'Iran world's leading sponsor of terror'

US President George W Bush reached out to the Iranian people yesterday in the keynote address of a Middle East tour, telling them they had a right to live under a government "that listens to your wishes".
In the wide-ranging speech in the United Arab Emirates capital of Abu Dhabi, Bush hit out at the Tehran regime across the Gulf saying that it was "today the world's leading state sponsor of terror" and, with al-Qaeda, the main threat to the region's stability.
The US president also addressed Israelis and Palestinians telling the former that peace with their Arab neighbours was the best guarantee of security and the latter that they should "reject the terrorists who pose the greatest threat to a Palestinian state."
The United Arab Emirates is Iran's main trading partner with up to 10,000 Iranian firms operating in its commercial hub of Dubai and Bush's intention to use the platform to speak out against the Tehran regime had been well trailed.
"To the people of Iran, you're rich in culture and talent. You have the right to live under a government that listens to your wishes, respects your talents and allows you to build better lives for your families," he said.
"Unfortunately your government denies you these opportunities and threatens the peace and stability of your neighbours.
"So we call on the regime in Tehran to heed your will, and to make itself accountable to you.
"The day will come when the people of Iran have a government that embraces liberty and justice and Iran joins the community of free nations. When that good day comes you will have no better friend than the United States of America."
The Middle East tour, which Bush began in Israel on Wednesday has been overshadowed by renewed tensions with Tehran following a face-off between Iranian and US naval vessels in the entrance to the Gulf earlier this month.
Washington has since repeatedly warned Tehran that its commanders are authorised to use force in self-defence if necessary and Bush has stepped up his rhetoric against the Iranian regime.
"Iran's actions threaten the security of nations everywhere," the US president said in Abu Dhabi.
"It seeks to intimidate its neighbours with missiles and bellicose rhetoric."
But in an embarrassing climbown that was gleefully seized on by Tehran, the Pentagon admitted that a sound recording it had released of a voice threatening to blow up the US vessels may not have emanated from the Iranian vessels.
The Navy Times reported that US naval experts now believe the threatening voice may have been that of a local heckler known as the "Filipino Monkey" who frequently interrupts ship-to-ship radio traffic with insulting interventions.
Tehran accused Washington on Sunday of distorting the incident "to fool the region" during Bush's visit and called on US officials to apologise.
"They tried to bring it up at the same time as Bush was travelling to the region to paint Iran in a bad light. But their plans fell flat," foreign ministry spokesman Mohammad Ali Hosseini said.
Bush also used his speech in Abu Dhabi to urge Israelis and Palestinians to have faith in the renewed peace negotiations launched in Annapolis outside Washington in November and to shun the alternative of armed struggle and war.
"To the Palestinian people, the dignity and sovereignty that is your right is within your reach," said Bush, who after a first visit to the Holy Land as president last week, said he is "very hopeful" a final peace deal can be reached before he leaves office in January.
"Oppose the extremists and terrorists who represent the greatest threat to a Palestinian state. The United States will help you build the institutions of democracy and prosperity and make your dreams of a state come true.
"To the people of Israel, you know that peace and reconciliation with your neighbours is the best path to long term security. We believe that peace is possible, though it requires tough decisions."
Bush also renewed his call for reform in the Middle East pointing to the example of Japan after World War II where he said a thriving democracy had been built without affecting indigenous culture or religion, despite the strong opposition of supporters of an absolute emperor.
He listed a string of Arab countries, which had held elections in recent years. Even in the United Arab Emirates, indirect elections to an advisory federal council, which are the only polls to have been held so far, were the "first step in a wider reform," he said.
Earlier the UN atomic watchdog said yesterday that it had agreed with Iran a four-week deadline to clear up all remaining issues regarding Tehran's disputed nuclear activities.
During meetings in Tehran on Friday and Saturday, the International Atomic Energy Agency's director general, Mohamed ElBaradei, and Iran's Supreme Leader Ayatollah Ali Khamenei and President Mahmoud Ahmadinejad agreed that the so-called "work plan" for clearing up outstanding issues "should be completed in the next four weeks," the agency said in a statement.