The Latest from Iran (22 December): Chaining the Balloon

2155 GMT: Sedition Watch. Kurdish defendants in a trial in Tehran have said that they were paid $30 million by British intelligence to carry out terrorist acts and assassinations. The defendants also implicated elements in Iraqi intelligence "opposed to Iran".

2040 GMT: Subsidy Cuts Watch. Ali Chenar, writing for Tehran Bureau, offers some vivid first-hand testimony about the effect of the rise in gasoline prices on taxi drivers and on airlines. One cabbie summarises his reaction when the increases were announced: "Right away, I knew I was bankrupt."

1950 GMT: Picture of the Day. Journalist Abdolreza Tajik after he was released tonight on $500,000 bail (hat tip to Mehdi Saharkhiz):

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