FDI's Weekly Newswire

The life and [troubled] times of the Islamic Republic of Iran

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FDI WEEKLY NEWSWIRE NO 7

June 3, 1996

The government of Bahrain says it has foiled an Iranian-backed plot to overthrow the government, according to wire service reports. Bahrain's information minister told reporters in Manama that the plot involved an armed revolt to topple the government and install a pro-Iranian regime. He said group called Hezbollah-Bahrain was behind the plot and that so far 20 Bahrainis had confessed to their involvement. Bahrain is recalling its ambassador from Tehran. [Reuters, AFP, 6/3]

Amir-Rahimi calls for referendum

Brigadier General Azizollah Amir-Rahimi, who was jailed last year for his open criticism of the regime, has issued a statement in Tehran calling for a democratic referendum on the future of Iran's political system. Amir-Rahimi, the former head of Military Police, allied has himself with Darioush Forouhar and the Iran Nation's Party. A copy of the hand-written letter, which was signed by Amir-Rahimi and authenticated, was faxed to THE IRAN BRIEF. The following excerpts have been translated by our staff:

"I am a Moslem and I believe that justice is the most important aspect of Islam. Unfortunately, for the last 17 years the ruling regime in Tehran has committed a series of crimes which it has labeled as "Islamic Values." The revolutionary courts have sentenced thousands of Iranian women and men to death or years of imprisonment without permitting the accused to be represented by a lawyer. The belongings and properties of accused Iranians have been confiscated and an institution named the Mostazafan Foundation has used the confiscated properties and financial resources for the benefit of the leaders of the Islamic Republic.

"Present the nation of Iran is suffering from a sea of economic, political and social problems which are the direct result of the policies of the Islamic Republic leaders...

"Iranians believe that the time to put an end to all these injustices has arrived. All the political prisoners must be immediately released, the confiscated properties of prisoners delivered back to their owners....

"A few weeks ago, in an unprecedented farce, the regime actually appointed some of its loyal followers as Members of Parliament and labeled this appointment an "election."... A great majority of people boycotted the election and this successful boycott proved the unprecedented dissidence of Iranians against the Islamic Republic...

"I believe that most of the acts of the Islamic Republic are a pure insult to this great nation. Iranians believe that all the resolutions of this new so-called "parliament" are illegal. All pacts with foreign countries approved by this puppet parliament are deemed as illegal by the nation of Iran...

"To end to this misery, I suggest that a free referendum be held in Iran so that a new political system based on democracy can be established in our country."

Signed: Brigadier General Azizollah Amir Rahimi, June 1, 1996. [The Iran Brief 6/3]

5th Majlis opens

In his opening statement to the new parliament on June 1, Supreme leader Ayatollah Ali Khamene'i launched an unprecedented attack on Rafsanjani. Thanking him for his work on behalf of the IRI, he then noted that presidential elections were coming up and "hoped that [Rafsanjani] will find a new job somewhere else." Under no circumstances, Khamene'i stated, would the Constitution be revised to allow Rafsanjani to run for a third term as President.

He then openly criticizing Rafsanjani, saying "anyone who uses the name "Construction" and tries to undermine the values of the Islamic Revolution is actually challenging the Islamic Republic. [The pro-Rafsanjani list called themselves "Supporters of Construction."] "The duty of the Majlis is to defend the values of the Islamic Revolution against Western liberalism. Western liberalism is an enemy of the Islamic Revolution."

Tehran radio broadcast the entire text of Khamene'i's message, which was read in the studio. In his opening speech, which was broadcast live, Rafsanjani said the IRI would "stand firm in front of American imperialism," but refrained from challenging Khamene'i's personal attack. [Tehran Radio 6/1; The Iran Brief 6/3]

Obscure foundation recruits for "Liberation Movements"

A an obscure cultural foundation called the Bonyad-e Fatemeh Zahra has issued a statement in Tehran calling for volunteers to fight on behalf of "Liberation Movements in the world", and to "achieve holy Islamic goals on earth".

In the May 18 statement in Kayhan daily, which is published by the Intelligence Ministry, the foundation called fulfilling these goals "a holy duty" for Muslims.

The Fatemeh Zahra Foundation expressed hope that Iranian recruits for a new "United Oppressed Peoples Cultural Front" would be able to promote Islam and "the ideas of the Imam" [Khomeini] around the world. The Foundation claimed that its recruitment drive followed an order issued in a recent speech by Supreme Leader Ayatollah Khamene'i, who called for "the necessity of continuing the movement of Imam Hossein [the third Imam of Shiism] and his martyrdom."

Although the Fatemeh Zahra Foundation is unknown and its affiliations not mentioned, its message is similar to that of Hezbollah. If such a new international organization were created, Fatemeh Zahra's statement suggests it would be acting on Khamene'i orders, and will try to agitate in the Islamic countries. [Kayhan 5/18]

Rev. Guards take sides in political power struggle

Senior Revolutionary Guards Commanders, contrary to their neutral role defined in the Islamic Republic's Constitution, have become increasingly active in the current internal showdown between Rafsanjani and the Khamene'i-Nateq Nouri factions.

Rev. Guards General Mohammad Zolqadr recently joined Mohsen Rezai, the Commander of the Rev. Guards Corps and General Alireza Afshar, the Commander of Basij, in criticizing "liberals", a label for Rafsanjani supporters.

"The Pasdaran (Rev. Guards) should be more active in eliminating the liberals from the political scene," Zolqadr said. Instead, "revolutionary forces should run the country." [Resalat 5/26]

On May 16, Mohsen Rezai repeated the same demand in a gathering of University Basij commanders in Tehran. "Be aware, and don't let some people send you back to barracks on grounds that your duty is to guard [buildings and public places]," he said. [Resalat 5/18].

"Until the day we completely control universities and students, there can be no reconstruction or revival of Islamic culture in this country," Rezai said.

It was not the first time in recent weeks that Rezai and other Rev. Guards commanders, took side with ultra- conservative forces close to the Supreme Leader and Nateq Nouri.

Hasan Al-Torabi to visit Tehran

Hasan Al-Torabi, who currently serves as speaker of Sudan's parliament and is widely regarded as the real power behind the military dictatorship of Gen. Omar Al-Bashir, was invited to visit Tehran by Majlis speaker Hojjat-ol eslam Nateq Nouri. The invitation was delivered to Mr. Torabi by the Islamic Republic Ambassador to Khartoum, Mehdi Marvi.

Relations between Iran and Sudan have strengthened recently. Iranian Oil Minister Aghazadeh and Sudan's Energy Minister Avaz Ahmad Aljaz recently discussed joint construction of an oil pipeline and an oil refinery in Khartoum, during the third session of the bilateral economic cooperation commission in Tehran.

No date was given for Al-Torabi's visit to Tehran. [Ettelaat, 5/12]

IRI friends in South Africa

In a recent interview with Resalat, Ighbal Jasad, the leader of one of a South Africa fundamentalist group called the "Young Muslims Movement", said the South African Muslims love and admire the Islamic Revolution because the IRI was the main cause of the apartheid regime. In his interview with a Resalat correspondent in Johannesburg, Jasad said his organization tries to fight World Arrogance [U.S.] by organizing "anti-Zionist manifestations and conferences, publishing books and periodicals, and sending representatives to different Islamic gatherings in Iran." [Resalat, 5/13] South Africa has an estimated 1 million, mostly Sunni, Muslims.

As part of its effort to forge new ties with South African Muslims, Tehran has sent political activist Hojjat-ol eslam Mohammad Sharif Mahdavi as ambassador to Johannesburg. "South African Muslims consider Ayatollah Khamene'i as their spiritual leader, just as they did with the late Imam Khomeini, and consider Iran as the leader of Islamic World," Mahdavi said. He said that the IRI embassy was actively encouraging South African Muslims to visit Iran. [Resalat, March 17].

As we reported in our 4th Newswire (5/13), Iran has also used a Washington, DC radical Islamic preacher, Mohammad al-Aasi, as an unofficial ambassador to South Africa.

Last year an Egyptian weekly claimed that Iran and Sudan were attempting to export a fundamentalist brand of Islam to South Africa and destabilize the country by exciting ethnic clashes..[Al-Ahram Weekly 8/30/95]

Salam reports election fraud

Salam newspaper, which considers itself as a revolutionary Islamic-leftist publication, is the most outspoken dissident daily with close ties to the ruling factions. It is allied to Majma-e Rohanyoun Mobarez, headed by Ayatollah Karrubi, which has been excluded from the Majlis since 1992, although it held a majority prior to that.

Salam was recently threatened with closure unless its reporting fell in line with the regime's line. One of the reasons for the threat is its extremely popular "Readers telephonic messages" column, in which readers can complain about their day to day difficulties .

On May 14 (prior to the closure threat), one caller left this message: "I was a member of the Watchers Commission in the 5th Majlis elections for both the first and second rounds. In my constituency I witnessed so many cases of irregularity and fraud that I wish I had not been not in that position. I got really upset and sick of what I saw. In the first round, the most...."

Salam censored the rest of the call, and commented: "We have already heard so many similar complains. But printing these kind of information needs a lion's heart that we lack!" [Salam 5/14]

Higher prices, and bigger complaints

The government dramatically increased the price of imported food, drugs and medical products recently, despite increasingly vocal complaints by ordinary Iranians.

The price of vegetable oil was increased by 500%, and sugar by 300%. Both can be purchased with government-supplied ration coupons. The prices of tea, imported cheese, and meat, were also increased by decision of the Economic Council. The Ministry of Health announced a 15% increase in the price of drugs and medical products.

Complaints about high prices and economic hardships can frequently be heard in the press. One caller told Salam [511]:"Tell those who are responsible for these daily price increases to stop pretending they don't hear the people's voice. Let them know they should be afraid of God's punishment, for in the end God will take the people's revenge from them."

Another complaint aired the same day: "We constantly hear that we will defeat the U.S., that we are the world's superpower, that the people of the world are amazed to see our miraculous progress and reconstruction. But in this country, not even an engineer can fill his children's stomach with bread and potatoes. Would you please solve this complicated equation for us?" [Salam 5/11]

Sanctions made economy spin out of control

U.S. sanctions on Iran have had a far greater impact than many would like to admit, according to Mohsen Nurbakhsh, the General Director of Iran's Central Bank.

Addressing the 6th Congress on Monetary and Foreign Exchange Policies, which opened on May 14 in Tehran, Nurbakhsh revealed that when the U.S. sanctions were first announced at the end of April 1995, the government and the central bank last control of the country's monetary system, and had to announce draconian new measures to prevent the total collapse of the economy. "We couldn't control the market even by injecting foreign currency into the economy. The banking system was completely cut off from the foreign trade process," Nurbakhsh said .

The economic woes of the Islamic Republic "will result in a social and political crisis," predicted Said Morteza Mohammad Khan, the Minister of Economic and Financial Affairs. "If we had not taken last year's decision to freeze the rate of exchange of Rial, inflation would have reached 128% by the end of the year," he said, [Note: the Iranian year ends on March 20]. Because of the currency controls, however, "inflation did not exceed 48%," he said.

Nurbakhsh gave the conference new figures on Iran's foreign debt. He claimed that Iran has paid back $15.4 billion of its foreign debts over the past three years, leaving only $13.5 billion that needs to be repaid between now and the year 2000. [See related item below]. Nurbakhsh also claimed that new measures have been taken to reduce inflation.

Another expert present in the conference, Mohammad Jaafar Mojarad, said that last year's rise in commodity prices had resulted from the huge deficit in the country's foreign exchange accounts.

According to Jomhouri-e Eslami, Mr. Mohammad Al-Oryan, a deputy of the Middle Eastern branch of the International Monetary Fund, also attended the Congress. was also present in the congress. [Jomhouri-e Eslami, 5/15]

Majlis reports on fraud, debt

In the final days of the 4th Majlis, an investigative panel accused the Central Bank of having falsified publicly-released figures on Iran's foreign debt. In March 1995, the Majlis panel stated, the Central Bank was reporting $25.3 billion in foreign debt, including interest, whereas the real figure topped $43 billion.

In a report on fraud and corruption at other state-run banks, the panel said it had uncovered 241 cases of fraud at Bank Melli Iran, the country's largest commercial bank. Some $19.9 million was embezzled over a seven year period ending in November 1995, according to the report. A mayor in south-western Ilam province was also arrested on embezzlement charges and earlier press reports said the mayor of Tehran's 12th district was being tried on mismanagement of funds and moral charges.

The Central Bank's most recent quarterly Economic Trends bulletin, released on May 10, states that Iran plans to pay down $18.814 billion on its foreign debt between 1996/97 and 2002/2003, with $6.4 billion payable this year. Iran is hoping that this ambitious repayment schedule will allow it to borrow fresh money from European government credit agencies to finance the expansion of its oil and gas industry [The Iran Brief, 6/3/96]

U.S. is "pushing drugs" on Iran

"It is naive to think that drug smuggling and addiction in our country are the result of smugglers using our country as a transit rout," Interior Minister Ali Besharati told a meeting of LEF commanders recently. Instead, he claimed, it was all the fault of the U.S.

"World Arrogance has a strategy to destroy our youth and spread problems and create insecurity in Iran," Besharati said. "The drug smugglers have changed their tactics, and so we should change our strategy, too."

In his address to the same meeting of anti-drug unit commanders, LEF chief Rev. Guards General Reza Seifollahi demanded that drug addicts be jailed on a remote island in the Persian Gulf, as had been the government's practice until a few years ago.

Seifollahi complained that "not even one Rial of the budget" to fight drug smuggling has been paid to the LEF, "although it was voted by the Majlis." [Kayhan, 5/16]

Rafiqdoust Defends His Record

Mohsen Rafiqdoust, the powerful head of the Bonyad-e Mostazafan [Foundation of the Oppressed], has defended himself against recent attacks aired in the Majlis and by a radical weekly that has since been banned, Payam-e Daneshjou ["Voice of the Students"]

In a comment many American politicians might appreciate, he called the weekly "a rag run for profession lawyers, which has nothing better to do than to publish baseless accusations and slander." If the paper had been honest "it could have contacted our Foundation... Is it an Islamic act to accuse a person or an institution without investigation?"

The paper had accused Rafiqdoust of selling off valuable Foundation assets to relatives on his payroll. "Have I ever said there were none of my relatives at the Foundation?" he retorted. He denied, however, that he had sold properties to his relatives at a discount, and said that since assuming the reins at the Bonyad some seven years earlier he had actually punished corrupt officers for their wrongdoings.

In another accusation familiar to U.S. officials, he accused the weekly of relying as sources on "two former Foundation employees, who were fired because of corruption and theft."

Pointing to his own revolutionary background, he said he "would not be tarnished by these lies," and threatened Payam-e Daneshjou journalists with "a fate no better than hypocrites," a term used for the Mujahedin-e Khalq, whose members are regularly arrested, tortured, and executed. [Resalat, 5/18]

Iranian cars "not exportable" because of defects

Paykan cars, made in Iran, have so many defects "it is impossible to export them," said Massoud Karim-Pour Nazari, a Majlis Deputy from Natanzhad who has been investigating the performance of Iranian auto factories for the Parliament.

Low performance at the factory, as well as disproportionate salaries, financial benefits and foreign travel for factory directors, have increased car production costs. Paykans are made by Iran by Khodro Co., a private company that was confiscated from its owners by the revolutionary regime and now is state run as part of IDRO, the Industrial Development and Renovation Organization.

The well-known Paykan cars "had until recently 300 factory defects," Nazari reported, which have now been reduced by half. Current defects "include engine failure," Nazari said. "Our manufactured cars do not meet accepted standards," he concluded. [Resalat 5/18]

Iranian Women hold Human Rights conference

The Iranian Women Studies Foundation, a non-political, non-religious, non-profit organization based in Cambridge, Mass, will be holding its 7th annual conference on "Iranian Women and Human Rights" later this month in Seattle, Washington.

Parvaneh Forouhar, the wife of the Iran Nation's Party leader Darioush Forouhar, is scheduled to address the conference, which is to be held from June 14-16, along with two Iranian lawyers based in Tehran, Shirin Ebadi and Parvaneh Hatam.

For information call (206) 744-1302 or the group's Cambridge office at (617) 492-9001. Registration via e-mail at karimi@u.washington.edu

FDI's Weekly Newswire

FDI WEEKLY NEWSWIRE NO 7

June 3, 1996

CONTENTS: