BRIEF ON IRAN No. 397 Tuesday, April 23, 1996 Representative Office of The National Council of Resistance of Iran 3421 M Street NW #1032 Washington, DC 20007 Iran Conservative MPs Vow Anti-Western Drive, Reuters, April 22 TEHRAN - Conservatives claimed victory on Monday in elections for Iran's powerful parliament.... The Combatant Clergy Association (CCA) announced in a statement carried by several newspapers that it had an absolute majority in the 270-seat house but gave no figures.... The CCA statement pledged "serious confrontation with the cultural offensive of the enemy and liberal and pro-Western tendencies in all aspects with special consideration for the role of women and youth."... New Iran MPs Face Economic Reform Hurdle, Reuters, April 22 TEHRAN - Further reform of Iran's cash- strapped economy remains unlikely in the short-term despite the election of a parliament more open to the idea of deregulation and foreign investment, analysts said on Monday.... "With presidential elections next year I can't see how they can do much on subsidies," a Western diplomat said. "And political ideology continues to take precedence over economics, even though economic needs might lie the other way," the diplomat said.... The Islamic republic spends between $8 billion and $10 billion a year on subsidies, equivalent to up to 60 percent of oil revenues, diplomats say. Subsidy cuts have fueled inflation that is running at an officially-estimated 60 percent. The Gulf country's need for the next four years to service large foreign debts of $30 billion will continue to require that Iran keep a tight lid on imports to build up currency reserves.... "The conservatives do not want an open economy and are not sympathetic to the private sector," a Western economist said.... Iran Poll Insult Costs Six Lives, Reuters, April 22 TEHRAN - Enraged supporters of a losing candidate in Iran's parliamentary elections shot dead six opponents who taunted them over his defeat, a local journalist said on Monday. "As supporters of the winning candidate rushed to the place of their rivals, they were shot by supporters of the loser," the journalist told Reuters by telephone from Nahavand, 450 km (280 miles) southwest of Tehran.... Terrorists Claim Link to Iranian Diplomats in Turkey, Dow Jones News, April 22 ANKARA, Turkey - Suspected Islamic terrorists arrested for killing two Iranian dissidents claimed they received orders from Tehran's diplomats in Turkey, a report said. It is the second such reported link this month, following a dispute between Turkey and Iran that ended with the withdrawal of four diplomats by each side. The latest claim named at least one of the Iranians already removed, the Turkish daily Milliyet reported. Three suspected terrorists captured by police recently were still under interrogation, Milliyet said. Three Iranians and three other Turks were also detained. Zahrah Rajabi, a leading figure in the main Iranian opposition group Mujahedeen Khalq, and a friend were found dead in their Istanbul apartment last February.... Iran Duping European Union Again, Reuters, April 22 TEHRAN - Iran's state-run radio said on Monday the European Union's (EU) so-called "critical dialogue" with Iran formed the basis for better relations and the Islamic republic could be a "trustworthy" partner for Europe.... The comment was broadcast hours before EU foreign ministers met in Luxemburg and decided to continue their controversial "critical dialogue" with Iran aimed at moderating the policies of the Islamic government.... EU Retains "Critical Dialogue" with Iran, Reuters, April 22 LUXEMBOURG - European Union foreign ministers decided on Monday to continue their controversial "critical dialogue" with Iran, hoping some talk with Tehran is better than none.... Both the United States and Israel, accusing Iran of financing and equipping anti-Israeli guerrillas, have argued that the West should break completely with Iran, which they see as a pariah state. Iranian opponents of the current government has also urged the EU to give up a policy they described as "futile."...