The Devil We Know Dealing With the New Iranian Superpower By Robert Baer 279 pages. Crown Publishers. $25.95.

As the end of the Bush era draws near, it is clear that its policy of treating Iran as a country that must be weakened, punished and perhaps even overthrown has failed. Suddenly it has become fashionable to say that Iran must be recognized, respected and dealt with as the increasingly powerful nation that it is.

Earlier this month Henry Kissinger, who as secretary of state helped arm and prop up Iran's monarchy in the 1970s, said there was "no reason for the United States to resist a strong Iran" today. The goal should be to restore the old regional balance of power based on the pillars of two countries friendly to the United States, Israel and Iran, he added.

In his new book, "The Devil We Know," Robert Baer, a former CIA case officer turned author, goes further. He paints a picture of Iran as a disciplined, strategic, monolithic "police state" and military power driven by imperial ambitions. "At the bottom of Iran's soul is a newfound taste for empire," he states.