IRAN 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.

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 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.