DATE=3/10/99
TYPE=BACKGROUND REPORT
NUMBER=5-42815
TITLE=IRAN / EUROPE
BYLINE=LAURIE KASSMAN
DATELINE=LONDON
CONTENT=
VOICED AT: 

INTRO:  IRANIAN PRESIDENT MOHAMAD KHATAMI'S VISIT TO EUROPE THIS 
WEEK IS THE FIRST BY AN IRANIAN LEADER SINCE THE 1979 ISLAMIC 
REVOLUTION.  V-O-A CORRESPONDENT LAURIE KASSMAN LOOKS AT HOW THE 
TRIP MARKS ANOTHER STEP IN MR. KHATAMI'S EFFORTS TO END IRAN'S 
DIPLOMATIC ISOLATION AND RESTORE ITS CREDIBILITY IN THE 
INTERNATIONAL POLITICAL ARENA. 

TEXT:  IN THE EARLY YEARS AFTER THE 1979 ISLAMIC REVOLUTION 
TOPPLED SHAH REZA PAHLEVI, THE RELIGIOUS LEADERS OF IRAN WERE  
TREATED AS PARIAHS IN THE WORLD OF INTERNATIONAL DIPLOMACY. 

SINCE HIS ELECTION NEARLY TWO YEARS AGO, PRESIDENT MOHAMAD 
KHATAMI HAS SOUGHT TO MODERATE THE REVOLUTION'S SOCIAL AND 
POLITICAL POLICIES AT HOME AND TO REACH OUT TO END IRAN'S 
DIPLOMATIC ISOLATION ABROAD.

GEORGE JOFFE (JAH FAY), THE DEPUTY DIRECTOR OF THE ROYAL 
INSTITUTE FOR INTERNATIONAL AFFAIRS IN LONDON SAYS MR. KHATAMI'S 
VISIT TO ITALY -- AND HIS PLANS TO VISIT FRANCE AND GERMANY LATER
IN THE YEAR -- UNDERSCORE HOW MUCH IRAN WANTS AND NEEDS TO BE 
RE-INTEGRATED BACK INTO THE INTERNATIONAL COMMUNITY.

                       ///  JOFFE ACT  ///

         IT'S A DEMONSTRATION THAT IRAN IS NOW TAKEN SERIOUSLY AS
         A MAJOR POWER IN THE GULF REGION -- AS A MAJOR PLAYER ON
         THE WORLD STAGE.  AND THAT REALLY FOR MR. KHATAMI IS THE
         MOST IMPORTANT BENEFIT HE CAN BRING BACK.

                        ///  END ACT  ///

THE TRIP ALSO HELPS REVITALIZE TRADE LINKS THAT ARE KEY TO IRAN'S
EFFORTS TO REBUILD ITS BATTERED ECONOMY.  TWO IMPORTANT OIL 
CONTRACTS HAVE BEEN SIGNED WITH ITALY.  OTHER EUROPEAN 
GOVERNMENTS ARE LOOKING FOR MORE OPPORTUNITIES IN IRAN'S MARKETS 
TOO.  LAST MONTH, IRAN'S PARLIAMENT AGREED TO LET FOREIGN 
COMPANIES OWN UP TO 49 PERCENT IN ANY IRANIAN COMPANY.

PRESIDENT KHATAMI ALSO HAS USED HIS ROME VISIT TO SEND IMPORTANT 
SIGNALS BEYOND EUROPE TO WASHINGTON.  THE IRANIAN LEADER HAS 
DISTANCED HIMSELF FROM HIS GOVERNMENT'S PAST PRACTICES WHEN HE 
DENOUNCES TERRORISM AND PROMISES IRAN WILL  OPPOSE THE SPREAD OF 
NUCLEAR WEAPONS. 

BUT MR. JOFFE POINTS OUT THAT PRESIDENT KHATAMI STILL FACES  A 
POWERFUL CONSERVATIVE OPPOSITION BACK HOME.

                     ///  JOFFE ACT TWO  ///

         HE KNOWS, FOR EXAMPLE, THAT THE SUPREME LEADER AYATOLLAH
         KHOMEINI IS  NOT  NECESSARILY CONVINCED OF THE NECESSITY
         OR DESIRABILITY OF DIALOGUE AT THIS LEVEL, ALTHOUGH HE'D
         CERTAINLY PREFER IT WITH THE EUROPEANS RATHER THAN WITH 
         THE UNITED STATES.  AND THAT BEHIND HIM STANDS THE 
         BAZAAR (IRAN'S CONSERVATIVE BUSINESS CLASS) WHICH IS 
         VERY ANXIOUS INDEED,  NOT  ONLY ABOUT THE STATE OF THE 
         IRANIAN ECONOMY, BUT ALSO ABOUT THE PLANS THE KHATAMI 
         GOVERNMENT MAY HAVE TOWARD THEIR INTEREST IN IT.

                        ///  END ACT  ///

STILL, MR. JOFFE AND OTHER IRAN-WATCHERS AGREE THE MODERATING 
TREND IN IRAN IS TAKING HOLD, ESPECIALLY AFTER THE OVERWHELMING 
SUCCESS OF REFORM-MINDED CANDIDATES IN LOCAL ELECTIONS LAST 
MONTH.  THEY SAY EUROPEAN SUPPORT CAN HELP MR. KHATAMI AND HIS 
SUPPORTERS IN THEIR FIGHT AGAINST THE NAY-SAYERS BACK HOME.  
(SIGNED)

NEB/LMK/JWH/GE

10-Mar-99 12:05 PM EST (1705 UTC)
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Source: Voice of America
.