NICOSIA - Iranian President Mohammad Khatami's backing for the system of supreme leadership by Ayatollah Ali Khamenei undermines all his talk of promoting freedom, an armed opposition group said Sunday.

"By stressing that 'the axis and pillar of this system is the supreme leader' ... Khatami rendered hollow all of his slogans about freedom and the rule of law," the leader of the People's Mujahedeen, Massoud Rajavi, said in a statement received here.

"For freedom, the rule of law and people's sovereignty are in total contradiction with the essence of (the system of supreme leadership)," the statement from Rajavi said.

In a speech to tens of thousands of supporters at Tehran University Saturday marking the first anniversary of his landmark election victory, Khatami expressed strong support for freedom and the rule of law.

"We want a society based on respect for the law and for basic freedoms within the framework of the constitution," he told the adoring crowd….

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

High Prices, Unemployment Sour Khatami Anniversary, Reuter, May 25

TEHRAN - Some 15 million graduates will turn to the private sector for jobs, a government official said in remarks published on Monday. Deputy Industries Minister Akbar Torkan said government agencies could not absorb more than 20 percent of the graduates, the daily Iran News said.

Torkan was speaking at a conference in Tehran on productivity.

Nearly a third of Iran's population of more than 60 million is aged between 11 and 24 and 800,000 new job-seekers enter the market each year, an official at Iran's Statistical Center said recently.

Economists say the number of jobs that must be created is closer to one million a year.

Officially, unemployment hovers around nine percent but economists say it is nearer 15 percent and rising.

The twin evils of inflation and unemployment threaten to spoil the party as Iranian President Mohammad Khatami celebrates the first anniversary of his election victory, analysts said.

"Inflation remains a major problem and unemployment will probably rise this year," said a Tehran-based economist. "Both issues must be dealt with seriously."

The economy remains dominated by the state, large debt payments loom, and businessmen regularly complain about the shackles of red tape and bureaucracy that hamper their work.

News reports indicate growing labor unrest over late wage payments. Recent fuel price rises could push inflation higher, sparking more public anger.

U.S. Senate Votes Sanctions on Russia, Associated Press, May 23

WASHINGTON - Legislation to bypass the usual procedure and slap sanctions on Russia for sharing missile technology with Iran appears headed for a presidential veto. But it is one that is likely to be overridden.

Saying they were tired of waiting for Clinton to act, senators on Friday approved the sanctions bill, 90-4. The House approved the measure last November by voice vote.

"The administration has refused to make sanctions decisions required by existing law," said Senate Majority Leader Trent Lott, R-Miss.

The bill was aimed at Russia, but could apply to any foreign government or business that supplies ballistic-missile technology to Iran.

It would give the president 30 days to send Congress a list of violators. Automatic sanctions then would be imposed, ranging from denial of arms licenses to denial of U.S. foreign aid for up to two years. However, the president could grant a waiver if he cited national interest grounds.

Tehran Mayor Barred From Leaving Country For Conference, Agence France Presse, May 25

TEHRAN - Tehran mayor Gholam-Hossein Karbaschi, facing corruption charges, has been banned from leaving the country to attend a conference on urban administration in Tokyo, a newspaper reported Monday.

The conservative Qods daily said all exit points in the country had been informed last week of the move against the embattled mayor, who is to stand trial shortly in connection with a corruption scandal in the city government.
 

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