A government-owned newspaper in Iran on Wednesday sharply criticized rising prices and called on President Mohammad Khatami's administration to start building the foundation for a decent standard of living.

The existing system of goods distribution was obsolete, Iran Daily said in an editorial circulated by its owner, the official Islamic Republic News Agency.

The newspaper described profiteering, price gouging, hoarding and poor distribution systems as nuisances long tolerated by authorities and policymakers.

It cited statements by officials who said production was at the desired level but the distribution system was useless.

"Food prices are slowly but steadily rising, some tags have become prohibitive, especially for the millions who make do with fixed incomes. And add to this the dangerous doctrine of sacrifice," it said.

Iran Daily proposed strict accountability and the criminalization of corruption in all its forms….

Steep prices are a common complaint in Iran. Large grain imports and a decision to buy chickens abroad to deal with shortages at home have drawn sharp criticism.

Consumer inflation in Iranian cities ran at an annualized rate of 17.6 percent in the first five months of the Iranian year which began in March, according to Central Bank statistics.

Tehran Mayor Aide Sentenced to Jail, 170 Lashes, Reuter, October 7  

An Iranian court has sentenced the mayor of a Tehran district to seven-and-a-half years in jail and 170 lashes for fraud and morals and drugs charges, a newspaper said on Tuesday.

The conviction follows the jailing of another district mayor last week on corruption charges after arrests in recent months of several aides to the capital's mayor Gholamhossein Karbaschi.

The moderate Karbaschi has accused conservative opponents of mounting a campaign against him.

The daily Kayhan said the court also ordered Mohammad Ali Qasemi, mayor of Tehran's first district, to pay 400 million rials ($133,000) in fine, banned him from state employment and ruled he should live in exile in northwestern Iran for five years….

A court last week jailed the mayor of Tehran's 20th district, for five years on corruption charges….

The detentions followed a call in July by supreme leader Ayatollah Ali Khamenei for a crackdown on graft in state bodies.

The call followed a series of trials for large-scale fraud at state agencies and banks in the past few years which have featured prominently in the local media and sparked a wide public outcry.

Another Revolutionary Guards War Games, The Associated Press, October 8 

Iran intends to begin 10 days of naval maneuvers this week, coinciding with the expected arrival of the USS Nimitz in the Persian Gulf.

The aircraft carrier is to reach the gulf in mid-October, two weeks ahead of schedule, in response to raids by Iranian jets on two bases in Iraq that are used by an Iranian opposition group, the Mujahedeen Khalq.

The Clinton administration told Iran its Sept. 29 raids violated a U.S.-enforced "no-fly" zone in southern Iraq and could trigger retaliation. It also warned Iraq not to attempt other flights.

Iran's defense minister announced Tuesday that more than 50 warships would take part in the exercises to begin Saturday….

France Stresses Willingness To Talk about Iran Sanctions, Dow Jones News, October 8 

France indicated Tuesday that Europe wants to avoid a conflict with the U.S. over business deals with Iran, and agrees with Washington on the need to press Tehran to stop sponsoring terrorism.

Tempers have flared on both sides of the Atlantic since late September, when the French oil company Total S.A. (TOT) signed a $2 billion contract with Tehran to develop offshore gas fields….

"Europe isn't looking for a conflict," Foreign Minister Hubert Vedrine told a gathering of U.S. and British reporters. "There's no desire to complicate things on our part, to dispute with anyone."…

A French official, speaking on condition of anonymity, admitted the European Union's policy of "critical dialogue" with Iran 'has broken down' and that Europe needed to redefine the policy….

Iran Attacks Bonn for Rebuffing Talks Offer, Reuter, October 7 

Iran has criticized Germany for rebuffing its offer of bilateral talks to resolve a diplomatic row, saying negotiations had been Bonn's idea.

The official Iranian news agency IRNA said the criticism was made by Foreign Ministry spokesman Mahmoud Mohammadi on Monday….

A German Foreign Ministry spokesman said on Sunday Bonn would hold talks only when recalled European Union envoys were back in Tehran….

Back to Brief on Iran