Speaking at a joint news conference with his Iranian counterpart Kamal Kharrazi, Pique said that the two will also sign a memorandum of understanding for political consultations at the foreign minister level and their deputies.

He said Madrid also maintained "a positive will" to help with the consolidation of relations between Iran and the European Union.

Economic ties are also fair, Pique said, but added that the two countries had yet to promote them to "a high level", given their suitable grounds as well as existing capacities for further trade exchanges.

The Spanish foreign minister reiterated his condemnation of the Israeli regime's military blitz in the occupied Palestinian lands.

"Spain, in the same vein that condemns Israeli troops' actions against Palestinians, does not approve of violence against Israeli citizens," he said.

The EU, Pique added, calls for peaceful negotiations between Israeli and Palestinian sides and rules out any military solutions.

He described results of an ongoing Bonn conference on Afghanistan, in an effort to forge an interim government in that country, as "very positive", saying he hoped remaining obstacles would gradually be lifted.

Reconstruction of the war-ravaged country is the most important responsibility of the future Afghan government, Pique said, adding "we all have a grave responsibility with regards to the Afghan issue."

Kharrazi said that he had discussed with Pique bilateral relations, Iran-EU ties, the Afghan issue as well as the Middle East crisis.

He described as "positive" exchanges of high-ranking official delegations between Tehran and Madrid and said that the Spanish president of the senate Esperanza Aguirre will visit Iran late January, 2002.

The two countries, Kharrazi added, are further discussing a visit Tehran by the president of the Spanish congress of deputies Luisa Fernanda Rudi and another by its minister of agriculture Miguel Arias Canete.

He hoped a scheduled visit of President Mohammad Khatami to Spain, at the formal invitation of the country's Prime Minister Jose Maria Aznar would take place in "an opportune time."

Kharrazi said the ongoing situation in the occupied Palestinian lands was the result of a chain of "actions" and "reactions" in the wake of the Israeli troops' killing of Palestinians.

"A targeted assassination of Palestinians, demolition of Palestinian houses and cities will naturally lead to the reaction of the Palestinians," he said.

He called for "a more active role" on the part of the United Nations in settling the Middle East crisis, saying "the establishment of a lasting peace is not possible without the return of Palestinians to their homes and the Zionist troops' pull-out from the Holy Qods."

Kharrazi said the Bonn conference had a "hard" task before it to reach a common ground over the formation of a provisional government in Afghanistan, but "what has been mooted as a general framework for the future Afghanistan is somehow accepted by the participants (of the conference)."

The Islamic Republic of Iran, he added, is ready to cooperate with the European Union over the reconstruction of Afghanistan.

"Such a cooperation will prove very effective, given commonalties of the Iranian and Afghan nations and the Islamic Republic's capabilities," Kharrazi said.

Asked on recent statements of American authorities, listing Iran as an alleged sponsor of terrorism, and that whether Tehran felt threatened by that rhetoric, the Iranian foreign minister said no.

"We don't feel a threat, since the Islamic Republic is enjoying a firm and steady stance and is known as a stable country for its assistance to the settlement of international problems," Kharrazi said.

The Iranian official implicitly denounced US threats to attack some other Islamic countries and said, "Threatening rhetoric are not acceptable neither in the Islamic world nor in other parts of the world."

"The world of Islam will never tolerate attacks on any Islamic countries. Such threats, besides being ineffective, pile on the problems," Kharrazi added.

Pique arrived in Tehran on Monday night on a two-day visit and is scheduled to meet with President Mohammad Khatami and Parliament Speaker Mehdi Karroubi.