Speaking at a joint press conference at the Hofburg palace in Vienna, flanked by his Austrian counterpart Thomas Klestil, the Iranian embattled President said he would leave it to the world opinion to judge whether "war-mongers" can accuse as "evil" a nation that has proposed dialogue among civilisation, a reference to the United States in the one hand and his own pet proposal made at the United nations some years ago.

Since taking office in 1997, Khatami has visited several European countries, including Italy, France and Germany, but Monday's trip is his first since the Sept. 11 terrorist attacks on the U.S., which Iran had condemned.

The visit is presented by Iranian reformists as a mission to build up European Union’s backing of Iran against the United States, which accuses Iran of deploying efforts to acquire weapons of mass destruction, support terrorist organisations and "oppressing its own population".

But analysts said not only Austria is not a heavy weight among the 15 nations European Union, but also the country is partly ostracised by some other European partners because of its right-wing leanings and anti-Zionist stands.

"States should not describe their opponents as evil", said the powerless Khatami, calling on all nations to instead "work together to fight the real evil in the world, which is poverty, injustice, terrorism and violence".

As he was moralising, hundreds of Iranian exiles were protesting the visit, beating drums and chanting, "Khatami must go!"

"The visit takes place at a time when oppression, torture of political prisoners, massacres and inhumane penalties such as stoning, hand-mutilation and eye-stabbing, repression against all kind of freedoms, including that of the press and speech, continue", one dissident told journalists.

Because of the presence of a large number of Iranian dissidents, the Austrian authorities have taken unprecedented security measures to prevent acts of hostility against their guest.

Mr. Klestil, the first European leader to officially visit the Islamic Republic in 1999, backed his guest’s anger at American accusations, saying: "I don't agree with this view, Austria doesn't agree with this view and the European Union doesn't agree with this view either".

He said that he raised the issue explicitly with the foreign section of the European Union.

President Khatami said that leaving aside the insults leveled against the Iranians and other nations shouldn't the world be concerned over war-mongering attitude that will lead to another world war?

"Austria has been for the recognition and restoration of the rights of the Palestinians along with the official recognition of Israel within the international borders'', Mr. Klestil added in answer to Mr. Khatami who had repeated his "utopian’ proposal of solving the 50 years-old Israel-Arab-Palestinian bloody conflict by organising a referendum among all "original residents" of Palestine.

The Iranian cleric president pointed to Israeli "atrocities" on the Palestinian people using "the most modern weapons available at the time", but ignored Palestinians suicide operations in Israel, hitting mostly civilians at gatherings at coffee shops, restaurants or wedding ceremonies.

On Tuesday, Mr. Khatami and Mr. Klestil would take part at the inauguration of an important meeting about improving economic ties with Tehran.

Iran and Austria signed here Monday two memoranda of understanding (MoU) on removal of double taxation on the two countries' imports as well as bilateral customs cooperation.

On Wednesday Mr. Khatami will travel to Greece, which, with Orthodox Armenia, forms an odd alliance with Iran against the Ankara-Baku-Tel Aviv axis. ENDS KHATAMI VIENNA VISIST 11302