BRIEF ON IRAN No. 302 Wednesday, November 29, 1995 Representative Office of The National Council of Resistance of Iran 3421 M Street, NW, #1032 Washington, DC 20007 Rafsanjani's Budget: An Open Admission of His Policy Failures, from a statement by NCR, November 28 News agencies reported that Rafsanjani presented the regime's 1375 fiscal year budget (March 1996 to March 1997) to the Majlis (parliament). Many economic experts described the budget as a sign of the country's severe economic crisis and the continuation of the accelerating trend of stagflation at the time when the regime faces a $50 billion foreign debt. Even when taking into account the official and publicly announced rate of inflation of 56.3%, this year's budget shows a 12% decline. Although, foreign observers in Tehran put the real inflation rate at 100%. The 30% increase in the defense and the suppressive forces budget relative to last year is particularly significant because it clearly reflects the persistence of a policy of repression and more weapons' purchases by the regime. Besides, all ministries have been instructed to deposit part of their budget into an account that is set up for the regime's suppressive forces, including the Bassij. In his speech to the Majlis, Rafsanjani tacitly acknowledged that the U.S. trade boycott has created problems for the regime such as difficulties in the production and sale of oil. The budget clearly demonstrates the total failure of Rafsanjani's economic policies. In light of the 10% drop in oil revenues and the significant increase in indirect taxes, next year, the Iranian people will have to endure even greater economic pressures which will foment more discontent and social unrest. Secret Sales of Weapons to Iran, Associated Press, November 28 LONDON - Last year, Poland sold 34 tanks to Iran, France exported 42 armored combat vehicles to Nigeria, and Ukraine shipped 56 air-to-air missiles to China. Until this month, these were secrets. They are among 59 previously unknown arms deals disclosed in the latest U.N. Register of Conventional Arms, according to a new analysis.... For the first time, Russia did not submit information on its arms transfers, despite intense pressure. However, eight days after the register's publication Oct. 31, Moscow made a late submission.... The most important revelation in Russia's late submission was a previously unknown shipment of 94 missiles or missile launchers to Iran last year, [the scholars at the University of Bradford who analyzed the register] said. This is very sensitive, they explained, because Russia agreed not to sign any new export agreements with Iran as part of a deal with the United States.... Dole: Missile Proliferation, Fundamentalism and Terrorism, Greatest Threats to Israel, United Press International, November 28 WASHINGTON - Senate Republican leader Bob Dole called Tuesday for the United States and Israel to formalize and deepen their military alliance as a bulwark against rogue states in the Middle East.... Dole said the ongoing peace process had created a new environment in the region but he warned there were still dangers to the Jewish state and U.S. forces in the region. He said ballistic missile proliferation, radical fundamentalism and terrorism formed the greatest threats. "For Israel, even in the event of a comprehensive peace with its neighbors, the threat of attack by long-range missiles from Iran, Iraq, Libya and others may actually grow," Dole said.... Tehran's Ambassador in Germany: Rafsanjani Rightly Called Rabin's Assassination "Divine Revenge", Reuters, Nov. 22 BONN - Iran's ambassador to Bonn called on the German parliament on Wednesday to apologize for declaring that its Foreign Minister would be unwelcome at a German-sponsored Islam conference that was later postponed.... Ambassador Houssein Mousavian told the Express daily that Iranian President Ali Akbar Hashemi Rafsanjani had rightly called Rabin's murder "divine revenge" for the killing of Islamic Jihad leader Fathi Shqaqi in Malta last month.... "... I would like the German parliament to apologize to us for this false charge against our president."... Postponing the conference was an embarrassing setback for the "critical dialogue" that Germany, Tehran's main western trade partner, maintains with Iran despite objections from Bonn's Western allies....