Did Section 31 really have reason to believe that Bashir was spying for the Dominion? Or was it just a scenario cooked up to further prove his loyalty to the Federation? I'm going to guess the latter for the following reasons.
1. If a Dominion spy was operating on the station, some Starfleet would agency would have taken extraordinary measures to quarantine the real DS9, and the real traitor might have manufactured evidence falsely implicating Bashir or any other top-level officer and Sloan would have been playing right into their hands.
2. When Sloan says: "If Doctor Bashir had been involved in one or two questionable incidents, I could understand how you might be able to dismiss it, but the sheer number of incidents form a pattern of behavior that can't be ignored." What other "questionable incidents" would he referring to besides having lied about his illegal genetic enhancements?
One could question his decision to cure the Jem'Hadar of their addiction to ketracel-white if the Feds were at war with the Dominion at the time, but that was not the case at the time of "Hippocratic Oath". Recommending surrender during the war would raise a few eyebrows, but at least he was willing and able to prevent the Jack Pack from committing treason in the guise of saving 900 billion lives.
1. If a Dominion spy was operating on the station, some Starfleet would agency would have taken extraordinary measures to quarantine the real DS9, and the real traitor might have manufactured evidence falsely implicating Bashir or any other top-level officer and Sloan would have been playing right into their hands.
2. When Sloan says: "If Doctor Bashir had been involved in one or two questionable incidents, I could understand how you might be able to dismiss it, but the sheer number of incidents form a pattern of behavior that can't be ignored." What other "questionable incidents" would he referring to besides having lied about his illegal genetic enhancements?
One could question his decision to cure the Jem'Hadar of their addiction to ketracel-white if the Feds were at war with the Dominion at the time, but that was not the case at the time of "Hippocratic Oath". Recommending surrender during the war would raise a few eyebrows, but at least he was willing and able to prevent the Jack Pack from committing treason in the guise of saving 900 billion lives.