U.S. Ties Won’t Be Cut Forever, Iran Official Indicates

The powerful Speaker of Iran’s Parliament, saying he does not expect U.S.-Iranian relations to be severed forever, reiterated Monday that his government is prepared to pressure radical guerrilla groups in Lebanon to free Western hostages, but only if the United States releases $500 million in Iranian funds.

“We would consider this a sign of good will on the part of the United States,” Hashemi Rafsanjani told a group of foreign reporters. “In that way, we will use our influence with the people of Lebanon to release their hostages.”

The United States seized Iranian government funds in American banks after Iranian extremists took over the U.S. Embassy in Tehran in November, 1979. The extremists held more than 50 members of the staff as hostages for more than a year.

Rafsanjani also confirmed to the reporters that his government has recordings of conversations between Iranian officials and Robert C. McFarlane, the former U.S. national security adviser. He said the recordings, made in the course of a McFarlane visit in May of last year, will be used in an official report on Iran’s contacts with the United States.

“This report is being prepared,” he said, but he declined to say when it will be made public.

The report is believed to be Iran’s response to the Tower Commission report, which indicated that Rafsanjani was a key figure in the Iranian hierarchy advocating resumption of diplomatic contact with the United States.

The disclosure that Washington had supplied arms to Iran, in the hope that it would lead to freedom for the hostages, was politically damaging to Rafsanjani, particularly because of Israel’s involvement in delivering the arms. Rafsanjani is considered to be a strong moderating influence in a government whose policies are shaped largely by radicals.

Rafsanjani is said to favor eventual renewal of diplomatic relations with the United States, a view vehemently opposed by hard-line Muslim fundamentalists in the government.

Rumors circulating here in the last few weeks have indicated that Rafsanjani is in disfavor, not only because of his role in the arms incident but also because of differences with more conservative members of the government.

On Monday, however, he seemed confident and in command. Western diplomats here said the news conference itself was a sign of his continuing power.

“It shows he is controlling events,” one diplomat said. “If he were being seriously challenged, he wouldn’t do something like this.”

At one point, Rafsanjani seemed to hint at a possible willingness to search for a new beginning in Tehran’s tumultuous relationship with Washington.

“We don’t expect our relations to be severed until doomsday,” he said.

He avoided an opportunity to attack President Reagan’s actions in the arms affair, instead expressing displeasure at the level the scandal has reached in Washington.

“We are in no way pleased to create embarrassment for the White House and Mr. Reagan,” he said. “We did not have such an intention.”

He indicated the belief that Reagan has been undermined in his Iran policies by “certain U.S. officials who are against the hostages’ release.”

Eight Americans, along with other Westerners including Anglican Church envoy Terry Waite, are being held by Shia Muslim guerrilla groups in Lebanon that are believed to have strong religious and political ties to the Iranian government.

Rafsanjani referred at one point to the shipment of American arms to Iran as “the short period we were working together for the release of the hostages. . . .”

But there was no indication, in tone or content, of any substantive shift in Iran’s policy toward the United States.

Rafsanjani accused the United States of sabotaging the arms-for-hostages effort by including Israel as a major supplier of U.S. equipment to Iran and also by overcharging on military equipment Iran received.

“You gained more than us,” he said. “You got some hostages released. If you had kept your word, more of your hostages might have been released. You were supposed to use your influence among your friends . . . but you didn’t keep your word in this matter.”

He did not elaborate. But for the Iranians, Israel’s involvement in the arms deal is probably the most damaging aspect of the incident. Official Iranian propaganda invariably cites the Jewish state as an enemy even more hated than the United States.

Rafsanjani brushed aside official Iranian predictions that Iran’s 6 1/2-year-old war with Iraq was to have been won by March 21, the end of the Muslim year. He pledged that Iran will pursue the war to a successful conclusion, which he said will mean the downfall of Iraqi leader Saddam Hussein and his Baath Party.

In an apparent attempt to reinforce this message, Rafsanjani held the press conference under a banner bearing a quote from Iran’s supreme leader, the Ayatollah Ruhollah Khomeini. It declared: “The war will not end unless by the downfall of the Baath Party of Iraq.”