Answering journalists, Mr. Khatami in the one hand, criticised the powerful Council of the Guardians for having rejected two bills, approved by the reformists-dominated Majles aimed at enforcing the powers of the president while cutting some of the CG, but on the other hoped that the Guardians would show "realism"?

Mr Khatami presented two bills last September to guarantee free parliamentary elections by curtailing the conservatives-controlled CG’s "Special Right" concerning strict vetting procedures for candidates, and to increase his own powers to neutralise politically motivated verdicts by the hard line judiciary. The Guardian Council, a conservative-dominated constitutional watchdog, has blocked both measures.

"These bills are the minimum needed for the progress of affairs", Mr Khatami insisted on Wednesday, complaining that "the gentlemen (of the CG) have limited so much the president's prerogatives that he has less power than an ordinary citizen".

But at the same time, he hoped that the dispute between the Majles and the CG over the bills would not be sent to the Assembly for Discerning the Interests of the States (ADIS), or the Expediency Council for arbitration, knowing well that the influential ADIS, which is chaired by the former president Ayatollah Ali Akbar Hashemi Rafsanjani, usually sides with the Guardians.

"I believe sending the bills to the Expediency Council would be of no use", Mr Khatami said, without making clear whether he favoured the referendum route, as suggested by some reformists to bypass the Expediency Council, or to tend his resignation, as he had threatened earlier, pressed by other friends, including several members of the Majles.

Mr. Sazegara said in his view, the President, nor any official reformists, do not know what exactly they want and what strategy to adopt facing the ruling conservatives.

"Mr. Khatami’s main problem is that he still wants to solve the problems by bargaining with the conservatives. Instead of using a language of firmness and warning, his is one of begging and bargaining with the rival camp in order to reach some consensus. This method has proven futile and has led to the reformists increasing impotency and inefficiency in addressing mounting popular demands", commented Mr. Ahmad Salamatian, a leading political analyst in Paris.

"As a result, the people have despaired from the idea that this regime can be reformed from within and increasingly looks at other ways outside the system", he added.

About 20 reformist MPs are thought to be serious about resigning if the measures fail. The president is believed to be still optimistic that the deadlock can be resolved through behind-the-scenes talks with the regime’s leader Ayatollah Ali Khameneh'i.

Mr Khatami said on Wednesday that the Guardians had ignored the leader’s endorsement of a strengthening of presidential powers, but did not say when Mr. Khameneh'i had pledged such endorsement.

In a severe criticism of both the conservatives the younger Khatami described as "the shadow and un-elected government is paralysing the management of the nation with all means" and the reformers for "not standing to the shadow government" and "defending people’s rights" Dr. Khatami said "because of the officials refusing to address people’s demands and the nation’s problems, it is not possible to reform".

Mr. Rahmani, condemned recently to five years of imprisonment, said even if the bills were approved, "nothing would be changed".

"The President’s eyes are turned towards outside, those of the IIPF to inside, to the people despairing from reforms and reformists", he observed.

It is interesting to note that while the reformers have criticised Mr. Khatami, the conservatives welcomes his Wednesday comments, saying it helps foster unity between the rulers in the one hand and the officials with the people on the other.

Analysts believe that threats by the US, which has branded Iran part of the "axis of evil", have inflamed the political infighting. Reformists insist that political reform could deprive the US of excuses to target Iran, while conservatives believe that further reform would lead to foreign dominance.

"We are concerned and afraid of the return of foreign hegemony and outside aggression, but also hate religious authoritarianism and repression of people’s freedom", the statement said.

"No one has the right to rule the people under any name and title without people's satisfaction", the statement read, rejecting "instrumental use of religious beliefs and sanctities" and calling for all the top officials to be elected by the people and for limited periods", a reference to the present system of "velayat faqih", or the rule of an all powerful leader placed above all laws and even the Constitution.