BRIEF ON IRAN No. 161 Thursday, May 4, 1995 Representative Office of The National Council of Resistance of Iran 3421 M Street NW, #1032 Washington, DC 20007 "Khamenei Says U.S. Embargo Will Strengthen Iran," Reuters, May 3 "Iranian supreme leader Ali Khamenei derided President Clinton as a 'simpleton' on Wednesday and said a proposed U.S. trade embargo would be good for Iran as pressure brought the best out of its people... "We are producing some of the most sophisticated military instruments...such that our enemies have no idea about,' he said, without giving any details... "Khamenei called Clinton 'an inexperienced simpleton,' and told him: 'We are happy that you are cutting (trade) relations with us...the world will not follow you.'... "The U.S. move against Iran should put an end to any proposals in Iran to improve relations with the United States, he added. "This was an apparent reference to occasional calls by a few pragmatic Iranians for a normalization of ties with Washington, strained since the 1979 Islamic revolution." Iran's Currency Falls, Reuters, May 3 "Defiant Iran on Tuesday dismissed a proposed U.S. trade and investment embargo as ineffective but concern about its likely effects caused the Iranian currency to fall to record lows in Tehran... "Ordinary people were concerned about the possible impact on the economy and a new flurry of price rises at a time when inflation is put by officials conservatively at 40 percent. "'If Japan and Europe follow the Americans, we are in bad trouble,' a young businessman said. "'The price of American rice jumped to 2,750 rials (55 U.S. cents) from 2,650 rials (per kilo) since Clinton talked, and that's only the beginning,' said a housewife. "On the open exchange market, the U.S. dollar rose to a record high 5,000 rials on Tuesday, gaining 250 rials in one day, dealers said. "It had already gained about 500 rials in a week, after the Central Bank raised one of the dollar's official exchange rates. "Most people predicted that foreign currencies and especially the dollar, bought by many to protect their savings against inflation, would continue to rise... "Revolutionary Guards Commander General Mohsen Rezaei called on Iranian forces to be ready to defend the country in a speech a few hours before Clinton made his announcement. "'All the evidence shows that America is preparing for an all out war against the Islamic Republic, and we are ready,' said Rezaei, who is widely known for his fiery rhetoric." "U.S. Envoy Says Iran is Top Terrorist State," Reuters, May 3 "Iran tops the list of 'terrorist' states and the U.S. trade ban is meant as a warning for Tehran to stop, U.S. envoy Madeleine Albright said on Wednesday. "'We in fact do believe that Iran is being the most extreme on this issue (terrorism) and we have good reason to be clear that they are behind some of the most egregious terrorist activities,' Albright, U.S. envoy to the United Nations, said after a meeting with Egyptian President Hosni Mubarak. "'They support global terrorism and are undermining the security of the Middle East,' she told a news conference... "Asked about reports that U.S. President Bill Clinton's ban on trade and investment in Iran, announced on Sunday, would further 'radicalize' Tehran, Albright said: 'I think it is very hard to radicalize an already very radical regime. We have to give them a signal that...they have to behave in ways that are not contrary to all civilized behavior.'..." First Hezbollah, and Now Hamas Condemns U.S. Sanctions Against Iran, Reuters, May 3 "The Palestinian militant movement Hamas on Wednesday condemned the U.S. trade sanctions against Iran. "'Insistence on attaching allegations of terrorism on Arabs and Moslems will create and escalate feelings of animosity among Arabs and Moslems against the United States,' Hamas said in a statement. "Hamas, which belongs to a 10-member radical Palestinian alliance which has vowed to wreck a Palestinian- Israeli peace accord, is on a U.S. list of groups termed as terrorist..."