| The New York
    Times
 By MICHAEL R. GORDON
 
 
  SINGAPORE,
    June 3 — Defense Secretary Donald H. Rumsfeld
    told a gathering of defense experts here on Saturday that Iran was “one of the leading
    terrorist nations in the world.” 
 Mr. Rumsfeld also questioned why Russia and China
    would allow Iran to
    participate in the Shanghai Cooperation Organization, a regional organization
    that includes Russia, China and
    Central Asian nations.
 
 Iran has observer status in
    the group, and the Iranian president, Mahmoud Ahmadinejad, is expected to attend a summit meeting
    that the organization is holding in Shanghai
    this month.
 
 “It strikes me as passing strange that one would want to bring into an
    organization that says it is against terrorism one of the leading terrorist
    nations in the world: Iran,” Mr. Rumsfeld said.
 
 His pointed comments were made at an important moment in American diplomacy.
    This week, the Bush administration reversed a refusal to hold direct talks
    with Iran
    that had lasted decades. The administration said it was willing to join
    European allies in negotiations over Iran’s nuclear program if
    Teheran first suspended its efforts to enrich uranium.
 
 At the same time, Washington
    has been seeking Russian and Chinese cooperation in fashioning a common
    negotiating strategy. Both nations are members of the United Nations
    Security Council, which the United States
    would like to impose punitive measures if Iran does not accept a package
    of incentives and suspend its nuclear enrichment activities.
 
 The United States and
    its European allies recently agreed on the package of incentives, which are
    to be conveyed to Iran
    in the coming days. Secretary of State Condoleezza Rice has said that Iran must
    respond within weeks. President Ahmadinejad has
    rebuffed the offer, but America
    officials said this may not be the final word.
 
 In his comments, Mr. Rumsfeld said that President
    Bush had presented Iran with the opportunity to defuse the confrontation
    over its nuclear program through diplomacy and that more time was needed to
    assess the prospects for a diplomatic settlement.
 
 “The information has just been communicated to them, and it seems to me the
    appropriate thing now to do is to wait and see which path the Iranian
    government will take,” he added.
 
 But he painted a dark picture of Iran, saying that it had a long
    history of “being engaged in terrorist activities” and, thus, was not an
    appropriate participant in the Shanghai Cooperation Organization. The
    Russian- and Chinese-dominated organization was established in 2001 and one
    of its stated goals is to counter separatist and terrorist groups.
 
 Singapore’s prime minister,
    Lee Hsien Loong , said Friday that Iran’s
    role in the Shanghai organization was a way
    for Russia and China to
    demonstrate their influence. Iran, he said, had applied to
    upgrade its presence to full-fledged member. By agreeing to consider this,
    he said, “Russia and China have
    reminded the West of their combined influence on world-turning events.”
 
 India, which also has
    observer status in the organization, said Iran’s
    participation in the upcoming summit as an observer was a matter for Iran to
    decide. “Who am I to decide on their behalf?” said the Indian defense
    minister, Pranab Mukherjee.
 
 One of the main themes in Mr. Rumsfeld’s address
    here was the need for more inclusive institutions. The United States was concerned last year when
    an East Asian summit was held that included 10 members of the Association
    of South East Asian Nations, as well as China,
    Korea, Japan and other countries, but which
    excluded the United
      States.
 
 Mr. Rumsfeld repeated a theme from last year’s
    address — that China
    needed to be open about how much it was spending on its military and what
    the funds were being used for.
 
 Russia,
    he said, had sought “to constrain the independence and freedom of action of
    some of their neighboring countries.” Defense officials said this was a
    reference to the pressure that Moscow has put on Central Asian nations to
    curtail military ties with the United States as well as to Russia’s
    difficult relationship with Georgia and Ukraine.
 
 Mr. Rumsfeld’s presentation and that of other
    defense officials were made at an annual conference organized by the
    International Institute for Strategic Studies. Neither China nor Russia sent high-level
    officials to the conference. Iran has made its own forays
    into the region. Last month, President Ahmadinejad
    visited Indonesia
    where, Mr. Lee noted, he received a hero’s welcome from Indonesian
    students.
 
 “This showed how successfully Iran has portrayed itself as a
    leading Muslim country, its nuclear program as a project in which Muslims
    worldwide should take vicarious pride, and the issue as a nationalist
    struggle,” Mr. Lee said. “We have to refocus on the core issue, which is
    nuclear proliferation and Iran’s
    obligations under the Nonproliferation Treaty.”
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