The Study Group recognizes that U.S. relationships with Iran and Syria involve difficult issues that must be resolved. Diplomatic talks should be extensive and substantive, and they will require a balancing of interests. The United States has diplomatic, economic, and military disincentives available in approaches to both Iran and Syria. However, the United States should also consider incentives to try to engage them constructively, much as it did successfully with Libya.
Some of the possible incentives to Iran, Syria, or both include:
i. An Iraq that does not disintegrate and destabilize its neighbors and the region.
ii. The continuing role of the United States in preventing the Taliban from destabilizing Afghanistan.
iii. Accession to international organizations, including the World Trade Organization.
iv. Prospects for enhanced diplomatic relations with the United States.
v. The prospect of a U.S. policy that emphasizes political and economic reforms instead of (as Iran now perceives it) advocating regime change.
vi. Prospects for a real, complete, and secure peace to be negotiated between Israel and Syria, with U.S. involvement as part of a broader initiative on Arab-Israeli peace as outlined below.
RECOMMENDATION 9: Under the aegis of the New Diplomatic Offensive and the Support Group, the United States should engage directly with Iran and Syria in order to try to obtain their commitment to constructive policies toward Iraq and other regional issues. In engaging Syria and Iran, the United States should consider incentives, as well as disincentives, in seeking constructive results.
IRAN. Engaging Iran is problematic, especially given the state of the U.S.-Iranian relationship. Yet the United States and Iran cooperated in Afghanistan, and both sides should explore whether this model can be replicated in the case of Iraq.