The US says it has new evidence that Iran is developing a long-range ballistic missile that could strike targets in Israel, Turkey and much of the Gulf.

According to US sources, Iran's long-range missile programme is advancing steadily. Last month US spy satellites monitored engine tests for the ballistic missiles, picking up the heat generated by the rockets when their burners were ignited.

Iran's missile programme presents Washington with several dilemmas. US policy has been to isolate Iran as far as possible.

Mohammed Khatami, trying to woo America

Now Iran's new President Mohammed Khatami appears to be making diplomatic overtures to the Americans.

But it will be hard for US officials to explore what may lie behind them if Iran's long-range missile development continues.

The uncertainties over Iran also risk damaging US policy towards Russia.

US intelligence sources believe that Russian know-how has been a vital ingredient in helping the Iranians to pursue their missile programme.

They also believe that despite assurances from the Russian government, little has been done to curtail such contacts.

This conflict has caused deep divisions within the Clinton administration about how far to press the issue with Moscow.

Two policies, the containment of Iran and the development of close ties with Russia seem to be in conflict.

In addition, many of America's European allies are eager to pursue economic ties with Iran and are unhappy at US legislative attempts to bring in sanctions against firms seeking business there.
 

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