WASHINGTON - The US State Department's "persistent" and "awkward" overtures to Iran will only encourage Tehran's mullahs to remain terrorists, an Iranian opposition group warned here Thursday.

Speaking at a press conference, a member of the National Council of Resistance of Iran said Washington must understand that Iran is entering a chaotic period and that the Islamic republic is "a losing horse."

"Factional infighting has entered the danger zone," spokesman Alireza Jafarzadeh said. "There is even talk of a coup d'etat by Revolutionary Guards."

Jafarzadeh also said that Tehran was preparing to launch "a new series of operations and military strikes against the Mujahedeen."

The People's Mujahedeen, Iran's main armed opposition group, has military bases in Iraq but also is engaged in intense political lobbying against the Tehran regime in European countries and the United States.

US overtures "will only encourage the mullahs to continue their terrorism," he said.

The US State Department, in its annual report released at the end of last month, said Iran was "the most active state sponsor of terrorism" in 1997 despite the election of moderate President Mohammad Khatami.
 

Tensions in Qom as Khamenei Pays Unexpected Visit, Iran Zamin News Agency, May 7

The city of Qom (140 km south of Tehran) has been under tight military control since Wednesday morning while the clerical regime's leader, Ali Khamenei, paid an unexpected visit to the city, according to reports from Iran. Large contingents of Revolutionary Guards and Ministry of Intelligence agents have been dispatched to Qom from Tehran.

Khamenei is reported to have threatened dissident clerics and seminary students with severe consequences. Senior Shiite clerics in Qom are said to have given Khamenei a cold shoulder and treated him with contempt.

At the same time, hundreds of Revolutionary Guards and Ministry of Intelligence agents surrounded the home of Hossein-Ali Montazeri, once Khomeini's designated successor. A group of the clerical regime's agents gathered outside Montazeri's home and chanted "death to Montazeri" and "death to whoever opposes the vali-e faqih (supreme leader)."
 

Russian Arms Deals With Iran Worry U.S., The Washington Times, May 7

Senior Clinton administration officials want Russia to halt recent nuclear weapons cooperation with Iran and have warned Moscow to abide by the 1995 pledge Boris Yeltsin made to President Clinton.

The issue is expected to come up during talks in Moscow later this week between Russian officials and White House National Security Adviser Samuel R. Berger, who left yesterday to prepare for upcoming Group of Seven economic summit.

Pentagon intelligence officials told The Washington Times that recent events have caused alarm among senior administration officials. They include:

The planned visit of Iranian nuclear officials to Moscow later this month to view a demonstration of gas centrifuge technology - know-how used in enriched uranium for weapons.

Russia's recent sale of radioactive tritium gas that can be used to increase the size of nuclear warheads.

Ongoing discussions for a second sale of tritium that would double the amount of the gas in Iran's nuclear program….

Iran could make major strides in building nuclear arms if it acquires gas centrifuges…

Senate Majority Leader Trent Lott said reports that Russia may violate its pledge not to share nuclear weapons technology with Iran are "further proof" that Moscow's proliferation activities "have not stopped."

"It is one more reason Congress must pass the Iran missile proliferation sanctions act," the Mississippi Republican told The Washington Times. The sanctions bill has passed the House and is expected in the Senate later this month. The White House opposes the bill….
 

BP Tests the Water for Iran Return, The Daily Telegraph, May 6

BRITISH Petroleum is following Shell back into Iran by setting up a listening post in Tehran in anticipation of a relaxation of American sanctions.

Both BP and Shell are anxious to regain a foothold in Iran where Total, among western oil companies has been making the running,

… Mr. Browne said any new involvement in the Iranian oil industry would be subject to progress being made between the EU, Washington and Iran on the Iran-Libyan sanctions issue but BP has been encouraged by the Washington "noises" to try to improve relations with Tehran.

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