The People's Mojahedin announced today that one of its sympathizers, Armin Espahbodi, 29, had been executed on August 5 in Abadan, southwest Iran. Espahbodi had been arrested by the Intelligence Ministry on June 15 at his mother's house in Mashad, northeast Iran, and brutally tortured. His mother was also arrested tortured to force her to take part in a televised interview.

In early August, the Intelligence Ministry transferred the victim to Abadan for execution, the Mojahedin statement said. On August 11, the Intelligence Ministry issued a false report that Mr. Espahbodi had been killed in a border village near Abadan while trying to leave Iran. Eyewitnesses in Abadan's coroner's office confirm, however, that Mr. Espahbodi had been shot 12 times at close range, and there were absolutely no signs of death due to a clash.

Alarmed at the spread of Mojahedin activities in Iran and growing public support for the Resistance, the Tehran regime has launched a wave of arrests of Mojahedin sympathizers. In many cases, the arrested are executed. The Intelligence Ministry then disseminates bogus reports about their deaths while crossing the borders. This ploy is intended to dissuade young people from joining the National Liberation Army of Iran, as well as compensate for blows the regime has received in the past seven months in the course of 294 operations in Iran by the Mojahedin.

Labor Leader Beaten to Death by Intelligence Agents, Iran Zamin News Agency, September 13 

A dissident worker in Shiraz Cement Factory was murdered by the plant manager and agents of the Intelligence Ministry on Tuesday, September 3, according to a report from Iran.

Seyyed Ali Hosseini, 50, was summoned to the office of the plant manager after collecting a workers' petition protesting non-payments of wages, continuous pressure and harassment at workplace. The petition, signed by more than 200 workers, was addressed to the regime's president. When Hosseini reported to the manager's office, he was severely beaten by the manager and agents of the Intelligence Ministry. He died under their blows.

The names of workers who were behind the collection of the petition were given to the Intelligence Ministry by Khatami's office.

Stagnant Economy Requires Fundamental Change, Voice Of America, September 16 

Since the 1979 revolution, the Iranian government has revised its economic policies several times without achieving notable improvements. The state ideology restricting free market interaction has been an obstacle…

Marvin Zonis, professor of international political economy at University of Chicago, says a continued decline in the production and the price of oil, along with what he calls the country's "quasi-socialist" economy, are the main reasons for the stagnation.

"The clerics have a third world ideology in which they believe that equality is more important than growth. …" Mr. Zonis believes that if Iranian clerics do not abandon the Third World style socialist ideology they will ultimately lose power. The Iranian people, he says, want material benefits that the mullahs are hardly able to provide… Mr. Zonis says it remains to be seen whether President Khatami will be able to accomplish much since he lacks constitutional power for introducing fundamental changes.

"The power to make changes really resides with the supreme religious leader Ayatollah Khamenei, the successor to ayatollah Khomeini, and also of course the parliament is a very important institution, and that is dominated by more radical elements than the new president. …"

Hong Kong Used as Conduit for Iran Arms Sales, Daily Telegraph, September 14

CHINESE arms dealers are taking advantage of lax government controls in Hong Kong to sell banned chemical weapons materials to Iran.

Chinese firms are using "front" companies based in the former British colony to send illegal consignments of materials and chemicals to Iran that are banned under the 1993 Chemical Weapons Convention, which both nations have signed.

Despite British and American efforts to thwart the deadly trade prior to the July 1 handover of the colony, Chinese businessmen continue to use Hong Kong to channel multi-million-dollar consignments of banned equipment and technology to Teheran.

According to reports being studied by the Central Intelligence Agency, Iran has recently received shipments from Hong Kong of sophisticated glass-lined equipment essential for the manufacture of chemical weapons. The Iranians have also taken delivery of dual-use chemical precursors, also an essential component.

In addition the Chinese government is also reported to be providing Teheran with technical support and expertise to help the Iranians to develop ballistic missiles with a range of up to 2,000 miles.

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