Milk powder for children, medical drugs and X-ray machines and other medical equipment are in short supply. Pollution caused by the embargo on coal gas causes 22,000 deaths per year in Tehran alone. In little more than ten years, the number of cancer cases increased by 181 per cent. As foreign trade shrunk, unemployment rose. Sanctions help radicals enrich themselves through smuggling. As nuclear talks resume tomorrow in Vienna, hopes rise. This is the first part of a report on Iran.