"We need these bills. They are in process and we hope that would end in a logical way", Mr. Khatami said in response to an Iran Press service question to spell out what he would do if the bills were rejected by the powerful, conservatives-controlled CG.

The motions, aimed at curtailing the powers of the Guardians to vet the candidates to all elections in the one hand and giving the president his powers to for the implementation of the Constitution by all the regime’s powers and institutions on the other, has divided the reformist camp, with the left wing urging Mr. Khatami to resign immediately if the CG rejects them.

Speaking at a joint press conference with the Spanish premier Jose Maria Aznar at the end of three hours discussions, Mr. Khatami also rejected the idea that the present Iranian leadership suffers from a "duality of powers", divided between an un-elected minority made of hard line ayatollahs and an elected majority of republicans but who have no powers.

The two men had emerged after a two hours-long private talks that informed sources said centred on bilateral, regional and international issues in the one hand and situation in Iran, on the other hand.

"No two other people thinks like each other and leaders of the Islamic Republic are not an exception. There is no duality in the Constitution, where the roles of the leader and the president are clearly defined, but there are differences", Mr. Khatami said.

However, Khatami hoped that he could "soon return to his books and studies"

On all other issues, including the Middle East peace process, the Iraqi crisis, the Iran-American relations, the situation if human rights in Iran etc. Mr. Khatami repeated his earlier positions.

Mr. Aznar said his country has friendly relations with both the Islamic Republic and the United States, but added that Washington has not asked for his mediation nor did the American leader sent any message to his Iranian counterpart using Spanish channel.

He said Spain is interested in pursuing bilateral ties at the highest levels, adding, "Spain is following with great interest the reform process headed by President Khatami".

Mr. Khatami repeated Tehran’s "historic" complaints against the United States and regretted that Washington awarded Iran as an evil state despite Iran’s full cooperation in Afghanistan.

"I hope that President Bush realises the mistake he has committed by labelling Iran an evil nation, for evil is in force, hegemony and oppression of other people", he pointed out.

Asked to clarify recent statements by Iranian official spokesmen that Iran might be ready to recognise Israel and Palestine, he evaded the question, repeated old suggestions of resolving the Middle East crisis trough a referendum between "all original population of Palestine", but said Iran would respect the will and decision of Palestinian people.

"Whatever they decide, we shall respect, at the same time we think the whole world, including Europe and the United States should help a lasting peace in the region based on justice for all".

Both Mr. Khatami and Prime Minister Aznar expressed satisfaction at relations between their nations and hoped that both political and economic relations would be further enhanced.

The two sides hand inked several protocols aimed at strengthening relations in economic, tourism and custom fields and also avoid double taxation.

At present, Spain is Iran’s forth important trade partner in Europe and Mr. Khatami and Mr. Aznar hoped exchange between their nation to increase in the near future.

The two leaders expressed the hope that cooperation between Tehran and Madrid help diffuse tensions and violence in the world.

Mr. Khatami repeated Iran’s opposition to the United States plans for attacking Iraq and said if Washington’s plan at removing the Iraqi leader Saddam Hoseyn prevails, the world would become a "really ugly place".

He reminded that it was Iran that first suffered from Iraqi poisons and chemical weapons and despite the fact that it was Iraq that had attacked Iran, yet Tehran was against any unilateral action aimed at imposing a super power’s will on weaker nations.

Khatami arrived in Madrid Monday evening for his first ever visit to Spain, leading a sixty people-strong delegation that includes Ministers of Foreign Affairs and Finances. ENDS KHATAMI MADRID VISIT 291002