lop,. -4%7z~go Adnunistratton Welcome's 'Encou * ' raging igii By Ann Devroy Washington Post Staff Writer Amid increasing signs of significant changes inside Iran, and hints of secret di- plomacy, the Bush administration yesterday welcomed "encouraging" signals from Teh- ran on the fate of the American hostages. In Tehran, President Ali Akbar Hashemi Rafsanjani told journalists that Iran wanted to solve the hostage problem. "My feeling is that the issue of the hostages is moving to- wards a solution," he said at a news confer- ence after the return of Mahmoud Hashemi, his brother, from visits to Syria and Lebanon where he metwith officials and Shiite Mos- lem leaders. U.S. government and, outside experts on VVVIO 10 Approved For Release 2000/0 8 -RDP'96_;,00789R 8W0tQW1D8-7 Iran said that Rafsanjani, after several months in office marked by a power strug- gle with.extremists who oppose his plans to improve relations with the West, is now consolidating his control. That consolida- tion, they said, was the most positive sign that five years of Western efforts to free 18 hostages might reach fruition. Officials yesterday cited as a significant sign.the arrival of a special mission from the World Bank in Tehran to review an Iranian request for economic assistance. The ne- gotiations followed a two-month battle in the Iranian parliament, which approved a Rafsanjani plan to borrow about $27 billion from foreign countries despite initial oppo- sition from'hard-liners. The money would finance an ambitious five-year project to rebuild Iran's economy and infrastructure, devastated by the war with Iraq. White House press secretary Marlin Fitz- water said the administration was "encour- aged by the comments" of Rafsanjani, The remarks, Fitzwater added, "are certainly more hopeful than we have heard in the more distant past." A senior administration official described the attitude of officials at the White House as "one of we wait and sit and read tea leaves and read cables and feel optimistic, but many of us have been through this be- fore. We are more optimistic, yes, but there is no sign of imminent release" of the hos- tages. Another senior official said: "We think nothing is going to happen immediate- ly. But I think only three people know what presse ope for an e~arl release of the hostages, according to the of- ficial Iranian news agency. In the US from i past, Mussawi spoke out strongly I allon nosta against concessions to the West and unconditional release of the hos really is happening-the president, [Sec- ficials, Sick cautioned, "Things can always go tages. Hezbollah's spiritual guide, retary of State James A.] Baker and [nation- wrong, especiaUy in Lebanon." Sheik Mohammed Hussein Fadlal al security adviser] Brent Scowcroft." 1 In Lebanon yesterday, a group calling-it- lah, last week voiced optimism and Gary Sick, who handled Iranian matters on self the Revolutionary Justice Organizition called for an end to the hostage cri- President Jimmy Carter's National Security said it had no intention of releasing',f*0 sisin his Friday sermon. Council staff and now observes Iran from Co- American hostages it has been holding. Two Iranian government envoys lumbia University, said yesterday: "I am as They are Joseph Cicippio of PennsylvAnia went to Damascus and Beirut in an optimistic as I have ever been. I think this is and Edward Austin Tracy of Vermont;~,~an unannounced visit two days ago to it. I really do I see this [release of the author, There are six other American:kQs. consult with Syrian officials and Shi- hostages] as the next step. He '[Rafsanjani]. tages among the 18 from the West. ite clerics. Sources in Beirut said The new optimism was triggered by'a je.* Mahmoud Hashemi, director of the needs 4 and he is doing this not because he ries of editorials in Iran's Tehran Times cover Middle East department at the Iran cares about the hostages. but simply to rein- the past 10 days calling for the first time for ian Foreign Ministry, and Mahmoud force his position domestically.10 an "unconditional" release of foreign captives Akhtari, Iran's ambassador to Syria, Sick interpreted Rafsanjani's decision to held by pro4ranian groups in Lebanon. , - traveled to Beirut from Syria. publicly predict a solution to the hostage cri- In addition to the editorials, a senior Hez. Sources in Washington said Syr- sis as a sign of his growing control of the gov- bollah official, Hussein Mussawi, has ex. ian Foreign Minister Farouk Charaa ernment. But like several administration of- See HOSTAGES, A32, Col I was planning to visit the Iranian capital in the next two days. ., The mission from the World Bank is the second to Tehran in the past three months. The bank had cut off loans to Iran after the 1979 explosion in oil prices raised Iran's income beyond the ceiling for bank. assistance. The move coincided with the seizure of U.S. hostages. Iran, again eligible for assistance, requested it in September, prompt- ing the visits by the World Bank teams. While the United States has no direct control over. World Bank loans, its voting rights and pressure on allies could thwart an Iranian ef- Approved For Release 2000/08/08 : CIA-RDP96-00789ROO04010200OW to obtain the credits. A White House official said the United States would oppose such funding,