BRIEF ON IRAN No. 394 Thursday, April 18, 1996 Representative Office of The National Council of Resistance of Iran 3421 M Street NW #1032 Washington, DC 20007 Uneasy EU Still Courts Hizbollah's Paymasters, The Sunday Telegraph, April 14 ...Iran controls and bankrolls Hizbollah, the Lebanese Shiite Muslim militia it created in the 1980s to terrorize Western interests in the Middle East. The rocket attacks on northern Israel will have been undertaken on the express orders of Tehran to undermine the Middle East peace process, and are further proof that Iran's mullahs are happy to maintain the country's status as a pariah state.... Under pressure from Germany and France, which both enjoy lucrative trade links with Iran, the EU has agreed to open discussions with Tehran rather than enforce sanctions. Germany's trade with Iran is worth $2,400 million and France $2,008 million. Britain's, by comparison, is worth only $600 million. While the Foreign Office prefers to straddle the diplomatic fence, the Germans and French, anxious to preserve their lucrative trade ties, have encouraged a policy of "critical dialogue."... Apart from Tehran's support for a variety of Middle East terrorist groups, European governments are waking up to the fact that Iran runs an extensive terrorist operation in Europe. German intelligence has produced an embarrassing dossier -which the German government has tried to keep secret- detailing how the Iranian embassy in Bonn plays a key role in masterminding terrorist attacks throughout Europe. According to secret report obtained by the Paris-based National Council of Resistance in Iran, the Germans now have incontrovertible proof that Iran's ministry of information and security, headed by Ali Fallahian, has set up a terrorist network in Europe. The German authorities attempted to suppress the report, despite issuing a warrant for Fallahian's arrest last month for his role in the murder of four Kurdish dissidents in Berlin in 1992.... Conservative Mullahs Have the Upper Hand, Agence France Presse, April 17 With the second round of Majlis elections scheduled for Friday, the conservative right has increased its pressure on the regime's "moderates" and has made some gains.... The conservative right, gathered around Ali Khamenei and under the leadership of Nateq Nouri, asserts that in the first round of elections, it has gained 88 seats out of a total of 134.... The "moderates" received a heavy blow just two days before the Friday elections. Ali Akbar Abu-Torabi, a conservative mullah who had accepted to be on the moderates' list of candidates, stepped aside and resigned. On Wednesday, the Iran News daily which is close to the moderates confessed that Abu-Torabi's decision could effect the outcome of the elections... The unprecedented violence in these elections is explained, among other reasons, by the fact that these elections are the last ones prior to the presidential elections of 1997, in which Rafsanjani cannot run again. In an interview with the Akhbar daily, Mohammad Javad Larijani said that: "If we succeed, Nateq Nouri will become the Majlis president and this will pave the way for winning the presidential elections." Iran Gets China's Help on Nuclear Arms, The Washington Times, April 17 Chinese nuclear technicians are expected to arrive in Iran this week to begin building a new uranium plant that will help Tehran's nuclear-weapons program, according to a secret U.S. intelligence report.... "The plant will produce uranium products that Iran can use to make fissile material for nuclear weapons," the report said.... Nuclear experts say the facility will allow Iran to make a crucial step forward in building nuclear weapons. The Chinese plant will produce uranium hexafluoride, a gas that can be enriched to produce fuel for nuclear bombs.... A Pentagon official said Iran has made building nuclear weapons one of its highest defense priorities and might be able to produce some type of nuclear device around the year 2000. Last year Iran tried to purchase from Russia gas centrifuges that could be used to enrich the uranium gas for weapons, according to U.S. officials.... John Holum, director of the U.S. Arms Control and Disarmament Agency, declined to discuss the specifics of the plant deal, saying the information is classified. "China does cooperate with Iran's nuclear program and we oppose this cooperation because we are convinced that Iran is using its NPT [Non-Proliferation Treaty] status as cover for nuclear weapons development," Mr. Holum told The Times in a statement....