NATIONAL INTELLIGENCE DAILY WEDNESDAY 2 APRIL 1980

Created: 4/2/1980

OCR scan of the original document, errors are possible

SITUATION REPORT

ran

u oormentethat the

ys has not mat Iron's conditions for transferring the hostages to gooerment control probably reflects his weak political position.

Bani-Sadr almost certainly has faced seriousto his proposal and he may well continue toor more concessions to avoid appearing too conciliatorythe US. Even if he has good intentions, Bani-Sadr *v Jacks the political influcnco to carry out his pledgeransfer control of the hostages unless Ayatollah Khomeini directly orders the militants to comply. | |

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ardline statement yesterday Khomeini pointedly ignored the transfer issue, indicating ho is unlikely to treverao his public support of the militants. Theah apparently believes that the Shah, abetted by US

plotting, continues to threaten his islamic Republic.

The President's assertion that theouncil favors transferring the hostages is alsoo question. He and Foroign Minister Ghotbieadeh havethe past consistently overstated their support fromouncil and Khomeini. | |

The militants continue to receive support frompolitical allies including the left and the cleric-dominated Islair-ic Republic Party. pokesman for the i >nilitants indicated yesterday that they will onlynstructions from Khomeini. oreign Ministryadmitted, moreover, that no action against theis possible without Khomeini's approval. I I

The Kurdish Problem

Both Khomeini and Bani-Sadrough line on urdish opposition to tho government in their statements esterday. Khomeini suggested no one's interests would

7 Ann 1

be aorved unless the Islamic Republic survived, and called upon Kurdish "brothers and sisters" to desist from their separatist ways and recognize the authority of the central government. (U)

Citing national securityrimary concern, Dani-Sadr called on the Kurdish Democratic Party to lay down its arms. Ue confirmed recent reports of Army activity against armed Kurdish groups, and threatened thatoporations would continue as long as internalis endangered. (U)

Khomeini's position--that the Kurds are misguided and subject to manipulation by externals not new, but Bani-Sadr's rejection of further compromisea significant hardening of the government's attitude that is likely to heighten tension with the Kurd3.

Oil Production

Preliminary data from tho National Iranian Oilindicates that duringday period endingarch Iranian oil productionillion barrels per day. Production apparently has reboundedid-month drop causederies of sabotage Exportsillion barrels por day,arrels per day from tho previous month.

Relations With Iraq

Iraqi Deputy Prime Ministor Tariq Aziz was slightly wounded yesterday by an "Iranian" terrorist, according to tho official Iraqi news service. The announcement did not claim that the terrorist, who was killed by Iraqi security forces, was acting on the orders of the Iranian Government. Nevertheless, the incident will strengthen Baghdad's determination to undermine the regime in Tehran. The Iraqis already provide aidide variety of Khomeini's domestic opponents.

April mo

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