"We are ready to do our best for the regional peace and stability and the removal of misunderstandings", the lamed Iranian President told visiting Indian Prime Minister, pointing out that Iran has co-operated with the United Nations, the Organisation of Islamic Conference and other related organisations for resolving the Afghanistan crisis".

Vajpayee, the first Indian premier to visit Iran since 1993, was received by Mr. Khatami at the Sa’d Abad Complex, the former Imperial residence of the last Iranian Monarchs, and is due to address the Iranian Majles (parliament) today.

Both Mr. Khatami and Mr. Vajpayee insisted on the importance closer ties between their two countries represents for western and Central Asia.

He described Prime Minister Vajpayee's visit to Iran as a "turning point" in the "historical" relations of the two countries and said the visit is would open a "new chapter" in the their relations.
President Khatami praised the wisdom of Indian politicians in dealing with the issue of religious variety in that country and the due attention that the constitutional law of India has paid to the matter and said the tolerance and coexistence have always protected the Indian nation against the upheavals during its history.

Iranian observers said coming 24 hours after the leader-led Judiciary had arrested another group of Islamist-nationalists, the remarks were addressed to the ruling Iranian hard-line conservatives who, led by Ayatollah Ali Khameneh'i, the fundamentalist leader of the Iranian Islam-based regime, contrary to the Indians, have no tolerance at all.

Mr. Vajpayee is to also meet Mr. Khameneh’i and Defence Minister to discuss ways and means, not only to expand military co-operation and possible sale of Indian warfare goods to Iran, but also support Commander Ahmad Shah Mas’oud, the veteran Afghan opposed to the Taleban that controls more than 90 per cent of Afghanistan.

Welcoming the Indian Prime Minister at the airport, Iranian Foreign Minister Kamal Kharrazi said Pakistan must work with Tehran and New Delhi to resolve the Afghanistan situation.

"Experience has proven that the Afghan crisis has no military solution and that the warring sides in Afghanistan should sit down at the negotiating table", the official Iranian news agency IRNA reported.

Pakistan backs Afghan's ruling Sunni Muslim Taleban militia, which ousted President Burhanuddin Rabbani in 1996, but Islamabad denies giving them any military support.

In Europe on the invitation of Madame Nicole Fontaine, the French Speaker of the European Parliament, Mr. Mas’oud repeatedly accused Pakistan of providing the Taleban with "all kind" of military, intelligence, propaganda, communication and logistic assistance, assuring that with these "massive" support, the Taleban could not remain in power and would be toppled.

He also said thousands of Pakistani talabeh, or theological students, Arabs and mercenaries paid by the Saudi anti-western crusader Osama Ben Laden were also fighting his forces alongside Taleban and Pakistani soldiers.

The transfer Iranian natural gas to the large Indian market is another topic discussed between Iranian and Indian officials.

Leading an 18 members diplomatic and economic delegation, Prime Minister Vajpayee underlined the need of his country to Iran's gas and oil but at the same time stressed that the bilateral co-operation should not be limited to gas and oil.

The agreements included various topics such as energy, water, trade and science, which were signed by Iranian ministers and the Indian delegation accompanying Vajpayee.

Although Islamabad has given assurances over the safety of the line, ye the project has been shelved amid Indian concerns over a potential security risk in routing the pipeline through Pakistan, India’s "eternal enemy", proposing a sea-based pipe that, in turn, Indian military and economic rejects as "unrealistic".

But India's Institute for Defence Studies and Analysis director Mr. Jasjit Singh, rejected that argument, observing that India can use the Iran-India overland gas pipeline as a pressure point on Pakistan and improve the political climate for better economic partnership.

Quoted by the "Hindustan Times" of New Delhi, Mr. Singh said provided a multinational firm and multilateral funding were involved in building the pipeline, the benefits from implementing the project far outweigh the perceived security threat.

He said Pakistan would never agree to a pipeline over its Continental shelf. A deep-sea pipeline would be vulnerable to threats from the Pakistan Navy while the land option, according to him, would enjoy the guarantee of the Pakistani Government.

On regional and international levels, the two sides touched on impending issues, including the growing tensions in the Middle East.

On the issue of Palestine, the president pointed to the "brutal" suppression of the Palestinians and said Tehran is for a real peace, security, stability and calm in the Middle East.

Without naming the neither United States nor Israel directly, Mr. Khatami noted that it was a "wishful thinking" that peace will be established in the region with "all-out support for the usurper".