NATIONAL DAILY INTELLIGENCE DAILY FRIDAY 4 APRIL 1980

Created: 4/4/1980

OCR scan of the original document, errors are possible

SITUATION REPORT IRAN

The HevoluUonary Council'e unuillingneee toeoiaion yesterday on transferring the hostages probably refleots the rival-rise within tne Council and concern over Ayatollah Khomeini'son the issue. I

President Bani-Sadr said yesterday the Ayatollah has not yet made his position clear on the transfer and Indicated Khomeini will have to endorse any Council The militants have notef initiyjustate-aent, but they would defer to the Ayatollah.

Hardliners in theby Ayatollahalmost certainly are pressing for more USand may insist that Khomeini rule on thisdecision. ajor interest is in weakening Bani-Sadr rather than in the hostage issue itself, but even he is likely to bow to Khomeini's wishes. Khomeini may oi-ply prcfor toecision now since he has already said that the National Assembly will ultimately decide the fate of the hostages.

More Problems with Iraq

Iranian-Iraqi relations are deteriorating sharply in the aftermath of the attempted assassination of Iraqi Deputy Premier Tariq Aziz on Tuesday! overersons woro wounded in the incident. President Saddam Husayn Wednesday blamed Iran and declared that Iraq will not be intimidated.

Since the attack, the longstanding propaganda feud between tho two states has intensified further, and the Iranians have resumed harassment of Iraqi diplomats. Saddam Husyan's personal attention to the incident and the extensive publicity it is receiving in Baghdadthat Iraq will soon retaliate.

Foreign Minister Ghotbzadeh has denied any Iranian involvement, but Iraqi charges ofomplicity in the attack may be merited. The Tehran preis reports that an extremist Iranian group headed by Ayatollah KhAlkhall has claimed credit for the attack. /

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