Iran plays for time to work out reply to Obama

By Edmund Blair - Analysis

TEHRAN (Reuters) - Iran has set tough conditions for dialogue with the United States, its enemy for 30 years, to buy time for its ponderous and opaque decision-making process which is facing a dilemma on whether or not to open up, analysts say.

Adding to uncertainty in Iran about how to respond to U.S. President Barack Obama's overture, the Islamic Republic holds a presidential election in June that could strengthen moderate voices backing detente over their more hardline opponents.

Ultimately policy will be determined by Supreme Leader Ayatollah Ali Khamenei, the Islamic Republic's top authority who tends to seek consensus although any decision, analysts add, will be based on preserving the system of clerical rule.

But foot-dragging that has frustrated the West in years of fruitless talks over Tehran's disputed nuclear work could weaken Iran's position if Obama and the world tyre of delays and toughen sanctions that will hurt an economy already grappling with falling oil revenues.

"The Iranian political elite aren't quite sure what to do about the United States. (They) do think about relations in the long term but weren't expecting to have to make a decision now," said Ali Ansari at St Andrews University, Scotland.

Obama, who after just a week in office offered to extend a hand of peace if Iran "unclenched its fist," had "seized the political initiative," Ansari said.

"Ahmadinejad's call for the U.S. to apologise for 60 years of mistakes is simply playing for time," he added.

President Mahmoud Ahmadinejad has demanded Washington say sorry for decades of "crimes" against the Islamic Republic, founded 30 years ago this month to chants of "Death to America."