se of operations. The global
standing of the United States could be diminished. Americans could
become more polarized.

During the past nine months we have considered a full range of
approaches for moving forward. All have flaws. Our recommended course
has shortcomings, but we firmly believe that it includes the best
strategies and tactics to positively influence the outcome in Iraq and
the region.

External Approach

The policies and actions of Iraq's neighbors greatly affect its
stability and prosperity. No country in the region will benefit in the
long term from a chaotic Iraq. Yet Iraq's neighbors are not doing
enough to help Iraq achieve stability. Some are undercutting
stability.

The United States should immediately launch a new diplomatic offensive
to build an international consensus for stability in Iraq and the
region. This diplomatic effort should include every country that has
an interest in avoiding a chaotic Iraq, including all of Iraq's
neighbors. Iraq's neighbors and key states in and outside the region
should form a support group to reinforce security and national
reconciliation within Iraq, neither of which Iraq can achieve on its
own.

Given the ability of Iran and Syria to influence events within Iraq
and their interest in avoiding chaos in Iraq, the United States should
try to engage them constructively. In seeking to influence the
behavior of both countries, the United States has disincentives and
incentives available. Iran should stem the flow of arms and training
to Iraq, respect Iraq's sovereignty and territorial integrity, and use
its influence over Iraqi Shia groups to encourage national
reconciliation. The issue of Iran's nuclear programs should continue
to be dealt with by the five permanent members of the United Nations
Security Council plus Germany. Syria should control its border with
Iraq to stem the flow of funding, insurgents, and terrorists in and
out of Iraq.

The United States cannot achieve its goals in the Middle East unless
it deals directly with the Arab-Israeli conflict and regional
instability. There must be a renewed and sustained commitment by the
United States to a comprehensive Arab-Israeli peace on all fronts:
Lebanon, Syria, and President Bush's June 2002 commitment to a two-state
solution for Israel and Palestine. This commitment must include
direct talks with, by, and between Israel, Lebanon, Palestinians
(those who accept Israel's right to exist), and Sy