US may soon label Iran Guard 'terrorist'

WASHINGTON, Aug 15 (Reuters) The United States may soon designate Iran's Revolutionary Guard Corps a foreign terrorist organization in a hard-line diplomatic move that will target the finances of the group, U.S. officials said today.

The designation, which was initially reported by The New York Times and The Washington Post, would be the first time the United States has placed the armed forces of any sovereign government on its list of terrorist organizations.

Iran experts said ramping up the pressure by squeezing financing for the Guard also was aimed at pacifying those within and outside the Bush administration who wanted military action against Tehran because of its nuclear program and were frustrated that diplomatic pressure had so far not worked.

A US official, who spoke on condition he was not named because the issue was so sensitive, said the United States was looking at making such a move but the final timing had not been decided.

Another official confirmed the same.

State Department spokesman Sean McCormack and Treasury Department officials declined comment. ''We are not going to discuss any actions that may be under consideration,'' said McCormack.

White House spokeswoman Dana Perino said: ''It is not appropriate for us to discuss potential future actions. We continue to urge Iran to play a constructive role in the region and to stop providing support to terrorist organizations.'' Iran is already on the state sponsors of terrorism list but labeling the Revolutionary Guard a terrorist group would mean the administration could go after its finances and expanding business network.

Washington has accused Iran's Revolutionary Guard of being involved in destabilizing Iraq and Afghanistan, charges Tehran has strongly denied.

UNILATERAL ACTION US Secretary of State Condoleezza Rice and other senior US officials have said frequently that Washington could take tougher action unilaterally outside of the United Nations. A move against the Revolutionary Guard would be in line with that thinking.

Washington is pushing the United Nations to prepare a tougher sanctions resolution against Iran because of its refusal to give up sensitive uranium enrichment work but is having problems getting agreement from Russia and China for such a move.

Iran argues it is enriching uranium for peaceful civilian energy purposes and says it is not aimed at building the nuclear bomb the United States and others suspect.

In recent months, the United States has held several meetings with senior Iranian officials to discuss Iraq but still holds firm it will not discuss the nuclear dossier until Tehran gives up uranium enrichment.

Iran expert Ray Takeyh of the Council on Foreign Relations said punitive moves against Iran's Revolutionary Guard would undermine any long term goal of negotiating with Tehran.

''It makes the idea of a negotiated settlement with Iran more difficult if one important segment or pillar of the state is ostracized or sanctioned,'' Takeyh said.

He said Iran's ambassador to Iraq, who has been talking to US ambassador to Iraq Ryan Crocker in recent months, was a former member of the Revolutionary Guard.

He said the sanctions would be difficult to enforce because the Revolutionary Guard's business entities were hard to identify.

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