Iran: The Test of Wills

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point of the conflict remained the occupied American embassy in Tehran. Inside the compound, 600 members of the "Muslim Students of the Imam Khomeini Line" split the hostages into two groups. Half were in the ambassador's residence, half in two yellow bungalows near by. The treatment of the hostages was believed to have improved somewhat, though some of the men still had their hands tied. The women were guarded by chador-clad girls clutching automatic rifles. Early in the week the captors released a taped message from one of the Marine prisoners, Kevin Hermening, complaining that he didn't like "being a pawn used in a game" and urging the President to place a higher priority on the lives of the hostages than on the Shah.

Outside the embassy was a far wilder scene as crowds of thousands gathered to shout their support. Above the embassy gate hung a portrait of Khomeini and a loudspeaker over which a voice intoned repeatedly, "God is great" and "There is but one God." At a midnight rally Thursday about 1,000 students, aligned with the leftist Islamic Mujahedin-e Khalq (People's Crusaders), tried to stage a demonstration but found themselves confronting a group of right-wing Islamic extremists. Moderates crying "Allahu akbar!" (God is great) quickly moved in to act as a buffer between the two groups.

One day, three British members of an NBC television crew were arrested near the embassy, but were quickly released. On another occasion, a deeply distraught American woman, apparently the relative of a hostage, appeared at the gates with a child in hand. She suddenly began to shout obscenities at the guards. In an instant the mob started to surge toward her, but photographers provided a distraction, and in the confusion she was quickly led away. Behind her, the crowd kept murmuring, "Kill her, kill her." Said a Western diplomat: "The crowd now represents a 'third force,' and it has to be reckoned with. If either Khomeini or the students were to try to negotiate, I wouldn't rule out a mass attack by this mob."

Every day after noon prayers, the students and the crowd went through a curious ritual that often ended in mass hysteria. The students came to the embassy gates to exchange political slogans with the people outside. They threw carnations and tulips, an Iranian symbol of martyrdom, back and forth through the gates. Said one worried Iranian bystander: "I think the're is a national death wish emerging."

Such scenes reinforced the U.S. concern that the Iranian government and even Khomeini himself were being swept along by events. But from the Ayatullah's point of view, there was ample reason to welcome some political diversion. He has fared poorly in bringing the Iranian economy back to prerevolutionary levels. Industry is estimated to be operating at only 40% of capacity. With workers' councils sitting in on managerial decisions, many managers are afraid to make decisions on anything but issuing paychecks. Chaos prevails at the docks and at highway customs posts along the main truck route from Europe. Inflation is running at 40%, unemployment at 25%. In Tehran the situation is further aggravated by the migration since the revolution of perhaps 1.5 million people to the city, bringing the population up to as many as 5 million.

The streets are