Weapons of Mass Destruction (WMD)

DATE=03/13/01

TYPE=CORRESPONDENT REPORT

TITLE=IRAN / RUSSIA (L)

NUMBER=2-273647

BYLINE=BILL GASPERINI

DATELINE=MOSCOW

CONTENT=

VOICED AT:

INTRO: Russian arms manufacturers are preparing for weapons sales to Iran. Bill Gasperini reports from Moscow some big deals may be possible following an agreement reached Monday between Russian President Vladimir Putin and Iranian President Muhammad Khatami.

TEXT: A day after the meeting between the two leaders, Russian defense contractors are reportedly seeking to make deals that could total billions of dollars.

Deputy Prime Minister Ilya Klebanov says a preliminary deal for cargo planes could be reached before President Khatami ends his visit to Russia on Thursday.

Iran may produce its own Tupolev jetliners under license from Russia, while officials say Tehran is also interested in tanks, anti-aircraft missiles, and submarines.

President Putin announced Monday that Russia would resume selling arms to Iran after a five-year halt. Moscow had stopped the sales after reaching an agreement with the United States in 1995.

The Russian president says that Iran has the right to acquire new weapons, which he insists will be purely defensive.

Washington had sharply criticized Russia for suspending the 1995 agreement even before Mr. Khatami arrived in Moscow on the first visit by an Iranian leader to Russia in decades.

/// OPT /// After the Moscow meeting, State Department spokesman Richard Boucher said it was particularly counterproductive for Russia to sell new weapons to Tehran. /// END OPT ///

President Khatami expressed interest in Russian space technology during a tour of Russia's Mission Control center outside Moscow. The Iranian leader visited the control room and asked to talk with the crew on the International Space Station, although this was not possible for technical reasons.

Iranian officials say Russia is likely to win a contract to manufacture and launch an Iranian telecommunications satellite. (SIGNED)

NEB/BG/GE/RAE