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    Middle East
     Oct 20, 2005
The return of Rafsanjani
By Saloumeh Peyman

TEHRAN - The fact it was the former president, Hashemi Rafsanjani, who announced Iran's readiness to talk on the "country's nuclear dossier without any pre-condition" rather than his hardline successor, Mahmud Ahmadinejad, offers a glimmer of hope for reconciliation with the West on the key nuclear and oil issues.

When Rafsanjani, who now wears the hat of chairman of the shadowy, but powerful State Expedience Council (SEC), announced Saturday that "Tehran is ready to begin dialogues for transparency on the nuclear dossier," it was a sign that the reformists were once again calling the shots in Iran despite their shock defeat in the June presidential elections.

It is another matter that Hamid Reza Asefi, a Foreign Ministry



spokesman, said Sunday that Tehran would not comply with a demand by the International Atomic Energy Agency that it stop uranium conversion at its Isfahan facility and fall in line with the key European Union condition for resumption of talks.

Asefi told reporters the freeze on uranium conversion was made voluntarily and Iran reserved the right to make fuel for its reactors as signatory to the nuclear Non-Proliferation Treaty.

Talks between Iran and the EU-3 (Britain, France and Germany) broke down in August, when Iran rejected a deal that offered trade and other incentives for a full cessation of fuel-cycle work, the focus of fears that Iran could acquire nuclear weapons.

But the unexpected intervention by Rafsanjani, regarded as a pro-Western politician who also has the ear of Supreme Leader Ayatollah Ali Khamenei, is a sign that the days ahead may see a softening of Tehran's approach and a dilution of Ahmadinejad's authority.

Much would depend on what exactly the powers of the SEC are, to which Rafsanjani was appointed on October 3. He in turn appointed another former pro-West president, Mohammad Khatami, to the body's decision-making high council.

After his election in 1997, Khatami began a process of reform and reconciliation aimed undoing the isolation of Iran after the 1979 ouster of the Shah of Iran and the installation of an Islamic republic.

Curiously enough, the powers of the SEC were recently expanded with Speaker Gholamali Haddad-Adel mounting a defense of it in parliament, saying it was in the interests of greater discipline. According to Haddad-Adel, all macro-level policies could only be made after consultations with the SEC, which is also now charged with supervising the execution of those policies.

In other words, say critics, this virtually amounted to the creation of parallel authority.

For his part, Rafsanjani has tried to play down his role and said the SEC does not have any contact with the executive. "The SEC used to have a supervisory role but now this role is with the supreme leader and we report any wrong-doing to him," he said at a recent public function.

According to the secretary of the SEC, Mohsen Rezaee, Khamenei had delegated some of his own powers to the SEC, which would now supervise the affairs of the judiciary, executive and the legislature.

The new development has prompted cynical analysts to say, "Money and the members of the Iranian elite, Hashemi Rafsanjani himself, will now have the final say in Iran's day-to-day socio-economic and political lives."

For those who overwhelmingly voted for Ahmadinejad, the empowering of Rafsanjani after the humiliating defeat in the election, is a blow but there has been no backlash so far except for some murmuring in parliament.

The acid test for the SEC is how much of a say it would have in the appointment of ministers to the key portfolios of oil, education cooperatives and social security and welfare - vacancies that Ahmadinejad has not been able to fill in so far.

Ahmadinejad, who claimed his electoral victory was nothing short of a "second revolution" after the creation of the Islamic republic in 1979, has railed at "gangs" with vested interests preventing appointment of an oil minister, and many said the reference was to Rafsanjani and his yet-powerful networks within and outside the country.

"We are a newly founded private engineering and consulting company seeking oil-fields development projects in which the government is the major client," Ahmad Tofanian, an engineer, told IPS. "As far as we are concerned, the lack of appointments means that it will be difficult to decide on tenders."

Ahmadinejad has packed most of the other key jobs with hardliners, including the governors-general who administer provinces. But many believe these adherents of Islamic values could spoil relations with countries that border the provinces they administer.

For now the concern is mainly the effect the adherents are having on the economic front and also on the diplomatic side where their lack of experience in handling international affairs is beginning to show.

"All this has a great impact on [the] economy of the country and slowed [it] down, particularly [in the] stock market and private sector as everything [is] in limbo," said Hasan Shbazian, an accountant in a civil-engineering company.

"A few weeks before the new government took over, the Tehran Stock Market had begun to drop and since Ahmadinejad formed his [incomplete] cabinet, the indices have kept on nose-diving," a stockbroker said.

Iran, the stockbroker continued, has been kept afloat so far by "the magic of petro-dollars and with oil-selling at over US$50 a barrel, the government-run companies have continued to do well since they are operating within an oil-exporting economy."

Hussain Kadkhodaee, an economist and expert on Tehran Stock Market, shares the cynical view regarding the role of petroleum. "About 70% of the Iranian Stock Market is in the control of the state-run companies, governmental investment firms - particularly those affiliated to the state-run banks," he said.

Masoud Nili, an economist close to the defeated reformists, wrote in an editorial in the Shargh daily on September 24, "The oil revenue is going to reach around $50 billion by the end of this year [Iranian calendar, ending March 21] but it may not bring fortune."

The new government, while trying to "bring the fruits of surging oil price to the table" of ordinary Iranians, had better brace for fighting with the highly probable gallant inflation", Nili opined.

It is in this context that Khamenei may have decided that it is best to temper Ahmadinejad's zeal with the practicality of Rafsanjani and also give him a hand to steer Iran through its present crisis with the West over the nuclear-recycling issue.

(Inter Press Service)


The IAEA's new clout (Oct 13, '05)

Reinventing Iran's foreign policy (Oct 7, '05)

Iran backpedals, for now (Sep 30, '05)

The high price of hounding Iran (Sep 29, '05)

 
 



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