JERUSALEM OFFICIALS DISAPPOINTED BY KHATAMI'S STATEMENTS

ISRAEL LINE Monday, August 3, 1998

  Sources in Jerusalem responded on Sunday to statements by Iranian
President Mohammed Khatami regarding Iran's missile test, saying they were,
"sad and disappointing," MA'ARIV reported. During the unveiling of Iran's
new medium-range missile, Khatami called the "Zionist aggressors" the main
threat to the region.
 Sources  in Jerusalem said, "Israel does not see Iran as an enemy and does
not threaten Iran in any way." They added, "If Iran ceases its aid to
Hizbullah, its efforts to acquire non-conventional weapons, and its
objection to the peace process, Israel will see it as a positive development."
 Defense Ministry sources say that Khatami's presence at the unveiling
ceremony shows that Iranian gestures toward the West reveal no changes in
Iran's stance toward Israel.   The sources said, "Iran continues to support
Hizbullah as they fight against us in Lebanon, and it continues to support
terrorist organizations. It seems as if Iran does not intend to change its
direction."
  Defense Minister Yitzhak Mordechai said on Sunday, "Iran's missile project
definitely threatens the region, particularly Israel."  Mordechai said that
every effort should be made to halt Iranian proliferation efforts.