THE SHOCK!: War In The Middle East

By J. Adams
May 3rd, 1997

Spirit Of Truth Stock Market Update Unreported Truth

UPDATES: 4/29 | 4/29 | 3/30 | 3/18 | 3/13 | 3/7 | 3/5 | 2/18 | 2/14

PARALLELS WITH 1994 - 4/2
INEFFICIENT MARKET HYPOTHESIS - 3/31

In February of 1991, while I was engaged in a written correspondence with Robert Prechter, the Elliott Wave Theorist, about what might cause the Grand Supercycle crash that historical patterns in the stock market indicate is about to happen, I had a mysterious vision of a special report of a chemical SCUD missile attack on Israel. About a week after seeing this mysterious special report, a friend and I heard an air-raid siren and nuclear explosion upon reading the Seventh Seal prophecy from the eighth chapter of the Bible's Book of Revelation. The implication of these supernatural hints was rather clear: a chemical SCUD missile attack against Israel, apparently by an Arab power or powers (I've long thought Iraq, but it could be Syria and/or Iran as well), would eventually occur that would be followed by a global nuclear war. My conclusion has been that this tragic scenario, which entails a catastrophic upset of Western expectations, is what is going to cause the ultimate crash that will follow the Grand Supercycle peak in the stock market (see my Global War Articles).

Thus, I've long been monitoring developments in the stock market to determine when the Grand Supercycle top is reached realizing that soon afterward a global war could erupt possibly starting in the Middle East with a chemical SCUD attack on Israel. Earlier this year the proper ingredients came together for the Grand Supercycle top in stock prices and Western expectations as the DJIA reached the 7000 mark around the time of a major planetary alignment. The DJIA then reversed about ten percent and has since rebounded almost to new all- time highs as of the end of last week.

Fortunately, thus far, no war has occurred. The pattern that I've been worried will repeat here is that of 1990 when the DJIA reached 3000 (closed two days in a row at 2999.75) and then reversed course in association with Iraq threatening and then invading Kuwait (see chart). Accordingly, I've been concerned reversing from Dow 7000 would involve another far more serious outbreak of war in the Middle East that would be followed by a global nuclear war. Yet, contrary to my doom-and-gloom "crash" expectations, up to now reversing from Dow 7000 has only meant a minor interest rate hike by the Federal Reserve since which stock prices and collective expectations have almost completely rebounded. Wonderful! I hope the DJIA breaks to new record heights on Monday and makes a complete joke of my immediate crash expectations (I had predicted a crash into the 55th day after the March 11th peak, i.e., May 5th, and instead there's been a record rally into the date). Indeed, it would be nice if everything I've ever been led to believe about an approaching Grand Supercycle collapse and world war proves completely deluded and wrong. However, I don't think this will be the case...

There are now alarming signs that a war in the Middle East is about to occur. As was revealed in a critical report by a U.S. government Task Force on Terrorism and Unconventional Warfare late last year dubbed "Approaching the New Cycle of Arab-Israeli Fighting", the hardline Arab Powers, i.e., Syria, Iran and Iraq, have been forging alliances and making final preparations for a massive attack against Israel. Now it appears that massive attack is about to happen, or at least Israel is about to preempt such an attack and thereby trigger all-out war in the Middle East anyway.

As can be gathered from the news reports below, Syria and Iran are making preparations to attack Israel while Israel is preparing for an attack or possibly to preempt any attack. First off, note the report from Friday about the meeting Israeli Prime Minister Netanyahu convened with his top ministers in which "security briefings were heard, and the ministers discussed, among other things, the allocation of upgraded gas masks and chemical warfare kits...". Now match this with the report about how Syria has recently been arming missiles targeted against Israel with deadly nerve gas. Next, read the BBC report dubbed "Egyptian opposition paper says Israeli missiles aimed at Iran" which suggests that Israel is preparing for a massive air- strike against military and infrastructural targets in, at the least, Iran (the news source should not be considered reliable but the paper would likely have connections in Arab intelligence for acquiring such sensitive information). Indeed, there is good reason to believe that Israel would contemplate a strike against Iran at this point.

Israel is increasingly concerned by Iran's development of weapons of mass destruction and long-range missiles. Iran has had a long- running, aggressive program to develop chemical, biological and nuclear weaponry and now the Iranians, according to the London Telegraph, "have....taken delivery of a consignment of the North Korean Nudong surface-to-surface missiles which would enable them to launch attacks against Israel". I doubt Tel Aviv will be patient in acting to mitigate the emerging threat of mass destruction from the radical regime in Teheran. And now, as both the U.S. and Europe are aligning against Iran in response to prior terrorism that is being linked back to Iran's leaders, an opportunity may be emerging for Tel Aviv to launch a debilitating preemptive attack against Iran's growing military prowess that was recently flaunted in wargames code-named the "Road To Jerusalem". (That Israel is willing to take such preemptive action is revealed by previous preemptive Israel strikes against the Arab powers as they were preparing to attack the Jewish State in the 1950's and 1960's.)

Even if Israel isn't about to set-off a regional Middle Eastern war with a preemptive strike against Iran and/or Syria, the odds are war is going to erupt there one way or another in the near-future. Clearly the hardline Arab states like Syria and Iran are getting ready to unleash a massive attack against the Jewish State, so it's not going to take much to ignite the region into a catastrophe of mass destruction. Inevitably, this will lead to a global nuclear war that Russia, now openly allied with China, has been preparing to unleash on the West.

Of course, in light of all this, how is that the DJIA is around all-time record heights above the 7000 mark? Whose beliefs and expectations are deluded and irrational- mine or society's??!!

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                   ARUTZ SHEVA ISRAEL NATIONAL RADIO 

             Today is Friday May 2, 1997 / Nisan 25, 5757 

1. MINISTERIAL MEETINGS THIS MORNING 

Prime Minister Binyamin Netanyahu convened the ministers of the Likud-
Gesher-Tsomet list this morning, before the regularly-scheduled weekly 
cabinet meeting.  He formed the new forum as a result of his post-Bar-
On affair pledge to confer more with the government ministers.  Deputy 
Prime Minister Zevulun Hammer announced that he would meet at the same 
time with the remaining ministers.  At the  official  Cabinet  meeting 
held  afterwards,  security  briefings  were heard,  and the ministers 
discussed,  among other things,  the allocation of upgraded gas  masks 
and  chemical  warfare kits,  restitution to flood-damaged areas,  and 
toll roads.  

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        "Syria reportedly manufacturing nerve gas for warheads"

               -- By DAFNA LINZER, the Associated Press. 

JERUSALEM (April 29, 1997 6:03 p.m. EDT) -- Syria is mounting a deadly 
nerve gas onto surface-to-surface missiles capable of reaching targets 
throughout Israel, an Israeli newspaper reported Tuesday.  

Syria obtained the  chemicals  for  the  nerve  gas  from  Russia  and 
recruited the help of a Russian chemical and biological weapons expert 
to manufacture the gas, the Haaretz newspaper said.  

A  worldwide  treaty  banning  chemical  weapons  went  into effect at 
midnight Monday.  Neither Israel nor Syria is among the  88  countries 
who  have ratified the pact.  Kuwait became the 88th country to ratify 
the pact on Tuesday.  

Israeli Foreign Minister David Levy warned Syria  on  Tuesday  against 
using  chemical  weapons and hinted at Israel's long-suspected nuclear 
arsenal as a deterrent.  

"We are following this  development  and  others,"  Levy  told  Israel 
Radio. "Anyone who does this understands that we have capabilities far 
and above what the other side can even imagine." 

Israel  and Syria began negotiations in 1991,  but the off-again,  on-
again talks broke off last year after a spate  of  terror  attacks  in 
Israel.  

Syria  demands  Israel  return the strategic Golan Heights captured in 
the 1967 Middle East War  in  exchange  for  a  peace  agreement,  but 
Israeli Prime Minister Benjamin Netanyahu insists Israel should retain 
control of the plateau.  

Syria's  manufacture of the gas came up in recent talks between Israel 
and the United States,  Haaretz said.  Levy was scheduled to travel to 
the  United  States on Friday for meetings with Clinton administration 
officials.  

Levy called on Syria to return to the negotiating table,  but added  a 
warning.  

"We will continue with the necessary things we also develop ... so the 
other  side  will  understand  that  they  are  not the only ones with 
control," he said. "We control things seven-times worse." 

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                    BBC Summary of World Broadcasts
                        May  3, 1997, Saturday

    "Egyptian opposition paper says Israeli missiles aimed at Iran"

        SOURCE: Source: 'Al-Sha'b', Cairo, in Arabic 25 Apr 97

  Excerpt from report by Egyptian newspaper 'Al-Sha'b' on 25th April

   Israel has aimed 250 conventional,  chemical and  nuclear  missiles 
against 150 military and economic targets and public utilities in Iran 
that  it  plans to destroy.  It has also placed 200 combat aircraft on 
top alert in preparation for an air strike against Iran.  

   Israeli military experts have analysed 15,000 satellite photographs 
of likely Iranian targets  that  are  alleged  to  show  chemical  and 
nuclear  weapon  systems,  missile  launching pads and frigates.  This 
information came to light during a meeting that  the  Israeli  enemy's 
prime  minister held with army commanders,  intelligence officials and 
his cabinet's security group last Saturday 19th Aprilâ.  

   On hearing of Israel's hostile plans, some NATO members,  including 
France,  warned Washington not to pay attention to the Israeli reports 
because they are allegations that are capable of  causing  the  entire 
region to erupt.  

   Meanwhile,  Washington  warned Cairo of the consequences of Syria's 
alliance with Iran.  Washington also placed its forces in the Gulf  on 
alert  on  the  strength of an Israeli claim that Iran is preparing an 
attack.  

   These developments come at a time  when  Iran  has  placed  800,000 
members  of  the  Islamic Revolution Guards Corps IRGCâ on full alert.  
Two hundred thousand Iranian troops have participated  in  large-scale 
live-ammunition exercises that included the use of tanks, aircraft and 
destroyers...  

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                    "Iran 'two years' from Nodong"

Israeli intelligence believes that Iran has received computer software 
related to the Nodong missile from North  Korea.  They  estimate  that 
Tehran  could  produce  the  missile  within  two  years,  but Russian 
assistance could further speed development.  

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                     "Iran buys Chinese chemicals" 

China is reported to have sold Iran around two tonnes  of  a  chemical 
agent used for NBC decontamination earlier this year.  The shipment of 
calcium-hypochlorate  will be used to improve Tehran's chemical weapon 
defences following Iraqi chemical attacks during their 1980-1988 war.  

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                  "REPORT: IRAN COULD CLOSE OIL GATE"

                             May 3rd, 1997

TEHRAN,  Iran (AP) -- Iran will close the Strait of Hormuz, gateway to 
one-fifth of the world's oil supply,  if it feels  threatened  by  the 
United States, a newspaper warned Saturday.  

The editorial came in response to a comment by Newt Gingrich,  speaker 
of the House of Representatives, that the United States should respond 
decisively if Iran were found responsible for a bombing last year that 
killed 19 U.S. airmen in Saudi Arabia.  

``If Iran feels that its security is threatened,  it  will  definitely 
not  allow  the  region  to  remain safe for the passage of oil,'' the 
English-language daily Tehran Times said.  

It was the second time in a week that Iran has warned it  could  close 
the strategic strait, which is at the mouth of the Persian Gulf.  

Iran  has  warned  against  any  country  using force against it since 
reports last year that  the  United  States  was  considering  missile 
strikes  against  Iran  if  it  was  implicated  in  the bombing of an 
apartment complex housing in Dhahran, Saudi Arabia, last June.  

Iran denies involvement.  

In a speech Wednesday at Johns Hopkins University,  Gingrich said that 
if  a  link  was proven,  Iran should ``wake up each morning wondering 
exactly what was going to happen.'' 

The  newspaper  responded:  ``If  the  U.S.  dared  to  inflict  (the) 
slightest  damage on Iran,  it would be the U.S.  government's turn to 
wake up each morning wondering exactly what was going to happen to its 
interests throughout the world.'' 

Iran ended four days of war games last week,  and a top commander said 
the maneuvers showed Iran could close the strait.  

----------------------------------------------------------------------

                  "Iran Says War Games Prove Prowess" 

CAIRO,  Egypt (AP) -- A top Iranian commander said Iran's war games in 
the Persian Gulf showed it can close the Strait of Hormuz,  gateway to 
one-fifth of the world's oil supply.  

The comment by Maj.  Gen.  Mohsen Rezaie,  head of  the  Revolutionary 
Guards,   to  Iranian  television  Saturday  was  Iran's  most  direct 
statement about its naval strategies.  

Rezaie,  whose remarks were  monitored  by  the  British  Broadcasting 
Corp.,  was speaking of the Tariq-ol-Quds,  or Road to Jerusalem,  war 
games that were held along Iran's gulf coast last week.  

An English-language Iranian daily said Sunday that the maneuvers  were 
directed at Washington.  

"The  present  circumstances  required  Iran  to  send  a  message  to 
Washington  that  any  military  adventurism  against  Iran  may  have 
unpredictable  repercussions," the pro-government Kayhan International 
said in an editorial.  

Iran fought a 1980-88 war with Iraq, but it considers 20 U.S. warships 
that regularly patrol the gulf as a more immediate threat.  

Iran has warned against any  country  using  force  against  it  since 
reports  last  year  that  the  United  States was considering missile 
strikes against Iran if it  was  implicated  in  a  bombing  in  Saudi 
Arabia. A truck bomb at an apartment complex housing in Dhahran, Saudi 
Arabia, last June killed 19 American servicemen.  

Iran denies involvement in the bombing.  

The exercises,  Iran's largest ever, were designed to test its missile 
array and demonstrate its naval prowess,  which Rezaie  said  gave  it 
control over the strategic strait at the mouth of the Persian Gulf.  

"We can keep the Strait of Hormuz open ... But if we want to, we shall 
close  this  strait  to  anyone  who is an obstacle to security in the 
region and keep it open for our friends  and  the  Muslims,"  he  told 
Iranian television.  

Rezaie  also  said  the  maneuvers  proved  his country was capable of 
crushing offenses on two fronts.  

"It was demonstrated that ...  we can both fight America in the  south 
and,  at  the  same  time,  if anyone wanted to take advantage of this 
American attack on our western borders, we are also able to be present 
there and foil that move as well." 

----------------------------------------------------------------------

                      Reuters North American Wire
                     May 2, 1997, Friday, BC cycle

            "Israel's Netanyahu warns of Syria, Iran arms"

                           By Colleen Siegel

   Prime Minister Benjamin Netanyahu said  in  comments  broadcast  on 
Friday  that  weapons  flowing  to  Syria  and Iran posed a danger but 
Israel had the means to deal with the threat.  

   It followed Israeli  charges  earlier  this  week  that  Syria  was 
producing  a  more lethal form of nerve gas and warned Damascus it had 
means many times more destructive at its disposal.  

   But Netanyahu,  in a speech in northern  Israel  on  Thursday,  was 
quoted  by the Yedioth Ahronoth daily as saying there would be a peace 
settlement in the next seven years: "We will reach peace soon.  If not 
in this term, then in the next term." 

   The prime minister, who began his four-year term last June, intends 
to  run  in the next Israeli election in 2000.  Final peace talks with 
the Palestinians, which have yet to start under Netanyahu,  are set to 
conclude in 1999.  

   Peacemaking  between  Israel  and the Palestinians ground to a halt 
when Netanyahu sent bulldozers to begin a  new  Jewish  settlement  in 
Arab East Jerusalem on March 18.  

   U.S.  peace  envoy Dennis Ross is to return to the region next week 
to try to resolve the crisis,  an  effort  hampered  by  an  influence 
peddling scandal that is demanding Netanyahu's attention.  

   Israel's army radio broadcast Netanyahu saying:  "There are dangers 
in the Middle East, there is a flow of weapons to states like Iran and 
also a weapons flow to Syria. These are problems. But we are following 
these things and we are also prepared to deal with them  and  we  have 
answers to them." 

   Syrian President Hafez al-Assad said on Thursday that Syria was not 
shaken by Israeli threats.  

   "He  who  has  nuclear weapons has no right to criticise others for 
whatever weapons they have.  If they want disarmament let's start with 
nuclear  weapons.  Arabs  in  general  are  ready  to get rid of other 
weapons," Assad added.  

   Israel will  not  comment  on  foreign  news  reports  it  produces 
biological and chemical weapons and possesses nuclear weapons.  

   Peace  negotiations  between Israel and Syria broke off more than a 
year ago, under Israel's previous government.  They have yet to resume 
under Netanyahu.  

   Israeli  prosecutors  last  month chose not to charge Netanyahu for 
lack of evidence in a scandal involving the short-lived appointment of 
an attorney general in January but said there were  "real  suspicions" 
about his role.  

   Police  recommendations  that  prosecutors  charge  Netanyahu  came 
during Ross's last Middle East peace shuttle, overshadowing his visit.  

   Opposition lawmakers  have  petitioned  the  High  Court  demanding 
Netanyahu  be  charged  and  there is a citizens' movement demanding a 
state commission of inquiry into the scandal.  

   A Gallup poll in Maariv newspaper said 51 percent questioned backed 
establishment of a commission of inquiry,  46 percent opposed it,  and 
three percent had no opinion.  

   The  poll  of  466  Jewish  Israelis  with a margin of error of 4.5 
percent also showed if elections were held 44 percent would  vote  for 
opposition Labour lawmaker Ehud Barak; 42 percent for Netanyahu and 14 
percent were undecided.  

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               Report: Iranian Linked to Bombing Suspect
                      Sunday April 13 6:52 AM EDT 

WASHINGTON (Reuter) - U.S.  and Saudi  intelligence  authorities  have 
linked  a  senior  Iranian  government  official  to a group of Shiite 
Muslims suspected of bombing a U.S.  military compound in Saudi Arabia 
last year, the Washington Post reported in Sunday editions.  

U.S.  and  Arab officials said Brig.  Ahmad Sherifi,  a senior Iranian 
intelligence officer  and  a  top  official  in  Iran's  Revolutionary 
Guards, met two years before the bombing with Hani Abd Rahim Sayegh, a 
Saudi  Shiite  arrested in Canada last month as "a direct participant" 
in the June 25 blast that killed 19 U.S. servicemen.  

The intelligence tying Sherifi  to  Sayegh  has  persuaded  a  growing 
number of U.S. and Saudi officials of Iran's direct involvement in the 
attack  at  the  Khobar  Towers  housing complex,  the newspaper said, 
quoting U.S. and Arab officials.  

"Iran was the organizing force behind it," one U.S.  official told the 
paper.  

No  comment  was  immediately  available  on the report from the State 
Department  or  the  FBI,  which  is  the  lead  U.S.  agency  on  the 
investigation.  Saudi  Arabia  is  handling the investigation since it 
took place on its territory.  

The evidence of Iranian links to the Saudi Shiites  suspected  in  the 
Khobar  bombing  includes bank checks signed by Sherifi,  Arab sources 
told the Post,  although it was unclear whether the checks were  given 
to Sayegh or other suspects.  

Much of the information came from intercepts of telephone calls Sayegh 
made  to his wife and family in Saudi Arabia from Canada before he was 
arrested, the newspaper said.  

Unaware  his  phone  was  taped  over  a  seven-month  period,  Sayegh 
disclosed  details  of  his  role in the bombing and named others with 
whom he collaborated, the sources told the paper.  

The Post quoted the officials as saying the evidence appeared to  show 
a  conclusive link to Sherifi,  also known as Abu Jalal,  but one U.S. 
official said it did not "rise to the level (necessary) for a criminal 
prosecution." 

Canadian court documents  contend  Sayegh  drove  a  surveillance  car 
behind  the  explosives-filled  tanker  used  to  demolish  the Khobar 
complex. Sayegh denies any involvement and says he was in Syria at the 
time of the attack.  

Sherifi's duties include organizing Hezbollah cells in Arab  countries 
around the Gulf, the newspaper quoted U.S. and Arab sources as saying. 
He  was implicated during a trial in Bahrain last year for 15 Bahraini 
Shiite dissidents convicted of several hotel and  restaurant  bombings 
which killed more than 20 people.  

Separately,  the  Post  reported that a second Air Force investigation 
has again exonerated all officers who were responsible for security at 
Khobar Towers.  

The Air Force reopened its inquiry  into  whether  any  officers  were 
negligent  in  safeguarding  the  complex  against terrorist attack in 
January,   after  pressure  by  top  Pentagon   officials   who   were 
dissatisfied with the initial probe.  

The  first  report  concluded  that  the  bombing  would have occurred 
regardless of any chain of command that might have been in effect.  

It said that  nine  commanders  who  had  a  role  in  protecting  the 
apartment  buildings  had  performed  their duties as well as could be 
expected given the limited extent of U.S. intelligence warnings at the 
time.  

No comment was immediately available from the Defense Department.  

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                     International Herald Tribune 
                       April 19, 1997, Saturday

              "Iran Radicals Warn Germany Of Retaliation"

             By William Drozdiak; Washington Post Service

    The  leader  of an extremist Shiite Muslim fundamentalist group in 
Iran threatened Germany on Friday with suicide bombings if it did  not 
apologize  for  a  court  ruling  that  blamed  Iran's  leadership for 
ordering the assassination of Kurdish dissidents here in 1992.  

    It was the first explicit warning of violent  retribution  in  the 
wake  of  last  week's  verdict by a Berlin court,  which convicted an 
Iranian  and  three  Lebanese  of  murdering  the  Kurds  at  a  local 
restaurant.  The  court  said  the killers were acting on instructions 
from Iran's highest authorities.  

    European  Union  nations withdrew their envoys from Iran after the 
ruling.  

    Germany has stepped  up  anti-terror  vigilance  at  international 
airports  and  around  government  buildings  in  the  last  few days, 
officials said.  Italy also has  moved  to  a  high  alert  after  its 
intelligence agency warned of possible attacks by Islamic extremists.  

    ''We  will  confront insults to Islam and our religious leadership 
wherever in the world they occur,'' Hossein Allah Karam,  head of  the 
Ansar'e  Hezbollah  group,  told a crowd outside the German Embassy in 
Tehran.  ''We are even ready to strap a bomb around our waists and  go 
for martyrdom. Woe to you if you do not apologize for your actions.'' 

    As  he  spoke,  dozens  of  people signed up on the spot to become 
suicide bombers,  according to an Associated Press report from Tehran. 
Mr.   Allah  Karam  declared  that  hundreds  of  others  had  already 
volunteered for suicide attacks 

    ''Right now our government won't allow such actions,  but  we  are 
negotiating with it,'' he said.  

    ''Once  our deadline passes,  then Germany will be confronted with 
the explosion of the Hezbollah,'' he added,  without  specifying  when 
the deadline would expire.  

    Hundreds  of  policemen  in  riot  gear were arrayed in four human 
walls  to  shield  the  embassy,   as  protesters  shouted  ''Revenge, 
Revenge!''  Disabled  war veterans also joined the demonstration after 
the government said it would press charges  against  24  German  firms 
accused  of  supplying  Iraq  with  chemical  weapons  used on Iranian 
soldiers during the 1980-88 war.  

    Mr.  Allah Karam's group is not  believed  to  be  linked  to  the 
Iranian-backed Hezbollah group in Lebanon that carried out kidnappings 
of  Westerners there.  It is mainly a pressure group representing poor 
people who seek to prevent Iran's ruling Shiite clergy  from  straying 
from  the hard-line values of the 1979 Islamic revolution that toppled 
the shah.  

    Until now,  the  Iranian  government  has  expressed  outrage  but 
reacted  with  caution  against  the  German court ruling.  Germany is 
Iran's leading trading  partner  and  has  long  acted  as  a  special 
intermediary  during  times  of  tension with other Western countries. 
After withdrawing their ambassadors in tit-for-tat protests, both Iran 
and Germany declared they did not wish to see the dispute escalate  to 
open hostility.  

    But  with Iran heading into the final stage of campaigning for its 
presidential election next month,  the anti-Western fervor in the wake 
of  the  German verdict has been exploited by radical groups that want 
to purge moderate voices from government.  

    After keeping a low profile immediately after the verdict, leading 
Iranian politicians reacted angrily when the lower house of  Germany's 
Parliament  approved  a  resolution  this  week  condemning  Iran  for 
ordering the assassinations.  Tensions could rise  further  if  German 
prosecutors  decide  to  prolong  their  investigations  into the role 
played by Iranian leaders in the work of Iranian hit squads in Europe.  

   "Our forces must stay ready and alert in a bid to  towart  a  joint 
plot  by  the  United states,  Israel and the German judiciary against 
Iran,  " he said as he reviewed various units of the ground,  air  and 
naval  forces  as  well  as the elite Revolutionary Guards marching in 
Tehran's Azadi square.  

   Iran has been in the dock since a German court issued a verdict  on 
April  10 accusing Iranian leaders of ordering the 1992 murder of four 
Kurdish dissidents in Berlin.  

   Tehran rejected the charges,  saying the ruling was orchestrated by 
its arch enemies -- Israel and the United States.  

   In  reaction  to  the  verdict,  the  European  Union  recalled its 
ambassadors from Iran and suspended the so-called "critical  dialogue" 
with Tehran, a policy of engagement sharply criticized by the US.  

   Rafsanjani  praised  the  "high  morale"  of  the the Iranian armed 
forces, saying they would defend any outside threat.  

   "Our armed forces enjoy a high morale and are ready for  combat  to 
defend the country," he said.  

   Iranian manufactured ground-to-ground, ground-to air and air-to-air 
featured  high  in  the  parade,  which  appeared  to  be smaller than 
previous years.  

   Dozens of helicopters as well as US and  Russian-made  jetfighters, 
such as F-5,  F-14 and Migs,  flied over the square in western Tehran. 
Several anti-riot units of the revolutionary Guards were marching.  

   Iran said this week it had successfully tested the prototype  of  a 
domestically-built jet fighter and that a first model would go on show 
during an upcoming military maneuver in the Persian Gulf.  

   More  than 200,000 Iranian troops from the Revolutionary Guards and 
Islamic volunteer militia are to stage military exercises in the  Gulf 
and Gulf of Oman in the coming days.  

   Iranian forces regularly stage maneuvers in the Gulf and Oman Sea.  

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                         Electronic Telegraph 
                           Sunday 4 May 1997

                   "Iran sends more spies to Europe" 
                            By Con Coughlin 

IRAN  is  intensifying efforts to consolidate its network of terrorist 
cells and intelligence agents throughout Europe.  As relations between 
Teheran  and  the  European  Union  degenerated  into  an  undignified 
diplomatic slanging match last week,  Iranian intelligence chiefs have 
given orders for reinforcements to be  sent  to  embassies  throughout 
Europe, including Britain.  
 
Two  Iranian  agents  working  for  Iran's intelligence ministry,  one 
posing as an economic attaché, the other as a student,  arrived 
in Britain at the end of last month.  
 
Other  agents  have  been sent to reinforce intelligence operations in 
Germany, Belgium, Italy,  France and Cyprus.  Iranian agents have also 
been sent to the United States and Russia. The mobilisation of Iranian 
agents follows the recent decision by Iran's Supreme Security Council, 
revealed  in  The  Telegraph,  to  mount  a "campaign of intimidation" 
against  European  governments.  The  council,  which  is  chaired  by 
President    Hashemi   Rafsanjani,    ordered   agents   to   organise 
demonstrations and mobilise terrorist cells throughout Europe.  
 
The order to send intelligence reinforcements was taken in response to 
the worsening diplomatic crisis between Teheran and the  EU  following 
the  recent  German  court ruling that Iran's leaders were responsible 
for the 1992 murder in Berlin of three  exiled  dissidents  and  their 
translator.  
 
The German authorities have already issued a warrant for the arrest of 
Mr Ali Fallahian,  Iran's intelligence chief,  for his alleged role in 
planning the murders.  The Iranian Embassy in Bonn serves as the nerve 
centre for Iran's intelligence and terrorist operations in Europe,  as 
the evidence produced during the  Berlin  trial  demonstrated.  In  an 
attempt to curb Iran's intelligence activities, the German authorities 
expelled four Iranian diplomats.  
 
But, according to Western intelligence assessments, the Iranians still 
have  their  largest concentration of intelligence operatives based at 
the Bonn  embassy.  Six  senior  intelligence  officials  control  the 
ayatollahs'  European  network  of  spies  from the third floor of the 
Iranian embassy in Bonn.  Scores of others are posing as students  and 
political refugees.  
 
Iran has responded to the diplomatic crisis caused by the court ruling 
by  striking  a variety of bellicose postures.  As well as dispatching 
agents throughout Europe,  the Iranian authorities held  a  series  of 
military  manoeuvres  along  the Gulf coast last week to display their 
ability to threaten the world's main oil supply route.  
 
Since the 1987  "tanker  war",  when  American  and  British  warships 
protected  oil  tankers  from attack by Iran's Revolutionary Guards in 
the Gulf,  Iran's military chiefs have concentrated their energies  on 
acquiring sophisticated military technology.  
 
That would allow them to control access to the Straits of Hormuz,  the 
West's main oil lifeline.  Last week's display of military fire power, 
which  was  carried  out  along  the  entire  length  of  Iran's  Gulf 
coastline,  indicated that the Iranians now have the equipment to pose 
a  serious  threat  to the region's security,  and the West's economic 
wellbeing.  
 
During the  exercises  the  Iranians  demonstrated  their  new  Tondar 
(thunder)  surface-to-air  missiles  and  a  new anti-ship weapon.  In 
addition,  the Iranians have recently taken delivery of a  consignment 
of  the  North  Korean  Nudong surface-to-surface missiles which would 
enable them to launch attacks against Israel.  
 
Following the exercises,  which were code-named "Tariq al-Quds" -  the 
road to Jerusalem - Brigadier-General Rahim Safari,  the Revolutionary 
Guards commander in charge of the forces,  boasted that Iran  now  had 
the  capability  to close the Straits of Hormuz,  and the West's major 
oil supply route - if it so desired.  
 
Iran's more aggressive stance comes  as  the  final  preparations  are 
under  way  for  the  presidential  elections later this month when Mr 
Rafsanjani must stand down after completing his second term of office.  
 
By persuading the Iranian authorities to adopt a more aggressive tone, 
Ali Khamenei,  Iran's radical spiritual leader,  hopes to increase the 
chances  of  Ali Akbar Nouri,  the speaker of the 270-seat parliament, 
succeeding Mr Rafsanjani as president.  Whatever the  outcome  of  the 
elections,  it  is unlikely to result in Iran renouncing the policies, 
such as Teheran's continuing support for international terrorism, that 
have created the rift with the EU.  

----------------------------------------------------------------------

                         Agence France Presse 
                       April 18, 1997 18:09 GMT

           "Rafsanjani warns of Western threat against Iran"

   President Ali Akbar Hashemi Rafsanjani on Friday warned of a threat 
to Iran from Western countries,  and urged the armed  forces  to  stay 
prepared to thwart any "dangerous plot." 

   "The  world infidels are hatching dangerous and oppressive plots to 
confront the Islamic Iran and the latest events  are  a  clear  sign," 
Rafsanjani  told a crowd during a parade by the country's armed forces 
to mark the Army Day.  

----------------------------------------------------------------------

                     International Herald Tribune
                          May 2, 1997, Friday

              "EU and an Angry Iran Turn Up War of Words;
               Standoff Over Terror Ruling Is Worsening"

             By Tom Buerkle; International Herald Tribune

    The  European  Union  engaged  in  a  new  round   of   diplomatic 
retaliations  with  Iran  on Thursday,  urging its members not to send 
their envoys back to Tehran after  the  Iranian  government  moved  to 
block the return of the German and Danish ambassadors.  

    The  worsening  diplomatic  standoff,  backed  up  by harsh verbal 
exchanges between Tehran and some EU capitals,  dealt a major blow  to 
European  attempts  to  contain  the  damage  to relations caused by a 
German court ruling that Iran's leaders were responsible for the  1992 
murder in Berlin of three exiled dissidents and their translator.  

    The  moves  on  both  sides left Europe veering toward the sort of 
isolation that the United States has advocated  for  Iran,  but  which 
most  European  governments  have  rejected  as  bad  in principle and 
harmful to Europe's economic interests.  

    In the  Netherlands,  which  holds  the  rotating  EU  presidency, 
officials  said  the  government  would  discuss  further  retaliatory 
measures coming days, possibly including economic sanctions,  with the 
14 other EU states.  

    The   German   foreign   minister,   Klaus  Kinkel,   praised  the 
demonstration of support from his EU partners.  ''We will  not  impose 
our ambassadors on Tehran,  '' Mr.  Kinkel said Thursday in Bucharest, 
where he was visiting. ''We Germans won't let ourselves be blackmailed 
or divided.'' 

    On Tuesday,  EU  foreign  ministers  agreed  to  suspend  official 
ministerial  visits  to  Iran  and  to keep on hold Europe's so-called 
critical dialogue with Tehran.  But insisting on the need to  maintain 
some  channels  of  communication  with  the  Iranian government,  the 
ministers also agreed to  return  ambassadors  to  Tehran;  they  were 
recalled immediately after the German court ruling on April 10.  

     Iran responded harshly.  Foreign Minister Ali Akbar Velayati said 
Wednesday  that  his  government  would  not  welcome  the  return  of 
ambassadors  from Germany and Denmark,  two countries that had led the 
campaign for EU diplomatic sanctions.  

    ''If they never return to Iran, we will not be sad and may even be 
happier,  '' Mr.  Velayati said.  ''We have  no  need  for  a  one-way 
relationship with Europe.'' 

    The nation's religious leader, Ayatollah Sayed Ali Khamenei, urged 
the  Foreign Ministry to bar the return of the German ambassador ''for 
some time,  '' and to ''not show  haste''  in  returning  to  European 
capitals the ambassadors that Iran had recalled late last month.  

    ''We  don't give a damn about your ending the critical dialogue,'' 
Mr.  Khamenei said.  ''We never sought such a dialogue,  and  we  have 
more criticism against you than you do against us.'' 

    At The Hague, the Dutch Foreign Ministry said Thursday that it was 
urging  EU  governments that had not yet returned their ambassadors to 
Tehran to refrain from doing so ''until further notice.'' The  Italian 
ambassador,  the only EU envoy that had already returned, was expected 
to stay in Tehran.  

    The ministry also summoned the Iranian charge  d'affaires  at  The 
Hague to explain Tehran's actions.  

    ''The  presidency  will  make  it  clear  to  the  Iranian  charge 
d'affaires,'' the Foreign Ministry said in a statement,  ''that the EU 
policy  with  regard  to Iran is supported by all EU member states and 
that the EU will not accept that Iran takes arbitrary measures against 
some member states for a policy supported by all.'' 

     Iran's harsh reaction appeared  to  strengthen  the  hand  of  EU 
governments  that  favor  tougher  measures  to  punish Tehran for its 
support of international terrorism.  

    But the possibility that  all  15  EU  governments  would  endorse 
dramatic new measures was uncertain, at best. France, Italy and Greece 
took the softest line this week,  rejecting any discussion of economic 
sanctions and stressing that the ban on  official  ministerial  visits 
would not prevent informal contacts from taking place.  

    Despite  the  outcry  in  Germany over the court ruling,  Bonn has 
resisted economic sanctions.  Germany sold 2.2 billion Deutsche  marks 
of  goods  to  Iran  last  year,  which made it Iran's biggest trading 
partner in Europe.  

    Privately,  German officials credit the  Iranian  government  with 
protecting  Bonn's  embassy  in  Tehran  from  mobs that protested the 
ruling.  They fear that tougher EU measures will only  strengthen  the 
position of hard-liners.  

----------------------------------------------------------------------

                          The Washington Post
                 April 18, 1997, Friday, Final Edition

                   "Pope Reportedly Focus of Alert"

   Italy  has  put  its security forces on alert after an intelligence 
report that Islamic extremists could be preparing  to  attack  targets 
including Pope John Paul II, the Italian news agency ANSA said.  

   The agency said, without quoting sources, that the alert was issued 
at  a  meeting  of  police  and  intelligence  chiefs  at the Interior 
Ministry Wednesday night.  

   The pope's visit last weekend to Sarajevo, the Bosnian capital, was 
preceded by the discovery of land mines planted along the route of his 
motorcade.  The pontiff and international airports in Italy were among 
potential targets, the agency said.  

   It  said  the  report  sounding  the alarm had been drawn up by the 
Italian military intelligence agency SISMI and referred to the  crisis 
in  Europe's  relations with Iran as the possible spark for attacks by 
Islamic militants.  

   The Vatican  secretary  of  state,  Cardinal  Angelo  Sodano,  told 
Italian television that the pope was not "particularly alarmed" by the 
alert.  

----------------------------------------------------------------------

                  The Reuter European Business Report
                   April 11, 1997, Friday, BC cycle

            "EUROPEAN OIL TRADE ON ALERT OVER IRAN-EU ROW"

                           By Richard Mably

    Iran's diplomatic standoff with the European Union put oil traders 
on alert on Friday amid some concern that an escalation might threaten 
vital oil supplies.  

   But  analysts  and  oil executives said they saw only a slim chance 
that Europe would mimic the United States  and  take  a  new  hardline 
approach  against  Tehran,  putting a blanket ban on trade with one of 
Europe's biggest oil suppliers.  

   "Stay alert,  don't panic," was the message Kleinwort Benson  chief 
oil analyst Mehdi Varzi said he would give his clients.  

   "I do not foresee Europe going as far as an oil embargo on
Iran. Europe is not the United States," said Varzi.

   "We're aware of the situation but we're not sitting here biting our 
fingernails,"  said  a  senior  trader at a major European oil company 
which buys Iranian crude.  

   Oil prices have risen more than 50 cents a barrel since the  crisis 
began on Thursday reaching $ 18.15 by 1200 GMT on Friday.  

   Relations between Tehran and Europe hit a new low on Thursday after 
a  German  court  accused  Iran  of  ordering  the  killing of Kurdish 
dissidents in Berlin.  

   Germany withdrew its participation in "critical dialogue" with Iran 
and the EU invited member countries to  withdraw  top  diplomats  from 
Tehran for consultations.  

   European  Union  foreign ministers will discuss relations with Iran 
at a regular meeting on April 29.  

   EU nations rely on Iran for ten percent of their oil imports buying 
about a million barrels a day (bpd) on average last year, according to 
the Paris-based International Energy Agency (IEA).  

   Italy last year was Europe's biggest buyer of Iranian oil importing 
260,000 bpd followed by  France  with  170,000  bpd  and  Greece  with 
140,000. Spain (120,000 bpd), the Netherlands (100,000 bpd) and Sweden 
(90,000 bpd) also imported significant volumes last year.  

   Germany, heavily reliant on oil imports, uses only small amounts of 
Iranian crude buying just 18,000 bpd last year, the IEA said.  

   Europe  is already cut off from most of Iraq's oil supplies because 
of the United Nations ban  imposed  for  Baghdad's  1990  invasion  of 
Kuwait.  In  the  unlikely  event  of  a blanket embargo on trade with 
Tehran Europe would struggle to replace Iranian 

   "The problem is that Europe's nearest sources of supply,  the North 
Sea,  Russia  and  North  Africa  are running flat out," said Varzi at 
Kleinwort Benson.  

   "A cut off of Iranian oil would leave  an  alarmingly  thin  supply 
cushion to Europe." 

   The EU so far has refused to join U.S.  trade sanctions on Iran and 
has strongly attacked U.S.  legislation passed in 1996  providing  for 
non-U.S.  firms  that invest more than $ 40 million in the Iranian oil 
and gas industry.  

   European oil companies,  led by France's Total  (TOTF.PA>  said  on 
Friday they would not be deterred from investments in Iran.  

   Washington  in  1995  also put a ban on U.S.  oil companies trading 
with Iran adding to its longstanding  trade  embargo  with  Libya  and 
further limiting western oil supply options.  

   For  Iran,  the  world's  third  biggest  oil  exporter selling 2.6 
million bpd,  any threat to its European sales  would  spell  disaster 
virtually cutting it off from the western world.  

   It might also ignite Middle East tensions by benefiting Iran's Arab 
rivals in the Gulf.  

   "A  cut-off  of  Iranian oil given the current circumstances in the 
world oil market and the friction in the Gulf I think would be a  very 
serious move to contemplate," said Varzi.  

   Iran's  Arab  neighbours  Saudi Arabia,  Kuwait and the United Arab 
Emirates,  the only oil producers in the world  holding  spare  output 
capacity, would be the obvious candidates to fill any gaps in European 
supplies.  

----------------------------------------------------------------------

              "THE COMING MIDDLE EAST WAR AGAINST ISRAEL"

                          By Louis Rene Beres
                    Professor of International Law
                           Purdue University
                    Department of Political Science

                  E-MAIL     BERES@POLSCI.PURDUE.EDU

      Major  unconventional war will almost certainly break out in the 
Middle East before the end of the millennium, possibly even before the 
end of this year.  The most likely onset of  this  conflagration  will 
involve coordinated Syrian,  Iraqi and Iranian missile attacks against 
Israel.  Carefully planning their  aggressions  before  Israeli  anti-
tactical  ballistic  missile  (ATBM) defenses are in place,  Damascus, 
Baghdad and Teheran (Cairo,  too,  perhaps) will perceive a "window of 
opportunity" they shall not want to miss.  What is more, these massive 
attacks  will  be  timed  to  coincide  with  multiple and substantial 
Palestinian uprisings on both sides of Israel's Green Line.  
      Israel's Arab and  Islamic  enemies  understand  Israel's  grave 
security vulnerabilities.  Aware that Jerusalem's "Arrow" ATBM program 
is  still  years  away  from deployment,  and that the Jewish State is 
unlikely -especially in the course of a U.S.-dominated "Peace Process" 
- to undertake preemptive attacks against enemy hard  targets,  Syria, 
Iraq,  Iran  and  the  Palestinians (and possibly others) will want to 
strike while the iron is hot.  
      Of  course,  there  is  always the extraordinary cost of Israeli 
nuclear retaliations to  consider,  but  this  cost  might  be  judged 
manageable  so long as Israel's nuclear weapons remain land-based.  It 
is also plausible that Israel's enemies  could  expect  to  deter  the 
deterrer, seeking to prevent Israeli nuclear reprisals with compelling 
threats of chemical and/or biological counter-retaliations.  
      Israel's enemies assuredly recognize a promising synergy between 
external  and  internal attacks upon the Jewish State.  Realizing that 
simultaneous Palestinian uprisings and enemy state  ballistic  missile 
attacks  would  be  mutually  reinforcing,   potentially  immobilizing 
Israel's capacity to man its essential defensive and deterrent forces, 
Syria,  Iran,  Iraq and the Palestinians could reason that  they  will 
soon  be  in  a  position to win the long-hoped for Jihad.  And all of 
this assumes an altogether rational consideration of prospective costs 
and benefits.  Should any  of  Israel's  state  enemies,  particularly 
Iran,  begin  to  calculate  outside  the  bounds  of normal strategic 
rationality,  it might  launch  devastating  attacks  against  Israeli 
populations in spite of expecting massive nuclear retaliations.  Here, 
the  undeterred aggressor state would resemble the individual Hamas or 
Islamic Jihad suicidal terrorist in  macrocosm,  animated  not  by  an 
extraordinary  willingness to die (the usual popular misunderstanding) 
but rather by an all-consuming drive for immortality.  
      Recently Israel warned Syria that it had at its disposal certain 
military means many times more destructive than the  lethal  VX  nerve 
gas  Damascus  is producing.  Although this is certainly correct,  the 
intended deterrent effect upon Damascus could be undermined by several 
factors,  especially if Syria were to doubt  Israel's  willingness  to 
retaliate  with  nuclear weapons.  In this connection,  it is time for 
Israel  to  reconsider  its  long-standing   policy   of   "deliberate 
ambiguity,"  as  keeping  the  bomb "in the basement" may diminish the 
required credibility of its unconventional threat.  
      Today Israel's survival is entirely contingent upon its  nuclear 
weapons,  but  merely  possessing  these  weapons  is  no assurance of 
workable  deterrence.   Under   certain   conditions,   a   carefully-
coordinated  "bolt-from-the-blue"  attack  by  capable enemies against 
Israel's pertinent military targets could conceivably render  Israel's 
reprisal  "acceptable."  And  even  if  these enemies were mistaken in 
their calculations - i.e.,  the net effect of their planned aggression 
would  actually  not turn out to be gainful - the "victory" for Israel 
would be entirely moot.  This means that Israel must now, immediately, 
do  whatever  is  needed  to  ensure  successful  nuclear  deterrence, 
including  the  articulation  of  necessary strategic doctrine and the 
appropriate sea-basing of certain missiles.  
      It is also clear that Israel cannot base its very survival  upon 
nuclear  deterrence.  The  Jewish  State  must  now  also reaffirm its 
historic  commitment  to   self-defense,   including   the   sort   of 
anticipatory self-defense operations expressed so persuasively in June 
1967 and,  later, in June 1981.  Although the destruction of Baghdad's 
Osiraq reactor on June 2,  1981 was likely a singular event,  one  not 
easily  capable  of  replication  anywhere,  the  tactical  option  of 
preemption cannot be ruled out altogether.  For the  future,  such  an 
option  would most likely be directed at Iran,  but it would also have 
to be undertaken collaboratively  with  the  United  States.  Is  such 
collaboration  a  reasonable  prospect?  Not  at  all  - especially as 
Washington continues to be flim-flammed  by  the  "Peace  Process,"  a 
Trojan  Horse  that  not  only  makes  war against Israel increasingly 
likely,  but is in fact the  indispensable  precondition  (because  of 
needed intra-Israel Palestinian mayhem) for coming Jihad.  
      Israel can take certain steps to prevent an otherwise inevitable 
war.   These  steps  should  involve  measures  that  will  prevent  a 
corrosive synergy between enemy-state missile attacks and  Palestinian 
terrorism,  a synergy that is now taken by Damascus, Baghdad, Iran and 
Gaza as the starting point  and  prerequisite  for  Israel's  mandated 
annihilation.  Preparing to prevent war on two fronts,  Jerusalem must 
now strengthen its survival position via  a  suitable  combination  of 
deterrence and preemption while it simultaneously starts to fight back 
against Yasser Arafat and his Islamic partners.  

----------------------------------------------------------------------

                  "SECULAR ANALYST SUGGESTS IRAQ MAY
              JOIN A SYRIA-IRAN-RUSSIA ANTI-ISRAEL AXIS"

              Jack Van Impe Intelligence Briefing Update
                                         
                            April 28, 1997
  
  As  we  have  reported  before,  the  British Intelligence Digest of 
  Joseph de Courcy says that it is likely that "Russia is working with 
  Syria and Iran to bring Iraq into their alliance against Israel"  in 
  spite  of  previous serious problems each country has has with Iraq. 
  Considering the instability of the government in  Turkey,  he  says, 
  "The  only thing that could make the news from the Middle East worse 
  would be a sign(considerably  unlikely,  but  not  impossible)  that 
  Turkey's  military  is  losing  the  battle to keep Turkey secular." 
  Maybe he should consider how things are going in Algeria who seem to 
  be headed down the dreaded path of  terrorism  to  militant  Islamic 
  fundamentalism.  

----------------------------------------------------------------------

                     International Herald Tribune
                       April 24, 1997, Thursday

           "Russia and China Agree: Washington Is Too Bossy"

              By Lee Hockstader; Washington Post Service

    The  presidents  of Russia and China,  symbolically thumbing their 
noses at the United States,  signed a declaration  Wednesday  formally 
endorsing   ''a  new  multipolar  world''  that  would  counterbalance 
Washington's global muscle.  

    But beyond pomp,  ceremony and words of friendship at their Moscow 
meeting,  there  was  little  sign  of  what policies or actions Boris 
Yeltsin and Jiang Zemin planned to  embrace  that  would  advance  the 
''new international order'' they so gravely proclaimed.  

    Although both took pains not to mention the United States by name, 
their resentment of Washington's unrivaled clout permeated the Kremlin 
signing ceremony.  

    ''Some  are  pulling the world toward a unipolar order,'' said Mr. 
Yeltsin, who, when he last met with President Bill Clinton in Helsinki 
a  month  ago,  appeared  grumpy  at  a  press  conference  afterward. 
''Someone  wants  to  dictate  order  in  the  world.  And  we  want a 
multipolar world.'' 

    He  added,  ''These poles constitute the foundation of a new world 
order.'' 

    China is on record supporting Russia's bitter  opposition  to  the 
eastward expansion of NATO, the Western security alliance in which the 
United States plays the leading role.  NATO is expected to announce in 
July that it will add members from the former Soviet-dominated  Warsaw 
Pact Q probably the Czech Republic, Hungary and Poland.  

    In the past, mutual suspicions between Moscow and Beijing have run 
deep.  In  December,  for  example,  Russia's  defense minister,  Igor 
Rodionov,  warned on the eve of a visit by Prime Minister Li  Peng  to 
Moscow that China remained a military threat to Russia.  

    Visiting China this month, though, Mr.  Rodionov shifted gears.  A 
member of his traveling delegation told the Interfax news agency  that 
not only did China no longer pose a threat, but also that ''Russia can 
supply  China with up-to-date arms and technology for their production 
without harm to its own security.'' 

    For  months,   it  has  been  reported  that  as  part  of   their 
reconciliation,  Moscow and Beijing planned troop reductions,  perhaps 
of 15 percent to 20 percent,  along the  8,000-kilometer  (5,000-mile) 
border that once demarcated the Soviet Union and China.  But the issue 
appeared  clouded  Wednesday.   Citing  an  unnamed  person,  Interfax 
reported that the troops would remain where they were and that the two 
sides had merely ruled out any increase.  

    In a separate accord scheduled to be signed Thursday, Mr. Yeltsin, 
Mr.  Jiang  and  the  leaders  of  the  former  Soviet  central  Asian 
republics of Kazakstan, Kyrgyzstan and Tajikistan will agree to inform 
each other about troop movements in the border region.  

    Mr.  Yeltsin,  who returned from a vacation to greet  the  Chinese 
leader  on  his  five-day visit to Russia,  said the occasion was ''of 
enormous, possibly historic importance, as we are determining the fate 
of the 21st century.'' 

    Mr.   Jiang,  who  speaks  some  Russian,  addressed  the  Russian 
Parliament  with  a  similar  message  of  friendship  and ''strategic 
partnership.'' 

    ''Let the powerful tree of  friendship  between  our  two  peoples 
always be green,'' he said.  

    The two leaders announced that a committee on ''friendship,  peace 
and development'' would be set up to  nurture  the  warming  bilateral 
relationship.  

    The  Russian  side will be headed by Arkadi Volsky,  who has close 
ties to top figures in Russia's crumbling military-industrial complex. 
The top Chinese representative will be Huang Izheng,  vice chairman of 
the  Chinese  National  People's Congress Commission for Financial and 
Economic Issues.  

1