$567 Million Inadequate for Hostage Deal, Iran Says : Iran Seeks Real ‘Good Will’ Before Trying Hostage Deal

An Iranian newspaper said today a U.S. decision to release $567 million in frozen Iranian assets is not enough to persuade Tehran to intervene on behalf of 18 Western hostages held in Lebanon.

The official Islamic Republic News Agency, monitored in Nicosia, quoted the English-language Tehran Times as saying: “Iran has assured the U.S. it will use its good offices with Islamic groups in Lebanon to do all it can to help free the hostages, provided it shows genuine good will.

“But surely, there appears to be little sign of genuine good will yet,” it added.

The editorial was the first Iranian comment on the release of the assets earlier this week. The assets being released are only a small portion of what Iran claims it is owed. Iran says the assets frozen a decade ago are up to $12 billion, including the value of weapons purchased before the 1979 Islamic revolution but never delivered.

The newspaper, which is close to Iranian President Hashemi Rafsanjani, did not elaborate on the “good will” Iran is seeking before mediating a release of the hostages held by Shiite Muslim zealots.

Rafsanjani, leader of the so-called pragmatists in Iran, said last month that Iran would help secure the release of the captives, including eight Americans, if Washington releases Iranian assets.

The United States froze the assets after militants stormed the U.S. Embassy in Tehran Nov. 4, 1979, and held American diplomats and other personnel hostage. Fifty-two captives were released 444 days later.