<P> The next unsuccessful attempt occurred in April and called first for the American president Carter to publicly promise not to "impose additional sanctions" on Iran . In exchange custody of the hostages would be transferred to the government of Iran, which after a short period would release the hostages--the Iranian president and foreign minister both opposing the continued holding of the hostages . To the American's surprise and disappointment, after Carter made his promise, President Banisadr added additional demands: official American approval of resolution of the hostage question by Iran's parliament (which would leave the hostages in Tehran for another month or two), and a promise by Carter to refrain from making "hostile statements". Carter also agreed to these demands, but again Khomeini vetoed the plan . At this point President Banisadr announced he was "washing his hands of the hostage mess". </P> <P> Relatively little happened during the summer, as Iranian internal politics took its course . In early July, the Iranians released hostage Richard Queen, who had developed multiple sclerosis . In the States, constant media coverage--yellow ribbons, footage of chanting Iranian mobs, even a whole new television news program, ABC's Nightline--provided a dispiriting backdrop to the presidential election season . As Carter advisor and biographer Peter Bourne put it, "Because people felt that Carter had not been tough enough in foreign policy, this kind of symbolized for them that some bunch of students could seize American diplomatic officials and hold them prisoner and thumb their nose at the United States ." The death of the Shah on July 27 and the invasion of Iran by Iraq in September 1980 may have made Iran more receptive to the idea of resolving the hostage crisis . There was little more advantage to be gained from further anti-American, anti-Shah propaganda, and the ongoing sanctions were making it harder to straighten out an already chaotic economy . </P> <P> Talks that ultimately succeeded in bringing a release began secretly in September 1980 and were initiated by Sadegh Tabatabai, a brother - in - law of Khomeini's son Ahmad and "a mid-level official" in the former - provisional revolutionary government . By this time resolution of the crisis was made easier by the fact that two of the hostage takers demands were met--the Shah was dead and "most" of his wealth had been "removed from American banks"--while the threat of war with Iraq made availability of American - made military spare parts for Iran's materiel important . Iranian demands for the release were now four: expression of remorse or an apology for the United States' historical role in Iran, unlocking of "Iranian assets in America and withdraw any legal claims against Iran arising from the embassy seizure, and promise not to interfere in the future ." The demands were listed at the end of a speech by Khomeini considered "a major shift on Iran's side of the impasse" by journalists . Tabatabai, and Ahmad Khomeini secured the support of Akbar Hashemi - Rafsanjani, the speaker of the Majlis . </P> <P> The talks hammered out an agreement to bring to their higher - ups, with the United States agreeing to three demands but not to an apology . Talks were stalled first by Iraq's invasion of Iran, which Iranian officialdom blamed on the United States . Rafsanjani delivered a vote in parliament in favor of releasing the hostages . Then negotiations began over how much money U.S. businesses owed Iran--Iran believing the sum to be $20 to $60 billion and the United States estimating it at "closer to $20 to $60 million".--and how much Iran owed U.S. businesses . </P>

Who negotiated the release of the hostages in iran