"The people’s fate will be handed to the Iraqi people themselves with establishment of an independent government", Mr. Talabani, the leader of the Patriotic Union of (Iraqi) Kurdistan added upon his arrival to Tehran.

Pressed by journalist at the airport on the worsening security situation in Iraq, Mr. Talabani minimised the crisis, saying that a terrorist group remnants of the deposed Iraqi dictator Saddam Hoseyn caused insecurity in Iraq.

Leading a heading a 17-member delegation from both the IGC and the so-called government, Mr. Talabani told reporters upon his arrival in Tehran that he expects to reach important agreements with Iran on political, economic and security areas.

Mr. Kamal Kharrazi, the Iranian Foreign Affairs Minister who welcomed the Iraqi delegation said that Talabani’s visit to Iran is a good opportunity to develop economic and political cooperation between the two countries.

"Iran favours Iraq becoming free and independent and be ruled by the Iraqi people themselves", Kharrazi said, assuring the Iraqis that Tehran was ready to help in restoring stability and peace in the war-ravaged Iraq.

This is the first time that the American-installed, but powerless IGC is officially visiting neighbouring Iran that Washington has labelled as a "rogue state" and accuses of giving a helping hand to Iraqis opposed to American military presence in Iraq.

"Tehran’s policy is based on non-interference in the internal affairs of the war-torn country and its territorial integrity", Mr. Kharrazi told the visiting Iraqi delegation, adding that Iran hoped for speedy formation of an independent authoritative government in Iraq "in accordance with the will and determination of the Iraqi people".

"Collaboration between the two counties will strengthen regional peace and security and will lead to broader regional cooperation", Kharrazi noted, adding that joint investments and undertakings in various fields including railway, energy, trade, banking, exchange of tourists and pilgrims are among the potential grounds for cooperation.

For his part, Talabani an old friend of the Islamic Republic, said that Iran’s positive approach to IGC marks the significance of future cooperation and called for close ties and expansion of collaboration between the two states in all fields.

"Given that Iraq’s stability is important and indispensable, IGC closely follows the policy of establishing and safeguarding stability in Iraq by cooperating with neighbouring states", he added.

Under Saddam Hoseyn, Iran fought an eight years deadly war with Iraq, costing the two nations millions of dead and wounded as well as thousands of towns and villages destroyed.

Talabani voiced Iraq’s interest in Iran’s participation in the country’s reconstruction process and underlined that the interests of both countries as well as regional peace and stability depend on expansion of cooperation and deepening friendly ties between the two neighbouring countries.

Kharrazi and Talabani agreed to hold dialogues at the ministerial and deputy ministerial level as well as representatives of the private sector to discuss cooperation and exploitation of the potentials of both sides.

When asked about U.S. opposition to cutting a deal with Iran, Talabani said there were "no impediments to co-operation.

"What we want to do with our Iranian brothers is to the benefit of...Iraq's reconstruction. If they are our friends, they should not oppose it," he told reporters.

A swaps deal appeals to the Iraqis who are finding access to markets difficult because of infrastructure and sabotage problems on export lines.

The equivalent amount of Iranian Light crude could then be sold on behalf of Baghdad via Iran's Kharg Island terminal in the Gulf