort," New York Times, June 14, 2009.
10 "US, Syria Discuss Cooperation on Iraq: Report," Agence France Presse, June 14, 2009.
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Lebanon and continue to pose an unusual and extraordinary threat to the national security
and foreign policy of the United States.”11
• Tripartite Committee. After a second CENTCOM delegation visited Syria in August
2009, the United States announced that the Administration and the Syrian government
had tentatively agreed to establish a tripartite committee, with the Iraqi government, to
better monitor the Syrian-Iraqi border.
• Baghdad Bombings. A series of Al Qaeda in Iraq bomb attacks on August 19, 2009, at
the Iraqi foreign and finance ministries killed about 100 people and injured hundreds
more and seriously disrupted Syrian-Iraqi relations after the Iraqi government directly
accused the Asad regime of hosting terrorist training camps and those responsible for the
attacks. The series of heated exchanges between Syrian and Iraqi leaders that followed
Iraq’s accusations were particularly damaging to their diplomatic relationship, as the
acrimony followed several breakthroughs in bilateral relations, including a visit by Iraqi
Prime Minister Nuri al Maliki to Syria and the formation of a Syria-Iraq-United States
tripartite committee.
• Syrian Envoy Travels to Washington, D.C. In late September 2009, Deputy Foreign
Minister Dr. Faysal Miqdad visited Washington for meetings with State Department
officials and Members of Congress. According to Syrian Foreign Minister Walid
Moallem, “I am optimistic about this visit. The reason is that this is the first visit by a
Syrian official to Washington in more than eight years…. The agenda is clear; it is
continuing the Syrian-U.S. dialogue to normalize bilateral relations. There are, of course,
many obstacles and suspicions after an eight-year suspension of contacts. The gap must
be bridged. We cannot expect or pin large hopes on a first meeting to accomplish this
mission. This is a continuing process and this is part of the dialogue. Therefore, we view
this step as important.”12
• Syria Facilitates Iranian Arms Shipment to Hezbollah. In November 2009, Israeli
forces seized a freighter named the Francop allegedly en route from Iran to the Syrian
port of Latakia which contained, according to reports, thousands of medium-range 107-
and 122-millimeter rockets, armor-piercing artillery, mortar bombs, hand grenades, and
ammunition for Kalashnikov rifles possibly destined for Lebanon for use by Hezbollah.13
• U.S. Sanctions. In December 2009, the United States rejected an Airbus request to sell
new planes to Syria because the average Airbus plane contains an estimated 40%
component parts of U.S. origin – thus making it illegal to export to Syria without an
export license under the Department of Commerce’s Export Administration Regulations
(EAR) implementing provisions in the Syria Accountability and Lebanese Sovereignty
Restoration Act (P.L. 108-175).14
11 The White House, Office of the Press Secretary, "Continuation of National Emergency with Respect to Lebanon -
Measures continue against People Undermining Lebanon's Government," July 30, 2009.
12 BBC Monitoring Middle East, "Syrian Foreign Minister Discusses Iraq Crisis, Regional Issues in Interview," Dubai
Al-Arabiya Television in Arabic, September 30, 2009.
13 "Israeli Navy Seizes Weapons Believed to Be for Hezbollah," Wall Street Journal, November 5, 2009.
14 “US prohibited Airbus selling planes to Syria: Damascus,” Agence France Presse, December 29, 2009.
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• War of Words. After months of inactivity, a “war of words” broke out in February 2010
between Israel and Syria after President Asad said that Israel is “pushing the region
towards war, not peace.” His statement was viewed as either a calculated response or a
misinterpretation of an earlier statement from Israeli Defense Minister Ehud Barak who
said that, in the absence of a peace settlement with Syria, a full-scale war could break out.
The heated exchanges culminated in a Syrian threat to target Israeli cities in the “next
war,” and a threat from Israeli Foreign Minister Avigdor Lieberman to “topple” the Asad
regime should war break out.15
• Ford named Ambassador-Designate. On February 16, 2010, President Obama officially
announced that he had nominated the deputy chief of mission at the U.S. embassy in
Baghdad, Robert S. Ford, to be the new U.S. ambassador to Syria. The announcement
coincided with the visit of U.S. Under Secretary of State for Political Affairs William
Burns to Syria.
• Burns Visit. On February 17, 2010, U.S. Under Secretary of State for Political Affairs
William Burns traveled to Syria for a meeting with President Asad. Afterward, Burns said
that “We talked candidly about areas in which we disagree, but also identified areas of
common ground on which we can build.”16 The Israeli newspaper Ha’aretz reported that,
soon after the visit, U.S. and Syrian officials allegedly held additional talks in which the
Administration demanded a halt to weapons smuggling to Hezbollah via Syria.17
• Syria Purchases Two French Commercial Aircraft. On February 20, 2010, after a
series of French-Syrian bilateral meetings, France agreed to provide Syria with two ATR
72-500 commercial-passenger aircraft. The sale of the planes, manufactured by Avions de
Transport Régional, an Italian-French joint venture, does not violate U.S. sanctions law,
though the deal was financed by the Commercial Bank of Syria. Under Section 311 of the
USA PATRIOT Act, U.S. financial institutions must sever correspondent accounts with
the Commercial Bank of Syria because of money laundering concerns. While the French-
Syrian transaction does not violate U.S. sanctions law, U.S. sanctions have noticeably
curtailed Syria’s ability to modernize its commercial aviation sector.
• IAEA Report on Syria. The IAEA reported in February 2010 that uranium particles
found at a Syrian desert complex bombed by Israel in 2007 point to possible Syrian
nuclear activity.18 Previous IAEA reports said that the uranium particles raised concern
because they did not come from Syria's declared inventory. Inspectors examined the
bombed site in June 2008, but Syria has barred additional access since then.
15 Americans For Peace Now, Middle East Peace Report, Volume 11, Issue 18, February 16, 2010.
16 "U.S. Diplomat, Syrian President Meet in Damascus," Wall Street Journal, February 18, 2010.
17 Open Source Center, "US Warns Israel, Syria Against 'Miscalculation;' Baraq: Iran Not 'Totally Crazy'," Israel --
OSC Summary in English , February 28, 2010, Document ID#GMP20100228739002.
18 The IAEA concluded in February 2010 that, “The information and access provided by Syria to date has not allowed
the Agency to confirm Syria’s statements regarding the non-nuclear nature of the destroyed building or to substantiate
Syria’s claims regarding the procurement efforts for civilian, non-nuclear uses.” International Atomic Energy Agency,
Implementation of the NPT Safeguards Agreement in the Syrian Arab Republic, Report by Director-General to Board
of Governors, GOV/2010/11, February 18, 2010. Available at: http://www.isis-online.org/uploads/isis-
reports/documents/IAEA_Report_Syria_18Feb2010.pdf
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• Syria-Iran-Hezbollah Meeting. In a symbolic move designed to show Western
audiences its solidarity with anti-Israel forces, Syrian President Asad held a joint press
conference in late February 2010 with Iranian President Mahmoud Ahmadinejad in which
both leaders criticized U.S. policy in the Middle East. They then jointly hosted Hezbollah
Secretary General Hassan Nasrallah.
• Syria Rejects Arab League Support of Israeli-Palestinian Proximity Talks. In early
March 2010, Syrian leaders criticized the Arab League’s approval of Palestinian
participation in possible U.S.-mediated “proximity talks” between the Palestinian
Authority and Israel. According to Yusuf al Ahmed, Syria's representative at the Arab
League, “It was clear that the meeting...was aimed at providing an Arab cover for an
already-taken Palestinian decision to hold indirect negotiations with Israel with no
guarantees.” Syrian Foreign Minister Walid al Moallem remarked that “The Palestinians
are better positioned to know what to do.” In response, a U.S. State Department
spokesman stated that, “We value the work that a number of countries have done during
these meetings and what they've done throughout the previous weeks and months. These
are difficult issues. And not everyone is going to agree on every step, and not everyone's
going to agree on every detail. But ultimately, we have no choice here.”19
• Ambassador-Designate Ford’s Confirmation Hearing. On March 16, 2010,
Ambassador-Designate Robert S. Ford testified before the Senate Foreign Relations
Committee. In his prepared statement, he remarked that:
“And I am under no illusions as to the nature of the challenge I will face if confirmed; during
my more than four years in Iraq, I saw first-hand the tragic aftermath of terrorist car
bombings perpetrated by foreign fighter networks that infiltrated suicide bombers from
Damascus airport over the Syrian border and into Iraq. The Syrian government has also been
a steadfast supporter of terrorist groups like Hamas, Palestinian Islamic Jihad, and Hezbollah
for more than 20 years. Without significant changes in its policy, Syria will remain on our
list of State Sponsors of Terrorism for the foreseeable future. And while we and our friends
in the region are working to mitigate Iran`s influence, Syria has helped promote Iran’s
destabilizing policies…. I do not think that the Syrians will change their policies quickly.
Finding avenues of cooperation with Syria will be a step-by-step process that will require
patience and steady commitment to our principles.”20
• Allegations of Syrian Scud Missile Transfers to Hezbollah. In early April
2010, multiple reports surfaced suggesting that Syria may have transferred Scud
missiles to Hezbollah in Lebanon.21 Syria has denied all charges. As of April 16,
2010, unnamed U.S. officials have acknowledged that they believe that Syria
intended to transfer long-range missiles to Hezbollah, “but there are doubts about
whether the Scuds were delivered in full and whether they were moved to
Lebanon.”22 According to U.S. State Department Spokesman P.J. Crowley,
19 U.S. State Department, State Department Press Briefing - Assistant Secretary P.J. Crowley briefs reporters March 3,
March 3, 2010.
20 U.S. Congress, Senate Committee on Foreign Relations, Statement of Robert Ford, Ambassador, Syrian Arab
Republic, Ambassadorial Nomination, 111th Cong., March 16, 2010.
21 Open Source Center, "Syria Sends Scud Missiles to Hizballah , Israel Threatens War," Kuwait Al-Ra'y Online in
Arabic , April 11, 2010, GMP20100411184001.
22 "U.S. Says Unclear if Hezbollah Took Scuds to Lebanon," Reuters, April 16, 2010.
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“Regardless of the issue of Scuds, we remain concerned about the provision of
increasingly sophisticated weaponry to parties, to Hezbollah, and this is an issue
that we continue to raise with Syria.” According to Jane’s Defence Weekly,
although Syria already possesses missiles or rockets with similar capabilities to a
Scud, “One critical advantage of the 'Scud D' [it is unknown if the Scud D was
transferred to Hezbollah] is its ability to carry a chemical warhead,” though there
is no evidence to suggest that Hezbollah is in possession of chemical weapons.23
On April 19, 2010, the State Department called in the most senior Syrian
diplomat in Washington, Zouheir Jabbour, the deputy chief of mission at the
country’s embassy, to “review Syria’s provocative behavior concerning the
potential transfer of arms to Hezbollah.” The State Department then issued a
statement saying, “The United States condemns in the strongest terms the transfer
of any arms, and especially ballistic missile systems such as the Scud, from Syria
to Hezbollah…. “The transfer of these arms can only have a destabilizing effect
on the region, and would pose an immediate threat to both the security of Israel
and the sovereignty of Lebanon.”24
• Feltman Testimony. On April 21,2010, Jeffrey D. Feltman, Assistant Secretary
of State For Near Eastern Affairs, testified before the House Foreign Affairs
Committee, Subcommittee on Middle East and South Asia. In his testimony,
Feltman stated that:
“If confirmed by the Senate, the administration intends to post Ambassador Ford to
Damascus, enabling him to proceed with his work as the President's personal representative.
As we try to minimize the prospects of war and maximize the chances for peace in a region
where our national security is defended by American men and women in uniform, we have
no choice but to use all the tools of statecraft at our disposal. We simply must make sure that
leaders in Syria and elsewhere understand fully and accurately the position of the U.S. before
they act - this is not something to be left to rumor, to second- or third-hand knowledge, or to
others. This is our job. To do less amounts to negligence; to unilateral diplomatic
disarmament. This is not the option we will pursue.”
• Secretary Clinton’s Remarks. On April 22, 2010, Secretary of State Hillary
Rodham Clinton stated that “The larger question as to what the United States will
do with respect to Syria is one we've spent a lot of time considering and debating
inside the administration…. Where we are as of today is that we believe it is
important to continue the process to return an ambassador; this is not some kind
of reward for the Syrians and the actions they take that are deeply disturbing.”
23 "Israel claims Syria has transferred 'Scuds' to Hizbullah," Jane's Defence Weekly, April 16, 2010.
24 "U.S. Speaks to Syrian Envoy of Arms Worrie," New York Times, April 19, 2010.
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Syria’s Relations with Iran
Syria’s historic rivalry with neighboring Iraq25 created opportunities for improved Syrian relations
with Iran, another natural rival of Iraq. The Syrian-Iranian alliance has always been considered a
“marriage of convenience,” as both countries have placed a higher value on regional strategic
interests rather than shared cultural and religious affinities.26 In recent years, as Syria has grown
more estranged from the West, Syrian-Iranian relations have improved, and some analysts have
called on U.S. policymakers to “flip” Syria and woo it away from Iran. Others assert that the
foundation of the Syrian-Iranian relationship—a shared concern over a resurgent Iraq, support for
Hezbollah in Lebanon, and countering Israel—is deeply rooted in the geopolitics of the region
and cannot be easily overturned.
Reliable information on the extent of Iranian influence in Syria is difficult to quantify.
Nevertheless, there have been several recent reports of increased Iranian investment and trade
with Syria. In the financial sector, Iran has stated its intention to establish a joint Iranian-Syrian
bank, possibly involving Bank Saderat and the Commercial Bank of Syria – two entities which
have been sanctioned by the U.S. Treasury Department. In the manufacturing and industrial
sectors, the Iran Khodro Industrial Group has established two car assembly plants in Syria.
Iranian companies also have invested in concrete production, power generation, and urban
transportation. In the energy sector, Syria, Iran, Venezuela and Malaysia established a joint
petroleum refinery in Homs, Syria. In addition, Iran, Turkey, and Syria reached a new natural gas
deal that would allow Iran to export 105 billion cubic feet of natural gas annually to Syria via
Turkey. Despite increased Iranian investments, the overall volume of Iranian-Syrian trade remains
low. According to the Economist Intelligence Unit, bilateral trade may total between just $160
and $400 million.27 Ironically, the total volume of U.S. trade with Syria exceeds that of Iran-
Syria.
Syrian Support for Terrorist Activity
Syria was placed on the State Department’s State Sponsors of Terrorism List in 1979. According
to the U.S. State Department's most recent annual report on global terrorism, “The Syrian
government has not been implicated directly in an act of terrorism since 198628, although an
25 For many years, Syria and Iraq had an uneven and often troubled relationship, stemming from political disputes,
border tensions, demographic differences, and personal animosity between the two countries' late leaders: Syrian
President Hafiz al Asad and Iraqi President Saddam Hussein. Moreover, the two countries were governed by rival
wings of the pan-Arab Baath Party. Syria severed diplomatic relations with Iraq in 1982 after it accused Saddam
Hussein's regime of inciting and supporting Syrian Muslim Brotherhood-led riots. In the late 1990s bilateral relations
improved markedly, primarily in the economic sphere. The two countries formally restored relations in November
2006.
26 Thousands of Iranian Shiites do visit Syria annually on pilgrimages to several famous shrines and mosques.
27 "Syria economy: Iran bank deal?," Economist Intelligence Unit, October 14, 2008.
28 Syrian intelligence was implicated in an abortive attempt to place a bomb on an El Al airliner in London in 1986. In
what is now referred to as the “Hindawi Affair,” the convicted Syrian operative was Nezar Hindawi, a Jordanian of
Palestinian origin who gave his pregnant girlfriend a bomb (1.5 kilograms of Semtex) to take on board an El Al jet at
Heathrow airport. When the plot failed, Hindawi was given refuge in the Syrian Embassy in London before turning
himself in. During his trial in England, a British court concluded that Hindawi came from Damascus to London with a
bogus Syrian passport identifying him as a Government official, that he traveled in the company of a Syrian airline
crew, and that he had fled to the Syrian Embassy to meet with the Syrian Ambassador after the bomb plot was
(continued...)
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ongoing UN investigation into the February 2005 assassination of former Lebanese Prime
Minister Rafiq Hariri continued to examine Syrian involvement.”29
Syria remains indirectly involved in terrorist activity, as the Asad regime supports terrorist proxy
groups to further its foreign policy aims in the Levant region. For years, Syria has indirectly
supported a number of U.S. State Department-designated Foreign Terrorist Organizations (FTOs),
including Hezbollah in Lebanon and the Palestinian groups Hamas, Palestinian Islamic Jihad
(PIJ), the Popular Front for the Liberation of Palestine (PLFP), and the Popular Front for the
Liberation of Palestine-General Command (PFLP-GC), all of which have offices in Damascus
and operate within Syria's borders. Syria admits its support for Palestinians pursuing armed
struggle in Israeli occupied territories and for Hezbollah raids against Israeli forces on the
Lebanese border, but insists that these actions represent legitimate resistance activity as
distinguished from terrorism.
Anti-Syrian Lebanese politicians have accused Syria of sponsoring Fatah al Islam, a militant
Islamic fundamentalist group that fought the Lebanese Army for three months in 2007 from
inside the Palestinian refugee camp of Nahr al Bared.30 On August 9, 2007, Secretary of State
Rice designated Fatah al Islam as a Specially Designated Global Terrorist Organization. The
designation, among other things, cuts off Fatah al Islam from the U.S. financial system, sanctions
any of its property or interests in the United States, and blocks its members from entry into the
United States. Fatah al Islam was believed by some to have fractured and dispersed after the siege
at Nahr al Bared.
U.S. Sanctions
Syria remains a U.S.-designated State Sponsor of Terrorism and is therefore subject to a number
of U.S. sanctions. Moreover, in recent years, in order to compel Syrian cooperation on issues of
importance to U.S. national security policy in the Middle East, the Bush Administration and
Congress expanded U.S. sanctions on Syria. At present, a variety of legislative provisions and
executive directives prohibit U.S. aid to Syria and restrict bilateral trade.31 Principal examples
follow.
(...continued)
uncovered. In addition, Scotland Yard maintained that Hindawi had been an agent of the chief of Syrian Air Force
intelligence. See, “Britain Breaks Syrian Ties; Cites Proof of Terror Role; El Al Suspect Is Convicted; U.S. Recalls
Envoy,” New York Times, October 25, 1986.
29 Office of the Coordinator for Counterterrorism, Country Reports on Terrorism, U.S. State Department, April 30,
2008, Chapter 3 -- State Sponsors of Terrorism Overview.
30 Open Source Center Document ID# GMP20081117966001, "The Daily Star: Al-Mustaqbal Publishes 'Proof' That
Syria, Not Future, Helped Fatah," The Daily Star Online, November 17, 2008.
31 Because of a number of legal restrictions and U.S. sanctions, many resulting from Syria’s designation as a country
supportive of international terrorism, Syria is no longer eligible to receive U.S. foreign assistance. Between 1950 and
1981, the United States provided a total of $627.4 million in aid to Syria: $34.0 million in development assistance,
$438.0 million in economic support, and $155.4 million in food assistance. Most of this aid was provided during a brief
warming trend in bilateral relations between 1974 and 1979. Significant projects funded under U.S. aid included water
supply, irrigation, rural roads and electrification, and health and agricultural research. No aid has been provided to
Syria since 1981, when the last aid programs were closed out.
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General Sanctions Applicable to Syria
The International Security Assistance and Arms Export Control Act of 1976 [P.L. 94-329].
Section 303 of this act [90 Stat. 753-754] required termination of foreign assistance to countries
that aid or abet international terrorism. This provision was incorporated into the Foreign
Assistance Act of 1961 as Section 620A [22 USC 2371]. (Syria was not affected by this ban until
1979, as explained below.)
The International Emergency Economic Powers Act of 1977 [Title II of P.L. 95-223 (codified at
50 U.S.C. § 1701 et seq.)]. Under the International Emergency Economic Powers Act (IEEPA),
the President has broad powers pursuant to a declaration of a national emergency with respect to a
threat “which has its source in whole or substantial part outside the United States, to the national
security, foreign policy, or economy of the United States.” These powers include the ability to
seize foreign assets under U.S. jurisdiction, to prohibit any transactions in foreign exchange, to
prohibit payments between financial institutions involving foreign currency, and to prohibit the
import or export of foreign currency.
The Export Administration Act of 1979 [P.L. 96-72]. Section 6(i) of this act [93 Stat. 515]
required the Secretary of Commerce and the Secretary of State to notify Congress before
licensing export of goods or technology valued at more than $7 million to countries determined to
have supported acts of international terrorism. (Amendments adopted in 1985 and 1986 re-
lettered Section 6(i) as 6(j) and lowered the threshold for notification from $7 million to $1
million.)
A by-product of these two laws was the so-called state sponsors of terrorism list. This list is
prepared annually by the State Department in accordance with Section 6(j) of the Export
Administration Act. The list identifies those countries that repeatedly have provided support for
acts of international terrorism. Syria has appeared on this list ever since it was first prepared in
1979; it appears most recently in the State Department’s annual publication Country Reports on
Terrorism, 2005, published on April 28, 2006. Syria’s inclusion on this list in 1979 triggered the
above-mentioned aid sanctions under P.L. 94-329 and trade restrictions under P.L. 96-72.
Omnibus Diplomatic Security and Antiterrorism Act of 1986 [P.L. 99-399]. Section 509(a) of this
act [100 Stat. 853] amended Section 40 of the Arms Export Control Act to prohibit export of
items on the munitions list to countries determined to be supportive of international terrorism,
thus banning any U.S. military equipment sales to Syria. (This ban was reaffirmed by the Anti-
Terrorism and Arms Export Amendments Act of 1989—see below.) Also, 10 U.S.C. 2249a bans
obligation of U.S. Defense Department funds for assistance to countries on the terrorism list.
Omnibus Budget Reconciliation Act of 1986 [P.L. 99-509]. Section 8041(a) of this act [100 Stat.
1962] amended the Internal Revenue Code of 1954 to deny foreign tax credits on income or war
profits from countries identified by the Secretary of State as supporting international terrorism.
[26 USC 901].
The Anti-Terrorism and Arms Export Control Amendments Act of 1989 [P.L. 101-222]. Section 4
amended Section 6(j) of the Export Administration Act to impose a congressional notification and
licensing requirement for export of goods or technology, irrespective of dollar value, to countries
on the terrorism list, if such exports could contribute to their military capability or enhance their
ability to support terrorism.
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Section 4 also prescribed conditions for removing a country from the terrorism list: prior
notification by the President to the Speaker of the House of Representatives and the chairmen of
two specified committees of the Senate. In conjunction with the requisite notification, the
President must certify that the country has met several conditions that clearly indicate it is no
longer involved in supporting terrorist activity. (In some cases, certification must be provided 45
days in advance of removal of a country from the terrorist list).
The Anti-Economic Discrimination Act of 1994 [Part C, P.L. 103-236, the Foreign Relations
Authorization Act, FY1994-1995]. Section 564(a) bans the sale or lease of U.S. defense articles
and services to any country that questions U.S. firms about their compliance with the Arab
boycott of Israel. Section 564(b) contains provisions for a presidential waiver, but no such waiver
has been exercised in Syria’s case. Again, this provision is moot in Syria’s case because of other
prohibitions already in effect.
The Antiterrorism and Effective Death Penalty Act of 1996 [P.L. 104-132]. This act requires the
President to withhold aid to third countries that provide assistance (Section 325) or lethal military
equipment (Section 326) to countries on the terrorism list, but allows the President to waive this
provision on grounds of national interest. A similar provision banning aid to third countries that
sell lethal equipment to countries on the terrorism list is contained in Section 549 of the Foreign
Operations Appropriations Act for FY2001 (H.R. 5526, passed by reference in H.R. 4811, which
was signed by President Clinton as P.L. 106-429 on November 6, 2000).
Also, Section 321 of P.L. 104-132 makes it a criminal offense for U.S. persons (citizens or
resident aliens) to engage in financial transactions with governments of countries on the terrorism
list, except as provided in regulations issued by the Department of the Treasury in consultation
with the Secretary of State. In the case of Syria, the implementing regulation prohibits such
transactions “with respect to which the United States person knows or has reasonable cause to
believe that the financial transaction poses a risk of furthering terrorist acts in the United States.”
(31 CFR 596, published in the Federal Register August 23, 1996, p. 43462.) In the fall of 1996,
the then Chairman of the House International Relations Committee reportedly protested to then
President Clinton over the Treasury Department’s implementing regulation, which he described as
a “special loophole” for Syria. Since then, several measures have been introduced in previous
Congresses to forbid virtually all financial transactions with Syria but none were enacted.
Section 531 of the Consolidated Appropriations Resolution, 2003 (P.L. 108-7) bans aid to
countries not in compliance with U.N. Security Council sanctions against Iraq. This ban would be
applicable to exports of Iraqi oil through Syria or to reported shipments of military equipment via
Syria to Iraq; however, it may be moot following the collapse of Saddam Hussein’s regime in
Iraq.
Specific Sanctions Against Syria
In addition to the general sanctions listed above, specific provisions in foreign assistance
appropriations enacted since 1981 have barred Syria by name from receiving U.S. aid. The most
recent ban appears in Section 7007 of H.R. 1105, the Omnibus Appropriations bill, FY2009.
Section 307 of the Foreign Assistance Act of 1961, amended by Section 431 of the Foreign
Relations Authorization Act for FY1994-1995 (P.L. 103-236, April 30, 1994), requires the United
States to withhold a proportionate share of contributions to international organizations for
programs that benefit eight specified countries or entities, including Syria.
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The Iran Nonproliferation Act of 2000, P.L. 106-178, was amended by P.L. 109-112 to make its
provisions applicable to Syria as well as Iran. The amended act, known as the Iran and Syria
Nonproliferation Act, requires the President to submit semi-annual reports to designated
congressional committees, identifying any persons involved in arms transfers to or from Iran or
Syria; also, the act authorizes the President to impose various sanctions against such individuals.
The 2003 Syria Accountability Act
On December 12, 2003, President Bush signed H.R. 1828, the Syria Accountability and Lebanese
Sovereignty Restoration Act, as P.L. 108-175. H.R. 1828 was passed by the House on October 15,
2003, and the Senate on November 11, 2003. (The House agreed to a Senate amendment
expanding the President’s waiver authority on November 20). This act requires the President to
impose penalties on Syria unless it ceases support for international terrorist groups, ends its
occupation of Lebanon, ceases the development of weapons of mass destruction (WMD), and has
ceased supporting or facilitating terrorist activity in Iraq (Section 5(a) and 5(d)). Sanctions
include bans on the export of military items (already banned under other legislation) and of dual
use items (items with both civil and military applications) to Syria (Section 5(a)(1)). In addition,
the President is required to impose two or more sanctions from a menu of six:
• a ban on all exports to Syria except food and medicine;
• a ban on U.S. businesses operating or investing in Syria;
• a ban on landing in or overflight of the United States by Syrian aircraft;
• reduction of diplomatic contacts with Syria;
• restrictions on travel by Syrian diplomats in the United States; and
• blocking of transactions in Syrian property (Section 5(a)(2)).
Implementation
On May 11, 2004, President Bush issued Executive Order 13338, implementing the provisions of
P.L. 108-175, including the bans on munitions and dual use items (Section 5(a)(1)) and two
sanctions from the menu of six listed in Section 5(a)(2). The two sanctions he chose were the ban
on exports to Syria other than food and medicine (Section 5(a)(2)(A) and the ban on Syrian
aircraft landing in or overflying the United States (Section 5(a)(2)(D). In issuing his executive
order, the President stated that Syria has failed to take significant, concrete steps to address the
concerns that led to the enactment of the Syria Accountability Act. The President also imposed
two additional sanctions based on other legislation.
• Under Section 311 of the USA PATRIOT Act, he instructed the Treasury
Department to prepare a rule requiring U.S. financial institutions to sever
correspondent accounts with the Commercial Bank of Syria because of money
laundering concerns.
• Under the International Emergency Economic Powers Act (IEEPA), he issued
instructions to freeze assets of certain Syrian individuals and government entities
involved in supporting policies inimical to the United States.
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Waivers
In the executive order and in an accompanying letter to Congress, President Bush cited the waiver
authority contained in Section 5(b) of the Syria Accountability Act and stated that he wished to
issue the following waivers on grounds of national security:
• Regarding Section 5(a)(1) and 5(a)(2)(A): The following exports are permitted:
products in support of activities of the U.S. government; medicines otherwise
banned because of potential dual use; aircraft parts necessary for flight safety;
informational materials; telecommunications equipment to promote free flow of
information; certain software and technology; products in support of U.N.
operations; and certain exports of a temporary nature.32
• Regarding Section 5(a)(2)(D): The following operations are permitted:
takeoff/landing of Syrian aircraft chartered to transport Syrian officials on official
business to the United States; takeoff/landing for non-traffic and non-scheduled
stops; takeoff/landing associated with an emergency; and overflights of U.S.
territory.
Targeted Financial Sanctions
Since the initial implementation of the Syria Accountability Act (in Executive Order 13338 dated
May 2004), the President has repeatedly taken action to sanction individual members of the Asad
regime’s inner circle.33 E.O. 13338 declared a national emergency with respect to Syria and
authorized the Secretary of the Treasury to block the property of individual Syrians. Based on
section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), the President has annually
extended his authority to block the property of individual Syrians (first on May 5, 2005, then
again on April 25, 2006, and lastly on May 8, 2007). When issuing each extension, the President
has noted that the actions and policies of the government of Syria continued to pose an unusual
and extraordinary threat.
The following individuals and entities have been targeted by the U.S. Treasury Department:
• On June 30, 2005, the U.S. Treasury Department designated two senior Syrian
officials involved in Lebanon affairs, Syria’s then-Interior Minister and its head
of military intelligence in Lebanon (respectively, the late General Kanaan and
General Ghazali), as Specially Designated Nationals, thereby freezing any assets
they may have in the United States and banning any U.S. persons, including U.S.
financial institutions outside of the United States, from conducting transactions
32 According to U.S. regulations, any product that contains more than 10% U.S.-origin content, regardless of where it is
made, is not allowed to be exported to Syria. For U.S. commercial licensing prohibitions on exports and re-exports to
Syria, see 15 C.F.R. pt. 736 Supp No. 1.
33 According to the original text of E.O. 13338, the President’s authority to declare a national emergency authorizing
the blocking of property of certain persons and prohibiting the exportation or re-exportation of certain goods to Syria is
based on “The Constitution and the laws of the United States of America, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.)
(NEA), the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003, P.L. 108-175 (SAA), and section
301 of title 3, United States Code.” Available online at http://www.treas.gov/offices/enforcement/ofac/legal/eo/
13338.pdf.
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with them.34 Kanaan allegedly committed suicide in October 2005, though some
have speculated that he may have been murdered.
• On January 18, 2006, U.S. Treasury Department took the same actions against
the President’s brother-in-law, Assef Shawkat, chief of military intelligence.
• On August 15, 2006, the U.S. Treasury Department froze assets of two other
senior Syrian officers: Major General Hisham Ikhtiyar, for allegedly contributing
to Syria’s support of foreign terrorist organizations including Hezbollah; and
Brigadier General Jama’a Jama’a, for allegedly playing a central part in Syria’s
intelligence operations in Lebanon during the Syrian occupation.35
• On January 4, 2007, the U.S. Treasury Department designated three Syrian
entities, the Syrian Higher Institute of Applied Science and Technology, the
Electronics Institute, and the National Standards and Calibration Laboratory, as
weapons proliferators under an executive order (E.O.13382) based on the
authority vested to the President under IEEPA. The three state-sponsored
institutions are divisions of Syria’s Scientific Studies and Research Center, which
was designated by President Bush as a weapons proliferator in June 2005 for
research on the development of biological and chemical weapons.36
• On August 1, 2007, the President issued E.O. 13441 blocking the property of
persons undermining the sovereignty of Lebanon or its democratic processes and
institutions. On November 5, 2007, the U.S. Treasury Department designated
four individuals reportedly affiliated with the Syrian regime’s efforts to reassert
Syrian control over the Lebanese political system, including Assaad Halim
Hardan, Wi’am Wahhab and Hafiz Makhluf (under the authority of E.O.13441)
and Muhammad Nasif Khayrbik (under the authority of E.O.1338).37
• On February 13, 2008, President Bush issued another Order (E.O.13460)
blocking the property of senior Syrian officials. According to the U.S. Treasury
Department, the order “targets individuals and entities determined to be
responsible for or who have benefitted from the public corruption of senior
officials of the Syrian regime. The order also revises a provision in Executive
Order 13338 to block the property of Syrian officials who have undermined U.S.
and international efforts to stabilize Iraq.38 One week later, under the authority of
E.O.13460, the U.S. Treasury Department froze the U.S. assets and restricted the
financial transactions of Rami Makhluf, the 38 year-old cousin of President
Bashar al Asad. Makhluf is a powerful Syrian businessman who serves as an
interlocutor between foreign investors and Syrian companies. According to one
report, “Since a military coup in 1969, the Asads have controlled politics while
the Makhlufs have been big business players. The tradition continues in the next
generation, with Bashar al-Assad (sic) as president and Rami Makhluf as a
34 See, http://www.treas.gov/press/releases/js2617.htm.
35 See, http://www.treas.gov/press/releases/hp60.htm.
36 See, http://www.treas.gov/press/releases/hp216.htm.
37 See, http://www.treas.gov/press/releases/hp666.htm.
38 A previous executive order, E.O. 13315, blocks property of former Iraqi President Saddam Hussein and members of
his former regime. On June 9, 2005, the Treasury Department blocked property and interests of a Syrian company, SES
International Corp., and two of its officials under the authority of E.O.13315.
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leading force in business.”39 Makhluf is a major stakeholder in Syriatel, the
country’s largest mobile phone operator. In 2008, the Turkish company Turkcell
was in talks to purchase Syriatel, but according to Reuters, negotiations over the
sale were taking longer than expected because some Turkcell executives have
U.S. passports.40 Then, in August 2008, Turkcell said it had frozen its plans for a
venture in Syria amid U.S. opposition to the project. Makluf’s holding company,
Cham, is involved in several other large deals, including an agreement with
Syria’s state airline and a Kuwaiti company to set up a new airline. Several
months ago, Dubai-based real-estate company Emaar Properties announced it had
agreed to set up a $100 million venture with Cham to develop real estate projects
in Syria. Makhluf also is a minority shareholder in Gulfsands Petroleum,41 a
publicly-traded, United Kingdom-incorporated energy company. According to the
Wall Street Journal, a Gulfsands executive said the Treasury Department’s
sanctioning of Makhlouf would have no impact on the company pursuing its
partnership with Cham.42
Effect of U.S. Sanctions on Syria’s Economy
The Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (P.L. 108-175) and
successive targeted financial sanctions have clearly dissuaded some U.S. and some foreign
businesses from investing in Syria. According to one report, General Electric, the French power
company Alstom, and Japanese-owned Mitsubishi all declined to bid on a Syrian government
contract for the construction of power plants.43 As mentioned above, Turkcell withdrew its bid to
purchase Syriatel in August 2008 after the United States sanctioned Syriatel’s primary
stakeholder, Rami Makluf. U.S. sanctions under the Patriot Act against the Commercial Bank of
Syria have deterred private Western banks from opening branches inside Syria. As Syria’s energy
production levels decline, sanctions have prevented major Western energy companies from
making new investments there, though other foreign companies have supplanted U.S. firms. One
company, Gulfsands Petroleum, moved its principle office to London in order to circumvent U.S.
sanctions against its local partner, Rami Makluf. With the exception of certain specified goods,
most U.S. exports to Syria are prohibited, a policy that has prevented the country’s national air
carrier, Syrian Arab Airlines, both from repairing the few Boeing planes in its fleet and from
procuring new planes from Europe, since Airbus uses certain American content in its planes.
39 “Sanctions on Businessman Target Syria’s Inner Sanctum,” Washington Post, February 22, 2008.
40 “Turkcell Continues Talks on Syriatel Stake,” Reuters, April 14, 2008.
41 Gulfsands’ chief executive and largest shareholder, John Dorrier, is an American citizen, and the company has
offices in Houston.
42 “Syrian Tycoon Bristles At US Sanctions Against Him,” the Wall Street Journal, March 26, 2008.
43 “Tired of Energy Ills, Syrians Doubt the West Is to Blame,” New York Times, August 15, 2007.
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Table 1. U.S.-Syrian Trade Statistics 2005-2009
($ in millions)
2005
2006
2007
2008
2009
U.S.
Exports
to
Syria
$155.0 $224.3 $361.4 $408.8 $300.0
U.S.
Imports
from
Syria
$323.5 $213.7 $110.5 $352.0 $285.9
Totals
$478.5
$438.0
$471.9
$760.8
$585.9
Source: TradeStats Express – National Trade Data, Presented by the Office of Trade and Industry Information
(OTII), Manufacturing and Services, International Trade Administration, U.S. Department of Commerce.
Syria’s Need for Economic Growth
Syria is seeking aid, trade, and foreign investment from the international community, particularly
the West, to boost its lackluster, mostly state-controlled economy, which is highly dependent on
dwindling oil production and foreign remittances. To date, the government has enacted some
reforms, such as liberalizing the financial sector, reducing fuel subsidies, opening a stock
exchange, and cutting some import tariffs. Nevertheless, President Asad has yet to tackle the most
difficult reforms, such as reducing the government payroll, combating elite corruption such as
fuel smuggling, liberalizing other sectors of the economy and breaking up family-run business
monopolies, halting tax evasion, modernizing the bureaucracy, and increasing overall economic
transparency. Some observers believe that the regime cannot act boldly in the economic sphere
due to the political backlash and possible unrest it would face from many different parts of Syrian
society. Economic reforms may clash with the vested, status quo interests of Syrian business and
political elites with ties to the Asad family. Others suggest that the opaque nature of Syria’s
authoritarian government inhibits the natural development of a transparent market economy that
is attractive to foreign capital.
Although Syria has attracted more foreign investment from China, Gulf Arab countries, Iran, and
Turkey lately, Syria also is responsible for the lack of strong economic ties to the West. After
years of stalled negotiations, the European Union finally ratified its Association Agreement with
Syria in 2009, only to see Syria refuse to sign the accord at the last minute. The deal, which
would loosen trade bilateral trade restrictions and increase the flow of European aid to Syria,
raised concern among Syrian business elites due to fear of increased European competition in the
agricultural and manufacturing sectors.
Internal Political Scene
The death of Syrian President Hafiz al Asad on June 10, 2000, removed one of the longest-
serving heads of state in the Middle East and a key figure in regional affairs. Hardworking,
ascetic, and usually cautious, the late President exercised uncontested authority through his
personal prestige, his control of the armed forces and other centers of power, and his success in
exploiting regional developments to Syria’s advantage. President Bashar al Asad, who succeeded
his father in 2000 in a smooth transfer of power, inherited a ready-made politico-military
apparatus his father helped build. Although Bashar is generally considered to be less ruthless and
calculating than his father, he has essentially sought to preserve the status quo and, above all else,
maintain regime stability.
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Key Members of the Asad Family
Bashar al Asad - The 41-year old President of Syria is married to Asma’ al Akhras, a British-born Syrian Sunni
Muslim and formerly an investment banker at J.P. Morgan.
Maher al Asad - The younger brother of Bashar, he heads the Presidential Guard and other military agencies.
Bushra al Asad & Assef Shawkat - Bushra is the older sister of Bashar, and she is rumored to be a key decision-
maker. Her husband, Assef Shawkat, is head of military intelligence and part of the President’s inner circle.
Pillars of the Regime
The Alawite Sect
The Alawite religious sect, which evolved from the Shi’ite sect of Islam, constitutes
approximately 12% of the Syrian population. Formerly the most economically deprived and
socially disadvantaged group in Syria, the Alawites rose rapidly in the ranks of the military
establishment and the ruling Ba’th Party in the 1960s and have dominated political life in Syria
since then. The Alawite community as a whole, and the Asad family in particular, constituted an
important power base for the late President Hafiz al Asad and at least for the time being have
rallied behind his son and successor. Though committed to maintaining the primacy of the
Alawite community, the Asads have sought with some success to coopt support from other sects;
many senior positions, including that of prime minister, are ordinarily held by members of the
Sunni Muslim majority. However, most key positions, particularly in the security institutions,
remain in Alawite hands, and some observers believe that any weakening of the central regime or
an outbreak of political turmoil could precipitate a power struggle between entrenched Alawites
and the majority Sunni Muslims, who comprise over 70% of the population.
The Ba’th Party
The socialist, pan-Arab Ba’th Party, whose rival wing governed Iraq before the collapse of
Saddam Hussein’s regime, came to power in Syria in 1963. Although the Syrian constitution
specifies a leading role for the Ba’th Party and the party provides the regime with political
legitimacy, the Ba’th is more an instrument for the execution of policy than an originator of
policy. Many Ba’thists are not Alawites, but there is a complex synergistic relationship between
the party and the community. Still, barring a major governmental change, a Syrian leader would
need to enjoy the support of the Ba’th Party apparatus. The party’s top decision-making body,
known as the “Regional Command,” sits at the top of Syria’s policy-making process, and
membership in this body is a stepping stone to top positions in Syria. In June 2000, when senior
Syrian officials were orchestrating the succession of Bashar al Asad to the presidency after the
death of his father, one of their first steps was to arrange for Bashar to be elected Secretary
General of the Regional Command, replacing his late father.
The Military and Security Establishment
The role of the armed forces and national security services has figured prominently in most
Syrian regimes and predates by some years the establishment of the Ba’thist regime. Factionalism
within the armed forces was a key cause of instability in Syria in the past, as military cliques
jockeyed for power and secured and toppled governments with considerable frequency. This
situation changed abruptly after 1970 as the elder Asad gained a position of unquestioned
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supremacy over the military and security forces. The late president appointed long-standing
supporters, particularly from his Alawite sect, to key military command positions and sensitive
intelligence posts, thereby creating a military elite that could be relied upon to help maintain the
Asad regime in power. According to one Syria expert, “Within the military, Bashar has replicated
the patron-client relationship wielded so effectively by his father. Despite repeated rumors about
tension within the Assad family, there is no evidence that any rival—most notably Asaf Shawkat,
Bashar’s brother-in-law and the head of the Shu’bat al-Mukhabarat al-’Askariyya (military
security department), or Bashar’s younger brother Mahir, an officer in a Republican Guards
division—has sufficient power to challenge his rule.”44
The Syrian Opposition
The Syrian Muslim Brotherhood
Over the last half-century, political Islamist groups have risen to challenge entrenched Middle
Eastern monarchical and authoritarian regimes, a process which culminated in the 1979
overthrow of the Shah of Iran. Since then, U.S. policymakers have been concerned that secular
Arab dictatorships like Syria would face rising opposition from Islamist groups seeking their
overthrow. Although Syria faced violent challenges from such groups during the decades of the
1970s and 1980s, the Syrian security state has by and large succeeded in eliminating any
organized political opposition, including Islamists. Once considered the most imminent threat to
Syrian stability, the Syrian Muslim Brotherhood, formerly the largest Islamist opposition group,45
has been largely in exile since its crushing defeat at the hands of the Asad regime in 1982, when
Syrian forces attacked the Brotherhood’s stronghold in the city of Hama and killed approximately
10,000 people. Since then, the government has attempted to coopt the forces of political Islam by
continuing to outlaw the Muslim Brotherhood and keep its activists in prison, while promoting
Islam as a social force for national unification.46 Over the past twenty years, the Syrian
government has financed the construction of new mosques, aired more Islamic programming on
state television, loosened restrictions on public religious celebrations and weddings, and
monitored the sermons of clerics, many of whom are on the state’s payroll. At the same time, the
Syrian government, like other dictatorships in the region, has used the threat of “homegrown”
Islamist violence in order to justify one-party rule and has frequently exaggerated its threat in
order to bolster its own appeal to Western governments. Syria has received some favorable
attention for its reported cooperation with U.S. intelligence agencies in detaining and tracking Al
Qaeda operatives in the Middle East and in Europe, although some U.S. officials have discounted
these contributions.
44 Eyal Zisser, “Where Is Bashar al-Assad Heading?” Middle East Quarterly, Winter 2008.
45 The Syrian Muslim Brotherhood, an off-shoot of its larger Egyptian counterpart, has been banned in Syria since
1958, and according to a 1980 law (Emergency Law #49), known membership in the group is punishable by execution.
See, Ghada Hashem Telhami, “Syria: Islam, Arab Nationalism and the Military,” Middle East Policy, Vol. 8, Iss. 4;
December 2001.
46 See International Crisis Group (ICG), “Syria Under Bashar (II): Domestic Policy Challenges, ICG Middle East
Report #24, February 2004.
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The Damascus Declaration
In 2005, a group of 274 civil society activists, reformers, communists, Kurdish rights advocates,
Islamists, and intellectuals signed the Damascus Declaration, a document calling for the Syrian
government to end the decades-old state of emergency and allow greater freedom of speech. Soon
thereafter, many of these same signatories crafted the National Council of the Damascus
Declaration, a quasi-political party that has since met periodically to push for political reform
inside Syria. However, many observers suggest that the Damascus Declaration lacks a popular
base of support amongst the Syrian people and remains an elite-dominated organization.47
Between 2006 and 2008, authorities arrested a number of high profile activists, many of whom
remain imprisoned. According to Human Rights Watch, these activists include Riad al Seif, 61, a
former member of parliament suffering from prostate cancer, Dr. Kamal Labwani, a physician,
and Michel Kilo and Mahmoud Issa.48 In an interview, President Asad rejected criticisms of his
government’s human rights record stating that “We don't allow anyone to make or internal issues
a matter for relations. Europeans and Americans supported the occupation of Iraq. Talking about
values has no credibility any more. And after what happened in Gaza they have no right (to
criticize us) at all.”49
Syrian Dissidents, Exiles, and Defectors Abroad
Although it is difficult for opposition activists to organize inside Syria, an array of dissident
groups freely operate abroad, particularly in Western Europe. In March 2006, former Syrian Vice-
President Abd al Halim Khaddam and Sadr al Din al Bayanuni, the London-based leader of
Syrian Muslim Brotherhood, formed The National Salvation Front (NSF), a coalition of secular
and Islamist opposition activists based primarily outside of Syria. The NSF, which attempts to
bridge the gap between religious and secular Syrians, is non-sectarian though its membership
appears to be mostly Sunni. It has called for the peaceful removal of the Asad regime without
outside intervention, though some analysts doubt that the NSF will be able to make inroads within
Syrian society due to the regime’s effective security apparatus. Syrian authorities have prevented
many dissidents from leaving Syria. Reportedly, the NSF held regular meetings with Bush
Administration officials from the State Department and National Security Council in order to
discuss ways of promoting democracy in Syria.50
Future Prospects
The recent revelation of possible Syrian Scud missile transfers to Hezbollah pose certain
challenges for Administration policy toward Syria. In the short term, policymakers are working to
ensure that the incident does not provoke a new round of fighting between Israel and Hezbollah.
According to Israeli Defense Minister Ehud Barak, “We have been saying our piece for some
time now – we have no plans to attack Lebanon and we recommend and hope that everyone will
47 Joe Macaron, “Syria: The Opposition and its Troubled Relationship with Washington,” Arab Reform Bulletin,
February 2008, Volume 6, Issue 1, published by the Carnegie Endowment for International Peace.
48 Others included the group's leader and only woman Fidaa Horani (the daughter of Akram Horani, one of the founders
of Syria’s Baath Party), and writers Ali Abdullah and Akram Bunni.
49 "Syria's Strongman ready to woo Obama with both Fists Unclenched," The Guardian (UK), February 17, 2009.
50 “Unlikely Allies: To Check Syria, U.S. Explores Bond With Muslim Brothers,” Wall Street Journal, July 25, 2007.
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preserve the quiet…. But the entry of systems such as this that disturb the balance endangers
stability and quiet.”51
In the medium term, even if all sides refrain from further escalation, the Administration may have
to continuously defend its policy of normal diplomatic dialogue with Syria, particularly in the
absence of any tangible changes in Syrian behavior. Most analysts suggest that the tripartite U.S.-
Syrian-Iraqi committee to monitor the Syrian-Iraqi border nearly formed in August 2009 was the
most significant development in U.S.-Syrian relations since the start of the Obama
Administration. Yet, even that relatively minor development has stalled due to unforeseen
tensions stemming from continual Al Qaeda in Iraq bombings in Baghdad that the Iraqi
government has blamed Syria for indirectly supporting. It is possible that in the coming months,
as U.S. troops withdraw from Iraq and Iraqi politicians work to form a new government, the
Administration may revive its attempt to restart tripartite border cooperation.
For the foreseeable future, most analysts agree that relations between the United States and Syria
will remain static, as neither government has shown interest in fundamentally altering policies
opposed by the other side. Though Syria wants the Obama Administration to unilaterally lift
sanctions, U.S. policymakers may be holding out for real changes in Syrian regime behavior, such
as cutting or downgrading ties to Iran, Hamas, or Hezbollah. Syria feels that it has already
acceded to previous U.S. demands by normalizing relations with Lebanon. Syria appears reluctant
to make further changes without a clear indication of the benefits it would accrue from major
shifts in its foreign policy. From the U.S. standpoint, Syria is far down the list of current foreign
policy priorities and, with an Israeli government that has appeared generally uneager to pursue a
bilateral peace track, there is little to be gained from additional substantive engagement other than
a return to normal diplomatic relations.
By May 2010, the Obama Administration must renew the annual declaration of a National
Emergency with respect to Syria (as called for in the National Emergencies Act) in order to
maintain certain targeted financial sanctions against Syria. The Administration may use the
occasion to loosen sanctions, leave them unaltered, or even sanction new Syrian
individuals/entities.
Author Contact Information
Jeremy M. Sharp
Specialist in Middle Eastern Affairs
jsharp@crs.loc.gov, 7-8687
51 "US holds back on Ambassador to Syria amid Hizbollah Scud fears," The National (UAE), April 14, 2010.
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