BRIEF ON IRAN No. 488 Friday, August 30, 1996 Representative Office of The National Council of Resistance of Iran 3421 M Street NW #1032 Washington, DC 20007 China to Sign $4.5 Billion Arms Deal with Iran, Dow Jones News, August 29 CAIRO - An Arabic daily said that Iran and China are expected to sign a new $4.5 billion arms deal under which Beijing will provide planes, missiles and ships to Tehran. The London-based Asharq al-Awsat newspaper quoted unidentified sources as saying that Iranian Defense Minister Mohammad Forouzandeh would initial the deal during his current weeklong visit to China. It will be finalized in Tehran in December.... U.S. Navy officials in the Gulf allege that Iran, mostly with Chinese help, has acquired the potential power to close off the strategic Strait of Hormuz, through which about one-fifth of the world's oil supplies pass. Germany May Investigate Khamenei and Rafsanjani, United Press International, August 29 BONN - Germany's public prosecutor said Thursday that he may investigate Iran's president Ali Akbar Rafsanjani and main religious leader Ali Khamenei over allegations they personally approved the 1992 killing of four Kurdish separatists in a Berlin restaurant. The move would mark a new threat to the already strained relationship between Tehran and its main European partner. Political observers say it could also undermine the position of Chancellor Helmut Kohl's foreign minister and some of his closest advisers, who have consistently defended Bonn's ties with Iran despite foreign and domestic criticism.... Western intelligence experts have accused Iran of using the embassy as a base for assassinations of opponents and illegal harassment of Iranian exiles.... Iran Accuses More as Spies, Associated Press, August 29 TEHRAN - Iran's intelligence minister says 137 suspects have been arrested since March on charges of spying for the United States, Iraq and other countries.... Iran periodically announces arrests of alleged spies working for Iraq, its foe in the 1980-88 war, and the United States. Convicted spies face long prison terms or death by hanging. Fallahiyan himself is wanted in Germany for allegedly ordering the 1992 assassination of an Iranian opposition leader and three of his aides in Berlin. German prosecutors issued an arrest warrant for him in March. Khamenei: Europeans in Line with Islamic Revolution, Agence France Presse, August 28 "Europeans are in line with the Islamic Republic of Iran, because they condemned U.S. sanctions against Iran." Khamenei, the leader of the Islamic Republic of Iran, made these remarks before Iran's government officials. He said: "We say to these governments, particularly, European Governments, who stood up against U.S. sanctions against Iran and Libya that this means [your] affirmation of our revolution's message..." Khamenei Sets the Stage for More Repression, State-run Radio August 26 - ... Khamenei in meeting with the directors and staff of municipality of Tehran called for creation and expansion of religious atmosphere in urban areas... Khamenei said: "... We must plan such that the city of Tehran looks like an Islamic city... But, the particularity of an Islamic city is that the religious and pious should feel safe everywhere and corrupts must not find any place safe for corruption and vice. This important [issue] must be completely considered in all areas related to municipally, including parks and cultural associations... August 28 - ... Khamenei in meeting with the country's staff of various departments said: "... those who are the enemies of the system of Islamic Republic will not restrict themselves to accusing only authorities, nobles and high profile figures in the system. They will accuse all official apparatuses of this system... Of course, the media also must be alert and do not publish any nonsense under various pretexts...