Chalus had been reported as the locale of an underground nuclear weapons developoment facility located inside a mountain south of this coastal town. The facility had been variously reported as being staffed by experts from Russia, China and North Korea. The reports came in 1995 from Iranian exiles living in Europe and were reported by US News and World Report.
In March 2002 the claims resurfaced in a report by the Middle East Intelligence Bulletin. It was described as an alleged underground nuclear weapons development facility built in the Alborz mountains. Iranian authorities reportedly told their citizens that the facility was an electricity generation plant operated by Canadians.
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