Article: Coloured by paranoia. (Iran's support for militant Islamic fundamentalists)

WE HAVE NO enemies," said Iran's minister of defence, Akhbar Toukan, in a recent interview. As a result, the country can get by with one of the smallest military procurement budgets in the Gulf of around $1bn a year, he claimed. Exactly how much Iran spends on defence is a matter of some debate the United States puts it closer to $2bn. But moderate elements in the regime are anxious to stress Iran's peaceful intentions.

American military action against Iraq has heightened fears in Tehran among the more cautious officials that if Iran is seen to be promoting fundamentalist dissent in the Arab world and seeking to dominate the Gulf, it too will bring down upon itself ...

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