The agreement, aimed at co-operating to fight crime, terrorism, money laundering, surveillance of borders and territorial waters as well as illegal immigration, was signed between the visiting Saudi official with his Iranian counterpart, Hojjatoleslam Abdolvahed Mousavi-Lari.

Assuring that the agreement would "initiate a new chapter" in Tehran-Riyadh relations, Mr. Mousavi-Lari told journalists at a joint press conference that the accords "promises" peace and friendship and "Iran has always reached out hand of friendship to its neighbours".

For his part, Nayef said the agreement lies within the framework of confidence building, adding, "the region should enjoy full security and the agreement should benefit the whole region."

"The security accord which has taken two years to negotiate is purely related to mutual security and "has no military dimension", notably relating to the Persian Gulf, the Saudi minister explained.

He was referring to "controversies", fanned by Iran, that the agreement might also include military co-operation, as Iran insist on signing a defence pact with all its neighbours in the Persian Gulf in order to kick out American forces out of the region.

Prince Nayef, who is a brother of the Saudi Monarch Fahd, also said that Iran and Saudi have rejected the assertion that Iraq poses threat to Kuwait, the official Iranian news agency IRNA reported.

The pact is a fresh sign of warming relations between the two countries after years of mutual suspicion following the 1979 Islamic revolution in Iran, political analysts noted.

Though Washington described the Israeli operations "disproportionate", yet both Prince Nayef and Iranian officials he met, including Hojjatoleslam President Mohammad Khatami, criticised the US for its backing of Israel.

Like Iran, Saudi Arabia do not recognise Israel, but contrary to Tehran, it does not call for the total destruction of the Jewish State.

President Mohammad Khatami condemned the Israeli attacks as "expansionism and violation of international laws by the Zionist regime" while receiving the Saudi Minister.

"Only under the auspices of solidarity among the Islamic countries and relying on common interests, would such threats posed to Islamic world be thwarted", he said describing Israel as "the biggest threat" posed to the Muslim and Arab nations.

Kharrazi described the current situation in the Middle East as "very sensitive and decisive" and said a decade of negotiations did not have any positive results for the Palestinians and a new approach should be explored to resolve the Middle East crisis, IRNA quoted him.

Mr. Hashemi Rafsanjani, the current powerful Chairman of the Expediency Council expressed the view that solidarity of Iran and Saudi Arabia will "help resolve the regional crises including that of Iraq and Afghanistan".

"In that case the united Islamic front will take shape before the Zionist regime and the Muslim states would direct their forces against the main enemy" Ayatollah Rafsanjani said.

Prince Nayef conveyed warm greetings of King Fahd to Mr. Hashemi-Rafsanjani, noting that the negotiations between Crown Prince Abdullah and Rafsanjani in Islamabad had effective role in strengthening relations between Iran and Saudi Arabia.

Ties between the two nations cooled off dramatically after the victory of the Islamic revolution in 1979 and were cut off in 1988, after 400 Iranian pilgrims died in Mecca during clashes with Saudi police following demonstrations against the United States and Israel, as ordered by Grand Ayatollah Ruhollah Khomeini.

Renewed in 1991 under the presidency of Mr. Hashemi-Rafsanjani, relations improved steadily the landslide victory of Hojjatoleslam Khatami in the presidential elections of 1997, who also made a landmark visit to the kingdom in May 1999.

In his meeting with Prince Nayef, Mr. Hashemi-Rafsanjani said that Iran-Saudi cooperation resulted in stopping the collapse in the oil prices, adding that to the extent that cooperation between the two countries has constructive and useful impacts on the regional developments and the interests of the Muslim world.

For his part, the Saudi Interior Minister said the biggest existing tragedy of the Muslim world is the agony of the Palestinian people who are under oppression in various fields.

He criticised the international community's "half-hearted" handling of the crisis, saying that the daily massacre of women and children in the Palestinian occupied lands is regrettable and criticized the silence of the world and the continuity of support from the supporters of Israel.

On the crisis in Afghanistan, Mr. Rohani said the Taleban-ruled Kabul has been turned into "a centre" for export of terrorism and narcotic drugs and suggested that Iran and Saudi Arabia launch joint campaign against terrorism and drug trafficking in the region.

Prince Nayef said the production and trafficking of drugs in that country is one of the most serious existing concerns at the regional and international levels, but refrained from criticising the Taleban, a regime that is officially only recognised by Riyadh, Islamabad and the United Arab Emirates.

On the thorny issue of Iraq, both sides underlined the need to preserve Iraq's territorial integrity, but called on the Iraqi leader to "oblige" with the United Nations resolutions.

"We are for the restoration of stability and security in Iraq through the latter's friendly ties with all regional countries and hope that all problems facing that country will be removed as soon as possible", Mr. Rohani told when meeting with the Saudi Interior Minister, but both agreed at the same that Baghdad was still a potential threat to the security of neighbouring Kuwait.

Referring to the security of the Persian Gulf and the Middle East, Rohani said that regional as well as world security had direct impact on the security of Iran and Saudi Arabia, and therefore, the two countries should exchange views and cooperate in a bid to restore security both in the region and the world, according to IRNA.

Prince Nayef expressed regret that Iraq initiated war on Iran in 1980 and said that before the war King Fahd asked Saddam several times not to initiate war on Iran, but Iraq invaded Iran and committed another mistake of invading Kuwait (in 1990) and created crisis in the region.

While describing the situation in Iraq as "regrettable", Prince Nayef said continued crisis in Iraq will be detrimental to the entire region and the chaotic situation in Palestine will continue.

He said his visit to Iran has brought more understanding between the two countries and will lead to more solidarity between the two Muslim nations and other Muslim regional countries.

While "sympathising" with the Iraqi people and terming the current situation in Iraq as "unacceptable", they underlined the need for "changes" based on "international norms" in a way to safeguard the Iraqi people against the sanctions imposed on them and preserving the territorial integrity of Iraq and non-interference in determining the destiny of its people, a veiled criticism of Washington and London.
Solution of regional issues is "the common responsibility" of countries in the region, with Iran and Saudi Arabia being the "foremost", the communiqué said, adding that the two sides underscored each other's significant status in the region and stressed the need for expansion of regional cooperation to further consolidate peace and stability.

Tehran and Riyadh highlighted the brotherly and friendly relations between the two countries and underlined the importance of security accord signed by the two sides.

However, the joint statement failed to mention the situation in Afghanistan, where the Taleban, backed secretly by Saudi Arabia and Saudi millionaires, are destroying all the vestiges and symbols of Shi'isme, including historic monuments and mosques, according to well-informed Afghan sources. ENDS NAYEF VISIT ENDS 18401