Angry Iranian reformists accused hardline foes yesterday of threatening the country?s future and more MPs joined a protest sit-in after thousands of liberals were barred from standing in elections next month.

But senior officials said a compromise was possible over the bans by the conservative Guardian Council, a constitutional watchdog ? a move the party of reformist President Mohammad Khatami said laid Iran open to foreign charges of tyranny.

Supreme Leader Ayatollah Ali Khamenei, who has the last word on all state matters, said he would only intervene if the conservatives and reformists reached an impasse.

?If the issue goes beyond legal methods and gets to a sensitive point which demands the leader?s decision, we will act based on our responsibility,? he said on state radio.

European Union foreign policy chief Javier Solana, visiting Tehran, criticised the vetoes, saying they would be difficult to explain within the European Union.

Iran?s reformists are fighting for their political survival after the unelected 12-member Council blocked thousands of Khatami?s allies from running in the February 20 parliamentary polls.

?(The conservatives) are paving the way for enemies who want to show the Islamic Republic is a despotic state,? said a statement from Khatami?s League of Combatant Clerics, carried by the official IRNA news agency.

?Those who claim to be defending the Islamic system but ignore the vital role of the people...are threatening the Islamic Republic of Iran.?

<B>Striking a deal </B>

At the parliament building in central Tehran, MPs continued a sit-in, having spent the night on carpets in an ante-room. Senior MPs and provincial governors have threatened to resign if the Council does not reverse its mass disqualifications.

About 100 MPs were believed to be involved in the protest. One, Reza Yousefian, said the number had been swelled by MPs who had themselves been approved.

Khatami and Parliament Speaker Mehdi Karroubi are taking the case direct to the Guardian Council. Karroubi said he was optimistic a deal could be struck and urged MPs to have faith in legal appeals.

?Be careful not to foment tension,? he warned them. Demonstrating MPs released a statement that they would settle for nothing less than a completely free election.

?We will not let the desires of a few turn the will of the nation,? said one, Ali Shakourirad.

The ISNA students? news agency reported that the largest reform party had called on Tehran students, who often back Iran?s struggling reformers, to join a gathering later on Monday to protest about the Guardian Council?s move.

Solana told a news conference Iran was facing international scrutiny after only about half of the 8,200 aspiring candidates were approved to run. Those disqualified include 80 members of the 290-seat parliament, currently dominated by reformists.

?It is very difficult for me to explain to the EU how people already in parliament may not be able to run for re-election,? Solana said. ?The fairness of an election is not only (a matter) for election day.?

Disqualified candidates have two chances to appeal to the Guardian Council before a final list of candidates is published for a week-long election campaign starting on February 12.

<B>Factbox</B>

How does the Guardian Council work? </B>

The Council consists of six senior clerics appointed by Khamenei and six jurists proposed by the judiciary -- also directly controlled by Khamenei -- and approved by parliament. The Council can reject bills approved by parliament which it deems incompatible with the constitution or Islamic Sharia Law. It can also veto election candidates it says are unfit to run for office for reasons such as lack of commitment to Islam and the constitution, past criminal records or moral failings. The Council has been one of the main obstacles to Khatami?s attempts at reform. Last year it rejected a bill he proposed which would have curbed its power to vet election candidates.

<B>What is the current Parliament line-up? </B>

The 6th Majlis (Parliament), elected in 2000, saw Khatami?s reformist allies win around 70 percent of 290 seats. Parliament now has about 60 conservative MPs, 30 independents and 200 reformists although allegiances frequently shift. In 2000, the Guardian Council barred only eight percent of candidates -- less than many had anticipated -- which some Council members later said had been a mistake.

<B>How are people reacting ? </B>

Most Iranians, disillusioned with the slow pace of reform since Khatami came to power in 1997, take little interest in the struggle between reformists and conservatives. Turnout in local elections last February fell below 15 percent in major cities, handing reformists their first electoral reverse for six years. Most analysts had expected turnout in the February parliamentary vote to be well below the 2000 figure of 70 per cent.

Parinoosh Arami

Parisa Hafezi