; FROM ONE t Jranian Foreign Minister Ahothasgan Banl-Sadr Sreatly softened Iran's copditions for the release of re 98 hoslages at the em- We We want two things — that the United States accept at least an investigation inte the crimes of the deposed shah and accept the results of this investigation,” Bani- Sadr said. “Secondly, that the Americans okay Iran oil cutoff WASHINGTON (AP) — Americans have. rallied behind President Carter's decision to ban U.S. imports of Jranian oll, but officials say it may mean higher e8 and a repeat of last spring’s long lineups at the gasoline pumps. Carter’s action Monday — a reaponse to the seizure of 98 persons as hostages at the U.S. embassy in Tehran — will halt imports of about 700,000 barrels a day of Iranian crude oii and petroleum products made from Iranian crude, That represents about four per cent of U.S, daily con- sumption. . Militant students seized the embassy Nov. 4 in an attempt to force the U.S. to extradite the shah to face trlal for murder and other alleged crimes, The shah, led in last February's mic revolution, is tm- dergoing treatment for cancer at a New York hospital and U.S. officials aay they will not force him to leave, Carter ordered the ban as a means of stripping the franians of what a kesman called the threat using oil as a psy- chological weapon, ‘No one should underestimate” U.S, resolve not to capitulate to . blackmall, the president Experts in..the, U.S. government ‘and jrivate about what the move would do to U.S, petroleum prices and supplies, They said it might have no effect if the Iranian oil was diverted to the spot market, freeing supplies fram other exporters for the U.S. However, if fran decided to lower production — reducing already tight world supplies -=“ it would-:mean ‘higher prives -andwshort:supplies. ... available at the willingness of Americans to reduce consumption. A Carter administration official told a news con- ference that the U.S. could “totally offset” the loss if every car was driven three miles Jess each day. But administration of- ficials, asking not to be named, acknowledged that any ofl bought to make up for whatever Americans fail to conserve likely will be more expensive than [Iranian crude, Oil is currently being sold on the apot market at prices $20 above the official OPEC price of $23.60 a barrel, Meanwhile, both pollticak allies and foes of the president overwhelmingly supported Carter's decision. Those who didn’t were mostly conservative Re- publicans who fee] the White House should use farce Representative Paul Trible (Rep. Va}, said Carter would have served U.S. interests better by sending “a carrier task force into the Persian Gulf.” ‘In effect, President Carter is saying that Americans should sit in long lines for more expensive gas because the Iranians are holding Americans hostage," Trible said. But most, like Senate Democratic Leader Robert Byrd, supported Carter's decision. It “pre-empts any | Private further opportunity” for Iran industry werd’ hot’ precise“ ‘to ‘use oi] as an economic weapon in its. “dangerous game of international black- mail,” he said, Former president Gerald Ford said he is “totally supportive’ of Carter's move, Republican presidential candidate John Connally said: “This removes oil as a bargaining chip in delicate hostage negotiations, and I d fully. support President - Meth wmild alia deneniton.j: Garters action sue ages property and money of the shah and his family and leaders of his regime. be Teturned to Iran.” Bani-Sadr's remarks con- firmed indications: first given earlier today by Sadeq Qotzbadeh, a member of. Iran's governing Revolutionary Council, that Iran would drop its demand that the U.S. extradite the shah befere the hostages were released. Qotzbadeh had said the U.S, must make a public announcement that the shah is a criminal and agree to an international investigation of his alleged crimes, “If these two conditions are met by the American government I'am sure the situation will change for the better,” he said. Qotzbadeh said the decigion was taken on humanitarian grounds and that Jran had not abandoned its demand for the return of theshah. ‘Sooner or later we will get him,’* he said. Hani-Sadr, referring to recent attacks on Iranians living in the 1.8. and the arrest of Iranian demon- strators there, sald: ‘Mr. Waldhelm, we ask you to stop this atmopshere of war. We therefore request 4 meeting of the UN Security Council ag soon as possible.” Foreign diplomats cautioned that the militant students holding the em- bassy listen only to unofficlal head of state Ayatollah Rohwlah Khomeini, who has often revoked the. decisions of his government. Khomeini, who has previously stated his support for the students, made no comment on the latest gov- ernment action. The students have said the 62 Americans and 36 em- bassy employees of other nationalities will not be reledsed untess the shah, undergoing cancer treat- ments at a New York hospital, is extradited. U.S. officials have said they will not force him te leave. But Ashley Willis, a U.S. state department spokesman said Monday: ‘We've always said he is here for medical treatment, It was assumed that at the time that treatment was conipleted he. :would be- leaving?” 0°" °° - toward ge * government, for, the Kurds. * On Sunday the students. announced a five-day fast to underline thelr willingness to make sacrifices for their goal and Radio Tehran reported that the country was joining the fast in sympathy. Earlier today, oil workers at Kharg Island, Iran's oil terminal, started turning back tankers from the U.S. following Monday's decision by President Carter to ban imports of Iranian oll, Iranian officials greated that announcement by stating they had already decided to cut oil shipments _to the U.S. However, CBS News reported from Tehran that Carter’s move had taken the Iranians by sur- Ise, ; Pr asked what effect Carter's decision would have on the hostages, Iranian Oil Minister Ali Akbar Monifar said: “God knows. We just want the return of one man, who killed many, many people,” Meanwhle, with the ap- rent failure of a special tnission sent by the Palestine Liberation Organization to irce the hostages, diplomatic efforts were centred Monday ‘at the UN. a The UN Security Council appealed to [ran last Friday for the immediate release of the hostages, Iran’s charge d'affaires at the United Nations, Jamal Shemiran, met with Secretary-General Waldheim on Monday, but said his government had no reply to the council appeal. in another development, the. Mexican government, which gave the shah refuge from June until he went to the U.S. for cancer treat- ments inQctober, announced Monday that all its embassy personnel had left Iran. “The prevalliing situation in the ¢ountry does not en- sure our diplomatic mission can continue to function under normal condilions,’’ it said in a statment. . And there were reports of large-scale fighling between government forces and au- tonomy-minded Kurdish rebels in western Iran. 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