Madrid, Oct 30, IRNA -- President Mohammad Khatami regretted here Tuesday that the United States had been hindering his government's goodwill gestures to mend ties with Washington which severed diplomatic relations with Tehran in 1979.

"Unfortunately in recent years, Iran's every goodwill step has been met with unhelpful response of the American side for a variety of reasons," he said during a joint news conference with Spanish Prime Minister Jose Maria Aznar.

US President George W. Bush raised heckles in the world after he lumped Iran into an 'axis of evil' along with North Korea and Iraq, despite Tehran's cooperation in the ouster of Taliban in Afghanistan.

"Iran's last goodwill was indicated during the Afghan crisis, and if there was no Iranian cooperation, the problem would not have been resolved with a low cost," Khatami said.

The Islamic Republic further arrested more than 250 foreigners, suspected of cooperation with al-Qaeda, upon entering Iran and handed them over to their respective countries, he said.

"American behavior in the wake of such Iranian measures has never had any sign of goodwill," Khatami said.

The Iranian president said US' wrong policies had undermined a "wisdom-oriented Islamic current" in the world and made al-Qaeda kingpin, Osama bin Laden, popular in "at least parts of the Islamic world".

Khatami upbraided the US for its 'axis of evil' tag, saying the current American government held a common point with bin Laden in the sense that both were self-centered.

"I hear one discourse from two opposing poles ... one is the voice which comes from bin Laden in Afghanistan, saying 'who is not with us is an infidel and must be eliminated'. The other voice rises from America which says 'whoever is not with us is against us' and 'since we have power, we have the right to repress him'," he said.

"This is a logic which could lead to the most violent and horrible form of terror as well as the worst war under the pretext of opposing terrorism," Khatami added.

Washington and Tehran continued to regularly trade messages through Swiss embassy which takes care of the American interests in the Islamic Republic, the Iranian president said.

"However, the problem between Iran and America has a long history, whose solution depends on American politicians' change of attitude toward Iran and the Iranian people," Khatami said.

To resume diplomatic relation, the Islamic Republic wants the assurance that the United States would not repeat its past policies which have caused many "big harms" to Iranians.

Tehran and Washington have had no diplomatic ties after the US severed its relations with the Islamic Republic after 'Students Following the Line of Imam' stormed the US embassy in Tehran, known as the den of espionage, and took its staff hostage.

President Khatami awarded Spanish medal, key to Madrid

The president was also presented a copy of Spain's 1978 Constitution along with a volume of Spanish history by the Spanish Congress of Deputies and Senate.

The national anthems of both countries were played at Marina Espanola Square, where the Senate is located.

The president inspected various sections of Senate and the Congress of Deputies and then signed a commemorative notebook at Spain's Senate and delivered a speech.

Meanwhile, the Golden Key of the Spanish capital Madrid was presented to the Iranian president by its mayor, Alvarez del Manzano in a special ceremony.

At the ceremony, Del Manzano said, "The presentation of the Golden Key to Madrid to President Khatami indicates the Spanish government and people's respect for the Iranian nation and Spain hails Iran's president as the architect of the dialogue among civilizations.

"Iran and Spain as two mighty nations possessing great cultures, are both determined to broaden mutual ties in all fields and Madrid has pinned high hopes on the prospect of such relations," he added.

President Khatami then signed the commemorative notebook of Madrid's Municipality.

At the ceremony, the president said it was an honor to receive the key of the beautiful and eternal city of Madrid.

Considering Spain's culture, language and status in the world, he pointed to Spain as `gateway introducing a greater world'.

He added, "The dialogue among civilization in today's world of fear and hope is of great meaning and effect and this might reveal the differences in the world to achieve the concept of `a common world'."

President Khatami referred to the unfortunate fact that misunderstandings are quite frequent nowadays, specially in the world of politics.

"Arrogance, discrimination, tension and failure in development contribute to building high walls of misunderstanding," he added.

He insisted on the need to promote understanding and establish relations between the civilizations.

The president hoped that Spain and Iran, the West and the world of Islam and `our common world' will embrace dialogue to promote peace, security, freedom and justice.

Khatami inaugurates Iran-Spain economic gathering

A number of 400 traders, industrialists, heads of labor unions and economic experts of the two countries are participating in the meeting.

Besides Khatami, Iranian Minister of Finance and Economy Tahmasb Mazaheri, Foreign Minister Kamal Kharrazi and Head of Iran's Chamber of Commerce Ali-Naqi Khamoushi as well as Spanish Minister of Economy Rodrigo Figaredo Rato and Spain's minister of state for trade and tourism affairs attended the gathering.

President Khatami, on the second day of his visit to Spain on Tuesday, urged investment of world countries in Iran in the wake of its "massive" structural economic reforms.

"Iran today is on the brink of massive economic, social, political and cultural developments and it welcomes cooperation of other countries for investment, (transfer) of technical know-how and expansion of economic possibilities in Iran," he said during a joint news conference with Spanish Prime Minister Jose Maria Aznar.

"Spain is the fourth trade and economic partner of Iran in Europe and we hope their cooperation in bilateral and multilateral fields would expand further," Khatami added.

Khatami arrived in Madrid on Monday on a three-day official visit to discuss bilateral ties as well as regional and international issues, including trade ties with the European Union.

Spanish press have said that a trade deal to a tune of three billion dollars, mainly between the Iranian oil, gas and petrochemicals sector and Spanish firms, could be in the pipeline.

Khatami reiterates Iran's support for global terrorism campaign

"To obliterate the deadly phenomenon of terrorism, today we need to promote morals, logic and justice, and to encourage a fundamental and unfettered approach toward all state and non-state manifestations of terrorism all over the world," he said.

"Any approach that advocates extremism, animosity, revenge, unilateralism, disregarding morals and international protocols, and resorting to war and violence, would merely expand the danger of terrorism."

Khatami described the current situation of the world as 'horrible,' and said violence, terrorism, and adopting hostile policies have jeopardized the spiritual and material life of mankind all over the world.

"Among all such threats, terrorism has been the most dangerous contributor to the current world situation, where peace, freedom, justice and security, as the basic needs of mankind, have been threatened the most."

The Iranian president called an international coalition for peace as the solution to the prevailing world condition.

"A coalition for war does not definitely lead to peace, but a coalition for peace can promote freedom, security and stability in the world," he said.

Khatami described variety and pluralism as the prominent features of today's world, stressing that nations could never be 'unilaterally and illogically' grouped in two camps of the good and the evil to be ruled over through a forceful procedure.

"The civilized world is expected to attach a significant importance to the role of international organizations and multilateral cooperation," he said.

Khatami called the coalition for peace as a process that is based on humanitarian efforts by all nations, and a bright outlook to materialize a consensus in pushing forward the causes of peace, obliterating violence and force.

He further highlighted the contribution of a constructive dialogue among nations and governments toward that end.

"Any constructive dialogue between Iran and Europe, and between Islam and the West, that can prevent regional and international tensions through 'common sense' is a welcome approach to identify the complex issues of the current world as well as joint solutions," said the Iranian president.

Carlos, for his part, pledged the Spanish support for President Khatami's initiative of dialogue among civilizations to promote peace in the world.

The Spanish king said he agreed with Khatami that establishing a connection between civilizations is the most appropriate approach to attain mutual understanding.

He said a dialogue among civilizations would promote coexistence among nations.

Carlos further said Spain would support President Khatami's reform programs in the Islamic Republic, and hoped Khatami would be able to meet the expectations of Iranian youth.

He said Iran enjoys a significant position in the world, adding that Iran plays an important role in boosting regional peace and stability.

Elsewhere in his remarks, the Spanish king lauded Iran's struggles against drug trafficking, and echoed Spain's supports for Iran's campaign in that connection.

Khatami renews Iran's opposition to US attack on Iraq

"The Islamic Republic of Iran is opposed to any military attack on Iraq and rejects any unilateral move to resolve international problems," he said during a joint news conference with Spanish Prime Minister Jose Maria Aznar.

Tehran, Khatami said, supports Iraq's territorial integrity despite having grievances against the Baath regime which imposed the destructive war of 1980-1988 against the Islamic Republic and attacked Iranians with chemical and biological weapons.

The United States has been threatening to oust Saddam Hussein for allegedly hiding Iraqi stockpile of chemical weapons as well as its nuclear arms programs from UN inspectors.

"The whole world knows that we have seen a lot of harm from the regime of Saddam Hussein, which used chemical weapons against our soldiers and citizens and then against the Iraqi people...but the question here is where the Iraqi chemical weapons have come from," Khatami said.

"If the use of chemical weapons is bad, which is so, why the (Iraqi) regime was not pressurized for using them against Iranian and Iraqi citizens?" he asked.

"We believe that resorting to force to resolve world problems will set a very dangerous precedent which if not confronted by the international community, will leave no country immune from big powers," Khatami added.

The Iranian president also denounced Washington's plans, as reported by New York Times, to install an American military-led government in Baghdad, led by commander of US forces in Persian Gulf, Tommy Franks.

"We believe any change in Iraq should be based on the oppressed Iraqi people's will as well as progress and freedom in that country since it is not clear whether others' hand-picked government there would meet interests of that country and its people," Khatami said.

Aznar said Madrid's stance on the Iraqi issue was "clear" and that Spain sought any action to this effect be carried out under the UN auspices.

"We believe that the UN Security Council must assume responsibility in this respect and its resolutions be respected," he said.

The Spanish prime minister, however, cited as necessary to maintain international pressures on Iraq to readmit UN arms inspectors.

"Impunity is the worst of solutions and defiance of the international community, the failure to fulfill the (UN) resolutions, should not remain unpunished," Aznar said.