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Focuses on Iran. President Mohammed Khatami's news conference warning that the United States and Iran remain far apart on key issues; Mention of his address to the United Nations at the opening of the General Assembly in fall 1998; The country veering politically between moderation and extremism; Mention of the death sentence imposed against an author by Ayatollah Ruhollah Khomeini in 1989; The struggle for power within Iran and the government debate on whether to attack Afghanistan. INSET: A step forward, a step back.

Comments on Iran. President Mohammed Khatami's apparent wavering between moderation and extremism when it comes to foreign policy; The release of author Salman Rushdie from the fatwa imposed by Ayatollah Ruhollah Khomeini in 1989; Iran's association with terrorists; The possibility of Khatami's diplomatic initiative being overruled by Ayatollah Khamenei, head of Iran's Army. INSET: A Step Forward, a Step Back.