Iran's parliamentarians on Sunday softened a bill to block foreign investment, limiting its range to two Turkish ventures that they accuse of links to Tehran's arch-foe Israel.
The initial bill demanded that the reformist government could not sign deals with any foreign firm without getting a permit from conservative lawmakers, who have already barred a raft of liberalising reforms on foreign investment.
"It is ratified that only TAV and Turkcell companies will be covered," Parliament Speaker Gholamali Haddadadel said after the parliamentary debate carried live on state radio.
"Some people have said if this bill is ratified Iran will be shunned it is not true," he added.
Turkcell has signed a $3-billion contract to operate Iran's second private GSM mobile telephone licence but parliamentarians have argued that the company should not be allowed to control communications, arguing that it has Israeli ties.
South Africa's MTN, the runner-up in February's tender, has said it could step into the breach if Turkcell ran into too much trouble.
The TAV consortium poured $15 million into Tehran's new airport on a goodwill basis but was unceremoniously thrown out on the eve of the first flights. Hardline Revolutionary Guard troops then seized control of the airport, which it was to have run.
"These two contracts will endanger national security and the private life of the people," hardline MP Ahmad Tavakkoli was quoted as saying on parliament's Web site.
"The message of this bill is that companies should increase the share of domestic companies and give priority to domestic skills," he added.
FOREIGN FOOTHOLD: Moves against the Turks have sent shivers through foreign investors but parliamentarians quoted Article 44 of the constitution that aims to prevent foreigners from getting too firm a foothold in Iran's core infrastructure.
Lawmaker Noureddin Pirmoazen retorted that these steps would prove counterproductive.
"Tying the government's hands in attracting foreign investment is not in the country's interests," he said on the parliament Web site.
Reformist President Mohammad Khatami has been incensed by the steps taken against foreign investment, angrily telling reporters this week that hardline intransigence would cost the Islamic Republic billions of dollars.
"Today the cabinet unanimously decided that Khatami should not visit Turkey until the fate of these two agreements is cleared up," Government Spokesman Abdollah Ramazanzadeh said.
The trip had been pencilled in for the coming days.
Iran's conservative lawmakers took power in late May after thousands of reformist candidates were banned from running.
They have blocked numerous investor-friendly reforms including moves to allow foreign banks to open in Iran and to link the discovery of oil to the right to exploit it.