This House Foreign Affairs subcommittee hearing is an hour and a half. We will now call a hearing to order. This is a very important hearing in my opinion. Some of them are not nearly as important as others. This one is extremely important because greg and i, the Ranking Member, we are all concerned about the influence of iran in the entire region, also in the gulf region. So today we are here to discuss the expanding influence in the south caucasus, but were also talking about, i intend to talk about some of the problems in the Persian Gulf Region because thats a vital interest to us. The straits of hormuz, persian gulf, or the swiss canal are blocked in any way they could have devastating impact on the United States because we still get a large part of our energy from the region. I traveled to azerbaijan an armenian in early september. And i also stopped in georgia and met with the president. When i talked to these leaders, iran was one of the things that came up at the very beginning, because theyll feel the influence and the aggressive attitude underneath cover so to speak of iran. In particular, i think azerbaijan feels a great deal of concern, and when i talked to the president , members of parliament and others, it was readily apparent to me that they thought that there ought to be closer ties between azerbaijan and the United States, and georgia, and hopefully armenia. Because iran is really trying to destabilize or undermine those governments are we believe that is their longterm goal. Iran has been involved in terrorism as we know for some time. Its partly unique in that area. We have seen the ibeam regime operating through organizations such as Republican Guard and employ such tactics around the globe including right here in washington, d. C. However, the proximity of the south caucasus to iran as well as strong relationship with armenia, azerbaijan and georgia. Have with both of the United States and israel, it increases the appeal of the iranians for targeting those countries. I applaud those governments in the region for the vigilance against the iranian threat. However, im particularly concerned about the security at the u. S. Embassy as the agent location of the facility leave our people there particularly vulnerable. I often find myself comparing the geopolitics of the south caucasus to accordion not. A tangle of Current Events of these countries in the region isolated from their neighbors. Unfortunately, such isolation can blame to the hands of hours laying on the periphery of the region. Press reports and conversations i had while i was in the region indicate that iran is taking or at least has the potential to take advantage of armenians regional isolation and thus the countrys economic dependence on their common border to use armenian banks and enterprises to skirt International Sanctions. The United States and our regional partners including armenia must be vigilant by fully comply current laws and regulations, and by a many sanctions is needed to close the loopholes. I hope that legislation is currently pending in the Congress Makes it way through rapidly and will do just that. Regarding energy, sanctions are an essential tool and our continued attempt to isolate the iranian regime. However, we have to recognize that for many countries in the subcommittees jurisdiction, decreasing consumption of Iranian Energy means increasing consumption of russian energy. Such a Chain Reaction is not in a National Interest of the United States. The solution to this problem requires renewed American Leadership or partnership to increase the development of resources that lag across the south caucasus. And central asia as well as the infrastructure, the pipelines and other things needed to transport these resources. I would also like to elaborate a little bit more about bahrain. We have some people on the panel today that we will ask questions about bahrain. And they have some intimate knowledge of some of the problems that have taken place there, and as i said before, the concerns that we have in the car cases, the whole region is only a part of the concern that we feel for the region. Bahrain has been an ally of the United States for a long, long time. We have our fifth and the attempts by iranians to work with dissident forces there in bahrain to undermine the government is something that we must be concerned about. I talked to the leadership over there, and they are concerned about the problems that some of the people feel toward the government and they have tried to work with them to solve that problem. So far the problems have not all been solved. And for that reason they continue to try to work with them, even though we know and they know from intelligence sources that iran is stirring things up over there and trying to undermine that government. Says with great relationship with the government i think its extremely important we try to work with them as long as we have a fifth fleet there and it is vital to the United States interest that we do everything we can to solve the problem, the problems in the country without giving iran the ability to undermine and destroy that government. And in conclusion let me just say that the south caucasus is of extreme importance, and we have to do with us a number of people from azerbaijan, the Senate Delegation is here to follow this hearing because they are very much aware of how important it is that we eliminate the issue of iranian expansionism, or the ability, attempt to expand our influence throughout the region. The United States must not look weak in this entire region. We have to look stronger if we look like we are weak, it will give them the encouragement that they need to continue to move throughout that whole region. We are concerned as my colleagues now, libya, concerned about egypt, concerned about syria. We are concerned about azerbaijan, armenia, and georgia, and the gulf states, especially bahrain right now. So i will end up by just saying that this is going to be probably my last hearing as chairman of this committee. My good friend, greg, and msha my other colleagues will do everything they can to make sure we continue to pursue this issue to make sure that not only the region is secure but our interests, United States of americas interests are safe as well. Without i yield to my colleague, mr. Meeks. Thank you, mr. Chairman. And i want to thank you for holding as you said this most important hearing. But i also want to say to a degree sad, that because this probably will be your last hearing here in the United States house of representatives after almost three decades of service to our country, and we want to salute you for that. Some, you know, maybe with regret not having used to stick around anymore. But we indeed are going to miss you, and i have to say that its been an honor and a personal privilege for me to sit as a Ranking Member and to work with you over the last few years on the subcommittee. You have been a chairman that has been very fair and open, and we Work Together and you will be missed here. And so i hope that as you retire, you enjoyed a fruitful and prosperous life with your beautiful wife who is here, and your family. You have a great retirement, and maybe now they will have the time to schedule a round of golf with bill clinton. [laughter] thats an inside joke, folks. Let me turn to the subject at hand. I believe were dealing with an important question in the south caucasus region which reps in a complex of the both regional alliances and conflicts, bitter rivalries, degrees of western orientation, desperate economic trajectories, and a potential venue for instability and even violence. In terms of you in the south caucasus region from the perspective of the subcommittee it is important to note some of our strongest instruments, the euro atlantic institutions of nader, the european union, have a weak presence, and, therefore, are not as relevant as they are in the balkans. Ultimately this means that europe and the United States have less leverage in the region. This allows other countries in the region to compete or political, economic and military influence in the region. Im looking for to hearing eyewitnesses discuss this issue today. Really want to hear what you have to say. I believe that armenia, azerbaijan and georgia, trustworthy allies of the United States better realize full well that their bilateral relationships are complicated and that they have to take their immediate neighborhood into account also. With only two open borders and one of them being with iran, armenia faces the constant threat of isolation. This is a for driver in managing armenias relationship with iran. Azerbaijan has a sizable diaspora in northern iran, by vastly different strategic social and political orientation than irans leaders. Despite a potential religious incident between iran and trenton, iran has a stroke decided with armenia over the contested region. Furthermore, azerbaijan and joys the solid relationship with israel. Which further distances terrain from one another. Georgia has the strongest western orientation in the region. And my sense is that this will remain intact even after the change of government. But like any other country what other country majority seeking Economic Opportunities everywhere. Including potential trade or investment relationships with iran. I believe there is a potential for iran to exploit a copy relationship between each of these countries. And that the others in the region have significant regional interests that compete or overlap with iran. Simultaneously each of the south caucasus nations play an Important Role in western relations with iran, particularly their ability to comply International Sanctions. And i think it is important for the United States policy towards the region to find ways to strip this compliance. Russia appears to want to limit both the influence of the United States and turkey in the south caucasus, but it is unclear to me whether they also seek to minimize iranians influence. I have followed with great interest turkeys attempts. And my sense is that such a step holds the greatest potential to improve both stability and prosperity in the region. Lifting our means isolation would not only allow for greater independence from iranian and russian influence, it would also be mutually beneficial for turkey and her meaning and a number of ways. Im interested in hearing the panels perspectives on whether this is an issue that turkish and a meaning governments might be able to reengage in. But we can all agree on is this, as i conclude, is that it is in no ones interest to see a nucleararmed iran. And i look forward to exploring how the south caucasus region and help the United States and europe prevent this outcome. We cannot have that as an outcome. I anxiously await hearing the testimony of our witnesses, again, mr. Chairman, its been a pleasure and i think that this hearing is very timely. Thank you very much, and im sure my wife appreciates those nice comments. Thank you for that as well. Thank you very much, mr. Chairman. This is a special day for me as well, a bittersweet day. After having had the honor of serving the peoples house for 26 years, and on this committee for 24 years, and had the honor of chairing the subcommittee, i cant tell you what an honor it spent to serve with you, dan, not only on this committee, but nextdoor neighbor in the rayburn building for many years, and for bringing this important issue before us today. I cant think of anything that seems to be more timely than bringing this issue up today. I would like to also associate myself with the comment that our Ranking Member made, a good friend of mine. By recognize that mr. Burton does have a beautiful wife here in the audience today, i also have a beautiful wife in the audience here today your weve had the great honor of having you and her home in california. And i will leave the porch on for the two of you and hope that you will join us out west. Its been an honor to serve with you, jeanne. The three of us will be leaving congress here in a few days. It may be quite a few days with the way things are going on the hill. And over on the other side of town. Hopefully we will get through that. But words cant express the honor that ive had, that i feel for having the opportunity to do so me of the things we have done, and this being our closing hearing. I want to make sure we have ample time for all of our Witnesses Today so i will defer from an Opening Statement. I would like to place one into the record as a part of the hearing. And just thank you all for friendship, the dedication you show this great country for all the years, and with that, mr. Chairman, i yield back. Well, without objection your statement will be in the record. But i want to tell you, we are patting each other on the back here today because is probably the last time we will be able to do the. Youve been a great never, to. I really enjoyed it but im glad you are leaving the light on. You have a Beautiful House in california an extra bedroom, so i may be going out there. Porch light is on spent and transport is going back to ohio, and jean, you have been great as well. First off, parting is such sweet sorrow. Im only sorry that more people are not here to listen to this panel on what i believe is one of the most Critical NationalSecurity Issues that the world faces. And im glad that congressman meeks will be carrying the boehner for this very important region in the world. Its important for a lot of reasons, but one of those reasons is the potential for energy, energy to really free western europe from other alternative sources that may not be right for them all right for the world. And that it is not in certain countries best interest, iran, russia, come to light for the pipeline to go through, to bring those natural energies, oil and Gas Resources to parts of the world that would like to have an alternative source. And i think it is important for congress to keep an eye on this region, and to make sure that the ability that is in place continues and that these emerging markets are allowed to continue to grow and prosper. Because i truly believe that they are a bright spot in the worlds future. I yield back. Thank you very much. Ariel cohen is the leading expert in russia, eurasia, Eastern Europe and the middle east. He serves as a Senior Research fellow in russian and eurasian studies and International Energy policy at the Heritage Foundation and were glad to have you. Thank you very much. Michael rubin is a resident scholar at the American Enterprise institute, and a Senior Editor of the middle east quarterly. He was a former Senior Advisor at the pentagon. Thank you for being here. Doctor Brenda Shaffer is a specialist on call cases ethnic policies and iran, caspian energy, energy and Foreign Policy and Eastern Mediterranean energy issues. She previously served as the Research Director of the Caspian Studies Program at harvard university. Should have been a big ten school. In january, she will be a visiting scholar at Georgetown University center for eurasia, russian and Eastern European studies. Alex anthony to specialize in middle Eastern Affairs with a focus on iraq to join the middle east institute as an adjective call in 2007. He also lectures as a senior fellow in middle east studies at the u. S. Air force special Operations School and that the defense is a good of Security Assistance management. Want to welcome all of you and would will start, i think will start with you, dr. Shaffer, since youre the prettiest gal at the table. Thank you for the opportunity to testify in front of this committee. Would often think of iran as the middle eastern country but actually it sits in the crossroads of a number of regions, southwest asia, central asia and the caucasus. And actually the influence between iran and the south caucasus is two ways. Not only is iran as you point out directly extremely active in diversion in the region and destabilizing any of the countries that are prowestern in the region, but also theres twoway influence because iran is both multiethnic edged up after member have the operation of a rant is in persian. The whole of the population of iran, a third is ethnic pashtun die. This is what drives irans policies in the region is to destabilize other to make sure its own ethic by jordis will not be detracted. And for this reason we find the Islamic Republic of iran is actually an ally of christian armenia in its struggle against azerbaijan. And attack the war effort, the occupation of armenia, ab