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[email protected] Iranian Arms Transfers: The Facts Anthony H. Cordesman Arleigh A. Burke Chair in Strategy Revised October 30, 2000 Copyright Anthony H. Cordesman, all rights reserved Iranian Arms Transfers: The Facts 10/30/00 Page 2 Political campaigns are a poor time to debate complex military issues, particularly when the debate is based on press reports and political statements that are skewed to stress the importance of the story at the expense of objective perspective and the facts. Iran does represent a potential threat to US interests, and it has carefully focused some of its limited conventional modernization efforts on threatening tanker traffic through the Gulf. Iran, however, has not carried out a major conventional arms build-up or received destabilizing transfers of advanced conventional weapons. The violations of US and Russian agreements have been minor, have had little military meaning, and been more technical than substantive. The net result is that Iran faces major military problems in many areas because of its lack of conventional modernization. The real threat it poses is one driven by its efforts to proliferate, rather than conventional arms transfers. Iranian Military Expenditures Iran has cut its military expenditures since the Iran-Iraq War, and it has done so in spite of the fact it lost some 40-60% of its holdings of major land weapons during the climatic battles of the war in 1988, and much of its military inventory is becoming obsolete. US government estimates indicate that Iran’s real defense spending is now less than one-half of the level it reached during the Iran-Iraq war, but that Iranian military expenditures still average over $4.0 billion a year.