Iran must immediately close a large nuclear facility built underneath a mountain if it is to take what President Obama has called a "last chance" to resolve its escalating dispute with the West via diplomacy.

Other "near term" concessions which must be met in the early stages of talks to avoid a potential military conflict, include the suspension of higher level uranium enrichment, and the surrender by Tehran of existing stockpiles of the fuel, senior US officials said yesterday.

The demands were outlined as Iranian state TV announced that crucial negotiations over its disputed nuclear programme will begin in Istanbul on Friday, allaying fears that disagreements over the venue would derail the important and long-scheduled talks.

US diplomats, who will join counterparts from the UK, China, Russia, France and Germany, at the bargaining table, told reporters that they will insist on Iran's leadership giving up the Fordow enrichment plant, which is just outside the Shia holy city of Qom.

The facility is buried deep in a mountain, apparently to protect against air strikes, and is at the centre of Israeli fears that the country's military leadership is secretly developing weapons that could mount a long-range strike across international borders.

Notorious arms smuggler Viktor Bout, known as the "Merchant of Death," has been sentenced to 25 years in prison for conspiracy to commit terrorism. Our guest, former United Nations arms trafficking investigator Kathi Lynn Austin, says the case allowed American companies to avoid exposure of their collusion with with the U.S. government and private companies linked to Dick Cheney during the Iraq war, even after United Nations sanctions against him in 2004. Authorities say Viktor Bout was involved in trafficking arms to dictators and stoking conflicts in Africa, South America and the Middle East. He has also been accused of furnishing weapons to al-Qaeda and the Taliban, and achieved particular notoriety for selling arms in Rwanda in 1998, just four years after the Rwandan genocide.


Guest:

Kathi Lynn Austin, former arms trafficking investigator for the United Nations and executive director of the Conflict Awareness Project, dedicated to tracking global weapons traffickers and exposing the illicit world of war profiteering.

Boy, do I feel like an idiot. I've been out there on radio and TV in the last few months saying that I thought there was a chance Barack Obama was listening to the popular anger against Wall Street that drove the Occupy movement, that decisions like putting a for-real law enforcement guy like New York AG Eric Schneiderman in charge of a mortgage fraud task force meant he was at least willing to pay lip service to public outrage against the banks.

Then the JOBS Act happened.

The "Jumpstart Our Business Startups Act" (in addition to everything else, the Act has an annoying, redundant title) will very nearly legalize fraud in the stock market.

In fact, one could say this law is not just a sweeping piece of deregulation that will have an increase in securities fraud as an accidental, ancillary consequence. No, this law actually appears to have been specifically written to encourage fraud in the stock markets.

Ostensibly, the law makes it easier for startup companies (particularly tech companies, whose lobbyists were a driving force behind its passage) attract capital by, among other things, exempting them from independent accounting requirements for up to five years after they first begin selling shares in the stock market.

The law also rolls back rules designed to prevent bank analysts from talking up a stock just to win business, a practice that was so pervasive in the tech-boom years as to be almost industry standard.

Even worse, the JOBS Act, incredibly, will allow executives to give "pre-prospectus" presentations to investors using PowerPoint and other tools in which they will not be held liable for misrepresentations. These firms will still be obligated to submit prospectuses before their IPOs, and they'll still be held liable for what's in those. But it'll be up to the investor to check and make sure that the prospectus matches the "pre-presentation."

The JOBS Act also loosens a whole range of other reporting requirements, and expands stock investment beyond "accredited investors," giving official sanction to the internet-based fundraising activity known as "crowdfunding."

But the big one, to me, is the bit about exempting firms from real independent tests of internal controls for five years.

When I first read this, I asked myself: how does a law exempting a Silicon Valley startup from independent accounting actually encourage investment? If American companies have to have their internal processes independently verified before and after they go public, doesn't that give investors all around the world a big reason to put their money here, instead of investing in, say, Mobbed-Up Siberian Aluminum LLC, or Bangalore Sweatshop Inc.?

We are like passengers on the Titanic ten minutes after its fatal encounter with the iceberg: the idea that the ship will sink is beyond belief.

As we all know, the "unsinkable" Titanic suffered a glancing collision with an iceberg on the night of April 14, 1912. Ten minutes after the iceberg had opened six of the ship's 16 watertight compartments, it was not at all apparent that the mighty vessel had been fatally wounded, as there was no evidence of damage topside. Indeed, some eyewitnesses reported that passengers playfully scattered the ice left on the foredeck by the encounter.

But some rudimentary calculations soon revealed the truth to the officers: the ship was designed to survive four watertight compartments being compromised, and could likely stay afloat if five were opened to the sea, but not if six compartments were flooded. Water would inevitably spill over into adjacent compartments in a domino-like fashion until the ship sank.

We can sympathize with the disbelief of the officers, and with their confused reaction, simultaneously reassuring passengers and attempting to goad them into the lifeboats. With the interior still warm and bright with lights, it seemed far more dangerous to clamber into an open lifeboat and drift off into the cold Atlantic than it did to stay onboard.

As a result, the first lifeboats left the ship only partially full.Only when it became undeniable that the ship was doomed did people attempt to "make other arrangements," but by then it was too late.

The tragedy was a cruel mix of human error (entering an ice field at nearly top speed, 23-25 knots), hubris-soaked planning (only enough lifeboats for half the passengers and crew) and design flaws: the high-sulfur iron hull plating did not bend when struck by the ice, it shattered like china.

As noted above, the watertight compartment design was also flawed; indeed, some studies have found that the ship would have stayed afloat an additional six hours had there been no watertight compartments, as water would have sloshed evenly along the entire length of the vessel.

More than three years ago, the CIA dispatched a stealth surveillance drone into the skies over Iran.

The bat-winged aircraft penetrated more than 600 miles inside the country, captured images of Iran's secret nuclear facility at Qom and then flew home. All the while, analysts at the CIA and other agencies watched carefully for any sign that the craft, dubbed the RQ-170 Sentinel, had been detected by Tehran's air defenses on its maiden voyage.

"There was never even a ripple," said a former senior U.S. intelligence official involved in the previously undisclosed mission.

CIA stealth drones scoured dozens of sites throughout Iran, making hundreds of passes over suspicious facilities, before a version of the RQ-170 crashed inside Iran's borders in December. The surveillance has been part of what current and former U.S. officials describe as an intelligence surge that is aimed at Iran's nuclear program and that has been gaining momentum since the final years of George W. Bush's administration.

In 2004, Fatima Bouchar and her husband, Abdel Hakim Belhaj, were detained en route to the UK, and rendered to Libya. This is the story of their imprisonment, and the trail of evidence that reveals the involvement of the British government

German Foreign Minister Guido Westerwelle has underlined Iran's right to develop its nuclear energy program as a member of the International Atomic Energy Agency (IAEA) and a signatory to the nuclear Non-Proliferation Treaty (NPT).

According to a commentary by the top German diplomat in the Sunday paper Bild am Sonntag, Westerwelle stressed "Iran's right to have nuclear energy for civilian use."

He also made reference to his country's ongoing efforts for a diplomatic solution to the Western dispute over Iran's nuclear issue.

Israel on Sunday declared Guenter Grass persona non grata, deepening a spat with the Nobel-winning author over a poem that deeply criticised the Jewish state and suggested it was as much a danger as Iran.

The dispute with Grass, who only late in life admitted to a Nazi past, has drawn new attention to strains in Germany's complicated relationship with the Jewish state - and also focused unwelcome light on Israel's own secretive nuclear program.

One of the more extreme government abuses of the post-9/11 era targets U.S. citizens re-entering their own country, and it has received far too little attention. With no oversight or legal framework whatsoever, the Department of Homeland Security routinely singles out individuals who are suspected of no crimes, detains them and questions them at the airport, often for hours, when they return to the U.S. after an international trip, and then copies and even seizes their electronic devices (laptops, cameras, cellphones) and other papers (notebooks, journals, credit card receipts), forever storing their contents in government files. No search warrant is needed for any of this. No oversight exists. And there are no apparent constraints on what the U.S. Government can do with regard to whom it decides to target or why.