Iran

 

Bureau of Near Eastern Affairs                                                
June 2007                                                                     
                                                                       
  Background Note: Iran                                                       
                                              
  Tourists visit ruins at Persepolis,                                         
  near Shiraz, Iran, May 22, 2002. [©                                         
  AP Images]                                                                  
                                                                 
  Flag of Iran is three equal horizontal bands of green (top), white, and red;
  the national emblem (a stylized representation of the word Allah in the shape
  of a tulip, a symbol of martyrdom) in red is centered in the white band;    
  ALLAH AKBAR (God is Great) in white Arabic script is repeated 11 times along
  the bottom edge of the green band and 11 times along the top edge of the red
  band.                                                                       
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Islamic Republic of Iran                                                    
                                                                       
  Geography                                                                   
  Area: 1.6 million sq. km. (636,295 sq. mi., slightly larger than Alaska).   
  Arable land: 9.78% of the country.                                          
  Cities: Capital--Tehran. Other cities--Isfahan, Tabriz, Mashhad, Shiraz,    
  Yazd, Qom.                                                                  
  Terrain: Desert and mountains.                                              
  Climate: Semiarid; subtropical along the Caspian coast.                     
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Iranian(s).                                
  Population (2007): 65.4 million.                                            
  Population growth rate (2007 est.): 0.663%.                                 
  Ethnic groups: Persians 51%, Azeri 24%, Gilaki and Mazandarani 8%, Kurd 7%, 
  Arab 3%, Lur 2%, Baloch 2%, Turkmen 2%, other 1%.                           
  Religions: Shi'a Muslim 89%; Sunni Muslim 9%; Zoroastrian, Jewish, Christian,
  and Baha'i 2%.                                                              
  Languages: Persian and Persian dialects 58%, Turkic languages (besides      
  Turkish) 26%, Kurdish 9%, Luri 2%, Balochi 1%, Arabic 1%, Turkish 1%, other 
  2%.                                                                         
  Education: Literacy (total population age 15 and over who can read and write,
  2003)--79% (male: 86%, female: 73%).                                        
  Health (2007 est.): Infant mortality rate--38.2 deaths/1,000 live births.   
  Life expectancy at birth (2007)--total population: 70.56 yrs.               
                                                                       
  Government                                                                  
  Type: Islamic republic.                                                     
  Constitution: Ratified in December 1979, revised 1989.                      
  Branches: Executive--Supreme Leader (head of state), president (head of     
  government), Council of Ministers, Assembly of Experts, Expediency Council, 
  Council of Guardians. Legislative--290-member Majles (National Assembly, or 
  Islamic Consultative Assembly). Judicial--Supreme Court.                    
  Political parties: A number of reform-minded groups achieved considerable   
  success during elections to the sixth Majles in early 2000. However, many   
  reformist candidates, including sitting members of the Majles, were         
  disqualified from participation in the February 2004 elections. As a result,
  a new conservative group, the Builders of Islamic Iran, won a majority of the
  seats and took a leading position in the seventh Majles.                    
  Administrative subdivisions: 30 provinces.                                  
  Suffrage: Universal suffrage. The government is debating raising the voting 
  age from 15 to 18.                                                          
                                                                       
  Economy                                                                     
  GDP (purchasing power parity, 2006 est.): $599.2 billion.                   
  GDP (official exchange rate, 2006 est.): $193.5 billion.                    
  GDP real growth rate (2007 est.): 4.6%.                                     
  GDP composition by sector (2006): Agriculture 11.2%, industry 41.7%, services
  47.1%.                                                                      
  Per capita income (2006 est.): $8,700.                                      
  Work force: 24.36 million.                                                  
  Work force - by occupation (2001 est.): Agriculture 30%, industry 25%,      
  services 45%.                                                               
  Unemployment rate (2007 est.): 20%.                                         
  Natural resources: Petroleum, natural gas, coal, chromium, copper, iron ore,
  lead manganese, zinc, sulfur.                                               
  Agriculture: Principal products--wheat, rice, other grains, sugar beets,    
  fruits, nuts, cotton, dairy products, wool, caviar. Note: Iran is not       
  self-sufficient in terms of food.                                           
  Industry: Types--petroleum, petrochemicals, textiles, cement and building   
  materials, food processing (particularly sugar refining and vegetable oil   
  production), metal fabricating (particularly steel and copper), armaments.  
  Trade (2007 est.): Exports--$56.9 billion: petroleum 80%, chemical and      
  petrochemical products, carpets, fruits, nuts. Major export partners (2006):
  Japan (17.3%), China (11.4%), Italy (6.2%), South Korea (5.2%), South Africa
  (5.5%), Turkey (5.7%), Netherlands (4.6%), France (4.1%), Taiwan (4.1%).    
  Imports--$48.1 billion: industrial raw materials and intermediate goods,    
  capital goods, foodstuffs and other consumer goods, technical services,     
  military supplies. Major import partners: Germany (14.2%), U.A.E. (6.7%),   
  China (8.3%), Italy (7.5%), France (6.2%), South Korea (5.4%), Russia (4.9%).
                                                                       
  PEOPLE                                                                      
  Iran is a pluralistic society. Persians are the largest predominant ethnic  
  and cultural group in this country, though many are actually of mixed       
  ancestry. The population of the country has important Turkic elements (e.g.,
  Azeris) and Arabs predominate in the southwest. In addition, Iranian citizens
  include Kurds, Balochi, Bakhtyari, Lurs, and other smaller minorities, such 
  as Armenians, Assyrians, Jews, and Brahuis (or Brohi).                      
                                                                       
  The 1979 Islamic revolution and the 1980-88 war with Iraq transformed Iran's
  class structure politically, socially, and economically. During this period,
  Shia clerics took a more dominant position in politics and nearly all aspects
  of Iranian life, both urban and rural. After the fall of the Pahlavi regime 
  in 1979, much of the urban upper class of prominent merchants,              
  industrialists, and professionals, favored by the former monarch, the shah, 
  lost standing and influence to the senior clergy and their supporters. Bazaar
  merchants, who were allied with the clergy against the Pahlavi shahs, also  
  have gained political and economic power since the revolution. The urban    
  working class has enjoyed somewhat enhanced status and economic mobility,   
  spurred in part by opportunities provided by revolutionary organizations and
  the government bureaucracy. Though the number of clergy holding senior      
  positions in the parliament and elsewhere in government has declined since  
  the 1979 revolution, Iran has nevertheless witnessed the rise of a          
  post-revolutionary elite among lay people who are strongly committed to the 
  preservation of the Islamic Republic.                                       
                                                                       
  Most Iranians are Muslims; 89% belong to the Shi'a branch of Islam, the     
  official state religion, and about 9% belong to the Sunni branch, which     
  predominates in neighboring Muslim countries. Non-Muslim minorities include 
  Zoroastrians, Jews, Baha'is, and Christians.                                
                                                                       
  HISTORY                                                                     
  The ancient nation of Iran, historically known to the West as Persia and once
  a major empire in its own right, has been overrun frequently and has had its
  territory altered throughout the centuries. Invaded by Arabs, Seljuk Turks, 
  Mongols, and others--and often caught up in the affairs of larger           
  powers--Iran has always reasserted its national identity and has developed as
  a distinct political and cultural entity.                                   
                                                                       
  Archeological findings indicate human activity in Iran during the middle    
  Paleolithic era, about 100,000 years ago. The sixth millennium B.C. saw a   
  fairly sophisticated agricultural society and proto-urban population centers.
  Many dynasties have ruled Iran, starting with the Achaemenid (559-330 B.C.) 
  founded by Cyrus the Great. After the conquest of Persia by Alexander the   
  Great and the Hellenistic period (300-250 B.C.) came the Parthian (250      
  B.C.-226 A.D.) and the Sassanian (226-651) dynasties.                       
                                                                       
  The seventh century Arab-Muslim conquest of Iran was followed with invasions
  by the Seljuk Turks and the Mongols. Iran underwent something of a revival  
  under the Safavid dynasty (1502-1736), the most prominent figure of which was
  Shah Abbas, who expelled the Uzbeks and Ottomans from Persia. The conqueror 
  Nadir Shah and his successors were followed by the Zand dynasty, founded by 
  Karim Khan, and later the Qajar (1795-1925) and the Pahlavi dynasties       
  (1925-1979).                                                                
                                                                       
  Modern Iranian history began with a nationalist uprising against the Shah in
  1905 and the establishment of a limited constitutional monarchy in 1906. The
  discovery of oil in 1908 would later become a key factor in Iranian history 
  and development.                                                            
                                                                       
  In 1921, Reza Khan, an Iranian officer of the Persian Cossack Brigade, seized
  control of the government. In 1925, having ousted the Qajar dynasty, he made
  himself Shah and established the Pahlavi dynasty, ruling as Reza Shah for   
  almost 16 years.                                                            
                                                                       
  Under Reza Shah's reign, Iran began to modernize and to secularize, and the 
  central government reasserted its authority over the tribes and provinces.  
  During World War Two the Allies feared the monarch close relations with Nazi
  Germany. In September 1941, following the occupation of western Iran by the 
  Soviet Union and the United Kingdom, Reza Shah was forced to abdicate. His  
  son, Mohammad Reza Pahlavi, became Shah and would rule until 1979.          
                                                                       
  During World War Two, Iran had been a vital link in the Allied supply line  
  for lend-lease supplies to the Soviet Union. After the war, Soviet troops   
  stationed in northwestern Iran not only refused to withdraw but backed      
  revolts that established short-lived, pro-Soviet separatist regimes in the  
  northern regions of Azerbaijan and Kurdistan. These ended in 1946. The      
  Azerbaijani revolt crumbled after U.S. and United Nations (UN) pressure     
  forced a Soviet withdrawal. Iranian forces also suppressed the Kurdish      
  uprising.                                                                   
                                                                       
  In 1951, the government of nationalist Prime Minister Mohammed Mossadeq     
  (sometimes spelled Mossadegh) nationalized the British-owned Anglo-Iranian  
  Oil Company (AIOC). The Shah fled to Rome from Iran before the U.S.-backed  
  coup against Mossadeq in August 1953, during which pro-Shah army forces     
  arrested the Prime Minister. The Shah returned soon thereafter. A few years 
  later, AIOC was renamed British Petroleum, better known today as BP.        
                                                                       
  In 1961, Iran initiated a series of economic, social, and administrative    
  reforms that became known as the Shah's White Revolution. The core of this  
  program was land reform. Modernization and economic growth proceeded at an  
  unprecedented rate, fueled by Iran's vast petroleum reserves, the           
  third-largest in the world. However, his autocratic method of rule and      
  pro-western policies alienated large sectors of the population, including the
  Shia clergy.                                                                
                                                                       
  In 1978, domestic turmoil swept the country as a result of religious and    
  political opposition to the Shah's rule, including abuses committed by SAVAK,
  the hated internal security and intelligence service. In January 1979, the  
  Shah left Iran; he died abroad several years after.                         
                                                                       
  On February 1, 1979, exiled religious leader Ayatollah Ruhollah Khomeini    
  returned from France, to assume control of the revolution and established   
  himself as Supreme Leader of a new, theocratic republic guided by Islamic   
  principles. Following Khomeini's death on June 3, 1989, the Assembly of     
  Experts chose the outgoing president of the republic, Ali Khamenei, to be his
  successor as Supreme Leader in what proved to be a smooth transition.       
                                                                       
  In August 1989, Akbar Hashemi-Rafsanjani, the speaker of the Majles, was    
  elected President by an overwhelming majority. He was re-elected June 1993, 
  with a more modest majority. Some Western observers attributed the reduced  
  voter turnout to disenchantment with the deteriorating economy. An          
  overwhelming majority of Iranians elected Mohammad Khatami-Ardakani as      
  President in August 1997, hoping he would usher in a new era of freedom and 
  reform. Khatami had modest successes in broadening the participation of     
  Iranians in government and politics through initiating popular elections for
  local government councils and encouraging the development of civil society. 
  Many liberal-minded Iranians were disappointed that Khatami did not support 
  student protesters in 1999, but he was nevertheless re-elected in June 2001.
                                                                       
  In February 2004 flawed elections were held for the Seventh Majles in which 
  many reformists were prohibited from contesting their seats, meaning that a 
  much more conservative group of parliamentarians easily retook control of the
  Majles in May 2004. The next Majles elections are currently slated to take  
  place on March 14, 2008.                                                    
                                                                       
  None of the seven candidates in the presidential vote on June 17, 2005      
  received a majority, resulting in a two-candidate runoff between Tehran mayor
  Mahmud Ahmadi-Nejad and former President Akbar Hashemi Rafsanjani on June 24.
  Ahmadi-Nejad, winning in the second round with almost 62% of the vote       
  according to Iranian Government figures, took office in August 2005. The next
  presidential elections are scheduled for 2009.                              
                                                                       
  GOVERNMENT                                                                  
  The December 1979 Iranian constitution defines the political, economic, and 
  social order of the Islamic republic. The document establishes Shi'a Islam of
  the Twelver (Jaafari) sect as Iran's official religion. Sunni Islam,        
  Zoroastrianism, Judaism and Christianity are the only other recognized, legal
  minority religions. The country is governed by secular and religious leaders
  through governing bodies, whose duties often overlap.                       
                                                                       
  The Supreme Leader holds power for life unless removed by the Assembly of   
  Experts. He has final say on all domestic, foreign, and security policies for
  Iran, though he establishes and supervises those policies in consultation   
  with the Expediency Council. The Leader is the final arbiter on all         
  differences or disputes among the various branches of government. He appoints
  officials to key positions including the head of judiciary and the 12 members
  of the Guardian Council (six directly, six indirectly). He has power to     
  remove the president and is commander-in-chief of the armed forces.         
                                                                       
  The constitution stipulates that the Assembly of Experts, which currently   
  consists of the 86 popularly-elected clerics elected to 8-year terms, chooses
  the Supreme Leader based on jurisprudent qualifications and commitment to the
  principles of the revolution. The Assembly of Experts reviews his performance
  periodically and has the power to depose and replace him. Pragmatic         
  conservative candidates generally polled better than their hardline         
  conservative opponents during the December 15, 2006 elections to the Assembly
  of Experts. (Turnout for this vote, which coincided with municipal council  
  elections, was quite high, topping 60%.) Citizens will not vote for         
  representatives to the Assembly again until 2014.                           
                                                                       
  The Council of Guardians consists of 12 persons. The Supreme Leader appoints
  the six religious members of the Council of Guardians while the Iranian     
  parliament, the Majles, selects the six lay members from candidates         
  recommended by the judiciary, which is in turn selected by the Supreme      
  Leader. The non-clerics play a role only in determining whether legislation 
  before the Majles conforms to Iran's constitution. The religious members, on
  the other hand, take part in all deliberations, considering all bills for   
  conformity to Islamic principles. The Council of Guardians can veto any law.
  This body also certifies the competence of candidates for the presidency, the
  Assembly of Experts, and the Majles.                                        
                                                                       
  The president of the Islamic Republic of Iran is elected by universal       
  suffrage to a 4-year term. The president supervises the affairs of the      
  executive branch, appointing and supervising the Council of Ministers       
  (members of the cabinet), coordinating government decisions, and selecting  
  government policies to be placed before the National Assembly.              
                                                                       
  The Majles, or National Assembly, consists of 290 members elected to 4-year 
  terms. The members of the legislature are elected by direct and secret ballot
  from among the candidates approved by the Council of Guardians.             
                                                                       
  In 1988, Ayatollah Khomeini created the Council for Expediency, which       
  resolves legislative issues on which the Majles and the Council of Guardians
  fail to reach an agreement. Since 1989, it has been used to advise the      
  national religious leader on matters of national policy as well. It is      
  composed of the president, the speaker of the Majles, the judiciary chief,  
  the clerical members of the Council of Guardians, and other members appointed
  by the Supreme Leader for 3-year terms. Cabinet members and Majles committee
  chairs also serve as temporary members when issues under their jurisdictions
  are considered. In 2005, it was announced that the Expediency Council, which
  now has over 40 members, would have responsibility for general supervision of
  the system, though that has not resulted in any noticeable change in this   
  institution's day-to-day authority or operations.                           
                                                                       
  Judicial authority is constitutionally vested in the Supreme Court and the  
  four-member High Council of the Judiciary; these are two separate groups with
  overlapping responsibilities and have one head. Together, they are          
  responsible for supervising the enforcement of all laws and for establishing
  judicial and legal policies.                                                
                                                                       
  Iran has two military forces. The national military is charged with defending
  Iran's borders, while the Islamic Revolutionary Guard Corps (IRGC) is charged
  mainly with maintaining internal security.                                  
                                                                       
  Iran has 30 provinces managed by an appointed governor general. The provinces
  are further divided into counties, districts, and villages. Sixty percent of
  eligible voters took part in the first ever municipal and local council     
  elections in 1999, though a lower percentage went to the polls in the second
  round in 2003. Turnout during the December 15, 2006 elections, during which 
  citizens also elected Assembly of Expert representatives, was over 60%. The 
  local councils select mayors.                                               
                                                                       
  Principal Government Officials                                              
  Leader of the Islamic Revolution--Ali Hosseini-Khamenei                     
  President--Mahmud Ahmadi-Nejad                                              
  First Vice President--Parviz Davudi                                         
  Foreign Minister--Manouchehr Mottaki                                        
  Ambassador to the United Nations--Mohammad Javad Zarif                      
                                                                       
  POLITICAL CONDITIONS                                                        
  Iran's post-revolution difficulties have included an 8-year war with Iraq,  
  internal political struggles and unrest, and economic disorder. The early   
  days of the regime were characterized by severe human rights violations and 
  political turmoil, including the seizure of the U.S. Embassy compound and its
  occupants on 4 November 1979, by Iranian student militants. Iranian         
  authorities released the 52 hostages only after 444 days of captivity.      
                                                                       
  By mid-1982, the clergy had won a succession of post-Revolution power       
  struggles that eliminated first the center of the political spectrum and then
  the leftists, including the communist Tudeh party and the cult-like         
  Mujahedin-e Khalq Organization (MEK or MKO). Assassinations, throwing acid in
  the faces of women who refused to wear the veil, and other acts of violence 
  punctuated this period. There has been some moderation of excesses since the
  early days of the revolution, and the country experienced a partial "thaw" in
  terms of political and social freedoms during the tenure of former president
  Khatami, but serious problems remained. The administration of President     
  Ahmadi-Nejad has witnessed a crackdown on Iranian civil society, continued  
  human rights violations, and worsening constraints on press freedom and civil
  liberties.                                                                  
                                                                       
  The Islamic Republican Party (IRP) was Iran's sole political party until its
  dissolution in 1987. Iran now has a variety of groups engaged in political  
  activity; some are oriented along ideological lines or based on an identity 
  group, others are more akin to professional political parties seeking members
  and recommending candidates for office. Some have been active participants in
  the Revolution's political life while others reject the state. Conservatives
  consistently thwarted the efforts of reformists during the Khatami era and  
  have consolidated their control on power since the flawed elections for the 
  seventh Majles in 2004 and president Ahmadi-Nejad's victory in 2005.        
                                                                       
  The Iranian Government has faced armed opposition from a number of groups,  
  including the MEK (which the U.S. Government added to its list of Foreign   
  Terrorist Organizations in 1999), the People's Fedayeen, and the Kurdish    
  Democratic Party of Iran (KDPI).                                            
                                                                       
  ECONOMY                                                                     
  Pre-revolutionary Iran's economic development was rapid. Traditionally an   
  agricultural society, by the 1970s Iran had achieved significant            
  industrialization and economic modernization. However, the pace of growth had
  slowed dramatically by 1978, just before the Islamic revolution. Since the  
  fall of the shah, economic recovery has proven elusive thanks to a          
  combination of factors, including fluctuations in the global energy market. 
  Economic activity was severely disrupted additionally by years of upheaval  
  and uncertainty surrounding the revolution and the introduction of statist  
  economic policies. These conditions were worsened by the war with Iraq and  
  the decline in world oil prices beginning in late 1985. After the war with  
  Iraq ended, the situation began to improve: Iran's GDP grew for two years   
  running, partly from an oil windfall in 1990, and there was a substantial   
  increase in imports. However, Iran had suffered a brain drain throughout the
  previous decade and wartime policies had resulted in a demographic explosion.
                                                                       
  A decrease in oil revenues in 1991 and growing external debt dampened       
  optimism for recovery. In March 1989, the government instituted a new 5-year
  plan for economic development, which loosened state control and allowed Iran
  to seek greater latitude in accessing foreign capital. Mismanagement and    
  inefficient bureaucracy, as well as political and ideological infighting,   
  hampered the formulation and execution of a consolidated economic policy, and
  the Iran fell short of the plan's goals while economic inequality was       
  aggravated. Today, Iran's economy is a mixture of central planning, state   
  ownership of oil and other large enterprises, village agriculture, and      
  small-scale private trading and service ventures. Former President Khatami  
  followed the market reform plans of his predecessor, President Rafsanjani,  
  and indicated that he would pursue diversification of Iran's oil-reliant    
  economy, although he made little progress toward that goal. High inflation  
  and expansive public transfer programs, as well as powerful                 
  economic-political vested interests created obstacles for rapid reform.     
                                                                       
  During the 2005 election campaign, President Ahmadi-Nejad promised to       
  redistribute oil revenues to the impoverished, fund large infrastructure    
  projects, and privatize Iranian state enterprises. He has been criticized   
  within Iran for not carrying through on many of his promises. While         
  establishment of the Imam Reza fund for cheap loans to youth has been       
  popular, a law increasing the minimum was revoked because of the huge strain
  on employers. The "Shares of Justice" program--distributing shares of       
  state-owned enterprises to the poor--faces a number of potential problems.  
                                                                       
  Unemployment was estimated to be 20% for 2007, according to the International
  Monetary Fund. Unemployment, a major problem even before the revolution, has
  many causes, including population growth, high minimum wage level and other 
  restrictive labor policies. Farmers and peasants enjoyed a psychological    
  boost from the attention given them by the Islamic regime but hardly appear 
  to be better off in economic terms. The government has made progress on rural
  development, including electrification and road building, but Iran still    
  faces inefficiencies related to agricultural land usage which are politically
  difficult to reconcile. Agriculture also has suffered from shortages of     
  capital, raw materials, and equipment, problems dating back to the 1980-1988
  war with Iraq. (See Foreign Relations below.)                               
                                                                       
  Although Islam guarantees the right to private ownership, banks and some    
  industries--including the petroleum, transportation, utilities, and mining  
  sectors--were nationalized after the revolution under Marxist-influenced    
  economic policies. Starting under President Rafsanjani, Iran has pursued some
  privatization through its nascent equities markets. However, the industrial 
  sector remains plagued by low labor productivity and shortages of raw       
  materials and spare parts, and is uncompetitive against foreign imports.    
                                                                       
  Increases in the price of oil starting in 2003 have increased state revenue 
  enormously and permitted a much larger degree of spending on social programs
  than previously anticipated. However, this has not eased economic hardships 
  such as high unemployment and inflation. The proportion of the economy      
  devoted to the development of weapons of mass destruction and military      
  spending overall remains a contentious issue with leading Western nations.  
                                                                       
  Earnings from Iranian oil exports, projected at $57-$87 billion for         
  2007-2008, are placed into the Oil Stabilization Fund (OSF), originally     
  designed as a Treasury safety net if oil prices dropped below $20/barrel. In
  practice, the government has drawn upon the OSF to cover overexpenditures.  
  Iran relies on oil for 80% of its export revenue, and 40% of total revenues.
  (Note: Iran's refining capacity is limited, and Tehran is a net gasoline    
  importer, spending $2.6 billion for foreign gas in 2005.)                   
                                                                       
  FOREIGN RELATIONS                                                           
  Khomeini's revolutionary regime initiated sharp changes from the foreign    
  policy pursued by the Shah, particularly in reversing the country's         
  orientation toward the West. In the Middle East, Iran's only significant ally
  has been Syria, but Iran has made strides in improving relations with its   
  Gulf neighbors, particularly Saudi Arabia.                                  
                                                                       
  Iran's foreign relations are based on sometimes competing objectives. Iran's
  pragmatic foreign policy goals include, not surprisingly, protecting itself 
  from external threats and building trade ties. Iran has additionally been   
  accused, however, of trying to export its fundamentalist revolution to other
  countries, sometimes supporting terrorist organizations, and its vehement   
  anti-U.S. and anti-Israel stances are well-known. Senior Iranian officials  
  directed Hezbollah to carry out the bombing of the Asociación Mutual        
  Israelita Argentina (AMIA, the Argentine Israelite Mutual Association)      
  building in Buenos Aires on July 18, 1994, killing 85 people and wounding   
  scores of others. Out of the eight individuals indicted by the Government of
  Argentina in October 2006, the Interpol Executive Committee has recommended 
  the issuance of Red Notices (international arrest warrants) against six: five
  former or current Iranian officials and one Lebanese Hezbollah leader.      
                                                                       
  In September 1980, during the U.S. hostage crisis, Iraq invaded Iran to take
  control of the waterway between the two countries, the Shatt al-Arab,       
  although the conflict's underlying causes included each nation's overt desire
  for the overthrow of the other's government. Iran defended itself and       
  demanded the withdrawal of Iraqi troops from Iranian territory and the return
  to the status quo ante for the Shatt al-Arab as established under the 1975  
  Algiers Agreement signed by Iraq and Iran. Khomeini's government turned down
  an Iraqi cease-fire proposal in 1982, making a new demand for Saddam        
  Hussein's removal as well. After eight punishing years of war, in July 1988,
  Iran at last agreed to UN Security Council Resolution 598 and the cease-fire
  was implemented on August 20, 1988. Neither nation had made any real gains in
  the war.                                                                    
                                                                       
  Iran's relations with many of its Arab neighbors have been strained by      
  Iranian attempts to spread its Islamic revolution, a strictly ideological   
  goal. In 1981, Iran supported a plot to overthrow the Bahrain Government. In
  1983, Iran expressed support for Shi'ites who bombed Western embassies in   
  Kuwait, and in 1987, Iranian pilgrims rioted during the hajj (pilgrimage) in
  Mecca, Saudi Arabia. Nations with strong fundamentalist movements, such as  
  Egypt and Algeria, also mistrust Iran. Iran backs Hezbollah (in Lebanon),   
  Hamas, Palestinian Islamic Jihad, and the Popular Front for the Liberation of
  Palestine-General Command, all of which are violently opposed to the        
  Arab-Israeli peace process. In contrast, while relations with west European 
  nations have been uneven, they have been driven primarily by pragmatic goals
  of trade and security. Iran has accepted stronger commercial ties but largely
  declined to deliver on key European political concerns such as human rights 
  and weapons of mass destruction (WMD) acquisition efforts, particularly in  
  the nuclear field, where the International Atomic Energy Agency (IAEA) has  
  been strongly critical of Iran.                                             
                                                                       
  An IAEA report in November 2003 provided evidence that Iran, a signatory to 
  the Nuclear Non-Proliferation Treaty (NPT), had concealed secret nuclear    
  activities for 18 years. Under international pressure, Iran signed the      
  Additional Protocol to the Safeguards Agreement on December 18, 2003,       
  agreeing to suspend all uranium-enrichment and reprocessing activities      
  voluntarily, as well as cooperate fully with the International Atomic Energy
  Agency (IAEA) in resolving questions regarding Iran's nuclear program. In   
  June 2004, the IAEA rebuked Iran for failing to fully cooperate with an     
  inquiry into its nuclear activities, and in November 2004, Iran agreed to   
  suspend most of its uranium enrichment under a deal with the EU. That promise
  did not last, however, and since then concerns over Iran's nuclear activities
  have increased.                                                             
                                                                       
  On June 6, 2006, China, France, Germany, Russia, the United States, and     
  United Kingdom offered Iran a substantial package of economic cooperation and
  assistance. Tehran, however, was first required to come into compliance with
  International Atomic Energy Agency (IAEA) guidelines on its nuclear program,
  suspending its uranium enrichment program. On July 31, the UN Security      
  Council adopted resolution 1696 on the Iranian nuclear question, requiring  
  Iran to suspend all activities related to enrichment and reprocessing,      
  including research and development, as demanded by the IAEA, or else face   
  possible sanctions. Tehran defied the UN Security Council (UNSC) deadline of
  August 31, leading to the passage of UNSC Resolution 1636 in December 2006  
  and, as Iran continued to balk, Resolution 1747 in March 2007.              
                                                                       
  Iran sparked an international controversy when its forces seized and held   
  hostage 15 British sailors and marines, conducting routine anti-smuggling   
  operations in Iraqi territorial waters under UN mandate, on March 23, 2007. 
  Tehran released the U.K. service members on April 6.                        
                                                                       
  Iran maintains regular diplomatic and commercial relations with Russia and  
  the former Soviet republics. Both Iran and Russia believe they have important
  national interests at stake in developments in Central Asia and the         
  Transcaucasus, particularly regarding energy resources from the Caspian Sea.
  Russian and other sales of military equipment and technology to Iran concern
  Iran's neighbors and the United States. Washington is also concerned about  
  Russian assistance in building at nuclear facility at Bushehr.              
                                                                       
  Iran spends about 3.3% of its GDP on its military. Iran's military consists 
  of both a national military held over from the shah's government and the    
  IRGC, each with its own ground, naval and air braches. The Iran-Iraq war took
  a heavy toll on these military forces. Iran is trying to modernize its      
  military, including ballistic missile programs, and acquire weapons of mass 
  destruction; it does not yet have, but continues to seek, nuclear           
  capabilities.                                                               
                                                                       
  U.S.-IRANIAN RELATIONS                                                      
  On November 4, 1979, militant Iranian students occupied the American Embassy
  in Tehran with the support of Ayatollah Khomeini. Fifty-two Americans were  
  held hostage for 444 days. On April 7, 1980, the United States broke        
  diplomatic relations with Iran, and on April 24, 1981, the Swiss Government 
  assumed representation of U.S. interests in Tehran. Iranian interests in the
  United States are represented by the Government of Pakistan. The Islamic    
  Republic of Iran does not have its own embassy in Washington, though it does
  have a permanent mission to the United Nations in New York City.            
                                                                       
  In accordance with the Algiers declaration of January 20, 1981, the Iran-U.S.
  Claims Tribunal (located in The Hague, Netherlands) was established for the 
  purpose of handling claims of U.S. nationals against Iran and of Iranian    
  nationals against the United States. U.S. contact with Iran through The Hague
  covers only legal matters.                                                  
                                                                       
  The U.S. Government, by Executive Orders issued by the President as well as 
  by Congressional legislation, prohibits most trade with Iran. Some sanctions
  were imposed on Iran because Tehran is a state sponsor of terrorism, others 
  because of the nuclear proliferation issues, and still more for human rights
  violations, including infringement of religious freedom. The commercial     
  relations that do exist between the two countries consist mainly of Iranian 
  purchases of food and medical products and U.S. imports of carpets and food.
  Some sanctions were temporarily waived in the wake of the devastating Bam   
  earthquake of December 2003. U.S. officials and relief workers actively     
  assisted in relief and reconstruction efforts.                              
                                                                       
  There are serious obstacles to improved relations between the two countries.
  As a state sponsor of terrorism, Iran remains an impediment to international
  efforts to locate and prosecute terrorists. Recent attempts by Iran to form 
  loose alliances with anti-U.S. governments in the Western Hemisphere, such as
  the Venezuelan Government, has further heightened concern about Iran's      
  support for terrorism and nuclear ambitions. Operation Iraqi Freedom removed
  the Iranian Government's greatest security threat, but officially Iran      
  remained neutral about U.S. policy, sometimes strongly condemning American  
  policies and actions in Iraq. Iran has cultural ties to elements of the     
  populations of both Iraq and Afghanistan. It has made some positive         
  contributions to stability in both countries, but other actions have had the
  opposite effect. It remains to be seen whether Tehran will ultimately be a  
  constructive force in the reconstruction of its two neighbors or not.       
                                                                       
  The U.S. Government defines its areas of objectionable Iranian behavior as  
  the following:                                                              
                                                                       
                                                                       
    * Iran's efforts to acquire nuclear weapons and other weapons of mass     
      destruction;                                                            
    * Its support for and involvement in international terrorism;             
    * Its support for violent opposition to the Middle East peace process, as 
      well as its harmful activities particularly in Lebanon, as well as in   
      Iraq, Afghanistan, and elsewhere in the region; and                     
    * Its dismal human rights record and lack of respect for its own people.  
                                                                       
  The United States has held discussions with Iranian representatives on      
  particular issues of concern over the years. U.S. and Iranian envoys        
  cooperated during operations to overthrow the Taliban in 2001 and during the
  Bonn Conference in 2002 that established a broad-based government for the   
  Afghan people under President Karzai. The Secretary of State, her Iranian   
  counterpart, and others met at talks on Iraq in Sharm El Sheikh, Egypt, on  
  May 3, 2007. The American and Iranian ambassadors to Iraq took part in      
  face-to-face discussions in Baghdad, with Iraqi officials in attendance, on 
  May 28, 2007. The United States believes, however, that normal relations are
  impossible until Iran's policies change.                                    
                                                                       
  Nevertheless, the U.S. State Department is supporting efforts to further the
  cause of democracy in Iran. In fiscal year (FY) 2006, the U.S. Congress     
  allocated approximately $66 million to promote free media, personal freedom,
  and a better understanding of western values and culture. As part of these  
  efforts, the Department supports efforts to develop civil society in Iran and
  exchange programs that bring Iranian students, athletes, professionals and  
  others to the United States.                                                
                                                                       
  The Secretary of State has stated that Iranian agreement to abide by UNSC   
  Resolutions 1696 and 1747, calling for Tehran to suspend uranium enrichment 
  and comply with its international nuclear obligations, could lead to the    
  direct negotiations between American and Iranian government officials, not  
  only on Iran's nuclear case but on a wide range of issues.                  
                                                                       
  In May 2007, the Iranian Government charged and in some cases imprisoned a  
  handful of innocent Iranian-American scholars, civil society actors, and    
  journalists, accused by the regime of jeopardizing the security of the state.
  The international community, academic institutions, non-governmental        
  organizations (NGOs) and private citizens have joined the U.S. Government in
  calling for the release of the detained dual nationals, as well as Iranian  
  cooperation in the case of missing retired FBI agent Robert Levinson, last  
  reported on Kish Island, Iran, on March 8, 2007.                            
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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