}
IRAN
CONFIDENTIAL
Internal
1. A bomb explosion on 28 June at the headquarters of the ruling Islamic Republican Party (IRP) killed 72, including Ayatollah Beheshti the chief architect of the IRP's control of government, judiciary and Parliament. The IRP replied with a campaign against left-wing groups and supporters of the former President, Bani Sadr, who was granted political asylum in Paris on 29 July. In early July, some Western news correspondents were expelled from Iran and the new Foreign Minister announced that Iranian foreign policy would emphasise links with the third world and support for liberation movements.
2. The official IRP candidate, Mohammed Ali Raja'i, formerly the Prime Minister, was elected unopposed as President on 24 July with over 15 million votes. Sixty nine other candidates were
disqualified and three withdrew voluntarily.
3.
Opposition groups and ethnic minorities continue to attack the government by isolated raids, bombings and assassinations but their efforts have not so far (31 July) seriously weakened the government.
UK/Iran Relations
4.
Our relations with Iran are cool. We closed down our Embassy in Tehran in September 1980 after veiled threats from the Foreign Ministry of a third occupation by demonstrating students. We are now operating as an Interests Section under Swedish protection until the Iranians agree to re-opening. The Iranians are holding a British businessman in prison on vague commercial charges which they have so far refused to clarify. We are pressing for renewed consular access and a speedy resolution of his case.
5. Many British firms and individuals have substantial claims against Iran, most of which have yet to be settled. UK Baha'is are very concerned at reports of persecution, including execution, of their co-religionists in Iran. We shall encourage the UN to follow this up, since direct action by the UN or the Ten would be likely to confirm Iranian suspicions that the Baha'is are spies for Israel and the West.
6. Nevertheless, bilateral trade relations are improving. Iran imported £393 million of goods from us in 1980. Iranian exports to the UK were worth £107 million.
7.
Events in Iran move rapidly. Anyone who expects to have detailed contact with Iranian officials should check the latest position with MED beforehand.
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/IRAN