The bourgeoisie, who couldn't care less about sovereignty, are the
weakest link in Iran. -- Yoshie

<http://www.nytimes.com/2007/01/19/world/middleeast/19iran.html>
January 19, 2007
Rebuke in Iran to Its President on Nuclear Role
By NAZILA FATHI and MICHAEL SLACKMAN

TEHRAN, Jan. 18 — Iran's outspoken president, Mahmoud Ahmadinejad,
appears to be under pressure from the highest authorities in Iran to
end his involvement in its nuclear program, a sign that his political
capital is declining as his country comes under increasing
international pressure.

Just one month after the United Nations Security Council imposed
sanctions on Iran to curb its nuclear program, two hard-line
newspapers, including one owned by the supreme leader, Ayatollah Ali
Khamenei, called on the president to stay out of all matters nuclear.

In the hazy world of Iranian politics, such a public rebuke was seen
as a sign that the supreme leader — who has final say on all matters
of state — might no longer support the president as the public face of
defiance to the West.

It is the first sign that Mr. Ahmadinejad has lost any degree of
Ayatollah Khamenei's confidence, a potentially damaging development
for a president who has rallied his nation and defined his
administration by declaring nuclear power Iran's "inalienable right."

It was unclear, however, whether this was merely an effort to improve
Iran's public image by lowering Mr. Ahmadinejad's profile or was
signaling a change in policy.

The presidency is a relatively weak position with no official
authority over foreign policy, the domain of the supreme leader. But
Mr. Ahmadinejad has used his post as a bully pulpit to insert himself
into the nuclear debate, and as long as he appeared to enjoy Ayatollah
Khamenei's support, he could continue.

While Iran remains publicly defiant, insisting that it will move ahead
with its nuclear ambitions, it is under increasing strain as political
and economic pressures grow. And the message that Iran's most senior
officials seem to be sending is that Mr. Ahmadinejad, with his harsh
approach and caustic comments, is undermining Iran's cause and its
standing.

The Security Council passed a resolution on Dec. 23 with sanctions
intended to curb Iran's uranium enrichment program, which Iran says is
for peaceful purposes but the United States and some European nations
contend is for the purpose of creating nuclear weapons. The measure
bars the trade of goods or technology related to Iran's nuclear
program. Enriched uranium can be used for making nuclear fuel but also
for making nuclear weapons.

The president dismissed the Security Council resolution as "a piece of
torn paper."

But the daily Jomhouri-Eslami, which reflects the views of Ayatollah
Khamenei, said, "The resolution is certainly harmful for the country,"
adding that it was "too much to call it 'a piece of torn paper.' "

The newspaper added that the nuclear program required its own
diplomacy, "sometimes toughness and sometimes flexibility."

In another sign of pressure on the president to distance himself from
the nuclear issue, a second newspaper, run by an aide to the country's
chief nuclear negotiator, Ali Larijani, also pressed Mr. Ahmadinejad
to end his involvement in the nuclear program. Mr. Larijani also ran
for president and was selected for his post by the supreme leader.

"They want to minimize the consequences of sanctions now that they
have been imposed," said Mohammad Atrianfar, an executive at the daily
Shargh, which was closed last fall, and a reformist politician. "But
they don't have clear strategy, and they are taking one step at a
time."

Mr. Ahmadinejad took office more than a year ago as an outsider, the
mayor of Tehran who promised to challenge the status quo, to equally
distribute Iran's oil wealth and to restore what he saw as the lost
values of the Islamic revolution. His was a populist message, centered
on a socialist economic model and Islamic values. He found opposition
from the right and the left, in Parliament and among so-called
pragmatists.

That pressure has continued, and the criticism now seems to have
gained more credibility in the face of the sanctions and Iran's
troubled economic standing. The United States increased pressure on
Iran over its role in Iraq has also raised concerns in Tehran and may
be behind efforts to restrain the president, political analysts in
Tehran said.

"The resolution has decreased Iran's political credibility in the
international community, and so other countries cannot defend Iran,"
said Ahmad Shirzad, a reformist politician and a former legislator.

Although the Security Council sanctions were limited to Iran's nuclear
program, they have started to cause economic disruptions.

About 50 legislators signed a letter this week calling on the
president to appear before Parliament to answer questions about the
nuclear program. They need at least 22 more signatures.

In another letter, 150 lawmakers criticized the president for his
economic policies, which have led to a surge in inflation, and for his
failure to submit his annual budget on time.

The Iranian stock market, which was already in a slump, continued to
decline — falling more rapidly in the past month — as buyers stayed
away from the market. The daily Kargozaran reported last week that the
number of traders had decreased by 46 percent since the Security
Council resolution was passed.

"The resolution has had a psychological effect on people," said Ali
Hagh, an economist in Tehran. "It does not make sense for investors
not to consider political events when they want to invest their
money."

Kargozaran reported that a group of powerful businessmen, the Islamic
Coalition Party, met with Mohammad Nahavandian, a senior official at
the Supreme National Security Council, and called for moderation in
the country's nuclear policies to prevent further damage to the
economy.

In the past year, several major European banks have severed their
business ties with Iran. Economists say the banks' actions will also
lead to an increase in inflation because importers must turn to
complicated ways to finance purchases.

"The nuclear issue has paved the way for other forms of pressures on
Iran," Mr. Shirzad said.

Despite Mr. Ahmadinejad's harsh language since the resolution was
passed, Ayatollah Khamenei has not referred to it directly and only
once said that Iran would not give up its right to pursue its nuclear
program.

Mr. Larijani has said that Iran will not quit the Nuclear
Nonproliferation Treaty or bar international inspectors despite
earlier threats to do so.

Nazila Fathi reported from Tehran, and Michael Slackman from Cairo.
--
Yoshie
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