BRIEF ON IRAN
        No. 343
        Tuesday, February 6, 1996



        Representative Office of
        The National Council of Resistance of Iran
        3421 M Street NW #1032
        Washington, DC 20007



Crushing Debt, U.S. News & World Report, February 12

        U.S. officials and European diplomats claim that Iran is
finding it increasingly difficult to service its crushing debt and
may once again try to reschedule outstanding loans this year.
According to the U.S. government's Interagency Country Risk
Assessment Process, Iran, which is saddled with falling oil
production and an annual inflation rate of 100 percent, is now
classified as a "very poor" credit risk.  Tehran - which is under
U.S. trade sanctions for supporting terrorism - owes $33
billion, primarily to Germany, Italy, France and Japan.
Privately, European officials say they expect Iran once again to
try to reschedule those debts.  U.S. officials fear that the
Iranians might even use the threat of default to wring new
concessions and more credits.


Iran Continues to Acquire Missile Capability, The Washington
Times, February 5

        The CIA has uncovered new evidence China has violated
U.S. anti-proliferation laws by exporting nuclear weapons
technology to Pakistan...
        Last week, several senators asked the president in a
letter if China's sale of advanced cruise missiles to Iran,
disclosed Tuesday by Vice Adm. Scott Redd, commander of U.S.
naval forces in the Persian Gulf, also violated
counterproliferation laws....
        On Wednesday, Sens. Larry Pressler of South Dakota,
Alfonse M. D'Amato of New York, Connie Mack of Florida and
Arlen Specter of Pennsylvania wrote to President Clinton
about Iran's test-firing a Chinese C-802 advanced anti-ship
cruise missile.
        "Clearly, Adm. Redd's acknowledgment of the C-802 test-
firing would appear to be an official recognition of an illegal
transfer to Iran of advanced conventional weapons by Chinese
defense industrial trading companies," Mr. Pressler said in a
statement.  "This is a vital national security matter and
demands immediate attention."...


FEATURE

Mullahs' Presence in Northern Iraq, Saudi daily Al-Riyadh,
January 25

        Iran continues to interfere in the internal affairs of Iraq.
And it is trying to play a role in domestic policy making of
what is related to the north as well as other regions of Iraq....
        This year, Iran has increased the budget of National
Security Council, whose agenda is the export of so-called
Islamic revolution abroad.  The purpose of this increase is to
intensify operations and interference in the internal affairs of
neighboring countries and other world's states such as
Afghanistan, Lebanon, and some of Persian Gulf states and also
in Kurdistan (Northern Iraq and Eastern Turkey).  The
appropriated budget is nearly $50 million.
        Iran's activities in the region are suspicious.
        The observers' view is that Iran's actions to create
division in the Gulf Cooperation Council - using one country
against the other, and utilizing all sorts of pressure on Syria to
prevent a peaceful solution with Israel, and increasing its
activities in Lebanon as well as its extensive support of civil
war in Afghanistan... indicate that Tehran is seeking to
resurrect all forms of crises and instability in the region to
spread its objectives and ideas...