IRAN - May 26 - Tehran Says US Offer Of Iraq Talks Was Propaganda.

FM Manouchehr Mottaki, rules out talks with the US over Iraq "for the time being", saying Tehran's decision to accept Washington's offer has been exploited for "propaganda" and that the US had "raised other issues" without specifying what they are. The proposal was made in March by US ambassador to Iraq Zilmay Khalilzad, and accepted by Iran once endorsed by Abd al-Aziz Hakim, leader of the SCIRI and a prominent Shiite Muslim ally of Tehran. But the prospect drew strong criticism in both Washington and Tehran from opponents of direct talks between the two countries. In April, the US said the idea was on hold until a new Iraqi government was formed. Potential dialogue over Iraq has also been complicated by manoeuvring among the US, Europe, Russia and China as they try to agree a common policy towards Iran's nuclear programme. Mottaki was speaking on May 26 in Baghdad at a press conference with Iraq's FM Hoshyar Zebari. In a sign of the improved relations between the two neighbours since the overthrow in 2003 of Pres Saddam Hussain, Zebari said Baghdad accepted Iran's right to "scientific and technological abilities to research in the field of nuclear energy for peaceful uses" and praised "the wisdom of the leadership of the Islamic Republic in handling this subject". While the US and British have accused Iran of backing some Iraqi insurgents, Tehran has claimed that Washington and London have been involved in provoking violence among Iran's ethnic minorities, including the Arabs of the south-west province of Khuzestan. Iraqi politicians have long called for talks between the US and Iran to ease regional tension and improve Iraq's security. Ahmad Chalabi, the influential Iraqi Shiite, said last year Baghdad could not "sit idly by while other people fight on our territory". Mottaki is due to meet Iraq's president Jalal Talabani, and the new PM Nuri al-Maliki. The two countries are seeking to extend co-operation in transport and energy, to expand trade, and to improve security for Iranian pilgrims visiting Iraq's many Shiite holy sites. The US embassy had no comment on Mottaki's statement.