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Tuesday, 31 October, 2000, 13:05 GMT
Iran retaliates against US compensation legislation

The Iranian parliament has adopted a law that would allow what it called victims of American interference in Iran to sue the United States in Iranian courts.

The move was taken in retaliation for a recent decision by the US Congress to allow frozen Iranian assets to be used to pay millions of dollars in compensation to US citizens regarded as victims of Iranian backed terrorism.

MPs in Tehran said Iranians had just as much right to compensation as Americans.

Iran accuses the US of blatantly interfering in its affairs since a coup in 1953 sponsored by America and Britain overthrew the nationalist government in Tehran. The BBC correspondent in Tehran says the affair is unlikely to have a huge impact on US-Iranian relations but simply underlines the difficulties of bringing the two sides closer together.

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