SITUATION REPORTS
IRAN
Iron-Iraq
tough rhetoric on Iraq yesterdaydoes not Indicate that Iran ia readyull-scale military conflict. He claimed that the Iranian military is ready for war, but he is well aware of tho deficiencies of the Iranian armed forces. Tehran does not believe war with Iraq is necessary. Khomein and other Iranians believe the Iraqi regime will collapse from within and that Iran can help spurollapse best with propaganda and United support to Shia
The Sovlots appear increasingly concerned about the deteriorating relations between Iran and Iraq. Moscow has cast Iraq in the role as the aggressor, citingreports that armed groups from Iraq had intruded
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Into Iranian territory with the aim of overthrowing the government in Tehran. The Soviets, however, also have said that Iraq is reacting to Iranian attempts toits revolution "into neighboring countries.- f J
Soviet media have also voiced concern that the US is intent on setting Iran and Iraq against each other and suggested that Washington might useretext for military intervention in the Persian Gulf area.
Oil Imports
The reluctance of Japan and some West European nations to commit themselvws on sanctions against Iran roflects in part their dependence on Iranian oil. Japan's oil purchases from Iran have been running well ahead ofarrels per day limit set by Tokyo late last year. In January, Japan importedercent of its crude froa. Iran.
While most West European countries havedependence on Iranian oil. West Germanyercent of its oil fromercent French dependence hasatercent since the Iranianwhile Italy imported onlyercent offrom Iran last year.
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