President Mohammad Khatami faces difficult balancing act

Khatami Sworn In - Cabinet Appointments Follow

It is hoped that the election of Mr Khatami, who won by a landslide majority in May, will signal the start of a more peaceful era for Iran. Newspapers and authorities in Saudi Arabia and Israel have already expressed their hopes for more peace under the moderate Muslim cleric.

The election of such a moderate politician was seen as an indication of the Iranian peoples' desire for change.

Consquequently Mr Khatami must undertake a difficult balancing act between hard liners and moderates in the Tehran parliament.

Swearing-in ceremony

He faces his first test later this week when he appoints a new cabinet. The cabinet choices have to go before the Iranian Parliament and so Mr Khatami is expected to make a careful selection. He is expected to replace all the key members of the present cabinet.

As far as attitudes to the West are concerned Mr Khatami's appointment will ease foreign policy tensions. But because foreign policy is seen as the preserve of the country's spiritual leader the Ayatollah Khamenei, it would be difficult to change policy towards the USA or Israel.

However the new president avoided using traditionalist rhetoric in his enrolment speech. Instead he said Iran, in response to the attempted imposition of ideas from foreign powers, would resist with intelligence. The speech has been seen as a message preaching moderation and tolerance, and continued the tone set in his speech on Sunday when he received the confirmation of the spiritual leader in a ceremony at the Imam Khomeni mosque.