CENTRAL ASIA

The Clinton Administration's decision not to oppose a $1.6 billion plan to build a natural-gas pipeline through Iran is a signal that the U.S. wants to improve relations with the Islamic regime. "It's the flip side of sanctions," says a White House official--an inducement to Iran (which wants the pipeline) to stop supporting terrorism, halt its attempts to acquire weapons of mass destruction and tone down its opposition to the Arab-Israeli peace process. White House officials say they're monitoring the performance of newly inaugurated Iranian President MOHAMMED KHATAMI for favorable signs. It's all part of a modern version of Rudyard Kipling's "The Great Game"--the 19th century competition between Russia and Britain for influence in Central Asia. Today the prize is access to the Caspian Sea's pool of 200 billion bbl. of oil. But tapping that will require construction of the pipeline network. The U.S. hopes Iran will recognize that it is in its own interest to become a player so that it will qualify for much needed Western investment.

--By Dean Fischer/Washington