Sneh, like others, isn't conceding failure yet on the official Israeli and U.S. approach, which involves isolating Iran diplomatically and economically. A third U.N. Security Council resolution authorizing economic sanctions against Iran is expected to pass next year, but it is likely to be fairly hollow because of Russian and Chinese opposition. One reason for Bush's abruptly announced nine-day visit to the region in mid-January is to deal with the fallout from the NIE, which includes not only the possibility that Israel will act unilaterally but also that Bush's prized Annapolis peace process will stall. The Bush trip is, in part, an implicit concession to U.S. hawks that the NIE went too far in absolving Iran. It is also a conscious effort to reassure both Israel and the Arab states that Washington will stand up to Iran's increasing intrusiveness and hegemonic tendencies. A dominant conspiracy theory in Arab capitals in the wake of the NIE is that Washington is seeking to cut a deal with Tehran--one that would effectively allow it to keep its nascent uranium-enrichment capability--in exchange for Iranian help in stabilizing Iraq.

Bush may also reassure the Israelis and Arab allies that the NIE overstated things in letting Iran off the hook. In yet another briefing to angry congressmen Wednesday, Director of National Intelligence Mike McConnell conceded that "we could have written parts of it more clearly," according to a senior congressman who was there. The ranking Republican member of the Permanent Select Committee on Intelligence, Rep. Peter Hoekstra, says he's calling for an independent commission to probe the report. "Most of the world looks at it and says it's an embarrassment to the United States because once again the U.S. intelligence community has dramatically changed its position," Hoekstra told NEWSWEEK. And it may well be that Washington must take back its words one more time to prevent the Israelis from acting on their own.

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