Iranian officials have dismissed European threats of trade penalties if Tehran refuses to allow intrusive inspections of its nuclear activities, the Associated Press reported this week (see GSN, July 22).

“Imposing preconditions or using threatening language is totally unacceptable,” Foreign Ministry spokesman Hamid Reza Asefi said Tuesday (Associated Press/Newsday, July 22).

Iranian President Mohammad Khatami cancelled a visit to Belgium, possibly in response to the demands from the European Union (Agence France-Presse, July 24).

Iran Holds Al-Qaeda Leaders

Iran said yesterday that it is has senior al-Qaeda leaders in custody, the Washington Times reported.

“The statements would appear to confirm what we and others believe to be a significant al-Qaeda presence in Iran, to include members of its senior leadership,” White House spokesman Scott McClellan said yesterday.

U.S. officials demanded that Iran transfer the prisoners to U.S. custody (Bill Gertz, Washington Times, July 24).

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