Syria

The Israeli newspaper Haaretz on August 10, quoting unnamed Israeli military officials, reported that Syria is developing a new class of surface-to-surface missiles. The new missiles are reportedly being developed with technical assistance from Iran and will have a range of more than 500 kilometers (310 miles). Fired from mobile launchers, of which Syria has 60, these missiles will be able to strike any point inside Israel and reach targets as far away as Ankara, Turkey.

In 1983, the Syrians received a batch of SS-21 Scud-B missiles from the Soviet Union. These only have a range of 120 kilometers (75 miles) and are accurate to within 50 meters. This means that only Syrian Scuds placed close to the Golan cease-fire line dividing Syria from Israel could hit southern Israel where the Israelis are believed to have their strategic missiles deployed. This makes the Scud, Syria's main strategic deterrent, very vulnerable to Israeli air power. Rumors have persisted since 1989 that Damascus was attempting to import the M-9 short-range ballistic missile from China to alleviate this tactical problem. The M-9 is a very accurate, advanced, mobile, solid-fuel missile with a 500 kilometer (310 mile) range. However, after receiving a substantial amount of U.S. pressure, Beijing reportedly backed out of the deal.

Iran however, is believed to have developed its new indigenous missile, the Shahab-3, with assistance from Pakistan, who, in turn, is believed to have copied the missile from China's M-9. One significant improvement offered by the Iranian missile is better guidance. Another is, of course, longer range. If the new Syrian missile under production is anything like these other "indigenously" developed missiles, then the strategic situation will shift dramatically. This would mean that Syrian Scuds could hit any part of Israel from a larger launching box and, more importantly, that the missiles could hit their targets more precisely.

But despite the possible technical advancements, it is important to note that the development of this missile does not inherently raise the chance that the Israeli-Syria peace deal will fall through. Syrian President Hafez Assad is known to hedge his bets, always pursuing multiple and simultaneous tracks in his foreign policy. On one hand he is making peace with Israel. On the other he is equipping his nation to gain greater strategic flexibility. This is neither surprising, nor necessarily alarming to the Israelis. So why mention it?

The reasons for reporting this story are three-fold. First, this is a simple acknowledgement that Israel is well aware of what is going on and is nobody's fool. Israel is not going into negotiations blindly, and when dealing with Syria, Israel will verify more than trust.

This is a message to Damascus, but it is also a message to the Israeli public. Ironically, reporting the new Syrian missile capability is an attempt to undermine opposition to the peace process. In acknowledging the story first, the Barak administration can play down any possible political land mines that the Israeli opposition could lay on the road to peace. It does not mean that the issue will not come up during the process, but it does portray the administration as pragmatic and aware of the strategic environment in which it is negotiating.

The report also serves to reinforce Turkish-Israeli relations. As mentioned before, the new missiles, if mounted on mobile launchers, have the capability to hit a large portion of Turkey, including Ankara. In reporting that Syria is developing a new missile, Israel is signaling to Turkey that it has not completely forgotten its military cooperation agreement with Turkey. Similarly, this message is intended to resonate in Damascus as well. While Lebanon is up for grabs, Israel does not want the Israeli-Syrain peace to come at the expense of Turkey. Moreover, the U.S. does not want the Israeli-Syrian peace to come at the expense of Turkey, and Israel is not yet ready to abandon U.S. support.

By publicly conceding the fact that Syrian missile programs are continuing, the Barak government is not making excuses for ceasing the peace process, but rather is making it perfectly clear to the Israeli people, Israel's allies and Syria that peace will not come at the expense of security.

According to the Israeli and Arab press, Syrian security forces controlled by Syrian President Hafez Assad's son, Bashar, recently began a search and arrest campaign against supporters of Rifat Assad, the president's brother and former vice president. The Sept. 19 crackdown was triggered by apparent attempts by Rifat to promote himself and his son, challenging the expected ascension of Hafez Assad's son and chosen heir, Bashar. This rivalry may lead to a succession struggle that could significantly affect domestic politics, as well as the country's peace process with Israel.

The power struggle between Rifat and Bashar has arisen alongside reports of President Hafez Assad's growing health problems. According to the Sept. 24 Jerusalem Post, Arab sources closely monitoring Syria say the ailing president is significantly weakened and has not appeared in public for several days. Also, Syrian television has begun using archival footage of Assad when referring to him.

While these reports cannot be confirmed, Assad is known to suffer from heart and other ailments. On July 23, Israeli Prime Minister Ehud Barak told The Jerusalem Post that it was better to deal with the "old guard," implying that a generational change could be near and could impede the peace process.

When Assad suffered a heart attack in 1983, Rifat - then vice president - staged an unsuccessful bid for power, and was exiled to Europe until 1992. Rifat, still angered by his removal from the vice presidency, now wants the presidency. Damascus has perceived recent actions by Rifat and his son as attempts to gain power, causing deep anger in the Syrian capital. Rifat showed up at the funeral for the King of Morocco while President Assad intentionally stayed away. A few days later, Rifat's son Sumer visited Palestinian leader Yasser Arafat in Gaza and promoted mending ties between Arafat and Assad.

Bashar, a former opthamologist and Assad's chosen successor, has also made attempts to increase his power, adopting a higher public profile in Syria and abroad following his accelerated induction into the military, political, and economic power centers of Damascus. In an unprecedented show of force, 600 of Bashar's troops surrounded Rifat's home in Latakia and ordered Rifat loyalists to give themselves up, threatening them with accusations of corruption. At last report, Rifat's loyalists, called "the private militia," were still barricaded inside Rifat's home.

The ruling Syrian Ba'th Party is due to convene in November. Assad reportedly plans to announce a change in the makeup of the government and elevate Bashar to a senior post, while decreasing Rifat's power.

Rifat is trying to avoid further confrontation to prevent this from happening. He sent a message to the presidential residence at the height of the siege saying that he did not instruct his followers to barricade themselves inside his home. Rifat added that he was still loyal to Assad and said he had no intention of harming the stability of the Syrian regime.

If the reports of President Assad's failing health are true and he does not make it until November, the country will certainly witness a succession crisis, played out as a power struggle between Rifat and his loyalists and Bashar and his forces. However, it wouldn't take the president's death to ignite a crisis. Bashar is only 35 years old, making him five years too young to take over the presidency by constitutional standards. The succession struggle could continue until Bashar reaches his 40th birthday.

While this in and of itself is a significant event, it also has ramifications for the Syria-Israel peace process. Israeli officials already see rising tensions along the northern border with Lebanon as a direct threat to peace talks with Damascus. Israeli officials have seen a reported increase in Hezbollah violence as proof that Syrian interest in negotiations is waning. Syria has sought the return of the Golan Heights from Israel in negotiations. In exchange, Israel has requested security guarantees.

If, somehow, Rifat gains a significant amount of power in the succession, Syrian-Israeli relations will not progress as they would under Bashar. Rifat is more anti-Israel than Assad and has in the past supported Islamic extremists. Bashar tends to align himself with his father. When interviewed by the Arab daily al- Wasat, Bashar had no harsh words against Israel, going so far as to say that if Israeli forces left Southern Lebanon, the military wing of Hezbollah would wither.

On Oct. 7, the Israeli newspaper Yediot Aharonot reported that Iran is now bypassing Syria and shipping Katyusha rockets, mortar shells and other weapons directly to Beirut for Hezbollah guerrillas. The arms were previously flown to Damascus, where they were loaded onto trucks and driven into Lebanon. Israeli army officers were "at a loss" to explain the change, and many suggested the direct route did not have the approval of Damascus.

Iran may be protecting Hezbollah activity in order to put the Syrian-Israeli peace process in jeopardy. By circumventing Syria on an issue crucial to the success of the talks, Iran could seriously endanger its relationship with Syria. It is unclear exactly why Iran would risk its relations with Syria. The main reason we find - that Iran fears loss of influence if Israel improves its regional relations - seems insufficient to justify this risk.

Throughout the recent resumption of Israeli-Syrian negotiations, Israel has criticized Syria for standing by while Hezbollah violence in Lebanon against the Israeli-allied South Lebanon Army (SLA) increases. On Sept. 23, Israeli Prime Minister Ehud Barak warned that Hezbollah attacks could jeopardize talks with Syria. Later, on Sept. 28, an aide to Barak was even more direct, telling Agence France-Press, "If [Syrian President Hafez] Assad really wants peace, he should halt the attacks."

Hezbollah has come out against the Israeli-Syrian peace process and vowed to continue fighting, despite Israeli pledges to withdraw from Lebanon by July 2000. Sheik Hassan Nasrallah, Hezbollah's secretary-general, was in Iran Oct. 6 and conferred with Iranian Foreign Minister Kamal Kharrazi. He thanked Kharrazi for Iran's support and reiterated the need for "an all-out continued resistance drive" against the occupying Israeli forces.

Shortly after Israel's warnings to Syria, the Yediot Aharonot reported that Iran had ordered terrorist organizations in southern Lebanon to join Hezbollah attacks on Israeli Defense Forces (IDF). These "terrorist organizations" included Amal, which was the dominant group in southern Lebanon until the more extreme Hezbollah emerged.

Israeli Prime Minister Ehud Barak has stressed his desire for peace between Israel and Syria. He said peace between the two would serve as a "strategic breakthrough" for Israel making it more difficult for hard-line states, such as Iran and Iraq, to justify aggression. Assad has shown signs of real interest in reaching a peace with Israel, especially once it became clear that Israel was offering Syria Lebanon as the reward [ http://www.stratfor.com/meaf/commentary/m9909161906.htm ]. Israel's price for peace is that Syria curb Hezbollah and other guerrilla activity in Lebanon. Iran's unwillingness to use Damascus to filter arms to Hezbollah suggests Assad may have tried to do just that.

If this is the case, Iran would be risking its strong relations with Syria. Why Iran would want to do this is far from clear. The only possible explanation we see at this point is Iran's desire to enhance its position as an influential force in the region. It has been waging an aggressive campaign to improve its relations with GCC states [ http://www.stratfor.com/meaf/specialreports/special13.htm ] in an attempt to break out of its isolation. It has proposed regional mechanisms for collective security and attempted to lead the Organization of the Islamic Conference to a more active and visible international role.

If Israel forges better relationships with its neighbors, Iran stands to lose a considerable amount of influence in the region. Iran's leaders realize this and will continue working through Hezbollah in an attempt to undermine the Middle East peace process. However, to do so, Iran has circumvented Syria and undermined Damascus' interests. This clash of Iranian-Syrian agendas threatens not only the peace process, but also stability in Syria and relations between Syria and Iran, and will ultimately threaten Iranian security as well.

Recent indications suggest an improvement in Syrian-Iraqi relations, which could give Syria a wild card to play against Iran if it tries to undermine the Middle East peace process. On Sept. 23, Iraqi Deputy Prime Minister Tariq Aziz voiced the country's intention to improve ties with its Arab brothers, mentioning that it had already succeeded in improving relations with Syria. There have also been reports that Iraq sent a message to U.S. President Clinton that supposedly pledged not to undermine the Middle East peace process. Iraq and Iran have been at odds since the 1980-88 Iran-Iraq war, and Syria could use ties with Iraq to put Iran back in line.

It will be interesting to see what stance - if any - Syria takes concerning the new direct supply route. If Assad is truly interested in making peace with Israel, we may see Syria attempt to suppress Hezbollah attacks or put pressure on Lebanon to end the direct supply from Iran.

On Oct. 17, Jordanian Foreign Minister Abdul-Illah Khatib flew to Damascus to discuss the Israeli-Syrian peace process with Syrian President Hafez Assad. Khatib reportedly passed along a message from King Abdullah II, who met with U.S. President Clinton last week. A Syrian presidential spokesman did not disclose what was discussed; however, it is believed that the two discussed a formula to restart the peace talks.

This was only the latest in a series of apparent attempts by Israel and Syria to accelerate the peace process through Jordanian mediation. [ http://www.stratfor.com/MEAF/commentary/m9909161906.htm ] Despite the recent activity, there are signs that direct negotiations between Israel and Syria are being impeded by each country's domestic political concerns. Ironically, these are the same concerns that make it imperative that the peace process be initiated sooner rather than later.

The major factor both accelerating and impeding the process is the looming succession crisis resulting from Syrian President Assad's failing health. Domestic politics in Israel demands its negotiators garner enough security guarantees to make their planned pullout from Lebanon next year feasible. This goal is threatened by the emerging succession crisis, which could result in Syria taking a harder line in future negotiations. Israeli Intelligence Chief Maj. Gen. Amos Malka has already expressed concerns about the deteriorating health of Assad and its possible implications for the Israeli-Syrian negotiations [ http://www.stratfor.com/MEAF/commentary/m9910142114.htm ].

Meanwhile, concerned that it is losing bargaining leverage due to Assad's failing health, the Syrian army is modernizing. The army sees the move both as a way to strengthen Syria's negotiating position and as a deterrent to any possible future Israeli hostilities. This action, of course, isn't helping to allay Israeli mistrust.

Several reports indicate that Syria has been beefing up its military during the past few months. On Sept. 16, the Jerusalem Post cited Israeli military and intelligence sources as saying that Syria was continuing to develop longer-range derivatives of the Scud C surface-to-surface missiles, capable of delivering chemical and biological weapons. There are suspicions that both China and Iran are aiding Syria in this effort. Chinese Defense Minister Chi Haotian was in Damascus Oct. 16 to discuss military cooperation with Syrian Defense Minister Mustafa Tlass.

Syria is also apparently discussing large-scale arms purchases with Russia. News of a $2 billion deal was widely reported in June 1999. The purchases are said to include S-300 anti-aircraft missile systems, MiG-29 and Su-27 fighters, T-80 tanks, and anti-tank weapons. The aircraft and anti-aircraft systems are particularly significant, as the Syrian air force is still largely made up of increasingly antiquated MiG-21 fighter aircraft - which would likely fare badly against Israel's modern F-15s and F-16s.

Syria has also increased its hard-line rhetoric in recent days, either to boost its position at the bargaining table or due to real anti-peace sentiment emanating from certain factions. Some military and political leaders emphasized that Syria is not prepared to "sell out" in order to get a deal with Israel.

On Oct. 16, Syrian Army Chief of Staff Ali Aslan said that "under no circumstances will we compromise our rights, cede our land, or relinquish our dignity. If this [peace] is not achieved, we are not in a hurry; for Syria does not give into threats, pressures or slanders." In that same speech, which marked Syrian aviation day, he urged the Syrian air force to boost its "combat preparedness." On Oct. 17, the government-controlled Tishrin newspaper said the Israeli plan for a unilateral withdrawal from Southern Lebanon was "blackmail against Beirut and Damascus because the Israelis are not serious [in their pullback proposals]."

Another indication that the talks need to get moving soon - while at the same time tension builds - is a report from the United Arab Emirates' al-Bayan. The Oct. 16 report said that Israel would prepare to launch a strike against Syria if negotiation progress was not achieved by April 2000. Citing Jordanian sources, the paper reported that this preemptive strike would aim to eliminate Syrian threats from Lebanon and to degrade or destroy Syria's surface-to-surface missile capability.

Along with these security tensions, domestic political constraints are slowing the process. Until Barak can get concrete security and water guarantees from Syria enforceable through a neutral third party, the negotiations are likely to remain stalled. Adding to the problem is that the Syrian foreign minister, who was the contact point for the negotiations, is still recovering from a heart problem and has only recently returned to Damascus.

These issues have made it extremely difficult for both sides to continue pre-negotiation talks in Jordan [ http://www.stratfor.com/MEAF/commentary/m9909161906.htm ]. Even though the Jordanian foreign minister's trip to Syria makes it appear that there is still hope, both governments need to ensure these issues don't scuttle the talks. Therefore, while both countries have signaled that peace is just around the corner, the combination of bad timing and interior political forces may continue to bog down the negotiations.

The Lebanese daily al-Nahar Oct. 26 quoted "informed Syrian sources" as saying that a unilateral Israeli withdrawal from southern Lebanon could lead to glitches in the peace process. They emphasized that Israel would not be able to contain Hezbollah after a withdrawal, which would increase the likelihood of conflicts along the Israeli border. This in turn might induce Israel to follow through on earlier threats to strike at the Lebanese infrastructure, which ultimately would cause Syria to call off the peace process. Israeli Prime Minister Ehud Barak promised Syria that Israel would unilaterally pull out of southern Lebanon by July 2000 as a token of goodwill in his peace-making efforts.

Why would Syria warn Barak not to deliver his promise? The answer lies in the increasingly delicate balance of power among Israel, Syria, Lebanon and Iran. The balanced is threatened by Iran's involvement in the region and the succession struggle inside Syria.

Israel's withdrawal from southern Lebanon will leave a power vacuum in the region, which Israel wants Syria to fill. This would leave Syria with the responsibility of curbing Hezbollah activity - a major Israeli condition for furthering the peace process. The Oct. 26 statements made it clear that Syria, which would certainly like to take charge in southern Lebanon, is unable to do so.

Syria is unable to take charge for two interrelated reasons. First, Damascus cannot commit additional forces while there is potential for a domestic move against Syrian President Hafez Assad and his potential successors. Second, the faction challenging Assad for power may be allied with Iran. It is even possible that Iran instigated the Syrian power struggle in response to Assad's decision to cut off aid to Hezbollah. Directly challenging Hezbollah would only intensify Iranian support for opponents of Assad.

Even now, Syria is finding it difficult to curb current Hezbollah activity, since Iran is now directly supporting Hezbollah through Beirut rather than Damascus. Further complicating the issue, Iran may also be supplying the guerrillas via Syrian bases and ports controlled by Assad's domestic opponents. Pressure from Lebanon's major power broker, Syria, would not be effective in curtailing Hezbollah activity.

We have noted that Iran could be a key influence in the Syrian power struggle hampering the peace process [ http://www.stratfor.com/meaf/specialreports/special16.htm ]. It is becoming increasingly clear that any chance of an Israeli-Syrian peace deal directly depends on Assad's ability to maintain control. If Assad's hold is loosening due to failing health and the succession issue, he will be particularly reluctant to draw any additional internal opposition by going up against Hezbollah. Thus, it is better for Assad if Israel maintains its current presence in Lebanon.

Barak may be open to keeping troops in Lebanon for a while, but not indefinitely. On Oct. 21, Israel's Haaretz newspaper reported that Barak is "flexible" on the date of a pullback. Barak has also been quoted in private conversations as saying he would not "jump off a tower" if the withdrawal is delayed a few months. However, the prime minister may already be searching for a solution. On Oct. 27, U.S. CIA Director George Tenet made a secret visit to Israel and discussed "the prevention of acts of terrorism and the Iranian threat" with political and military leaders, Yediot Aharonot reported.

If Barak proceeds with withdrawal, Damascus will face a choice between committing troops to the region and confronting Hezbollah or abandoning south Lebanon to the guerrillas. The former threatens to weaken Assad domestically. The latter threatens to increase Hezbollah's strength. This would have the effect of upping Israeli counterattacks on the Lebanese infrastructure, which could damage Syrian interests in the country. Syria hopes to convince Israel that neither option benefits the peace process.

Bashar Assad may soon be appointed to a senior position, possibly vice president, in the country's leadership, according to a Feb. 21 report in the Lebanese daily As-Safir, a major conduit of leaks from the Syrian government. According to the report, cited in the Israeli newspaper Haaretz, the anticipated government reshuffle would be implemented within 10 days at most.

The report also stated that President Hafez Assad convened the national leadership of the ruling Baath Party last week in order to discuss the urgent need to develop and renew the administration in Syria while continuing to fight corruption and flawed management - two areas in which Bashar Assad has been active in recent years. If appointed to a high government post, it is a clear indication that Bashar will officially become heir to the Syrian presidency, but more importantly it indicates that he is ready for the responsibility.

This development also sheds light on a possible motivation for Syria's negotiations with Israel. It is likely that President Assad is using the current Israeli-Syrian peace negotiations to ensure that the special relationship he has built with Israel is passed on to his son. Israel and Syria have maintained informal peace for decades now, and the Syrian president needs to assure that the tacit relationship will be honored when his son takes over. Since Bashar became the heir apparent, he and President Assad have been clearing out opponents to Bashar that could potentially want to take advantage of his perceived weakness.

Certain factions in Syria believe Bashar is too inexperienced to handle the presidency, and since he was outside the political intrigues of Damascus, they are undoubtedly correct - unless the path can be smoothed for him. In 1994 Bashar was completing an ophthalmology residency in Britain when his older brother and heir apparent at the time, Basil, was killed in a car accident. Bashar had reportedly said that he had never sought a life in politics nor dreamed of becoming president. However, under pressure from his father, he agreed to return to Syria and begin the process of grooming for the leadership.

Upon his return to Syria in 1994, Bashar unsurprisingly moved quickly up through the military and became a colonel in January 1999. He also commands a brigade of the elite Republican Guard division. Toward the end of 1998, Bashar took charge of Syria's Lebanon portfolio - an area of influence critically important to Damascus. Lebanon's trade and smuggling routes provide a significant amount of revenue to Damascus and by extension specific families in Damascus. The importance of politics in Lebanon is deeply personal in Damascus down to the level of families and clans.

In order to remove potential obstacles to the chosen, if inexperienced successor, Assad launched a series of purges focused on two interrelated goals. Older guards who have established their own power bases are being replaced with Bashar loyalists. Concurrently, Bashar and Assad are removing those who could challenge Bashar's ability to exercise authority and influence in both Syria and Lebanon.

As it turns out, all the purges are deeply intertwined. They are designed to clear the way for Bashar to rule effectively when he rises to power. Assad is clearing out Bashar's foes, many of whom are competitors with the Assad family for control of the lucrative trade routes through Lebanon. Meanwhile, Assad is trying to reach an agreement with Israel not to undermine Bashar.

In 1998 the former Intelligence Chief Bashir al-Najjar was removed and later sentenced to prison on corruption and embezzlement charges, and the chief of staff of the armed forces, Hikmat al- Shihabi, known to be at odds with Bashar, was replaced with a Bashar loyalist and fellow member of the secretive Shiite sect, Alawi.

Rifaat Assad, the president's estranged brother and potential Bashar challenger, has been reined in. Rifaat has presidential ambitions for himself and his son and attempted a coup in 1984 while President Assad was ill. In an October 1999 attempt to eliminate Rifaat's power base, Bashar's Republican Guard troops attacked Rifaat's "illegal" Latakia port and residence, destroying the compound and reportedly killing hundreds of Rifaat's loyalists.

A highly significant purge was the Feb. 6 retirement of the military intelligence head Gen. Ali Duba. According to Agence France-Presse in 1998, informed Arab diplomats reported that Duba was "a major obstacle to Bashar's accession." Although Syrian army officers frequently continue service beyond retirement age, Duba questioned why a presidential successor needed to come from the Assad clan. This would explain why President Assad and Bashar mandated Duba's retirement.

Not only was Duba a threat to Bashar, he was also associated with Lebanese smuggling. Duba was cited in February 1999 in a case involving the illicit traffic of religious relics between Lebanon and Canada, according to Intelligence Newsletter. An inquiry revealed the existence of a network that had been operating since 1990 under Duba's protection. Duba's retirement was attributed to his alleged involvement in this and other financial scandals.

The broad government purges may even go as high as the level of prime minister. According to As-Safir, Prime Minister Mahmoud Zoubi, who has held his post since 1987, is expected to be replaced. One rumor is that Foreign Minister Farouk Sharaa will be made prime minister to be on par with Israeli Prime Minister Ehud Barak in the Israeli-Syrian peace talks. Sharaa is a staunch supporter of President Assad and will be equally loyal to Bashar.

In addition to government and military purges, President Assad has also purged Syria and Lebanon of Islamic militants opposed to the current negotiations with Israel.

The anticipated government reshuffle will secure Bashar's position as the undisputed heir apparent. The high-level purges pave the way for Bashar's security once he takes office. As president, Bashar's more experienced rivals who remain in the Syrian government will find it difficult to challenge him. President Assad is effectively working to secure his son's and family's power in Syria and control over Lebanon, while maintaining Syria's convenient, if tacit, relationship with Israel. Since news does not freely flow out of Syria, the fact As-Safir reported Bashar's readiness to rise a notch in power means that the purges seem to be working.

Syria's ruler for the last 30 years, Hafez Assad, reportedly suffered a stroke in early April according to a report by London's Sunday Telegraph, citing Western diplomats in Damascus. Importantly, Assad failed to make his customary address to the nation on April 7 - the anniversary of the founding of his ruling Baath party - and missed Independence Day celebrations 10 days later, according to the report.

While Assad has been known to be ill for some months, the future leadership of his country has been less clear. However, most signs point to the ascendancy of his son Bashar. There have been no reports of serious unrest directed at him in the last month, suggesting that he has been successful in securing power from the only serious rival, the president's brother, Rifaat. In contrast, when Assad suffered a serious heart attack in 1983, Rifaat attempted a military takeover of the government. Last fall, however, his power base was seriously undercut when Republican Guard troops attacked Rifaat's Latakia port and residence and killed hundreds of Rifaat's loyalists.

The president took great pains to pave the path to power for his son. His potential opponents appear to have been purged and the cabinet was reshuffled last month. In the past two years, the intelligence chief, the chief of staff of the armed forces, the director of military intelligence and the prime minister have all been removed and replaced with Bashar loyalists. Additionally, the Jerusalem Post reported that the powerful Foreign Minister Farouk Sharaa acknowledged on April 3 - right around the time of the reported stroke - that Bashar was in line for succession.

Indeed, throughout the last month, Bashar has taken an unprecedented and more prominent role in the country's affairs. On April 27, he met an Israeli parliament member to discuss the peace process - something he had never done before. He also warned Israel on April 28 that a unilateral pullout from south Lebanon, without prior agreement with Syria, could trigger instability. Bashar also used his authority as the president's son to lobby for economic reforms. From April 20 through April 27, Syria liberalized its rules against holding foreign currency and narrowed the power of economic security courts.

But at age 35, Bashar is nowhere near as experienced or savvy as his father. Syrian politics is a delicate game of balancing various internal factions off one another to maintain a firm grip on power - occasionally involving the death of opponents to the regime. Bashar undoubtedly lacks skill at this - or at least experience - due to his late grooming for power following years spent outside of Syria. Only six years ago, he was completing an ophthalmology residency in Great Britain when his older brother was killed in a car accident. Since his return home, he has moved through posts in the military, become a colonel last year and recently commanded a brigade of the elite Republican Guard division.

His inexperience will likely color his leadership. Bashar, for example, has a reform agenda aimed at attracting foreign investment to Syria's isolated economy. Damascus may begin to lean toward the West as a result. Specifically, Syria is likely to shift its alignment away from internationally isolated countries like Iraq, even though the two have recently expanded ties. A recent decision by Iraq indicates that this shift may already be under way. According to a May 1 Middle East Economic Survey (MEES) report, Iraq now prefers to repair an oil terminal in the Persian Gulf rather than reopen a pipeline through Syria.

Also, Syria after Hafez Assad is likely to be more intransigent toward peace negotiations with Israel. Bashar does not bear any additional malice. He simply is not yet secure enough in his position to make the necessary and costly concessions to Syria's historic enemy without earning the enmity of hard-line factions in Damascus.

Bashar will tread a careful, moderate path in all his actions - not a Western interpretation of moderate but moderate in that he can implement change more incrementally than boldly.

Syria's new president punctuated his anti-corruption drive July 23 by targeting two former Syrian ministers. Former deputy prime minister for economic affairs Salim Yassin and former transport minister Mufid Abdel Karim were charged with "abuse of power, taking decisions harmful to the national economy and making personal profits," according to the official Syrian Arab News Agency (SANA). The arrest is the most significant step so far in Assad's anti-corruption efforts - yet the trial is a carefully crafted show. Bashar is making an example of these two, but if the example does not generate voluntary compliance, real reform could be a long time coming.

The two ex-ministers are being held in connection with an order for six Airbus 320-As made for the state-owned Syrian Arab Airlines in 1996. An arrest warrant has also been issued for a third man, Munir Abu Khaddur, who is on the run. SANA wrote that former Prime Minister Mahmud al-Zohbi, who committed suicide in May, would also have faced similar charges.

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The SANA report said Yassin and Karim had forced Syrian Air to buy the Airbuses, most likely making a large profit on the side. The crime is not noteworthy - corruption is almost expected in a government partially based on medieval clan structures - but the arrests certainly are. Despite concerns about his ability to govern the nation, Bashar Assad has consistently emphasized economic reform and anti-corruption. It appears that he wants to make an example of these men.

The trial may have been Bashar's idea, but it derives from the power of his late father, ex-president Hafez Assad, not his own. The Airbus investigation began months ago and both men were initially arrested in May - when the elder Assad was still alive. Given Hafez's political sense and his ability to manipulate Syrian political factions, it is likely that he had already addressed any potential political backlash from the trial.

Bashar is playing this round with the deck stacked in his favor. The question is whether Bashar can stack his own deck in the future or if this is his only shot at convincing Syrians to change their ways.

Bashar will use the trial to enhance his status as an economic reformer in the hopes of luring foreign investment into Syria. His country definitely needs the money. The population is growing faster than the economy. And Syria's oilfields - which supply the lion's share of official export earnings - are expected to run dry in 10 years, according to the U.S. Department of Energy.

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But the trial also sends a message to Syria's elite - a signal that the old ways of doing business are longer acceptable. But here lies the danger. Syria is run by one man, one clan and one party but the ruler does not have absolute control. The Alawite-dominated Ba'athist party makes up only a tiny percentage of the primarily Sunni population. The Alawites have a strong hand on the military and the security services, but they do not run a totalitarian state, preferring to bribe their opponents whenever possible. Real economic reforms will negate one of Bashar's most useful tools for maintaining control of the regime at the same time they threaten his opponents' way of life.

Significant economic reforms will also force Bashar to examine the military's business ties. The military appears to be supporting Bashar at the moment - but that could change if Bashar goes after their bank accounts.

Bashar can milk the current trial for all it is worth, hoping to frighten the Syrian elite into constraining their activities. But the question is what can he do next. He can press the advantage, hoping to keep his opponents off-guard, and clean the entire economy. More likely he will move in fits and starts, bribing certain groups with smuggling rights while reforming certain sectors - making economic reform a very slow, piecemeal process.