Secret Anti-Sudan Program Begins

President Bush has approved a plan for the Treasury Department to aggressively block U.S. commercial bank transactions connected to the government of Sudan, including those involving oil revenues, if Khartoum continues to balk at efforts to bring peace to Sudan's troubled Darfur region, government officials said yesterday.

The Treasury plan is part of a secret three-tiered package of coercive steps -- labeled "Plan B" -- that the administration has repeatedly threatened to unleash if Sudan continues to sponsor a campaign of terror that has left as many as 450,000 dead and 2.5 million homeless. ...

Some aspects of Plan B have already been stealthily launched, such as stationing four U.S. Army colonels last month as observers on the Sudan-Chad border in full view of Sudanese intelligence. The unannounced move was intended as a signal to Khartoum, which the administration accuses of launching a "quiet war" against Chad's government to widen the Darfur conflict. ...

Sudan's economy is largely dollar-based, meaning many commercial transactions flow through the United States and making it especially vulnerable to Treasury actions. Indeed, U.S. intelligence, which has stepped up reporting on Sudan in recent months to prepare for a confrontation, believes Khartoum set up a government committee to explore ways of obtaining oil revenues that did not involve dollars, such as barter deals, one official said. Sudan's government has also unsuccessfully sought new oil contracts that would provide for large upfront payments. ...

Officials hope a ripple effect of Treasury's actions would extend to other countries and companies doing business with Sudan, forcing them to reconsider whether they want to be tainted or, more troubling, subjected to Treasury's scrutiny.