BRIEF ON IRAN, No. 229 Representative Office of The National Council of Resistance of Iran Friday, August 11, 1995 3421 M Street NW #1032, Washington, DC 20007 2-Month-Old Trade Embargo Begins to Take Toll on Iran, The Washington Post, August 9 Iran is beginning to suffer from a U.S.-led trade embargo, despite Iranian efforts to evade the sanctions and continue selling oil in international markets. Oil industry sources said Iran has tried to beat the embargo by concluding an oil production deal with a French firm. It has also offered 10 similar deals to foreign investors. Though Iranian oil is continuing to reach the market, analysts said, Iran is being forced to accept lower prices for much of the crude it's selling. That's because Iran has had trouble finding buyers for some of the oil that it once sold to U.S. oil companies.... Iranian officials say the U.S. embargo has not affected their crude oil production of about 3.6 million barrels a day and exports of about 2.6 million barrels. But Petroleum Intelligence Weekly in New York reported that in May and June Iran had to begin selling its crude in Europe from 30 cents to 80 cents a barrel cheaper than comparable Saudi and other Middle East grades. Since the embargo began, France, China, India and Pakistan have all increased their imports of Iranian crude. But Japan, apparently in response to U.S. pressure, has asked its companies not to increase their purchases. And South Korean refiners are beginning to trim their imports from Iran under pressure the Seoul government, according to the Petroleum Intelligence Weekly. Iran, Industry analysts said, must sell into an increasingly "soft" market around the world, in which supply easily meets demand and creates a downward pressure on prices.... Several analysts said the real crisis for Iran, meanwhile, has been caused by the instability of its currency. Even before it was implemented, the U.S. trade embargo stirred fears in Iran of rising import prices and inflation. Iranian speculators sold massive amounts of the Iranian rial, and the currency lost a third of value.... Mullahs Conduct Maneuvers in Sites of Last Month Uprising, Agence France Presse, August 8 On Tuesday, several thousand Bassiji Militia participated in military exercises in western and southwestern regions of Tehran, according to press reports.... These regions were sites of riots in early April, which led to several deaths and dozens of casualties.... According to press reports, the military exercises, coordinated by the Revolutionary Guards Corps, were aimed at portraying the readiness of the paramilitary Bassijis to ensure the "order and security." The paramilitary forces taking part in these exercises belong to "Ashura Brigades." The "Ashura Brigades" were created in 1993 after a series of uprisings in Iranian cities.... Children Recruited for Military Operations, Government- controlled Abrar daily, August 2 TEHRAN - Guards Corps Colonel Talaii, head of the student Bassij mobilization force announced: Since the formation of the Bassij, students from 16,000 schools throughout the country have been recruited by this force. Along with other students, they will undergo theoretical and practical training in defense and they are already prepared to accomplish the tasks granted to them. Talaii announced: In the coming year, we will have five educational and special operation training courses which will suit the students' talents and interests. U.S. Calling for a Careful Cooperation Against Terrorism, Agence France Presse, August 2 BUENOS AIRES - Anti-terrorist coordinator of the U.S. State Department, Ambassador Philip Wilcox, accused "some countries and on the top of them, Iran" of continuing "to back, fund and lead several terrorist groups" and called for a "careful international cooperation" against them.