IRAN - June 27 - Khamenei Appoints Body To Oversee Foreign Policy.

The country's supreme leader Ayat Ali Khamenei, establishes a new body to supervise foreign policy in a move seen by some politicians in Tehran as a way to counterbalance the government of Pres Mahmoud Ahmadi-Nejad. The move comes as Iran faces fresh pressure from US and EU officials to respond quickly to an incentive package presented earlier this month by western powers. The package, drawn up by the five permanent members of the UN Security Council plus Germany, was crafted in an effort to persuade Tehran to limit its nuclear programme. Ahmadi-Nejad said last week that Iran would respond to the package by August 22. However some US and EU officials want a much swifter response. In a letter appointing Kamal Kharrazi - FM under former Pres Muhammad Khatami - as head of the new Strategic Committee for Foreign Policy, Ayat Khamenei said it should "help facilitate macro-decision making... find new horizons... and make use of intellectuals". Kharrazi said on June 27 the body would have no executive function but would "devise strategies and present them to the leader". He spoke of "including experts from previous governments". Kharrazi was FM throughout Iran's two-year talks with the EU, a time when Iranian diplomats developed wide contacts in Europe. Shargh, the reformist newspaper, splashed "Return of the moderates to foreign policy" as its front-page headline. Muhammad Ali Abtahi, the former vice-president, said the body's composition meant "the continuation of detente". Among those appointed is Ali Akbar Velayati, an adviser to Ayat Khamenei, who has acted as contact between the leader and Saudi Arabia in improving the two states' relations over recent months. But Ayat Khamenei may also be acting to build consensus within Iran's leadership, where different tactics have been aired in recent months over how to proceed with the nuclear programme. Addressing top officials last week, Ayat Khamenei said the term "principleist" - usually claimed by fundamentalists including Ahmadi-Nejad - should apply to anyone "of any trend ... committed to the principles of the revolution". Regime insiders recently told the FT the leadership was uncertain how to interpret the US decision to take part in talks if Iran accepted the west's offer. Ayat Khamenei said on June 27 "the ground was prepared" for negotiations over Tehran's nuclear programme but reiterated that Iran would not negotiate over its "right" to obtain and use nuclear technology. His comments came as the Russian president Vladimir Putin, said Moscow believed it was counterproductive to insist Tehran give an early response.