January 21, 1998

			DIPLOMATIC REPORT REVEALS GAMBLES OF IRAQI PRESIDENT ON THE REGIONAL AND INTERNATIONAL LEVELS. Iraq talks about war but keeps its distance from it, hoping for Russian inducements and regional fears of confrontation.   PRESIDENT KHATAMI -- WILL HE BEAT THE HARD-LINERS OR SUFFER THE SAME FATE AS MIKHAIL GORBACHEV? Britain sets out the West's list of demand for Iran, including ban on weapons of mass destruction and lifting the Fatwa against Salman Rushdie. Cook says sanctions on companies doing business with Iran only help the hawks in Islamic Republic.   MASSACRES IN ALGERIA: A DOMESTIC TRAGEDY AND THE SHOW-OFF POSITIONS. Dialogue between all parties and co-operation between Government and the Military are the only ways to stop the killings.   SYMPOSIUM ON SAUDI ARABIA. A FEATURE ABOUT ARAFAT'S HEALTH PUBLISHED BY THE ROYAL INSTITUTE OF INTERNATIONAL AFFAIRS. PRINCE SULTAN MAKES DONATIONS TO THE FUND FOR RAMADAN MEALS. THE WINDS OF ECONOMIC CRISIS THREATEN SUHARTO. THE ECONOMY OF THE KINGDOM OF SAUDI ARABIA THROUGH THE EYES OF FINANCIAL EXPERTS. KURDS POUR INTO ITALY. INDUSTRIAL DEVELOPMENT NOW AND IN THE FUTURE.