SITUATION REPORT
iran
Iranian hardliners are confident that their political position has bien strengthened by the US sanations.
Both Ayatollah Khomeini and the militants believe that the break in diplomatic ties with the US advances their efforts to eliminate American influence- Themoreover, probably hope that the break willPresident Bani-Sadr's position and make further negotiations with the US impossible.
Bani-Sadr told Iranians yesterday that the US moves meanuggesting that he Intends toougher position toward the US in order to improve his domestic standing. His clerical opponents, meanwhile, probably will continue to try to reduce hiaigurehead, f |
Tehran has urged Iranians to prepare for sacrifices and to maintain discipline against the US. Iran has also threatened to cut off oil exports to any country that backs Washington.
tlonal Reactions
The USSR continues to place the responsibility for tho failure to ronolve the hostage crisis squarely on the US. ASS broadcast yesterday referred to the Iranian leadership's readiness to solve the hostage issue no soon aa the USconstructive approach." Soviet broadcasts yesterday in Ff.rsi cited USeports concerning US plansaval blockade. (U)
Moscow probably anticipates that the moderates in Tehran will lose ground to hardline elements who oppose any reconciliation with tho US. The Soviets have boon concerned that Bani-Sadr and Foreign Minister Ghotbzadeh were willing to settle the hostage crisis and possibly set the stage for improved US-Iranian relations.
Top Csora*
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Canada yesterday announced that It is consulting with its NATO allies on "the possibility of furtheragainst Iran" should it continue to hold the US hostages. (U)
Australian Foreign Minister Peacock yesterday said that Canberra is responding to the US moves with areview of all Australian relationships with Iran. The cabinet will convene on Monday toew policy.
The Chinese press has reported the break inties without comment. (U)
Pakistani President Zia said yesterday that there will be "no lack of assistance" from Islamabad for Tehran but he did not directly refer to the US sanctions, (u)
Relations with Iraq
Tf Umma
Tehran and Baghdad kept up tl.eir propaganda attacks on each other yesterday. Khomeini urged Iraqis tothe Baathlat regime and Iraqi President Saddam Hucayn promised Iraq would not be intimidated by Iran.
Original document.
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