N&S is making its debut appearance in Iran over the next two weeks. Warren will try to post as frequently as time and technology permit...

Despite what Condi Rice said last week (see below, "Iran: Interested No More," rumors are running rife in Tehran's huge central bazaar that the United States is on the verge of establishing some sort of diplomatic office in Iran for the first time since shortly after Iran's 1979 revolution.

That would probably cause a mass stampede, since half of Tehran seems to have a relative in the United States, and even many that don't would love to have a U.S. visa.

Ahmed Fathi, 68, a prominent seller of gold and other jewelry in the old bazaar, which extends for hundreds of acres in the Iranian capital, says he heard on the Voice of America's Persian language service that the U.S. Interests Section--a sort of proto-Embassy--is already a done deal. Rumor has it that the United States has already chosen land in north Tehran, the wealthy part of the city, and is moving personnel in from Dubai.

Told that the United States can't make a move without agreement from Iran's government, Fathi was unfazed. "I think the Iranian government has okayed an Interests Section behind the curtain," i.e., behind the scenes, he said.

He says he has a daughter who lives in southern California.