TEHRAN—Conservatives in the Iranian parliament, whose speaker was heavily defeated in the Islamic republic's presidential election, on Wednesday signaled a tough time for ministers in President-elect Mohammad Khatami's cabinet.

Despite feverish speculation and long lists in newspapers of ministerial hopefuls, Khatami has declined to name anyone being considered for cabinet jobs….

"If Majlis deputies are consulted on the new cabinet before the ministers are officially introduced, certainly the Majlis will act in a more organized and ripe way in giving a vote of confidence," said Ali Akbar Hosseini, a focal figure of the parliament's conservative majority.

Tehran-based analysts said that message, relayed through the official news agency IRNA, was a clear warning to Khatami from the conservatives….

Another Majlis deputy, Mohammad Shahi Arablou, said in remarks published by Iran News daily that the "secrecy of the cabinet selection process adopted by the president-elect could create problems for the members of the Majlis."…

Conservative Shiite Moslem clerics have not minced words in demanding a say over the choice of ministers, analysts said.

In a television debate on Tuesday one of Khatami's most outspoken critics, conservative deputy and editor of Resalat daily Mortaza Nabavi, said the new president should allow a number of ministers from the losing faction into his cabinet "even though they do not agree with his plans in every detail."…

Khamenei Did Not Take Part in Ceremony "Honoring" Rafsanjani, Iran Zamin, July 28 

Holding special ceremonial session, the regime's Majlis expressed its "appreciation" of Rafsanjani's so-called "efforts and services" during the past 8 years.

A number of regime's top figures, including Mullahs' supreme leader Khamenei and the head of regime's Judiciary Branch Yazdi, did not participate in the ceremonies despite official invitation….

The ceremonies were to be held last May, but due to the refusal of Majlis members who belong to Khamenei's ruling faction to participate, the ceremonies did not take place and was postponed….

Awakening to Our Caspian Concerns, The Washington Times, Excerpts from an article by Frank Gaffney, July 30

…Until very recently, official Washington has been on the sidelines of the momentous contest taking place to shape, if not control, the destiny of the Caspian Basin. In its absence, Russia, China and Iran have been jockeying for position….

The Clinton administration's reflexive deference to Moscow has only slowly begun to give way to an appreciation that an economically successful, pro-Western and secular Muslim state in Azerbaijan is in the US interests…. As a result…Deputy Secretary of State Strobe Talbot was heard last week emphasizing the importance of improved American ties with Azerbaijan….

Such a policy is all the more necessary in the wake of the Clinton administration's deplorable announcement on Monday that it would have no objection to the construction of a $1.6 billion pipeline to carry natural gas from Turkmenistan to Turkey via Iran. This step will not only unmistakably signal an American willingness to ease Iran's international isolation under circumstances in which that is still most ill-advised. It also will facilitate Tehran's ambition to penetrate and exercise influence over the Caspian Sea Basin….

Shun Iran, or Else, Business Week, August 4, 1997

The economic noose around Iran may get tighter. A 1996 law imposed sanctions on foreign companies that invest $40 million or more in Iran's oil sector. On August 5, the law will let President Clinton lower the threshold to $20 million. Most likely to get burned: France's Total, which is involved in a big Iranian oil project….

Deadly Crime by Iran-backed Terrorists, CNN Interactive, July 30

JERUSALEM—Two bombs killed 14 people and injured more than 150 in a crowded Jerusalem market Wednesday, dealing a blow to attempts to revive the stalled Middle East peace process. There are reports that Islamic Jihad and Hamas have both claimed responsibility for the attack.

Police originally said 18 had died, but later revised the figure, and also said the dead included the bodies of the two suspected suicide bombers….

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