The clerical regime's Ministry of Intelligence claimed today that it had arrested three members of the Mojahedin in Kerman, southern Iran, and another two as they were leaving the country across the border.

In a statement from Paris, the Press Office of People's Mojahedin Organization denied this report and added that the claim came "in the wake of two campaigns by the Resistance forces in 181 cities across the country to boycott the mullahs' sham elections and to honor the anniversary of June 20, the start of the Iranian people's just Resistance against the Khomeini regime."

A spokesman of the Mojahedin Command Headquarters inside Iran said in this regard: "Reacting to the rise in the activities of the Mojahedin inside Iran and the increasing number of youths joining the National Liberation Army of Iran, the regime's suppressive forces have resorted to extensive arrests among supporters of the Resistance as well as ordinary people."

Iran-Libya Sanctions Act Anniversary, Voice of America, July 31 

As President Bill Clinton said, "Iran and Libya are two of the most dangerous supporters of terrorism in the world." Because of this, the United States has long maintained economic sanctions on Iran and Libya. A year ago, the U.S. Congress toughened the sanctions by passing the Iran-Libya sanctions act….

This month, U.S. officials updated members of congress on the situation in Iran and Libya. David Welch, Acting Assistant Secretary of State for Near Eastern Affairs, said the threat of sanctions has made Iranian projects much less attractive to foreign firms. Events over the past year have increased concerns about Iran….

In April, a German court determined that Iran's highest officials ordered the 1992 murders of an exiled Iranian Kurdish leader and three associates in Berlin. In response, the European union suspended its "critical dialogue" with Iran and confirmed its ban on arms sales to Iran. The E.U. also stepped up cooperation on reducing the Iranian intelligence presence in E.U. member states. And at their annual summit in June, the U.S., Canada, Britain, France, Germany, Italy, Japan and Russia called on all states to avoid cooperating with Iran in its efforts to develop missiles as well as nuclear, biological and chemical weapons.

Rafsanjani Leaves Office with Economy and Foreign Relations in Trouble, Associated Press, July 31 

TEHRAN - President Hashemi Rafsanjani steps down Sunday after eight years in office.…

Rafsanjani entered the presidency in August 1989, two months after the death of Ayatollah Ruhollah Khomeini and six months after the Islamic republic patriarch had chilled relations with the West by issuing a death sentence against British author Salman Rushdie for the allegedly blasphemous novel "The Satanic Verses."…

Washington still accuses Iran of terrorism, and tightened its economic sanctions against Tehran last year.

Rafsanjani's moves toward Europe also were frustrated. He leaves the presidency at a time when ties to the European Union are unusually weak….

Iran remains a society dominated by Islamic laws under which women must be covered from head-to-foot in public….

Iran still suffers from high inflation, widespread corruption and unemployment running at more than 20 percent.

In the capital, an average monthly salary of 40,000 rials, or $133, is not enough for even half a month's rent on a one-bedroom apartment….

News From Inside Iran, Iran Zamin News Agency

Execution - Lahijan, northern Iran, July 4 - Hossein Khorssand, a conscript soldier who had served in the army for 15 months, was executed in Malek Ashtar prison in Lahijan. The reason for his execution was officially announced to be "moral issues," but Hossein is said to have opposed the regime.

Arrest - Marand, E. Azerbaijan, July 6 - The State Security Forces raided "Bazi-shahr" park and harassed the youth. Twenty were arrested for "having not observed the principles of Islam."

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