NATIONAL INTELLIGENCE DAILY

Created: 3/10/1980

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National Intelligence Daily

Monday

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SITUATION REPORT

Hi

The stalling this weekend over delivering the hostages may have refloated last^minut* sfforts by the militants tor at least force oonosssions from President Bani-Sadr.

Following yesterday's Revolutionary Councilwhich was attended by AhmadMiniator Ghotbzadeh announcedinal docislon on tho time of the hoatages' tranafer would be made today. Council spokesman Habibl aaid the militants' refusal to accept Ghotbzadeh as the Council's intermediary does not pose an insoluble problem. It is the Foreign Ministry, not Ghotbzadeh, that is reaponsible for handling theho said, and other officiala could deal with the arrongomenta. (U)

Although the demonatrations outside the Embassyfar been relatively small by Iranian atandarda,have been encouraged by indications thatof the Revolutionary Council, includingRafsanjani, and Khalkhali, oppoae takingtho hoatages. The Islamic Republic Party haaa atatemont encouraging tho militants toalthough it aleo urged them to respect the'a wishes.

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Tho militants seem to beood position to gain some concession! from Bani-Sadr. They could, for example, demand Chotbzadeh's dismissal or pressuarantee that they can continue to occupy the Embassy compound, have access to the media, and release Embassy documents. There is little reason to believe the hostages will be freed any time before the National Assembly meets.

Iran- Iraq

Relations between Tehran and Baghdad are again Iraq yesterday publicly declaredpersona non grata and demanded hisIS March because of his recent statements backing

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