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RFE/RL Iran Report - 07/24/2006

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  • RFE/RL Iran Report - 07/24/2006

    RADIO FREE EUROPE/RADIO LIBERTY, PRAGUE, CZECH REPUBLIC
    _________________________________________ ____________________
    RFE/RL Iran Report
    Vol. 9, No. 27, 24 July 2006

    A Review of Developments in Iran Prepared by the Regional Specialists
    of RFE/RL's Newsline Team

    ******************************************** ****************
    HEADLINES:
    * JOURNALIST SAYS TEHRAN COULD PLAY LEADING ROLE IN RESOLVING
    LEBANESE CONFLICT
    * VOCAL IN SUPPORT FOR HIZBALLAH, IRANIANS HEAD FOR LEBANON
    * BASIJ COMMANDER DENOUNCES AL-QAEDA AND TALIBAN
    * MOTTAKI VISITS DAMASCUS
    * BAGHDAD MAYOR VISITS TEHRAN
    * IRAQ COMPLAINS OF MUJAHEDIN KHALQ INTERFERENCE
    * FIRMS LINKED WITH IRANIAN MISSILE PROGRAM IDENTIFIED
    * IRAN SETS DEADLINE FOR RESPONDING TO NUCLEAR PROPOSAL
    * TEHRAN OPPOSES SIMULTANEOUS ELECTIONS
    * WEAK ECONOMY CHALLENGES POPULIST PRESIDENT
    **************************************** ********************

    JOURNALIST SAYS TEHRAN COULD PLAY LEADING ROLE IN RESOLVING LEBANESE
    CONFLICT. Prominent Iranian journalist Mashallah Shamsolvaezin says
    that Iran could play a role in ending the current conflict between
    Israel and Hizballah. Shamsolvaezin spoke to RFE/RL correspondent
    Golnaz Esfandiari from Tehran about the views of ordinary Iranians
    regarding the conflict between Israel and the Lebanese Hizballah and
    filed that interview on July 19:
    RFE/RL: How widespread is the public support for Iran's
    official policies in the Middle East and it's position regarding
    the current Lebanese conflict?
    Shamsolvaezin: We can't say with certainty what
    percentage of Iran's people support the official policies of
    their government and what percent oppose it because there haven't
    been any scientific polls but, in general, we can say that Iranian
    people have shown in their history that they support oppressed people
    anywhere in the world from a sentimental point of view and,
    especially in the current Israeli war against Lebanon, public opinion
    does not accept the destruction Israel is causing in Lebanon and
    naturally a significant part of the Iranian people are with the
    Lebanese people; therefore they side with the official policy of
    their government. I have not seen any statements or any stance
    opposing it from political organizations or civil groups.
    RFE/RL: Apart from the current conflict in Lebanon, which is
    also blamed on Hizballah, what are people's views about the
    government's support for the Palestinians? Is the Palestinian
    cause really one of the main concerns for Iranians, as some officials
    claim?
    Shamsolvaezin: This is a question you can ask in all
    countries; is the sending of troops to Iraq or Afghanistan to help
    bring peace and democracy really the main issue for American or
    French people? Governments and politicians define a country's
    national interests and even though this is a limited group of people
    it represents the country's reason in guiding national interests
    toward defined goals, and Iran is not an exception to this rule.
    RFE/RL: What are people's views on the Lebanese
    Hizballah? Is it a respected movement among ordinary Iranians and how
    do they react to Iran's support for Hizballah?
    Shamsolvaezin: Iranian people see a difference between it and
    similar movements that exist in Iran under the same title and are
    usually active in opposing intellectuals and disrupting democratic
    gatherings. They consider the Lebanese Hizballah as a resistance
    force that has popular support -- this view is common among
    politicians and journalists -- and this is partly because of its
    popularity, its actions and, to a certain degree, because its honesty
    in politics and on economic issues is respected. Of course this
    doesn't prevent some groups in Iran from condemning and
    criticizing Iran's support for Hizballah, which deprives some
    poor parts of [Iran] from certain economic privileges and comfort.
    This [issue] does comes up.
    RFE/RL: Is it also the case with Iran's help to the
    Palestinians? Is its also being criticized?
    Shamsolvaezin: Yes, it can bee seen but not from political
    organizations or groups, [only] in informal public gatherings, family
    meetings, or in protests that are made against Iran's policies;
    people say the government should first make our country progress and
    improve people's lives and then help should be sent to other
    countries including, Palestine or Lebanon. Iran's ideological
    connection or the ideological situation that prevails in Iran's
    establishment does not prevent Iranian people from expressing their
    solidarity with the oppressed Palestinian people. Iranians want to
    see peace in the Middle East and they want the UN Security
    Council's resolutions to be applied to all equally.
    RFE/RL: What are the views of Israeli policies? Iranian
    officials say there is public hatred and anger toward Israeli
    actions.
    Shamsolvaezin: The extent of destruction Israel has started
    in Lebanon has brought to Iranians minds the memories of vast Israeli
    attacks in many Mideast regions. The current generation, the new
    generation, has a more logical stance toward Israel and Arabs. By
    logical I mean that young people believe there should be peace in the
    Middle East and the governments of Israel and Palestine should live
    side by side peacefully. But the Israeli actions -- for example its
    attacks on Lebanon's infrastructure, attacks on airports,
    bridges, and civilian houses -- have negatively influenced
    people's views on Israel. As a result Israel is slowly losing
    Iranian public opinion as it was lost before in the Middle East.
    RFE/RL: Iran is being accused by Israel and some observers as
    being behind the current conflict in Lebanon. Iranian officials have
    denied that and said they only give moral and spiritual support to
    Hizballah. What is your view?
    Shamsolvaezin: It is very clear that Lebanon's Hizballah
    is fighting by itself and it began its resistance [many, many years
    ago.] It is Hizballah that has the initiative in its hand; it is a
    local force and it is fighting Israel because Israel has occupied the
    south of Lebanon for years.
    RFE/RL: Do you think Iran can use its influence on Hizballah
    and play a role in ending the current conflict?
    Shamsolvaezin: This is an important issue. If Iran's role
    in connection with Afghanistan and Iraq -- its constructive role --
    is [positively] evaluated by the U.S. and, if Iran's position is
    considered in whole: its nuclear case, the crisis in Iraq, and
    Afghanistan, and the current conflict; if Iran's role is being
    recognized by the U.S. it seems that Iran could use its political
    weight and [influence] to reduce this crisis and resolve it. Iran has
    officially expressed its readiness to resolve this crisis and now
    it's the U.S. and the EU's turn to give a positive answer to
    Iran's position or its capability and bring Iran into this arena
    to use its political weight to reduce the crisis and put an end to
    it.
    RFE/RL But while Iran's foreign minister has suggested a
    few ways to end the conflict, including a cease-fire, other officials
    have used other terms, including parliamentary speaker Gholam-Ali
    Haddad-Adel, who [on July 18] praised [Hizballah leader] Hassan
    Nasrallah and quoted him as saying that the war has just begun.
    Shamsolvaezin: Currently Seyyed Hassan Nasrallah has become a
    symbol of resistance against Israel in the whole Middle East; he has
    turned into a courageous international figure, therefore comments
    like that should not be considered as the official policy of a
    country. The demonstrations and support for Palestinians and Lebanese
    has spread in the region and Iran is not an exception to this rule.
    The difference between Iran and other countries in the region is that
    the Iranian government supports the Palestinians and Lebanese and it
    has a clear anti-Israeli stance, therefore the people do not feel
    that they need to act themselves.

    VOCAL IN SUPPORT FOR HIZBALLAH, IRANIANS HEAD FOR LEBANON. The
    Islamic Republic of Iran has served as an ideological inspiration for
    Hizballah since the Lebanese militant group's creation in 1982,
    and Tehran acknowledges that it supports the organization morally and
    politically. A prominent Iranian journalist, furthermore, recently
    told RFE/RL that many of his compatriots sympathize with Hizballah
    and view it as a legitimate resistance organization
    (http://www.rferl.org/featuresarticle /2006/7/8FDBDC91-8CC0-4139-80F2-
    D4D9C53419BA.html ). The extent of the Iranian government's
    involvement with the June 12 kidnapping of Israeli soldiers by
    Hizballah and the earlier kidnapping of an Israeli soldier by Hamas
    is far from clear, however, and Tehran has denied that it is involved
    in the current conflict. Nevertheless, Tehran has been active in
    generating public outrage over the events in Lebanon, and even if
    Iranian military personnel are not going there openly, other Iranians
    are volunteering to do so.
    Volunteers head for Lebanon.
    Hassan Khomeini, the grandson of the father of the revolution
    Ayatollah Ruhollah Khomeini, said in a July 18 letter to Hizballah
    Secretary-General Hassan Nasrallah that he is ready to go to Lebanon
    to fight the "enemies of Islam and humanity," Iranian state
    television reported. Khomeini met with Nasrallah during a July 2
    visit to Damascus, IRNA reported at the time.
    The Pro-Justice Student Movement announced on July 15 that a
    convoy of students will be sent to Palestine and to Lebanon in the
    coming week, ILNA reported.
    A spokesman for the Commemoration Headquarters for the
    Martyrs of Islam's World Movement, identified only as Mohammadi,
    said on July 16 that 27 members who have been trained to carry out
    suicide bombings have been sent to Lebanon, Mehr News Agency
    reported. These individuals will take action if Israel attempts to
    occupy Lebanon, he said, and they also are ready to form resistance
    cells.
    Iran's Basij Resistance Force, which is an arm of the
    Islamic Revolution Guards Corps, issued a statement on July 16 in
    which it condemned the Israeli attack on Lebanon, condemned Western
    governments that support Israel, and pledged support for the
    Palestinians, according to the Basij News Agency (www.basijnews.ir).
    The statement added, "the Basij Resistance Force believes that
    Israel, the region's rancid cancerous tumor, must be wiped off
    the map."
    Iranian Military Leaders Voice Caution
    While this sort of enthusiasm and self-sacrifice is almost
    certainly welcomed by the Iranian leadership, the Iranian armed
    forces seems to have a greater sensitivity to the repercussions of
    amateurish Iranian combatants being captured or killed in Lebanon.
    General Mohammad Hejazi, commander of the Basij, said on July
    21 that groups with no official connections or proper authorization
    had raised the possibility of dispatching volunteer suicide bombers
    to Lebanon, Fars News Agency reported. Hejazi said this is nothing
    more than "propaganda," and although it might be well-intentioned it
    does not help Iran or Hizballah. "There no doubt exists better ways
    to defend the Islamic resistance," he added.
    In addition, allegations that Iranian military supplies and
    even personnel were involved in the conflict appeared almost as soon
    as hostilities commenced
    (http://www.rferl.org/featuresarticle/20 06/7/541D7659-F99F-4559-8281-
    3949D4FA3AF7.html). Most recently, long-time defense correspondent
    Ze'ev Schiff wrote in "Ha'aretz" on July 21 that Iranian
    munitions are being trucked to Hizballah via Syria, and the Iranian
    embassy is coordinating actual military operations. Schiff noted that
    the long-range Zilzal missiles that Iran has allegedly provided to
    Hizballah have not been used yet.
    Hejazi of the Basij dismissed such allegations in his July 21
    comments, adding that Israel makes unsubstantiated statements to hide
    its own failures.
    Major General Hassan Firuzabadi, head of the Armed Forces
    General Staff, said on July 22 that there will be no Iranian military
    involvement in the Lebanese conflict, IRNA reported. "The Islamic
    Republic of Iran will just continue its political and diplomatic
    support for Lebanon," he said. Firuzabadi added that U.S. President
    George W. Bush and U.K. Prime Minister Tony Blair planned the war.
    Mohammad-Javad Zarif, the Iranian ambassador to the United
    Nations in New York, said on July 21 that everybody knows who is
    really responsible for events in the Middle East, IRNA reported. He
    dismissed all the allegations against Iran and added that all the
    problems in the region stem from occupation and its consequences.
    "These allegations emanate from the occupying regime and relayed by
    Zionist quarters across the globe to overshadow its crimes and excuse
    its recent chronic setbacks in the face of a growing resistance in
    Palestine and Lebanon," he said.
    Praise From The Pulpits
    While the Iranian government is keen to avoid the appearance
    of being involved with the current conflict, it has been quick to
    whip up public sentiments over the issue, possibility with the
    intention of diverting attention from more pressing problems, such as
    unemployment
    (http://www.rferl.org/featuresarti cle/2006/7/CDCCDE09-8BDD-4888-89A7-
    6D8660D98524.h tml). There are hundreds of Friday Prayer leaders in
    Iran who are appointed by the central government and whose sermons
    are dictated or at least outlined by a central authority. Praise for
    Hizballah and criticism of the United States and Israel were major
    aspects of the sermons on July 21.
    In Tehran, Ayatollah Ali-Akbar Hashemi-Rafsanjani said events
    in Lebanon and in Gaza were "engineered by the U.S. and Israel,"
    state radio reported. The plan was prepared "weeks in advance," he
    said. Rafsanjani criticized international human rights organizations
    for their silence on these events. The Lebanese and Hizballah have
    survived and "resisted well," he said, adding, "They are the heroes,
    both Hezbollah members and the Hezbollah leader, our dear brother
    Seyyed Hassan Nasrallah. He is truly a historical figure in our world
    today."
    Hashemi-Rafsanjani suggested that southern Lebanon might be
    occupied by foreign pro-Israeli forces. He explained, "To remove
    their citizens, several powerful countries, such as Canada, America
    and Britain, are bringing in military troops. Of course it is
    apparently for taking out their citizens but things could happen."
    In the southwestern city of Ahvaz, Hojatoleslam Mohsen
    Heidari also criticized human rights organizations for their alleged
    silence, Khuzestan Province television reported. "With a green light
    from Western governments, particularly America, the criminal Israel
    is murdering the oppressed people of Lebanon and Palestine," he
    added. Hizballah, he continued, is representing the Islamic world,
    and Arab and Muslim government are therefore obliged to help it.
    In Mashhad, Hojatoleslam Seyyed Ahmad Elmolhoda said
    Hizballah's resistance has revealed Israel's "aggressive
    visage of profanity and apostasy," IRNA reported. He called on
    Islamic countries to provide greater support for Hizballah. Elmolhoda
    added, "We hope that Israel, like the Taliban and Saddam which were
    the protégés of world arrogance, one day will turn into a source of
    disgrace and humiliation for America."
    In the southern city of Bandar Abbas, Ayatollah Gholam Ali
    Naimabadi said, "Without a doubt, Israel is the manifestation of
    America' wrath," IRNA reported. He called for Muslims to
    "annihilate these superpowers."
    In the city of Zanjan, Hojatoleslam Mohammad Taqi Vaezi also
    spoke out against human rights organizations for their inaction, Mehr
    News Agency reported. "The UN and the Security Council are tools in
    the hands of Western countries, especially America," he said, calling
    on Muslim states to act.
    In Ardabil, Hojatoleslam Hassan Ameli told his congregation
    that Hizballah did the right thing by seizing the Israeli soldiers
    and firing missiles at Israel, IRNA reported. Western silence shows
    that its pro-democracy slogans are meaningless, he added.
    Anti-Israeli Rallies Across Iran
    Pro-Hizballah and anti-Western statements were not confined
    to the pulpit, and there were related rallies across the country.
    Senior officials, political activists, students, and members of the
    public participated in a July 18 rally in Tehran against Israeli
    activities in Palestine and Lebanon, IRNA reported. Parliamentarian
    Hussein Muzaffar read out a statement from the legislature in which
    Israeli activities were denounced as "brutal aggression" and
    "savagery," IRNA reported. The statement criticized the U.S. for
    vetoing an anti-Israeli resolution in the UN Security Council.
    Ali Zoham, the Hizballah envoy in Tehran, also spoke at the
    July 18 rally, Fars News Agency reported. "We are now fighting with
    the worst creatures of God," he said. The conflict is not about the
    Israeli soldiers kidnapped by Hizballah on June 12, Zoham said,
    "Rather, this is an idealistic, ideological, and cultural war -- the
    war of Islam with blasphemy." Zoham said Hizballah is willing to
    fight for another century, until it "demolish[es] the Israeli regime
    exactly the same way that we destroyed the Israeli townships,
    settlements, and navigation fleet."
    Numerous rallies took place in the southwestern Khuzestan
    Province. At the July 19 event, a demonstrator said, "Israel is
    another word for America," according to provincial television.
    Another said, "America and Britain naturally support Israel."
    The Khuzestan Province representative to the Assembly of
    Experts, Ayatollah Abbas Kabi, said on July 20 that the Zionists are
    trying to wipe out Muslims, provincial television reported. He urged
    locals to participate in a rally the next day. He added, "If the
    Zionists consider the myth of Holocaust as acts of anti-human crime,
    they themselves are now committing bigger anti-human crimes in
    Lebanon and Palestine."
    Tens of thousands of people participated in a July 21 rally
    in Ahvaz, provincial television reported. They chanted "Death to
    Israel," and a young girl said, "I have come here today to tell the
    children of Palestine and Lebanon that we support them."
    Denials From Hizballah
    With the outset of hostilities, Israeli officials immediately
    portrayed Hizballah as an instrument of Iranian and Syrian policy,
    but several Lebanese observers reject this perspective.
    "To suggest Hizballah attacked [Israel on July 12] on the
    orders of Tehran and Damascus is to grossly oversimplify a strong
    strategic and ideological relationship," Lebanese American
    University's Professor Amal Saad-Ghorayeb wrote in a July 15
    commentary in "The Guardian." Syria, Iran, Hizballah, and Hamas have
    overlapping interests and "form a strategic axis." However, Hizballah
    has "never allowed any foreign power to dictate its military
    strategy."
    Leading figures in Hizballah also deny that Iran is telling
    the organization what to do. Haj Hassan Hussein, a Hizballah deputy,
    said, "We acknowledge that Iran helps us in humanitarian and civilian
    matters but we are the masters of our decisions," "Le Figaro"
    reported on July 21.
    Seyyed Hassan Nasrallah, the secretary general of Hizballah,
    said on July 20 that neither Iran nor Syria was informed of plans to
    kidnap the Israelis, Al-Jazirah reported. Nasrallah said a conflict
    involving Lebanon could last three months but it will eventually end,
    and it will have no impact on the Iranian nuclear case. Moreover, he
    added, a Hizballah that is weakened in a war will be less able to
    help Iran.
    Nasrallah said the homes of all leading Hizballah figures
    have been destroyed, and to suggest that they were acting in the
    interest of Iran or Syria is insulting. "Yes, we are friends of Syria
    and Iran, but for 24 years we benefited from our friendship with
    Syria and Iran for the sake of Lebanon." (Bill Samii)

    BASIJ COMMANDER DENOUNCES AL-QAEDA AND TALIBAN. In Mashhad,
    Brigadier-General Mohammad Hejazi, commander of the Basij Resistance
    Force, said on July 18, "Today, we can hear the crushing of the
    Zionist regime's bones," ISNA reported. He added that the Islamic
    community is praying for victory on the part of young Palestinians
    and Lebanese. Hejazi denied that Iranians are involved in the
    fighting in Lebanon, and said such accusations stem from Israeli
    embarrassment. Hejazi criticized Al-Qaeda and the Taliban, who claim
    they are fighting the occupiers of Iraq and Afghanistan and are not
    involved with events in Lebanon and Palestine. The failure of Taliban
    and Al-Qaeda to act, he continued, "shows that these groups were
    created by America and that they are still influenced by Western and
    Zionist power." (Bill Samii)

    MOTTAKI VISITS DAMASCUS. Manuchehr Mottaki arrived in Damascus on
    July 17, Iran's Arabic-language television station Al-Alam
    reported from Iran and the Hizballah television station Al-Manar
    reported from Lebanon. Mottaki and Syrian Vice President Faruq
    al-Shar'a condemned Israeli activities in Lebanon and Palestine,
    and they expressed solidarity with the Lebanese and Palestinian
    "resistance," Syrian state news agency SANA reported. They called for
    a united Arab and Islamic stance on these issues. Mottaki called for
    a cease-fire and a prisoner exchange between Israel and Hizballah.
    (Bill Samii)

    BAGHDAD MAYOR VISITS TEHRAN. Baghdad Mayor Sabir al-Isawi arrived in
    Tehran on July 15 and met with his counterpart, Mohammad Baqer
    Qalibaf, Mehr News Agency reported. Qalibaf offered his
    municipality's assistance in a variety of areas, from traffic
    services to engineering. Al-Isawi said he hopes Tehran will sign the
    sister city agreement proposed by Baghdad six months earlier than
    originally planned. (Bill Samii)

    IRAQ COMPLAINS OF MUJAHEDIN KHALQ INTERFERENCE. Iraqi Prime Minister
    Nuri al-Maliki told reporters at a July 19 press briefing in Baghdad
    that an Iraq-based Iranian opposition group known as the Mujahedin
    Khalq Organization (MKO or MEK) is interfering in internal Iraqi
    affairs and must go, "Los Angeles Times" reported on July 20.
    The MKO is listed as a Foreign Terrorist Organization by the
    U.S. State Department and operates under many cover names, including
    National Council of Resistance of Iran and People's Mujahedin
    Organization of Iran. The MKO was based in Iraq and operated against
    Iran at Saddam Hussein's behest; most of its members now reside
    in Camp Ashraf (100 kilometers from Baghdad) where they enjoy the
    Geneva Convention's "protected person" status. The MKO reportedly
    has the support of some Pentagon officials and members of Congress
    because of its opposition to Iran.
    Al-Maliki said the MKO was too involved in his country's
    political and social issues. "It is interfering as if it is an Iraqi
    organization, despite the fact that it is considered to be one of the
    terrorist organizations and its presence in the country contradicts
    the constitution," said the premier, who has close ties with Tehran.
    He added that the government currently has no contact with the group.
    The group reportedly responded to al-Maliki on July 19, saying that
    the premier was carrying out the wishes of Iran.
    Hassan Kazemi-Qomi, the Iranian ambassador to Iraq, and
    Iraq's Deputy Interior Minister for Security Affairs Shirvan
    Vaeli discussed the MKO's future on July 21, IRNA reported. The
    Iraqi official reportedly called for the group's expulsion from
    his country, and he added, "We are now preparing a comprehensive plan
    which requires approval of the government to expel the MKO from the
    country by the year end."
    "A significant number of MEK personnel have voluntarily left
    the Ashraf group, and several hundred of them have been voluntarily
    repatriated to Iran," according to the State Department's 2006
    "Country Reports on Terrorism." (Kathleen Ridolfo, Bill Samii)

    FIRMS LINKED WITH IRANIAN MISSILE PROGRAM IDENTIFIED. Iranian state
    television reported on July 19 that many of the world's biggest
    businesses have ties with Israel or have "Zionist" shareholders, and
    it mentioned Coca-Cola, Marlboro, McDonalds, Timberland, and several
    other firms. Money spent on their products, state television
    reported, "turns into hot lead to rip open the chests of the children
    of Palestine and Lebanon."
    On the previous day, the U.S. Treasury Department listed two
    Iranian businesses for their ties with the country's missile
    program, according to a press release. Sanam Industrial Group and Ya
    Mahdi Industries Group are "owned or controlled by, or act or purport
    to act for or on behalf of, directly or indirectly, the Aerospace
    Industries Organization (AIO)." The report adds: "AIO is a subsidiary
    of the Iranian Ministry of Defense and Armed Forces Logistics, and
    manages and coordinates Iran's missile program and oversees all
    of Iran's missile industries." The two firms have made extensive
    purchases of missile-related products. The designation is meant to
    isolate Iranian proliferation. (Bill Samii)

    IRAN SETS DEADLINE FOR RESPONDING TO NUCLEAR PROPOSAL. In a statement
    read out on state television on July 20, Supreme National Security
    Council Secretary Ali Larijani set out Iran's stance on the
    nuclear issue. The international proposal submitted to Iran in early
    June in an effort to resolve the continuing crisis over the
    country's nuclear program requires a great deal of attention and
    study, according to the statement, and Iran will announce its views
    on August 22 (see "RFE/RL Iran Report," June 12, 2006). According to
    the statement, Iran plans to use nuclear power to produce 20,000
    megawatts of electricity over the next 20 years, and in order to do
    this it must produce its own nuclear fuel.
    The statement added that Iran has always cooperated with the
    International Atomic Energy Agency and abided by its Nuclear
    Non-Proliferation Treaty commitments.
    Iran is being subjected to discriminatory practices that aim
    to deprive the majority of the international community of nuclear
    power, and the statement cited the Non-Aligned Movement, the
    Organization of the Islamic Conference, and the Developing-8 (D-8;
    Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and
    Turkey) as supporters of this view.
    Government spokesman Gholam-Hussein Elham said on July 18
    that the June proposal is a "good starting point for negotiations,"
    IRNA reported. He said Iran remains optimistic about a negotiated
    solution to the standoff, and he described the current atmosphere as
    "positive."
    Also on July 18, President Mahmud Ahmadinejad said Iran will
    continue enriching uranium, ISNA reported. A halt to uranium
    enrichment is one of the international community's demands of
    Iran (see "RFE/RL Iran Report," June 5, 2006). Ahmadinejad said
    mastery of the complete nuclear fuel cycle is the Iranians'
    right. Earlier in the day, Ahmadinejad said Iran is willing to hold
    talks with the European powers, IRNA reported, and he urged the
    United States not to cause problems.
    Also on July 18, talks began at the UN in New York on a
    Security Council resolution demanding a halt to Iranian enrichment
    activities and on the construction of a reactor in Arak, Reuters
    reported. Participants were China, France, Germany, Russia, the
    United Kingdom, and the United States. Russian and Chinese diplomats
    were reportedly not seriously engaged, participants said, because
    they had not received instructions from their capitals.
    Alaedin Borujerdi, chairman of the legislature's National
    Security and Foreign Policy Committee, said on July 18 that the
    parliament is ready to cancel the country's membership in the
    Nuclear Non-Proliferation Treaty (NPT) if the UN Security Council
    passes a resolution against Iran, Mehr News Agency reported. Iran
    signed the NPT in 1968 and ratified it in 1970.
    Foreign Ministry spokesman Hamid Reza Assefi said during a
    July 16 press conference in Tehran that referring Iran to the UN
    Security Council for its failure to cooperate on the nuclear issue is
    not "constructive," state television reported. Doing so will not
    contribute to a negotiated solution, he added.
    Turning to the package of incentives Tehran received in early
    June, Assefi said, "we considered the proposed package as a proper
    basis for cooperation...but we also think it is a potential that
    needs to be processed further." The only way to accomplish anything,
    he said, is through negotiations. Until that happens, "we cannot be
    certain what our response would be."
    In Mashhad on July 15, Supreme National Security Council
    Deputy Secretary Gholamreza Rahmani-Fazli told a meeting of Basij
    officials from Khorasan Razavi Province that Iran is prepared to
    begin talks about its nuclear program, IRNA reported. It will not,
    however, accept any preconditions. (Bill Samii)

    TEHRAN OPPOSES SIMULTANEOUS ELECTIONS. Government spokesman
    Gholam-Hussein Elham said on July 19 in Tehran that the government of
    President Mahmud Ahmadinejad opposes holding elections for municipal
    councils and the Assembly of Experts on the same date, Mehr News
    Agency reported. Campaigning for the entities differs, he said, and
    holding the elections simultaneously requires additional planning and
    preparation. The elections are scheduled for November 17 (see "RFE/RL
    Iran Report," 12 May 2006). (Bill Samii)

    WEAK ECONOMY CHALLENGES POPULIST PRESIDENT. The biggest problems
    facing elected officials in Iran are economic ones, particularly
    double-digit unemployment and inflation. These factors dogged
    President Mohammad Khatami during his term in office (1997-2005), and
    the reformists' focus on civil-society development resounded
    poorly with people who often could not afford meat with their meals.
    Mahmud Ahmadinejad's campaign promise that Iran's oil
    revenues would end up on Iranians' tables, therefore, contributed
    greatly to his winning the 2005 presidential election. In recent
    weeks, Ahmadinejad has pledged to do more to resolve the
    country's unemployment problem, but national media and
    parliamentarians have become quite critical of the
    administration's failures in this area.
    Battling Joblessness
    Unemployment is one of the country's biggest problems,
    Ahmadinejad said on July 11, IRNA reported, and job creation is a
    major aspect of the government's development plan. "The
    government intends to tackle the unemployment problem with assistance
    from the people and principled planning," he told residents of the
    town of Malekan in East Azerbaijan Province.
    The Central Bank of Iran reported that the unemployment rate
    was 12.1 percent as of March 20, 2006, Fars News Agency reported on
    June 5. The overall population was 68.6 million and the working
    population was 22.3 million. Yet some economists believe the
    unemployment rate could be as high as 20 percent, and they add that
    underemployment is a major problem.
    Deputy Minister for Labor and Social Affairs Ebrahim
    Nazari-Jalali provided a slightly higher joblessness figure -- 12.4
    percent -- in a July 3 interview, IRNA reported. He went on to say
    that the government is determined to reduce this to 8.4 percent by
    2010 by creating 900,000 jobs annually. Jalali added that the
    government has earmarked 180 trillion rials ($20.5 trillion) for
    small businesses in an effort to create jobs.
    Ahmadinejad discussed economic policy in a June 7 interview
    with state television, saying that officials have held many meetings
    on employment generation. Ahmadinejad also noted the allocation of
    180 trillion rials for projects that he predicted will produce quick
    results. Ahmadinejad made the same points during speeches in April.
    These job-creation targets are ambitious and the government
    has failed to meet similar goals in the past. The government aimed to
    create 3.8 million jobs (760,000 a year) from 2000-05, in an effort
    to reduce unemployment to 11.5 percent. Yet it conceded that only 2.3
    million jobs (431,000, 493,000, 690,000, and 700,000) were created
    from 2000-04.
    Economic Populism
    Western journalists noted Ahmadinejad's popularity with
    average Iranians when they assessed his standing a year after his
    election. "The Wall Street Journal," for example, reported on June
    22: "The president's popularity is soaring thanks to...his
    embrace of economic populism." "Ordinary people marvel at how their
    president comes across as someone in touch, as populist candidate
    turned caring incumbent," "The Washington Post" reported on June 3,
    adding that Ahmadinejad shows "a relentless preoccupation with
    health, housing and, most of all, money problems."
    The populist touch is good politics, but it is not always
    easy to translate into a sustainable economic policy. In early June,
    50 scholars wrote to Ahmadinejad and warned him about the state of
    the economy. They criticized his economic policies as inflationary
    and counter to previous economic plans. The economists highlighted
    grievances like excessive state intervention in business and
    restrictive employment regulations. They pointed to increased imports
    and government spending and noted broader issues they say contributed
    to economic problems.
    Lack Of Expertise?
    Iranian media also criticized the president's economic
    policies and their impact on employment. "Kargozaran" newspaper --
    which is connected with the technocratic Executives of Construction
    Party -- commented on June 1 that the government recently made three
    decisions that were meant to create jobs and protect domestic
    production, but the decisions did not account for the interdependence
    of economic factors. For example, interest rates at banks were
    reduced by 2 percent, but the rush to borrow forced the government to
    withdraw $5.1 billion from the foreign-currency reserves. In another
    case, import tariffs were increased by roughly 5.2 percent, and this
    led to an increase of up to 1,500 percent in the prices of household
    goods, cellular phones, shoes, and textiles. The government's
    increase in the minimum wage for temporary workers led to large-scale
    layoffs.
    An analysis in the pro-reform "Mardom Salari" on June 19
    noted that although Ahmadinejad promised during his campaign that
    people would benefit directly from oil revenues, he and his
    associates subsequently denied any such statement. Meanwhile, one
    mistake by the government cost 50,000 people their jobs, the article
    continued, and the overall unemployment rate has increased. Mohammad
    Khoshchehreh, a former adviser to Ahmadinejad, said 100,000 people
    have been laid off since March, and many of those who still have jobs
    will not get raises or have not been paid for months.
    The Ahmadinejad administration has failed politically and
    economically, the pro-reform "Etemad-i Melli" editorialized on July
    13, and unemployment, inflation, and a general reduction in public
    welfare are the outcome of its policies. The Strategic Council for
    Foreign Relations (Shora-yi Rahbordi-yi Ravabet-i Khareji) was
    created to utilize the views of more experienced individuals in the
    area of foreign policy, the article continued, and a similar step is
    needed in the economic arena.
    Lawmakers Air Critical Views
    Ahmadinejad defended his efforts during a July 9 meeting of
    cabinet members and provincial governors-general. "The
    government's economic policies are quite transparent and based on
    planning and reason," Ahmadinejad said, according to IRNA. This is
    not the impression of some members of parliament, who presumably are
    in close contact with their constituents and see the impact of
    government economic policies first-hand.
    The administration's policies have led to unemployment,
    Ardabil's Nureddin Pirmoazen said during the June 18 session, as
    well as high prices, inflation, and recession, "Sharq," "Resalat,"
    and "Jomhuri-yi Islami" reported on June 19.
    "Today, unemployment has turned into one of the greatest
    problems of youths and their families," Tehran's Alireza Mahjub
    said during the June 18 session, "Jomhuri-yi Islami" reported on June
    19. "Today the unemployment issue has even affected middle-class
    families and the educated classes of society. Unfortunately, this
    crisis is growing worse every day." Mahjub added that job security is
    a major problem.
    The nation is facing significant economic difficulties,
    Nahavand's Mohammad Taqi Kavianpur said during the July 9
    session. "The source of most of these problems is the unemployment of
    educated and job-seeking youths," he asserted, according to
    "Jomhuri-yi Islami" on July 10. He said the government has
    consistently failed to achieve its job-creation goals, and its
    reliance on trial-and-error furthers unemployment.
    "If we don't settle the problem of unemployment the
    government will face a challenge much more serious than the energy
    shortage crisis," Miandoab's Assadullah Tabeh warned on July 11,
    "Jomhuri-yi Islami" reported the next day. Tabeh hinted that
    unemployment has had the greatest impact on the country's poorest
    people.
    During a conference in Mashhad on July 11, Tehran
    representative Mohammad Khoshchehreh said the government's
    monetary, commercial, and employment policies are not coordinated,
    Mashhad television reported. A focus on the agriculture and
    construction sectors, Khoshchehreh continued, would help create jobs.

    Worker Dissatisfaction Produces Unrest
    The difficulties faced by workers come to the fore during
    occasional strikes and other labor actions.
    Speaking on behalf of dismissed state bus-company employees
    on July 15, Said Torabian said six people were arrested at a
    demonstration that day, ILNA reported. Another three went to the
    Labor Ministry to meet with officials and were arrested there. Ali
    Jahanbakhsh, director of the political-disciplinary office of
    Tehran's Governorate-General, said on July 15 that a permit for a
    July 16 bus-drivers demonstration in Tehran was denied because the
    event would cause traffic problems, ILNA reported.
    More than 200 workers at a Tehran soft-drink factory began a
    strike on July 10, ILNA reported. The majority of the workers are on
    contract, rather than being permanent employees, and they say they
    had not been paid for the first three months of the Iranian year
    (which began on 21 March) and have not received all their benefits
    from the previous year.
    Employees of the Industrial Growth and Development business
    in Azerbaijan Province signed a petition on June 29 protesting their
    mass dismissal, ILNA reported. The petition noted that although one
    group of workers was dismissed, the firm continues to employ people
    who have officially retired or are filling two positions.
    Employees of a china and porcelain factory in Tabriz staged a
    protest on June 27 against five months of wage arrears, ILNA
    reported. During that time, workers told ILNA, they only received a
    onetime payment of 500,000 rials (roughly $57). The factory's
    managing director told ILNA he would pay the employees as soon as he
    can, but there has been a slump in demand for the plant's
    products.
    Ahmadinejad's statements indicate that he is aware of the
    unemployment situation. The financial cushion provided by high
    earnings from oil and gas exports, however, means that serious and
    potentially painful steps are not necessary in the short term.
    According to International Monetary Fund statistics, oil and gas
    exports brought in $55 billion this year, compared to $23 billion in
    2002-03. Foreign-currency reserves are approximately $47 billion and
    could reach $62 billion by the end of the year. As long as these
    funds are available, the government can continue to ease the
    difficulties of unemployment through subsidies and other forms of
    charity rather than embarking on systemic reforms.

    **************************************** *****************
    Copyright (c) 2006. RFE/RL, Inc. All rights reserved.

    The "RFE/RL Iran Report" is a weekly prepared by A. William Samii on
    the basis of materials from RFE/RL broadcast services, RFE/RL
    Newsline, and other news services. It is distributed every Monday.

    Direct comments to A. William Samii at [email protected].
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