TEHRAN - An unprecedented war of words between Iran's official news agency IRNA and the conservative daily Kayhan, two of the leading news providers in the Islamic republic, is escalating into a war of attrition.

The fight has seen the two news bodies publicly trade insults and accuse each other of being "in the pocket of foreigners" or pro-Israeli.

The dispute, the first of its kind since the Islamic revolution of 1979, pitches IRNA, close to Mohammad Khatami, up against Kayhan, which is close to Iran's spiritual leader Ali Khamenei.

The fighting began after Kayhan claimed in three editions that most pro-reform journalists had received money from the US-based organization Human Rights Watch "to further US-style reforms in Iran".

Kahyan published documents which it said proved that personalities from the political, academic and journalistic fields close to Khatami had accepted money.

IRNA responded by describing Kayhan's reports as an organized campaign against Khatami's allies, which in turn sparked a counter-attack by Kayhan.

The state news agency then threatened to publicize revelations against the "bellicose" newspaper, which it said was controlled by "suspicious and invisible elements" and "pro-Israeli and hostile to President Khatami".
 

Khatami's FM Denounces Peace Process Negotiations, Reuters, July 26

TEHRAN - Iran Wednesday blamed the collapse of Middle East peace talks on Israel and called on Palestinians to think again about negotiating with the Jewish state.

Foreign Minister Kamal Kharrazi said that the failure of the Camp David talks should serve as a wake-up call to the Palestinians that it was fruitless to negotiate with Israel.

Iranian supreme leader Ayatollah Ali Khamenei described the failure of the talks as a "disgraceful defeat" for the United States, which ended any hope for a compromise in the Middle East.

"Palestinian negotiators should learn a lesson from the latest round of talks and reconsider their approach to the Zionist regime," said Kharrazi, quoted by Iran's news agency IRNA.

The Islamic republic has never recognized Israel and is bitterly opposed to the peace process, which it condemns as a sellout of Palestinian interests under Western pressure.
 

Was Khatami's Trip to Germany Worth It?, Ressalat (State-Controlled Daily), July 18

… In presidential visits, one has to pay attention to its political costs and benefits. Taking into account Khatami's itinerary, the German visit was merely political in nature and confined to some diplomatic talk. Apart from an increase in the line of credit by Hermes Insurance, it lacked any significant economic result.

In previous presidential trips, dozens of agreements, protocols and memorandums of understanding were signed. In this trip and those preceding it, however, these issues were overlooked.

The German officials' expectation and their attitude toward this trip were not compatible with the stature of the Moslem nation and Iran's Islamic revolution… Before the trip, Western media had mentioned a number of topics as the basis of talks between Iran's President with the German Chancellor. They included: violations of human rights, détente, weapons of mass destruction, support for terrorism, relations with the U.S., Middle East peace talks and reforms in Iran.
 

Pressured to Stop Buy-Back Energy Awards, Reuters, July 24

TEHRAN - Iran is coming under growing internal pressure to halt buy-back oil and gas deals to foreign firms, a development casting doubts on billions of dollars in outside investment the country hoped to attract.

In a surprising move, a key member of parliament said last week that Iran should immediately pull away from buy-back deals or face heavy financial losses and renewed foreign domination of its rich energy resources.

His comments capped a wave of criticism against buy-back terms, under which foreign investors recoup their investment and profit from future output for an agreed period.

But the campaign has raised question about future buy-back projects, which play a central role in efforts by Khatami's government to absorb foreign investment.

Similar concerns two decades ago led the revolutionary Iran to curb foreign economic interests, notably in energy.

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