Many of the 60,000 Iraqi political refugees living in western Iran have responded favorably to Iraq's "no strings" offer to allow these refugees back into Iraq. Most of these refugees are Kurds or Shiites.

September 4; Greece has reached a military cooperation accord with Iran; it already has similar accords with Syria and Russia. This brings it closer to the forming anti-US axis (which is built around Russia, Syria, and Iran).--Stephen V Cole

September 1; The conservative controlled judiciary has agreed to prosecute several policemen who had used violence against student demonstrators last July. These policemen were accused of organizing attacks on the students in their dormitories. 

August 30; Iran and Iraq, after several weeks of saber rattling, have restarted negotiations to exchange prisoners from their 1980-88 war.

August 25; Iran and Pakistan have signed an agreement to cooperate in the intelligence and security area in order to crack down on drug smuggling. 

August 5; Some 50,000 Basiji (volunteer Islamic militia) assembled in the suburbs of Tehran for military maneuvers meant to warn moderates thinking of holding more demonstrations.

August 2; There moderate journalists were arrested after returning from a trip to the United States. Dozens of other moderate journalists have been rounded up by the police.