Iran Deploys Brigade 65 to Finish Syrian War?

Posted on April 29, 2016April 29, 2016 by Denise Simon

Two men were assigned to coordinate Bashir al Assad’s war operations.

Amir Ali Arasteh

Qassem Suleimani

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alMonitor/TEHRAN, Iran — Earlier this month, Brig. Gen. Ali Arasteh, deputy chief liaison of the Iranian army’s ground force, for the first time publicly spoke about Iran’s military operations against the Islamic State (IS) in Syria. He told Iranian reporters, “Brigade 65 is a part of our army’s ground force and we are dispatching soldiers from Brigade 65, as well as other units, as advisers to Syria. This dispatch is not limited to commandos of Brigade 65, as advisers of Brigade 65 are already there.”

With the exception of the 1980-88 war with Iraq, the army had not conducted foreign operations since Iran’s 1979 Islamic Revolution. Only the Quds Force, the external operations branch of the Islamic Revolutionary Guard Corps (IRGC), and the Fatehin Brigade, made up of Iranian volunteers, had conducted advisory and ground operations in Syria and Iraq. The army is solely responsible for defending Iran’s borders, though if ordered by the commander in chief, Ayatollah Ali Khamenei, it can also undertake assigned foreign missions.

Brigade 65, also known by the abbreviation Nohed, is a special airborne force, and one of Iran’s most elite military units. It was formed prior to the Islamic Revolution, and had a very successful record during the war with Iraq. Its original core was formed in the 1950s, when the army sent 10 senior officers to France. In the ensuing years, two new brigades responsible for hostage rescue missions, irregular warfare, psychological warfare and support were added to the airborne force while Brigade 65 was created. Improved training alongside successful combat experiences — such as at the Manston Dhofar military base in Oman in the 1970s, and reportedly even in the Vietnam War — led this unit to become one of Iran’s best, alongside the Imperial Guard, by the end of the Pahlavi era.

Brigade 65’s participation in operations in Oman was official. This apparently was not the case in Vietnam; however, before his death, Gen. Alireza Sanjabi shared a memory with this author about how he had served as a sniper in Vietnam. Sanjani added, “Before the revolution, most of the training of this brigade was done in the form of joint operations with the British SAS.” Indeed, Brigade 65’s power increased so much that during the early days of the Islamic Revolution, certain members of parliament urged its dissolution since they feared it might attempt a coup. However, it was not dissolved and remains as strong as ever. In the 1990s, there was a mock military operation in Tehran where airborne forces were asked to take hold of all important military and political centers in the capital. Despite fierce resistance put up by the security forces guarding these centers, the powerful “Ghost Forces” were able to occupy the capital in two hours. Ever since, these army green berets have been known as the “Powerful Ghosts.”

Prior to its current deployment, Brigade 65 had not conducted foreign operations since the war with Iraq, as far as is officially known. There are, however, certain unconfirmed reports indicating that members of this brigade conducted reconnaissance missions in Iraq, Pakistan and Afghanistan.

While the IRGC has been in charge of providing support for the Syrian government since the outbreak of the Syrian civil war, the army during the past two years has taken pre-emptive measures in the fight against IS in order to neutralize any possible attack on Tehran. Last year, the commander of the army’s ground force, Brig. Gen. Ahmad Reza Pourdastan, mentioned operations involving the deployment of troops to the Iran-Iraq border and cross-border artillery strikes. He also said that “a rapid response unit as well as specialized sniper training schools have been formed during the past few months.” In addition, advanced military equipment has been delivered to these forces to prepare them to confront any threats.

Iranian classifications put the size of brigades at about 6,000 to 7,000 troops. Thus, it is probable that about 100 to 200 Brigade 65 commandos have been deployed to Syria. News of this deployment was heavily covered by Iranian media outlets. Indeed, only a few days after the deployment, reports of four Brigade 65 fatalities in Aleppo shocked public opinion. Pourdastan quickly described the situation to the press, “During an attack conducted by a few thousand takfiri [militant Salafi] forces and forces of Jabhat al-Nusrah on south Aleppo … four dear members of the [Iranian] ground forces were martyred. In this confrontation, a number of tanks and armored personnel carriers of the terrorist group al-Nusrah were destroyed and 200 terrorists were killed as well.” Based on the latter, it appears likely that the Iranians were the target of a surprise attack.

Following the wave of intense reactions to the deaths of the four Iranian commandos, army commander Maj. Gen. Ataollah Salehi said that the regular forces have no responsibility to render advisory services to Syria, and that there is an organization in Iran that carries out related measures. Salehi said that some volunteers have been dispatched to Syria under the responsibility of that organization and that there may have been some members of Brigade 65 among them. He added that due to the strict rules of the army, it seems very unlikely that its officers would enter Syria on their own and that they had probably done so under the orders of the armed forces’ general staff. This statement conveys Salehi’s dissatisfaction with the presence of army forces in Syria.

The Syrian civil war appears poised to enter a new and more serious phase in the coming months. While Russia is reducing its military presence in Syria, Iran is trying to make up for that by deploying its own special forces. Considering the small number of Iranian troops that have been deployed, this may not be an important development from a military standpoint. However, it clearly shows that Iran is determined not to let the balance of power be disturbed in Syria. In the past few months, Iran has participated in the UN peace negotiations, clearly showing that it is not willing to capitulate to its regional rivals, such as Turkey and Saudi Arabia, after five years of having its soldiers injured and killed and having spent billions of dollars. Thus, it is possible that if the Syrian government is threatened more seriously, even more army forces will be deployed in Syria alongside the IRGC.

Who is in Line to Bailout Venezuela?

Posted on April 29, 2016April 29, 2016 by Denise Simon

Venezuela Doesn’t Have Enough Money to Pay for Its Money

Bloomberg: Venezuela’s epic shortages are nothing new at this point. No diapers or car parts or aspirin — it’s all been well documented. But now the country is at risk of running out of money itself.

In a tale that highlights the chaos of unbridled inflation, Venezuela is scrambling to print new bills fast enough to keep up with the torrid pace of price increases. Most of the cash, like nearly everything else in the oil-exporting country, is imported. And with hard currency reserves sinking to critically low levels, the central bank is doling out payments so slowly to foreign providers that they are foregoing further business.

Venezuela, in other words, is now so broke that it may not have enough money to pay for its money.

This article is based on interviews with a dozen industry executives, diplomats and former officials as well as internal company and central bank documents. All of the companies declined official comment; the central bank did not respond to numerous requests for interviews and comment.

Thronging Banks

The story began last year when the government of President Nicolas Maduro tried to tamp down a growing currency shortfall. Multi-million-dollar orders were placed with a slew of currency makers ahead of December elections and holidays, when Venezuelans throng banks to cash their bonuses.

At one point, instead of a public bidding process, the central bank called an emergency meeting and asked companies to produce as many bills as possible. The companies complied, only to find payments not fully forthcoming.

Last month, De La Rue, the world’s largest currency maker, sent a letter to the central bank complaining that it was owed $71 million and would inform its shareholders if the money were not forthcoming. The letter was leaked to a Venezuelan news website and confirmed by Bloomberg News.

“It’s an unprecedented case in history that a country with such high inflation cannot get new bills,” said Jose Guerra, an opposition law maker and former director of economic research at the central bank. Late last year, the central bank ordered more than 10 billion bank notes, surpassing the 7.6 billion the U.S. Federal Reserve requested this year for an economy many times the size of Venezuela’s.

Related: Venezuela Orders Five-Day Weekends in Bid to Save Power Grid

World’s Highest Inflation

The currency crisis sheds light on the magnitude of the country’s financial woes and its limited ability to remedy them as oil — the mainstay of its economy — continues to flatline. Venezuela’s inflation, the world’s highest, is expected to rise this year to close to 500 percent, according to the International Monetary Fund.

The first signs of the currency shortage date back to 2014 when the government began increasing shipments of bank notes as wallet-busting wads of cash were already needed for simple transactions. Venezuelans spend hours waiting in line for consumer staples, lining up first at banks and cash machines, often carrying the loot in backpacks and gym bags to pay for dinner out.

Ahead of the 2015 congressional elections, the central bank tapped the U.K.’s De La Rue, France’s Oberthur Fiduciaire and Germany’s Giesecke & Devrient to bring in some 2.6 billion notes, according to bank documents and people familiar with the deals. Before the delivery was completed, the bank approached the companies directly for more.

De La Rue took the lion’s share of the 3-billion-note order and enlisted the Ottawa-based Canadian Bank Note Company to ensure it could meet a tight end-of-year deadline.

Sniper Cover

The cash arrived in dozens of 747 jets and chartered planes. Under cover of security forces and snipers, it was transferred to armored caravans where it was spirited to the central bank in dead of night.

While the cash was still arriving — at times, multiple planeloads a day — authorities set their sights on the year ahead. In late 2015, the central bank more than tripled its original order, offering tenders for some 10.2 billion bank notes, according to industry sources.

But currency companies were worried. According to company documents, De La Rue began experiencing delays in payment as early as June. Similarly, the bank was slow to pay Giesecke & Devrient and Oberthur Fiduciaire. So when the tender was offered, the government only received about 3.3 billion in bids, bank documents show.

“Initially, your eyes grow as big as dish plates,” said one person familiar with matter. “An order big enough to fill your factory for a year, but do you want to completely expose yourself to a country as risky as Venezuela?”

Further complicating matters is the sheer amount of bills needed for basic transactions. Venezuela’s largest bill, the 100-bolivar note, today barely pays for a loose cigarette at a street kiosk.

Related: Venezuela acquired 1,800 Russian antiaircraft missiles in ’09

Uncharted Territory

As early as 2013, the central bank commissioned studies for 200 and 500 bolivar notes, former monetary officials say. Despite repeated assurances, no new denominations have been ordered, pushing Venezuela into uncharted territory by its refusal to produce larger bills while not fully paying providers.

Companies are backing away. With its traditional partners now unenthusiastic about taking on new business, the central bank is in negotiations with others, including Russia’s Goznack, and has a contract with Boston-based Crane Currency, according to documents and industry sources.

Steve Hanke, a professor of applied economics at Johns Hopkins University, who has studied hyperinflation for decades, says that to maintain faith in the currency when prices spiral, governments often add zeros to bank notes rather than flood the market.

“It’s a very bad sign to see people running around with wheelbarrows full of money to buy a hot dog,” he said. “Even the cash economy starts breaking down.”

***** Iran missile base in Venezuela, BusinessInsider

In part from Forbes: In Venezuela, Maduro´s government (based on the legacy of the late Hugo Chávez), has continued the policies of the previous administration by strengthening ties with Russia, China, and Iran, in opposition to US influence. An example of this has been Venezuela´s growing oil exports to the Asian giant, going from 50,000 barrels per day in 2006 to roughly 600,000 barrels per day sent to China in 2014. These growing exports have been part of a wider strategy aimed at reducing dependency on exports to the United States, as well as being used to back loans provided by China that now exceed $56 billion. China has also expanded its investments in Venezuela by acquiring and developing a plethora of companies, along with the signing of large military contracts to provide Venezuelan armed forces with aircraft, radars, armored vehicles, and helicopters.

China´s influence has also extended to more moderate governments in the region as in the cases of Ecuador and Argentina. In the case of the latter, Cristina Fernandez de Kirchner´s administration signed a treaty that included the establishing of a “space exploration site” in the Argentine Patagonia with very few public details on the purpose and functioning of these installations, which will be under complete control of Chinese government. Many security experts agree on the fact that not only is the agreement absolutely opaque on the intention of the site, but also that the presence of dual-purpose technologies allow the station to operate as an intelligence gathering platform. Argentina has also become a recipient of Chinese loans, and an important provider of commodities.

Returning to the Panama Summit, it becomes clear it has been successful for Obama´s foreign policy intentions because it achieved not only the “must-have” picture with Castro and the joint press conference, but also because it unveiled a new beginning in US relations with Latin America and the Caribbean. Also because at this juncture of the process it managed to avoid confrontation with Venezuela´s Maduro, just as his Bolivarian government begins to lose regional support. More from Forbes.

Russia China Just Teamed up, Against U.S.

Posted on April 29, 2016April 29, 2016 by Denise Simon

China denies request for Hong Kong visit by U.S. carrier group: Pentagon

Reuters: China has denied a request for a U.S. carrier strike group led by the USS John C. Stennis to visit to Hong Kong, the U.S. Defense Department said on Friday, amid heightened tensions over China’s territorial claims in the South China Sea.

A Pentagon spokesman, Commander Bill Urban, said a U.S. warship, the USS Blue Ridge, was currently in Hong Kong on a port visit and the United States expected that to continue.

The Chinese government and its embassy in Washington did not immediately respond to requests for comment.

Urban said the request for the Hong Kong visit by the carrier and its accompanying vessels, which have been patrolling the South China Sea, was recently denied, despite a “long track record of successful port visits to Hong Kong.”

The Blue Ridge, the command ship of the U.S. Seventh Fleet, arrived in Hong Kong waters at 11:20 a.m. local time (0320 GMT) on Friday, according to the on-line log of the Hong Kong government’s Marine Department.

The nuclear-powered Stennis has been conducting patrols in the South China Sea, which China claims most of and where Beijing has sparked U.S. and regional concerns by building artificial islands to bolster its claims.

U.S. Defense Secretary Ash Carter visited the Stennis while it transited the South China Sea on April 15 to underscore U.S. concerns about the need to maintain freedom of navigation in the South China Sea in the face of Chinese moves.

A wide range of U.S. military vessels and aircraft have long routinely stopped in Hong Kong, a reflection of the “one country, two systems” formula under which Britain handed the global financial hub back to China in 1997.

The visits occasionally have been suspended in periods of heightened tensions, such as after a mid-air collision between a U.S. EP-3 surveillance plane and a Chinese plane off China’s Hainan island in 2001.

The USS Kitty Hawk aircraft carrier also was denied permission to enter Hong Kong over Thanksgiving in 2007 but was cleared to visit five months later.

The United States has stressed the importance of good relations with China’s military to avoid misunderstandings and Chinese military officers are invited routinely aboard U.S. ships during port visits, and are sometimes flown out to land on U.S. carriers at sea.

While there, he dismissed China’s characterization of a more robust U.S. military presence in the region as being the cause of heightened tensions. The United States has in turn accused China of militarizing its outposts in the South China Sea by building airstrips and other facilities.

Carter made a similar stop at the USS Theodore Roosevelt in November as it transited the South China Sea near Malaysia.

The Stennis has been on a routine deployment in the Western Pacific for more than three months, the carrier strike group’s commander, Rear Admiral Ronald Boxall, said earlier this month.

Russia, China in Agreement on North Korea, South China Sea

ABCNews: Denouncing what they see as outside interference in the South China Sea and Korean Peninsula, the foreign ministers of Russia and China voiced mutual support Friday as they seek to counter the influence of Washington and its allies, particularly in Asia.

Following talks in Beijing, Russia’s Sergey Lavrov and China’s Wang Yi expressed opposition to the U.S. deployment of an anti-missile system in South Korea and said non-claimants should not take sides in the dispute over maritime territorial claims in the South China Sea.

Despite endorsing United Nations Security Council sanctions against North Korea over its missile launches and nuclear tests, the two strongly criticized the proposed deployment of the Terminal High-Altitude Area Defense, or THAAD, system.

“Relevant countries shouldn’t use Pyongyang’s acts as a pretext to increase their military presence on the Korean Peninsula,” Lavrov told a joint news conference. “We believe the possible deployment of the THAAD anti-missile system won’t resolve this problem.”

Both Russia and China, North Korea’s now largely estranged ally, see the deployment as exceeding what is necessary to defend against any North Korean threat and would “directly affect strategic security of Russia and China,” Wang said.

That could “add fuel to the fire of an already tense situation and even possibly wreck the regional strategic balance,” Wang said.

Both men called for efforts to restart long-stalled six-nation talks on ending North Korea’s nuclear programs.

Their meeting came amid renewed tension on the Korean Peninsula, with South Korean officials saying the North attempted unsuccessfully to test-fire two suspected powerful intermediate-range missiles on Thursday.

It also comes ahead of a major North Korean ruling party meeting next week at which leader Kim Jong Un is believed to want to place his stamp more forcefully on a government he inherited after his dictator father’s death in late 2011.

On the South China Sea, which China claims almost entirely, Lavrov said outside parties shouldn’t interfere, a reference to the United States, which has challenged Beijing’s claims.

Wang said it was up to those countries directly involved to find a peaceful resolution through negotiations.

“International society, particularly countries from outside the South China Sea, should play a constructive function in maintaining peace and stability and not contribute to the situation becoming more chaotic,” Wang said.

Criticized over its aggressive tactics and construction of new islands with airfields, harbors and radar stations, China has sought to use Russia to bulk up its side of the argument against the U.S. and claimants such as the Philippines, which has brought a suit at the U.N. Court of Arbitration seeking a ruling on ownership over territories it claims.

China has refused to take part in the arbitration or recognize the court’s ruling.

Along with enlisting Russia’s support, China has given heavy publicity to what it calls a new consensus reached with Brunei, Cambodia and Laos — three members of the 10-country Association of Southeast Asian Nations — endorsing its stance that the South China Sea dispute should not be an issue for ASEAN as a whole.

That has renewed criticisms from some that China is applying divide-and-conquer tactics with its smaller neighbors and trying to drive a wedge through the organization. ASEAN members Brunei, Malaysia, Vietnam and the Philippines contest China’s claims, while Taiwan also claims much of the area.

While the U.S. says it takes no position on South China Sea sovereignty claims, it has worked to shore up the military capabilities of the Philippines, a treaty ally. Washington has also called on China to end its island-building projects and the U.S. Navy has repeatedly sailed and flown ships and planes nearby those structures, drawing sharp responses from the Chinese navy.

Wang and Lavrov both hailed two decades of warming ties between Moscow and Beijing, bitter Cold War rivals for a quarter century, who under Russian President Vladimir Putin have found common cause in challenging the West.

Russia has become a leading supplier of imported high-tech weaponry and resources such as oil and gas, while China is a major source of capital investment for projects in Russia.

Putin is scheduled to visit China in June.

Clintons Paying Legal Fees for email Server Agent

Posted on April 29, 2016April 29, 2016 by Denise Simon

In 2014, the Hillary server domain registration was changed to Perfect Privacy, a proxy company that allows domain users to shield their identities. It’s a common practice among domain owners who don’t want their personal information listed on a public database.

Per Gawker: A source says at least two top Clinton aides used her private email accounts to conduct government business, putting their official communications outside the control of federal record-keeping regulations.

The source named Philippe Reines and Abedin as the employees who used Clinton’s private email addresses in the course of their agency duties.

Reines served as deputy assistant secretary of state, and Abedin as Clinton’s deputy chief of staff. They are two of Clinton’s most loyal confidantes in and out of the State Department, Gawker reported. More here.

Related: Lawyers for Hillary’s team

Report: Clintons Are Paying Legal Bills For Aide Who Registered Private Email Address

DailyCaller: The Clintons have paid “hundreds of thousands of dollars” to cover the legal bills for a Bill Clinton aide who sits at the center of the FBI’s investigation into Hillary Clinton’s private email server.

That’s according to Washington Times opinion editor Monica Crowley who reports in a new column that a knowledgeable source tells her that the Clintons are covering legal expenses for Justin Cooper, a longtime aide to the former president.

Such an arrangement would raise questions over whether the Clintons are paying Cooper’s bills in order to ensure that they have some oversight of his interactions with federal investigators. It would also raise questions about whether the Clintons are paying other aides’ legal costs.

Cooper registered clintonemail.com in his own name on Jan. 13, 2009. That email domain is the same one Hillary Clinton exclusively used to send work-related emails as secretary of state. Emails sent on that account were stored on a server that the Clintons kept at their personal residence in New York.

According to Crowley, Cooper’s role in helping set up Clinton’s mysterious email arrangement has put him in the FBI’s cross hairs. She reports:

A source familiar with Mr. Cooper’s arrangement with the Clintons tells me that they have paid his legal fees associated with the FBI investigation, amounting to “hundreds of thousands of dollars.” They aren’t paying those costs out of a sense of decency. They’re paying them because he knows the “why” of the server, which may very well have been to make it easier for the foundation to hustle big donations.

One wonders what, if anything, Mr. Cooper is telling the FBI —and whether the whole sordid Clinton house of cards will be left standing.

The FBI seized Clinton’s server last year after it was determined that some of her emails contained classified information. And now, investigators are reportedly poised to interview aides who have knowledge about the system.

And according to a Fox News report from earlier this year, the FBI’s investigation has expanded to a public corruption probe which centers on the intersection of the Clinton Foundation and State Department.

Cooper could also be embroiled in that aspect of the investigation, according to Crowley, who also works as a Fox News analyst.

The little-known Cooper has worked for the Clinton Foundation and Teneo Holdings, a consulting firm with close ties to the Clintons. Along with Doug Band — Bill Clinton’s former “body man,” a former counselor to the Clinton Foundation, and a co-founder of Teneo — Cooper kept in contact with Clinton’s State Department aides, emails from Clinton’s account show. One of those aides is Huma Abedin, who served as Clinton’s deputy chief of staff while also working for Teneo.

The overlap has raised questions over whether the Clinton Foundation and Teneo were using access to the State Department to help raise money and attract clients.

The possibility that the Clintons are paying legal bills for aides embroiled in the FBI investigation has already been broached by Congress.

Senate Judiciary Committee chairman Chuck Grassley has asked lawyers for the Clintons and Abedin — as well as for former Clinton aides Cheryl Mills, Philippe Reines, and Jake Sullivan — if they have entered any “joint defense agreements.”

The Iowa Republican has asserted that such arrangements could pose conflicts of interest because they would help ensure that the Clinton insiders refrained from providing evidence that could be detrimental to the Clintons.

The lawyers have refused to say if those arrangements have been made.

Grassley has also asked whether the Clintons are covering legal costs for Bryan Pagliano, the former information technology specialist who set up and managed Clinton’s private email server. But Pagliano’s lawyer, Mark MacDougall of the Clinton-connected law firm Akin Gump, has also refused to say if such an arrangement is in place. Pagliano has since entered an immunity deal with the FBI in exchange for his cooperation in the investigation.

Some evidence has emerged suggesting that the Clintons are paying legal bills for those embroiled in the email fiasco.

In October it was reported that the Denver-based IT company that handled Clinton’s server after she left the State Department had submitted an invoice to Clinton seeking payment for legal and public relations expenses.

The company, Platte River Networks, had control of Clinton’s server when it was turned over to the FBI. It billed Clinton’s accountant, Marcum LLP., nearly $50,000 for legal and PR expenses.

The Clinton campaign and the Clinton Foundation did not respond to The Daily Caller’s requests for comment.

Congress to Bailout Puerto Rico

Posted on April 29, 2016April 29, 2016 by Denise Simon

Puerto Rico is a Commonwealth and is a U.S. territory. With a population of 3.5 million people the country is deeply in debt. Congress has been in discussions for months to draft a resolution as it has a debt payment due May 1 of $422 million. Worse, there is a debt payment due July 1 of $2 billion. The island Constitution requires the payments to be made over those bills for infrastructure including drinking water, police, and other public services. The bondholders have a have control of the credit unions where normal citizens have a major risk of losing their wealth.

If Congress Is to Rescue Puerto Rico, Key Conservative Has These Conditions

DailySignal: As the House struggles to find consensus on a plan to rescue Puerto Rico from its debt crisis, an influential conservative lawmaker today laid out his expectations for what legislation should look like.

Rep. Raúl Labrador, who is Puerto Rican, has been quiet about the plan being crafted by the Natural Resources Committee since he is a member of the panel and a direct participant in the negotiations.

But Labrador broke his silence before Capitol Hill reporters at the monthly Conversations with Conservatives event, declaring that any solution to Puerto Rico’s fiscal problems “cannot affect our states.”

“To me it’s pretty simple: Whatever we do on Puerto Rico cannot affect our states and cannot affect the way we are going to respond to any fiscal crisis in the future for any of the states,” said Labrador, R-Idaho, a founding member of a group of conservatives called the House Freedom Caucus

Before he can endorse the bill, Labrador said, he wants assurances that it treats different classes of creditors fairly and doesn’t open the door for Congress to give authority to struggling states to restructure their debts.

Earlier this month, the Natural Resources Committee released a draft bill that would create an outside fiscal oversight board to manage a process by which Puerto Rico could restructure its $72 billion debt load

The committee is revising the bill due to opposition from Republicans, the Treasury Department, and Democrats, and the legislation is not expected to be ready before May 1, when a $422 million debt payment by Puerto Rico is due. House leaders hope to act before a $2 billion payment comes due July 1.

Some holders of general obligation bonds whose debt payments are guaranteed by the Puerto Rican constitution have said they want to be exempted from the restructuring process facilitated by the proposed seven-member board.

Labrador said he doesn’t believe it’s “right” for those bondholders to get that exemption, but he also thinks pensioners should not be given higher priority than bondholders.

The Treasury Department, at one point, was planning to put pension payments to retired public employees in Puerto Rico ahead of payments to bondholders, according to The New York Times. Labrador said he wants the committee’s bill to include language ensuring that “pensions are not getting any priority over the secure debt

“I have spent a lot of time talking to a bit more objective bond companies that don’t have debt in Puerto Rico, and that’s their main concern,” Labrador said, adding that their “main concern” was that when Detroit filed for bankruptcy in 2013, it gave priority to pensions. He added:

That was an anomaly, so the bond market was not affected in any way. If we do that with Puerto Rico [give pensioners priority], what’s going to happen in the bond market is they will see a pattern and when they see that pattern, they are going to be concerned the same thing is going to happen in Illinois, the same thing is going to happen in California. And when they see that, all of a sudden the bond markets are going to react and that is going to affect every one of our states’ bonds. And it will affect the interest we pay on our bonds.

House Speaker Paul Ryan, R-Wis., has promised to act on a solution for Puerto Rico and its 3.5 million American citizens, with the hope he would be supported by a majority of Republicans.

Labrador’s endorsement would go a long way to ensuring that, considering his sway in the Freedom Caucus.

The Idaho Republican said he can get there, and that “conservatives can support a bill that gives debt restructuring to Puerto Rico,” but only under certain conditions:

The fight I am having right now with the people who drafted this bill is that they want language to be loose enough that can get votes from the Democrats. Well, guess what, if the language is loose enough, then you are going to be able to get around the language. So what we have to do is be explicit in deciding what this oversight board should be doing and what the parameters are for judging the debt in Puerto Rico. Unless we do that, I think we are doing a disservice to the people in the United States.

A major question is whether the writers of the bill can satisfy enough conservatives without scaring away too many Democrats.

Rep. Jim Jordan, the Freedom Caucus chairman, told reporters today that it shouldn’t matter which party carries the legislation to passage, as long as lawmakers work together to solve a problem.

“We should do the right thing,” said Jordan, R-Ohio. “Whether that means you will have Democrats who vote for it, I don’t know. I think if you do the right thing, then people will vote for it. So that’s what should drive this—that you are doing the right thing.”