Iran has recalled its ambassador from Prague in protest at the decision of the Czech Republic to allow the United States to use its territory to make radio broadcasts to Iran.

The Iranian ambassador to the Czech Republic, Jafar Hashemi, said Iran had taken the measure because the new radio service was funded by a special $20m-dollar budget allocated by the United States for efforts to destabilise the Islamic Republic.

Mr Hashemi accused Prague of co-operating with Washington in a hostile act against Iran.

Iranian authorities have been warning that if the new service began its broadcast from the Czech territory, Iran would review its relations with the Czech Republic.

The Farsi (Persian) Language Service, whose programmes are also produced at studios in Prague, made its first half-hour broadcast last Friday, as did another new US-funded station, Radio Free Iraq.

The Iranian government has now also decided to reduce economic relations between the two countries.

No tit-for-tat reaction

However, a Czech foreign ministry spokeswoman told the BBC that Prague had no plan to reciprocate.

She said her government had informed Iran that it was monitoring the economic and security impact of the radio station, and would review its future at the end of the year.

The Czech government has also tried to assure Iran in the past that the new radio service aimed to support President Khatami, and not to overthrow the Iranian government.