China This Week: Rain-triggered Floods; South China Sea Issues; PLA Air Defense Drills; Sino-Latin America Ties

Floods Kill 1,072, 619 missing: Rain-triggered floods have left 1,072 people dead and 619 others missing this year in China.

The floods affected 140 million people in 28 provinces and regions and caused direct economic losses estimated at almost 210 billion yuan (almost $70 billion), said Shu Qingpeng, deputy director of the Office of State Flood Control and Drought Relief Headquarters.

The flooding also destroyed more than 1.1 million homes and damaged 9.72 million hectares of farmland. China's large rivers, including the Yangtze, the Yellow and the Songhua, were all swollen to danger levels after heavy rains inundated more than 160 cities across the country.

China Opposes Vietnam, US on South China Sea: China firmly opposes any remarks and actions that violate its sovereignty over the Xisha Islands and adjacent waters in the South China Sea, said Foreign Ministry spokeswoman Jiang Yu on Friday.

Jiang made the comment after Vietnamese Foreign Ministry spokeswoman Nguyen Phuong Nga said, according to media reports, that Chinese vessels' seismic exploration activities near Xisha Islands had violated Vietnam's sovereignty.

"China has indisputable sovereignty over Xisha Islands and adjacent waters," Jiang reiterated in a news release.

Defense Ministry spokesman Geng Yansheng said China had "indisputable sovereignty" over islands in the South China Sea and the surrounding waters, one week after US Secretary of State Hillary Clinton talked of US "national interests" in the area.

Geng said at a press conference that China would push for the resolution of differences regarding the South China Sea with "relevant countries" through dialogue and negotiations and that Beijing objected to having the issue internationalised.

China would respect the liberty of ships and aircraft from "relevant countries" traversing the South China Sea in accordance with international laws, Geng added.

China held military drills in waters alongside US-South Korean exercises, leading to speculation that China had staged them intentionally to send a message to the US.

But Geng denied there was any connection, "The increased exposure of Chinese military exercises aims to showcase a more open, pragmatic and transparent Chinese military. I hope our friends in the media correctly analyze and understand the exercises and do not speculate or over-interpret them."

12,000 Take Part in Air Defence Drills: Chinese air defence forces on Thursday battled rain during a five-day military exercise.

More than 12,000 Chinese military personnel, along with seven types of military aircraft, took part "Vanguard 2010", which started on Tuesday in seven cities across Henan and Shandong Provinces.

Reports said the annual drill, consisting of two phases to run from Tuesday to Saturday, would feature emergency evacuations, war planning, reconnaissance, early warning activities, ground-to-air attacks, and evacuations of command posts during its first phase which ends on Thursday.

Its second phase includes testing Chinese air defense troops' abilities in fighting air units in a "complicated electromagnetic environment".

China to enhance army's capabilities: China's armed forces will continue to enhance their capabilities and military readiness to safeguard sovereignty, security, and development of the nation, Defense Minister Liang Guanglie said.

Liang made the remarks while addressing a reception held in Beijing to mark the 83rd anniversary of the founding of the People's Liberation Army (PLA).

Liang said the army should strengthen military training, adopt more high-technology weapons and equipment, improve military logistics, and increase combat capabilities by using information technology.

Meanwhile, a spokesman said China's defense expenditure has been maintained at a "reasonable and appropriate level".

China's annual defense expenditure has been around 1.4 percent of its GDP in recent years while the share of some major world powers is between 2 and 4 percent, according to Geng Yansheng.

China Hopes US to Contribute to Military Exchange: China called on the United States to "handle carefully" sensitive issues such as arms sale to Taiwan and contribute to the development of military-to-military relations between the two countries.

Senior Colonel Geng Yansheng, spokesman of China's Ministry of National Defense, urged the US to create "favorable environment and conditions" to promote military-to-military relations between the countries.

In January, China cut off some military exchanges with the US following the Pentagon's decision to sell a $6.4-billion arms package to Taiwan.

Chinese FM’s visit to Austria, Latin America: Chinese Foreign Minister Yang Jiechi said his visit to Austria, Mexico, Cuba and Costa Rica was a great success, claiming consensus with leaders and foreign ministers on the international financial crisis and reforms, climate change, and the UN Millennium Development Goals.

Yang said annual trade with Latin America has reached nearly $150 billion, and China has become the region's second biggest trade partner.

Venezuela and China discussed ten agreements involving cooperation in energy, mining, food and gas sectors. China agreed to back Venezuela's 17 development projects by providing $4 billion in credit loans via the China Development Bank (CDB).

China's policy toward Pacific Islands countries: China will continue to provide assistance to help the Pacific Island countries build capacity to tackle global financial crisis and climate change, and support the sustainable development, said Chinese Vice Foreign Minister Cui Tiankai.

Cui made the remarks at the the 22nd Pacific Islands Forum's Dialogue Meeting, which was held in the Vanuatu capital of Port Vila on Friday.

China, Iran pledge to carry out cooperation projects: China and Iran on Friday pledged to pursue cooperation projects after a meeting between Chinese Vice Premier Li Keqiang and visiting Iranian Oil Minister Masoud Mirkazemi.



The Chinese Foreign Ministry release did not specify the cooperation projects nor where they would be implemented.

Iran is one of the major crude oil suppliers to China and a crucial trade partner in west Asia and north Africa.

It was in the fundamental interests of both countries to cement friendly and cooperative ties, Li said. China would like to work with Iran to cement political trust, maintain communication and coordination on international and regional issues so as to safeguard regional and world peace, stability and prosperity, he added.



China Opposes EU sanctions on Iran: China opposed unilateral sanctions levied on Iran by the European Union, said Foreign Ministry spokeswoman Jiang Yu.

"We hope the relevant parties will adhere to diplomatic means on the issue," said Jiang in response to a question. China maintains that the Iran nuclear issue should be resolved through dialogue and negotiations, she added.

China to Participate in Drill in Kazakhstan: More than 1,000 army and air force officers and soldiers from China's People's Liberation Army (PLA) will take part in an anti-terror exercise in Kazakhstan this autumn.

The "Peace Mission 2010" exercise will be the seventh of its kind held under the framework of the Shanghai Cooperation Organization.

China reaffirms friendship with DPRK: Chinese Assistant Foreign Minister Hu Zhengyue said on Friday that China is committed to consolidating ties with the Democratic People's Republic of Korea .

In a meeting with Yang Hyong Sop, Vice President of the Presidium of North Korea's Supreme People's Assembly, Hu said Chinese leaders attach great importance to the bilateral relationship. It is China's steadfast policy to continuously consolidate and enhance good neighbourliness and friendly cooperation with the DPRK.

China to Launch Fifth Orbiter: China will launch a fifth orbiter into space, as part of its satellite navigation and positioning network, Beidou, in the next few days.



The network will eventually consist of 35 satellites. China started building its own satellite navigation system in 2000 to end its dependence upon the U.S. GPS system. Beidou is designed to provide navigation, time and short message services in the Asia and Pacific region in 2010 and will be capable of providing global navigation services by 2020.

New Plan Targets Pollution: China plans to introduce ambitious new targets for the reduction of major pollutants in the upcoming 12th Five-Year Plan (2011-15).

Two new pollution indicators, nitrogen oxide --- mainly discharged from power plants and vehicles --- and ammonia nitrogen, a major measure of water quality, will be added to the emission control list for the next five years, said Gao Dongsheng, deputy director of the department of energy conservation and resources utilization within the Ministry of Industry and Information Technology.

Population Control in Beijing: In a move to reduce a burgeoning population, the Beijing People's Congress has advocated a restriction of low-wage workers in the capital through closures of small businesses.

The Congress recommended population control measures be part of the city's 2011-15 development plan, with an adjustment of industries through the introduction of more skilled workers and a reduction in the overall demand for laborers.

Beijing's population reached 19.72 million at the end of 2009. Among this figure, 7.26 million people were migrant workers who had been living in the city for more than six months. If unregistered migrant workers and people on short visits to the capital are also taken into consideration, the floating population in Beijing could have exceeded 10 million, the municipal officials said in the report.

China's first amphibious plane starts test flight: The first China-made amphibious plane, Seagull 300, begins its test flight on Thursday.

The plane can take off from and land on a 600-metre-long and 50-metre-wide runway either on the land or on the water.

The four-to-six-passenger plane costs more than 4 million yuan ($600,000) and can be used for business, passenger, cargo, medical aid, or sightseeing flights.

Pakistan: A Growing Friendship with Beijing? (Raaff)

Seb Raaff writes for EA:

Lately, the Pakistani Government has been taking blows from the “West”. With growing distrust of its commitment to the destruction of the Taliban in Afghanistan,and the recent Wikileaks documents suggesting Pakistani intelligence ties with insurgents, Islamabad has found itself out of favour in both London and Washington.

With Beijing, the situation is much different.

Pakistan, an observer of the Shanghai Cooperation Organisation (SCO) since 2005, however, because of concerns from other members, it has been denied full membership as recently as this spring. However, the spate of upsets with the West could have strengthened Pakistan’s links with China and its neighbours. Indeed, after President Asif Ali Zardari’s visit to Beijing on 12 July, relations have appeared to go from good to better.

Dawn reported:

Appreciating Pakistan’s one-China policy, the Chinese leadership assured President Zardari of their continued support to Pakistan at the United Nations and other multilateral forums in its fight against militancy. China has already supported Pakistan’s full membership to the Shanghai Cooperation Organisation.

President Asif Ali Zardari was also able to secure a grant of 50 million Yuan (about $7.4 million) for Pakistan’s development, as well as a signed agreement on increased economic cooperation.

This increase in support comes at a time when Beijing is also wooing Pakistan with the promise of two new nuclear reactors despite complaints from Washington. Even though China is a member of the Nuclear Suppliers Group, which prohibits the transfer of nuclear technology to countries --- such as Pakistan --- have not signed the Nuclear Non-proliferation Treaty, Beijing is pressing ahead with the sale.

As Pakistan faces a humanitarian disaster in one of its most volatile regions with last week’s floods, increasing criticism from the West, and ever-present threats to stability from indigenous terrorism, China’s recent ventures may bring strengthened links with Islamabad, even if this causes tension in Pakistan’s ties with the West.

The Latest from Iran (5 August): Challenges

1540 GMT: Culture Corner. Human rights activists Parvin Ardalan and Azin Izadifar are among the recipients of the 2010 Hellmann-Hammett Prize. The award, named after playwright Lillian Hellman and crime writer Dashiell Hammett and administered by Human Rights Watch, recognises literary excellence.

1535 GMT: Replacing the Clerics. The names of 12 new Friday Prayer leaders for 12 cities have been published. Each will serve for three years.

Recently 60 Friday Prayer leaders were "retired" by the regime.

NEW Iran-US Special: Obama Extends His Hand “Engagement, Not Conflict”
Iran Feature: Free Speech (and Some Laughs) in the Theatre (Tehran Bureau)
Iran Special: Grenade Attack on Ahmadinejad?
Iran Feature: The Activism of the Women’s Movement (Mouri)
The Latest from Iran (4 August): The President and The Plots

1530 GMT: Keyhan v. Ahmadinejad. More on the feud between the "hard-line" newspaper Keyhan and the President's office....

Keyhan had alleged that one of the those invited to this week's conference of the Iranian diaspora, Hooshang Amirahmadi of the American Iranian Council, was a "CIA associate". Ahmadinejad's chief of staff, Esfandiar Rahim Mashai, denied Amirahmadi had been approached.

So Keyhan has published the official invitation for Amirahmadi.

1450 GMT: The Torture Information. Khodnevis is claiming, from a source close to the Assembly of Experts, that the head of the Assembly, Hashemi Rafsanjani has sent the cases of 22 people who were allegedly tortured to the Supreme Leader. Acccording to the source, Rafsanjani personally delivered details of five cases, including that of editor and university offical Hamzeh Karami, to Ayatollah Khamenei.

(EA reported on the Karami case yesterday but we did not know of the four other claimed cases.)

According to this source, the 22 complaints included allegations against specific officials. One of these is Hossein Taeb, the former commander of the Basij militia and now head of the Intelligence Bureau of the Islamic Revolution Guards Corps.

1330 GMT: The No-Longer-Missing Lawyer. Human rights lawyer Mohammad Mostafaei, who has fled arrest in Iran and is now in Turkey (see 0655 and 1205 GMT), has given an interview to Radio Free Europe/Radio Liberty on his recent experiences and his defense of Sakineh Mohammadi Ashtiani, sentenced to death for adultery.

1320 GMT: Political Prisoner Watch. Activist Ramin Poshtkoohi was arrested in Isfahan on Sunday.

1315 GMT: Twitter and Iran. Dave Siavashi has written a heart-felt, incisive analysis at Iran News Now, "Revisiting what the 'Twitter Revolution' really means".

1310 GMT: Mahmoud's Plans. President Ahmadinejad has declared that "opponents" (in the Green Movement? in Parliament?) are trying to sabotage the introduction of his subsidy reduction plan in October.

1207 GMT: International Front. The Supreme Leader's key advisor on foreign affairs, former Foreign Minister Ali Akbar Velayati, is in Lebanon for talks with Hezbollah leader Sayyed Hassan Nasrallah and Lebanese Foreign Minister Ali al-Shami.

1209 GMT: Political Prisoner Watch. Rah-e-Sabz claims intelligence agents have allegedly called mothers of Evin Prison hunger strikers, threatening them with arrest.

1205 GMT:  A Turkish Foreign Ministry official has told CNN that "extradition to Iran is out of question" for Iranian human rights lawyer Mohammad Mostafaei (see 0655 GMT).

1150 GMT: Forget the Grenade, We're Going Into Orbit. Iran's official outlet IRNA highlights a passage from President Ahmadinejad's speech on Thursday in Hamedan, in which he said Tehran would put a man into space by 2017: "The plan is in line with an Iran space agency program to produce and place in orbit a spacecraft at an altitude of more than 35,000 kilometers."

Ahmadinejad has made similar declarations over the last 12 months, including his proclamation of the launch of a rocket which had two turtles, a mouse, and some worms.

1145 GMT: Sanctions Watch. As Iran's Minister of Oil Massoud Mirkazemi visits Beijing, the Chinese Foreign Ministry maintained its careful balancing act on pressure against Tehran: "China's trade with Iran is a normal business exchange, which will not harm the interests of other countries and the international community. As a permanent member of the U.N. Security Council, China has always observed the council's resolutions."

Earlier this week Robert Einhorn, the special adviser for nonproliferation and arms control at the U.S. State Department, declared that China should live up to the sanctions.

0900 GMT: The Campaign against Jannati. Looks like a development in our ongoing watch on the pressure against Ayatollah Ahmad Jannati, the head of the Guardian Council, and thus indirectly on the Supreme Leader. From the Facebook page supporting Mir Hossein Mousavi:

Mir Hossein Mousavi and Mehdi Karroubi, in reaction to the false accusations made by Ahmad Jannati [a reference to Jannati's speech last accusing opposition leaders of taking $1 billion, with a promise of another $50 billion, from the US and Saudi Arabia to overthrow the regime], have written a joint letter addressed to senior religious figures and Grand Ayatollahs. They have asked them to step in for the sake of “saving the integrity of Islam and religious figures’ statue” and to confront those who pose as clerics and who, obviously and shamelessly, are damaging the stature of Islam and religious figures.

In this joint letter Mehdi Karroubi and Mir Hossein Mousavi called on the Grand Ayatollahs to confront Ahmad Jannati and ask him to provide his so-called documents regarding the accusations he made that the Green leaders have received $1 billion from the United States Government via Saudi Arabia to overthrow the establishment....Mir Hossein Mousavi and Mehdi Karroubi stated that these false accusations made by chairman of the Guardian Council are “the most striking example of shameless...insults”.

0845 GMT: We've posted two features. Scott Lucas analyses an important signal from President Obama on Iran policy, "Engagement, Not Conflict". And a Tehran Bureau correspondent moves politics into another arena, "Free Speech (and Some Laughs) in the Theatre".

0720 GMT: Political Prisoner Watch. An appellate court has upheld the five-year sentence of Mohammad Davari, editor of Mehdi Karroubi's Saham News.

0655 GMT: The No-Longer-Missing Lawyer. Saeed Kamali Dehghan, writing in The Guardian of London, updates on the case of human rights lawyer Mohammad Mostafaei, who fled Iran after authorities tried to detain him and arrested his wife and brother-in-law (his wife is still in prison).

Mostafaei is now in Turkey but there is some confusion over his status: Dehghan says the lawyer was arrested on immigration charges on Monday. According to The Guardian, Norwegian and US officials met Mostafaei in prison and offered him asylum, but he was forced by Turkish officials to claim asylum with the UN authorities in Turkey or face extradition.

0630 GMT: Academic Boycott. Minister of Health Marzieh Vahid Dastjerdi has confirmed what EA already knew from experience: new restrictions will be applied on students seeking to study in Britain and the US, since they are hostile and have only "limited relations" with Tehran.

(One beneficiary of the policy is Ireland, an English-speaking country towards which students have been directed for some time.)

0550 GMT: We begin this morning with an analysis by Rasool Nafisi of the possible significance for Ayatollah Khamenei of a fatwa by Grand Ayatollah Sistani, the leading Shia cleric in Iraq, which says clerical authority must come from the affirmation of the people.

Meanwhile, as we look for the political fallout from yesterday's grenade/firecracker attack/non-attack on President Ahmadinejad's motorcade....

Political Prisoner Watch

Activists Zahra Rahnavard and Parvin Fahimi, the mother of the slain demonstrator Sohrab Arabi, have met with the families of the 17 political prisoners on hunger strike.

On Air Soon

Rasa TV, the product of Resaneh Sabze Iran, is now on-line and promising to be on-air in the near-future.

Today's Tough Talk

Brigadier General Mohammad-Hassan Baqeri, a deputy commander of Iran's army, lays it out "Any insane move will bring the US nothing but regret and they will get our final response in the scene of action."

The Latest from Iran (1 August): Pressure on Ahmadinejad & Khamenei

1930 GMT: New rhetorical developments in the "War with Iran" corner --- we've got a separate analysis of today's appearance by US military chief Mike Mullen on a Sunday talk show.

1850 GMT: Women, Off Your Bikes. The Friday Prayers leader of Mashaad has reminded women that it is forbidden for them to cycle.

1845 GMT: Terrorist Alert. Fars News reports that a "terrorist" group, made up of Baha'i followers, has been rounded up in Tehran.

1700 GMT: Water Squeeze, Electricity Squeeze Oil Squeeze. Rah-e-Sabz surveys the crisis in supply of clean water, electricity, and gas, noting the restriction in operations of many plants.

NEW Iran Analysis: Hyping the War Chatter — US Military Chief Mike Mullen Speaks
Iran Analysis: More War, No Facts, Blah Blah (Chapter 23)
Iran Analysis: Looking Back on the 1980s (Verde)
Iran Music Video Special: The Award-Winning “Ayatollah, Leave Those Kids Alone”
Iran’s Persecution of Rights: The Pursuit of Lawyer Mohammad Mostafaei (Shahryar)
The Latest from Iran (31 July): Past and Present

1655 GMT: Academic Corner. Advar-e Tahkim Vahdat, the student alumni organisation, has warned of widespread purges of professors with the destruction of social sciences and condemned the prison sentences of Bahareh Hedayat, Ali Malihi, and Milad Asadi.

1650 GMT: More Pressure on the Supreme Leader. Ayatollah Mohsen Kadivar, who recently made a prominent call for the removal of Ayatollah Khamenei, has declared that the "greatest coup d'état" in Iran has been "made by the first person of the country".

1635 GMT: Khomeini Intervention. Seyed Hassan Khomeini, the grandson of Ayatollah Khomeini, has appealed for "an end to hate and rancour as means to solve problems".

Khomeini was meeting members of Islamic associations in Golestan Province.

1620 GMT: Today's All-is-Well Alert. The managing director of the National Iranian Oil Distribution Company (NIODC), Farid Ameri, has said that despite the imposition of new UN sanctions, Iran's gasoline reserves have increased by 15%. Ameri insisted that Iran is capable of supplying its gasoline needs.

1610 GMT: Political Prisoner Watch. Student activist Hosein Sarshoumi has been arrested in Isfahan.

1530 GMT: Counter-Sanctions. The Ministry of Culture and Islamic Guidance has issued a directive, "Registration of orders for printing goods, tools and machines from Britain is not allowed."

1520 GMT: Economy Watch. Reports claims that German experts hired for a metro project in Isfahan have left because of unpaid wages.

1515 GMT: Tough Talk of the Day. Yadollah Javani, the political director of the Islamic Revolution Guards Corps: if attacked, Iran will take the war beyond its geographical borders.

1450 GMT: Economy Watch. Parleman News reports that unemployment has risen in 21 of Iran's 30 provinces.

The official unemployment rate is now above 10% in 22 provinces.

Mehr News reports that Iran's non-oil trade imbalance has increased, with imports now at a 2:1 ratio to exports.

1430 GMT: Political Prisoner Watch. Kalemeh says that four hunger strikers (we had reported on one, Payman Akbari-Azad, at 1405 GMT) have been moved to a clinic at Evin Prison.

1415 GMT: Western Reporters, Stay Away. Deputy Minister of Culture and Islamic Guidance Mohammad-Ali Ramin, in addition to slamming Iran's "irresponsible press" (see 1400 GMT), has proclaimed, "The Western media will be excluded from this year's [national] press exhibition. We will not allow the presence of those Western media which are vain, dishonest and beguiling and consider themselves as the ultimate media sultans of the world."

Ramin said exceptions would be made for Western media "which are fitting and independent" to attend the 25 October exhibition.

Earlier this year, some Western journalists used purported coverage of a Tehran conference on uranium enrichment to publish other first-hand stories of Iranian life and politics after the 2009 election.

1410 GMT: Put-Down of the Day. Activist Zahra Rahnavard on Ayatollah Jannati, head of the Guardian Council, after his speech this week defending the Supreme Leader and claiming a US-Saudi $50 billion plot for regime change: "Even a cooked chicken laughs at his words."

1405 GMT: Political Prisoner Watch. RAHANA reports that Payman Akbari-Azad, in the 7th day of his hunger strike, has been taken to a hospital outside Evin Prison.

1400 GMT: Complaint of the Week. Mohammad Ali Ramin, the Deputy Minister of Culture and Islamic Guidance, commented on Wednesday in a speech at Imam Khomeini International University blasted the "undesirable situation of the press": "The government is criticized and even disparaged on a daily and weekly basis by at least 500 to 600 publications in the country in the strongest, sometimes insulting, terms."

Ramin also said there are too many publications in Iran:

In the period before me, the supervisory committee would issue 60 licenses during a one-hour meeting. We are now facing problems and some people have licenses over which there is no supervision....Some of these publications which have obtained licenses are in the hands of individuals with no money and they become dependent on investors. The government must help them become absorbed into parties and organizations.

In another section of the speech, Ramin supported the Supreme Leader's "I am the Rule of the Prophet" fatwa and went even further: "The [Leader] has the position of surrogate of the Imam Zaman [the 12th "hidden" Imam] and on his behalf must manage the world, in other words the imposition of God's proof upon humanity during the time of absence [of Imam Zaman]."

Ramin concluded, "We must find a way for the velayat-e-faqih system to manage the world."

0720 GMT: Trouble for the Fatwa? With clerical reaction in Iran awaited to the Supreme Leader's declaration of authority (see 0645 GMT), Grand Ayatollah Sistani, the leading Shia cleric in Iraq (and a native of Iran), has given a less than warm reception.

Sistani said that, to rule the country, velayat-e-faqih and the Supreme Leader's authority must be approved by the majority of loyal followers. He added that if the rule of a marja (senior cleric) differs from that of the Supreme Leader, it is still valid if it is based on welfare for all, unless it contradicts the Qukran and tradition. (http://www.khabaronline.ir/news-80110.aspx)

Meanwhile, Hojatoleslam Hossein Ebrahimi of the Assocation of Combatant Clergy has warned that all three branches of Government are in the hands of hardliners. He added, however, that those hardliners are menaced by internal conflicts and said reformists have not been eliminated. (http://www.khabaronline.ir/news-77980.aspx)

0710 GMT: The Battle Within. The dispute between Parliament and President is now affecting war veterans, according to Rah-e-Sabz. The site claims that the law to support victims of chemical warfare in the Iran-Iraq War has not been implemented by the Government.
(http://www.rahesabz.net/story/20523/)

MP Musalreza Servati has warned that if the Government does not approve the funds for the Tehran metro system, the relevant ministers will be impeached. (http://www.rahesabz.net/story/20470/)

On a different front, MP Esmail Kousari has challenged the Government's "soft" stance on hijab: any current which wants to supersede hardliners is not hardline at all. (http://www.khabaronline.ir/news-78645.aspx)

Alireza Marandi has asked, "How can a government that does not implement Majlis legislation... pretend to be able to run the country?" (http://www.khabaronline.ir/news-79922.aspx)

However, the most serious challenge may have come from Mohammad Nabi Habibi, the leader of the conservative Motalefeh party. Amidst growing confrontation with the President's inner circle, Habibi has struck back at Ahmadinejad's recent declaration that only one party, the Velayat Party, is necessary.

Habibi claimed that the lack of parties menaces Iran and said the "propaganda system" of a party that presents its aims as those of the people is wrong.

Then he warned, "In many cases government have been toppled because of this." (http://www.khabaronline.ir/news-80102.aspx)

0700 GMT: Watching the Clerics. An EA correspondent tells us of a development with the Supreme Leader's "I am the Rule of the Prophet" fatwa.

Grand Ayatollah Makarem Shirazi, who was approached by Ayatollah Khamenei's staff before the fatwa was issued, has published answers to questions about velayat-e-faqih (clerical supremacy) on his website. (http://persian.makarem.ir/estefta/?it=899&mit)

Makarem Shirazi's responses could be a big clue as to whether the Supreme Leader's assertion of authority will be accepted by senior clerics. Curiously, only some of the answers have been published by Fars News. (http://www.farsnews.net/newstext.php?nn=8905080088)

0645 GMT: Slapdown to Obama. Iran has responded to President Obama's call on Friday for the release of three Americans, detained for allegedly walking across the Iran border last year, by insisting that the trio will be tried.

0630 GMT: Oil Salvation from Beijing? Deputy Minister of Oil Hossein Nokreqhbar Shirazi claimed Saturday that Chinese investment in Iran's energy sector has risen to $40 billion.

There was a downside, however. Shirazi admitted that Iran's oil exports to China have fallen 30% this year.

0600 GMT: Catching up with the news while on the road....

Political Prisoner Watch

Brazil has offered asylum to Sakineh Mohammadi Ashtiani, the woman sentenced to death --- initially by stoning before this was recently revoked --- for adultery.

Peyke Iran publishes pictures of detainees' families who protested in front of the Tehran Prosecutor General's office on Saturday.

Inside Evin Prison, telephone contact has been re-established with political prisoners in Ward 350, where detainees protested last week over ill treatment of them and their families by prison guards. There is still no word, however, of several prisoners who are reportedly in solitary confinement and on hunger strike.

RAHANA posts a report on Majid Dorri, one of the hunger strikers.

Economy Watch

Green Voice of Freedom writes about the metal industry of Kerman, "destroyed" by Chinese & Pakistani imports.