Weapons of Mass Destruction (WMD)

DATE=5/27/03

TYPE=CORRESPONDENT REPORT

TITLE=U-S / IRAN (S)

NUMBER=2-303688

BYLINE=DAVID GOLLUST

DATELINE=STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: The Bush administration says Iran's response to U-S calls to move against al-Qaida members believed to be operating there was insufficient. But it said the United States has not severed contacts with the Iranian government. V-O-A's David Gollust reports from the State Department.

TEXT: Administration officials say the United States stayed away from a meeting with Iran that was to have been held last week in Geneva because of information Iran has sheltered members of the al-Qaida terrorist organization.

But White House spokesman Ari Fleischer and Secretary of State Colin Powell are denying press reports that U-S contacts with Iran have been severed. After a meeting with Madagascar's president, Mr. Powell told reporters a policy toward Iran that includes dialogue continues, despite policy concerns:

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We do not approve of their support of terrorist activities. We have made it clear over the years that we disapprove of their efforts to develop a nuclear capability. And our policies are well known, and I am not aware of any changes of policy of the kind that have been speculated upon.

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Iran, which denies knowingly harboring al-Qaida members, said Monday it had arrested several people suspected of being members of the group though the White House termed that insufficient. (SIGNED)

NEB/DAG/RH/RAE