Hade Soleimanpour (right) denies involvement in the 1994 bombing
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An Iranian ex-envoy has been freed on bail in London, pending extradition proceedings over a bombing which killed 85 in Argentina.
Hade Soleimanpour was freed on £730,000 bail, and must report daily to police.
A High Court judge said there was no clear evidence Mr Soleimanpour was involved in the 1994 bombing of a Jewish centre in Buenos Aires.
Mr Soleimanpour was arrested while studying in England. The case has caused tension between Iran and the UK.
Mr Justice Royce said he had read reports from the investigating judge in Argentina - totalling more than 400 pages - but said it did not point to any "clear evidence demonstrating his involvement".
He added that Mr Soleimanpour had stayed in the UK despite plenty of chances to flee.
'Innuendo and hearsay'
The envoy had known about a possible
extradition request from Argentina since March and "clearly could have departed
these shores by now had he so wished," he said.
The Iranian Government has put up £500,000 to guarantee bail and Mr Soleimanpour's parents in Iran have put up another £200,000. The diplomat has offered to supply the rest himself.
His counsel, Mr Alun Jones QC, said the Argentine government's accusations were based on "innuendo, hearsay and suspicion".
Argentina seemed to be suggesting that Iran was exporting state-sponsored
terrorism through its embassy and that the ambassador therefore must have been
involved, he said.
He said Mr Soleimanpour planned to stay in Durham for at least another year and wanted to play a full part in the judicial process so that the suspicions against him could be dispelled.
Mr Justice Royce said it was "too early" to reach a final view on the strength of Argentina's case against the diplomat - and that would be decided by a magistrate as the extradition proceedings began.
Mr Soleimanpour is due to appear at London's Bow Street magistrates' court on Friday, 19 September, for the
start of extradition proceedings.
'Planned' blast
The row over the arrest has caused a diplomatic strain between the UK and Iran.
Iran claims the arrest is politically motivated and temporarily recalled its ambassador to London back to Tehran in protest.
But the UK government says it cannot intervene in what it calls a purely judicial process.
Mr Soleimanpour, who was Iran's ambassador to Argentina in 1994, says he was not in the country at the time of the bombing.
But the Argentine authorities allege the 47-year-old was involved in planning and commissioning the bomb - the country's worst terrorist attack.
Ties suspended
Mr Soleimanpour is still employed by Iran's diplomatic service, but is on a sabbatical studying nature-based tourism at Durham, where he has been living with his wife of 18 years and their children, aged 13 and seven.
In total, Argentina is seeking the extradition of eight Iranian officials from various countries in connection with the bombing.
Iran has suspended economic and cultural ties with Argentina in protest against the arrest.