DATE=1/28/98 TYPE=CORRESPONDENT REPORT NUMBER=2-225978 TITLE=C-I-A / IRAQ & IRAN (S) BYLINE=DAVID SWAN DATELINE=CAPITOL HILL CONTENT= VOICED AT: INTRO: THE CENTRAL INTELLIGENCE AGENCY HAS CONCLUDED IRAQ IS STILL CONCEALING AN EFFORT TO BUILD WEAPONS OF MASS DESTRUCTION. DAVID SWAN REPORTS, C-I-A DIRECTOR GEORGE TENET TESTIFIED ON CAPITOL HILL. TEXT: ECHOING OTHER OFFICIALS, MR. TENET TOLD CONGRESS THE IRAQIS ARE HIDING EVIDENCE FROM U-N WEAPONS INSPECTORS. BUT WHILE CALLING THE COUNTRY A SERIOUS THREAT, THE C-I-A CHIEF REJECTS SUGGESTIONS PRESIDENT SADDAM HUSSEIN IS SOMEHOW BETTER OFF THAN BEFORE. // TENET ACT // WE HAVE THIS MAN IN A BOX, AND HE IS GOING TO STAY IN A BOX. AND AT THIS MOMENT IN TIME THAT IS EXACTLY WHAT WE SHOULD BE SAYING TO HIM. NO OTHER STATEMENT WOULD BE FAIR TO OUR MEN AND WOMEN WHO MAY HAVE TO GO DO SOMETHING ABOUT THIS GUY. // END ACT // THE CLINTON ADMINISTRATION SAYS IT HOPES TO RESOLVE THE WEAPONS INSPECTION CRISIS PEACEFULLY, BUT HAS RECENTLY SIGNALED THE TIME FOR DIPLOMACY MAY BE GROWING SHORT. MR. TENET ALSO TESTIFIED A GENUINE POWER STRUGGLE APPEARS UNDERWAY IN IRAN, BETWEEN PRESIDENT MOHAMMAD KHATAMI AND HARDLINE ELEMENTS. HE SAYS IT IS TOO SOON TO TELL IF THIS WILL BRING ANY CHANGE IN TEHRAN'S FOREIGN POLICY. (SIGNED) NEB/DS/RAE 28-Jan-98 11:46 AM EST (1646 UTC) NNNN Source: Voice of America .