BRIEF ON IRAN Representative Office of The National Council of Resistance of Iran No. 520 Thursday, October 17, 1996 3421 M Street NW #1032, Washington, DC 20007 Mullahs' Military Spending Increased, Voice of America, Farsi Service, October 15 According to London based MEES economic journal, purchase of weapons by Middle Eastern and North African countries, which had increased considerably since 1992, has increased again.... Published figures show that Iran's military budget for the current fiscal year is increased significantly. Iran's last year military budget was $2.5 billion and will reach $3.4 billion this year. Iran's Bid For Zone of Influence Suffers Setbacks, Reuters, October 15 Iran's bid for regional influence has taken a battering with setbacks on both its eastern and western borders, religious concerns in Central Asia, and a U.S. military buildup in the Gulf, analysts said on Tuesday. On all fronts, the Islamic republic of 60 million people ruled by Moslem clergymen is locked in an ideological battle for the hearts and minds of its neighbors.... In the east, Tehran's Shi'ite Moslem rulers oppose the Taleban movement of radical Sunni Moslems who seized the Afghan capital Kabul last month from the government of Burhanuddin Rabbani, which Iran continues to recognize as legitimate.... On its western border, Iran is accused by a Kurdish faction in Iraq of helping a rival group to retake Iraq's biggest Kurdish city.... To the south, Iran's Arab neighbors across the Gulf earlier this year charged Tehran with interference in their internal affairs, notably in the state of Bahrain where dissidents among the majority Shi'ite Moslem community oppose their Sunni rulers.... And to Iran's north, Velayati and other envoys from Tehran are frequent visitors to neighboring Turkmenistan and other former Soviet republics of Central Asia with large Islamic communities.... [A Middle East analyst said:] "The only relatively quiescent place on Iran's borders, if you count the United States and its allies in the Gulf, is Armenia." Turkey-Iran Natural Gas Deal May Not Occur, Dow Jones News, October 15 Days after meeting with a visiting Turkish delegation, U.S. State Department officials said they don't believe a previously reported $22 billion natural gas contract between Turkey and Iran will go through. "We do not believe that the proposed gas-oil deal between Iran and Turkey - we don't believe it's been consummated. We don't believe it's been fully agreed to," department spokesman Nicholas Burns told reporters.... Another Bloody Accident In Iran, Agence France Presse, October 10 According to daily Ettelaat, in an accident involving a passenger bus and a truck in central Iran, 15 passengers were killed and 26 others were severely wounded. The accident occurred in the city of Shahreza... Iran is one of the countries with most accidents. Each year about 40,000 serious accidents take place in Iran, which has only about 3 million vehicles. Iranian Ayatollahs Building Chemical Arsenal, Sunday Telegraph, October 13 Western security chiefs have launched an urgent inquiry into reports that Iran will be able to produce its own advanced chemical weapons within a year, posing a massive security risk to the oil-rich Gulf states and the stability of the whole Middle East. For the past six years Iran has been involved in a frantic effort to acquire weapons of mass destruction - nuclear, chemical and biological - under the personal supervision of President Hashemi Rafsanjani, the Iranian leader. Hundreds of millions of dollars have been pumped into projects to acquire materials and technological expertise.... But following an exhaustive intelligence gathering operation by a number of Western agencies, experts believe Iran is now on the verge of producing deadly nerve agents such as sarin and VX, which will greatly enhance the ayatollahs' ability to threaten the region.... As a result of the considerable technical and material help Iran has received from a number of foreign countries - China, in particular - Western experts believe Teheran will be able to produce these nerve agents in industrial quantities within 12 months.... The initiative began in earnest in 1990 and Iran now has an extensive network of research establishments and industrial complexes that will soon enable it to become the largest producer of chemical weapons in the region. The Iranians have also conducted exhaustive research into different means of deploying the nerve agents. These include bombs, adapted katyusha rockets and long-range ballistic missiles.... [To Be Continued]