The Farsi-language internet site that has replaced "No Rooz", the semi-organ of the Islamic Iran Participation Front, the nation’s largest political formation that also dominates in the Majles, added that according to the plan, "talks with Washington would start immediately after the emergency measures, in order to finishes off with the reform-seeking process".

According to information obtained by IPS from "highly informed sources", the plan, devised by Iran's former president, Ayatollah Ali Akbar Hashemi Rafsanjani and approved the leader of Islamic Republic, Ayatollah Ali Khameneh'i, the present parliament would be closed and the government of the embattled President Hojjatoleslam Mohammad Khatami reduced.

"Anytime one feels that heads of the three powers have reverted to actions that leads to the deviation of the regime from its original path, the leader will stand up to them like a dam", Mr. Khameneh'i said addressing members of the Friday Preachers.

This was the first time that the egocentric Ayatollah would hint at dissolving the Legislative, which, in the absence of pro-reform and independent press, challenges his leadership. The Legislative is still controlled directly by Mr. Khameneh'i while the Executive has moved closer to the conservatives.

His warning that he could shut the three powers echoed a statement issued last week by the Revolutionary Guards of the Islamic Republic that threatened the reformers, dissidents and the press not to pave the way for an American attack on Iran.

Mr. Khameneh'i’s warning came as an Islamic revolution tribunal in Tehran announced the dissolution of the Iran Freedom Movement (IFM), one of Iran’s oldest political organisation and delivered harsh sentences, ranging from ten years to nine month jail, against 33 of its leading members.

And at exactly the same time, Mr. Hashemi Rafsanjani, the regime’s number two man in command, menaced Washington that Iran could destroy oil and gas fields in the Persian Gulf if attacked by the United States.

On Tuesday, the official news agency IRNA, which usually supports the powerless President, said, "a group (of people), in a letter to Ayatollah Khameneh'i and other high-ranking officials have called for proclaiming special conditions in the country".

Quoting two un-named newspapers, IRNA added that the aim of the group is to "prevent crisis against the (Islamic republic) system".

Hojjatoleslam Taha hashemi, a prominent "moderate" conservative and publisher of the pro-conservatives "Entekhab" daily said he had heard rumours that such a move might be in the offing.

Iranian political analysts said if the letter (to Mr. Khameneh'i) and the information (by both Rooydad and IRNA) are proved to be correct, this would confirm anxieties and concerns expressed recently by some political activists warning that a "powerful trend among the ruling conservatives is planning a coup and a final assault on the reformers, in order to put an end to a situation they consider as "crisis against the system".

"Some right-wingers ignore common interests and want to resort to extreme measures to disrupt the country's normal affairs" Ayatollah Hoseyn Mousavi-Tabrizi, a reformist cleric, told IRNA. "By taking unwise decisions, one could wreak havoc and threaten the state security", he warned.

President Bush placed Iran on the "axis of evil" after accusing Tehran of backing terrorism and seeking weapons of mass destruction.

"If the reports (on emergency powers) are true, it could mean that some are favouring some kind of a coup against elected politicians", said Mostafa Tajzadeh, a former deputy Interior Minister, quoted by "Emrooz" (Today) internet site.

"From the very beginning of American menaces, some power-mongers openly suggested this proposal in their media, demanding emergency conditions and measures be taken. But they failed in their undertaking and retreated", he told "Rooydad".

"Those who, on the pretext of American threats, aims at imposing emergency conditions have no popular support", Mr. Abbas Abdi, a reformist journalist and scholar who was one of the students who stormed the American embassy in Tehran on 4 November 1979 told IRNA.

"These people actually serve American interests", he pointed out, observing that the present situation, "under which the Majles is prevented from law-making and the press and political parties are limited in their movements, is not very different from one of special rule".

Mr. Karim Arghandehpoor, Editor of the banned "No Rooz" daily compared the planned state of emergency to "a form of coup d'etat against the reformist". "This is the most dangerous situation that might happen", he added, also speaking to IRNA.

"In case exceptional conditions are declared, all hopes for reforms would vanish", he warned, urging "wise men" at the conservative camp to "firmly oppose" the project.

The news about hard-line conservatives, led by Mr. Hashemi Rafsanjani, to replace the present government by an emergency one sparked concern among reformers at a time that other political activists say the reforms promised by Mr. Khatami are "dead".

"Mr. Khatami has lost many golden occasions to implements his reforms. But because of his personal weakness and also mismanagement and miscalculations from his entourage, who also wanted to be part of the establishment, the reforms are over. What people want now is fundamental changes in the Constitution", said Mr. Qasem Sho’leh Sa’di, a lawyer and former deputy from Shiraz.

"The situation is not so worrisome as to demand a state of emergency. It is far from true, for the simple reason that equating present situation of the nation as critical is an exaggeration", observed Mr. Hamid Reza Taraqi, an influential member of the powerful ultra-conservative League of Islamic Associations.

"I do not know if it is true. Whatever the case, the leaders of the regime always decide on the basis of the interests of the people and of the Islamic republic", IRNA quoted him.

"If the leaders of the regime and of the Security Council come to this conclusion... they will notify the supreme leader, who can take the appropriate decision, based on the interests of the people", he added.

During an interview on Monday with the Persian service of Radio France Internationale, he also criticised Mr. Khameneh'i for adamantly objecting to any talk with the United States.

"While we have warm relations with some governments which are installed by the Americans, like that of Mr. Hamed Karzai in Afghanistan, or (the Persian Gulf island state of) Bahrain, where America’s fifth fleet is based, one wonders why we should not talk directly with the Americans?" he observed.

On Sunday Mr Khameneh’i denounced what President Bush’s "cowboy culture", saying American threats against Iran were "serious".

Mr. Mohammad Kazem Anbarloo’i, the deputy Editor of the daily "Resalat" which speaks for the powerful bazaar oligarchy blamed the emergency rumours on the reformists "accused of siding with the United States".

"Those who are accused of defending American interests and of supporting dialogue with Washington are trying to save their neck from people’s anger and possible prosecution", he told the official news agency.