Financial Times FT.com

Iran ‘accepts two-state answer’ in Mideast

By Guy Dinmore and Najmeh Bozorgmehr in Chicago

Published: September 4 2006 22:38 | Last updated: September 4 2006 22:38

Mohammad Khatami, Iran’s former president, says Iran would accept a Palestinian state “ready to live alongside Israel” if the elected Hamas government freely adopted such an outcome.

In an interview with the Financial Times, Mr Khatami, a reformist, distanced himself from the hardline statements expressed by Mahmoud Ahmadi-Nejad, his fundamentalist successor, who has called the Holocaust a myth and said Israel should be removed from the map by the Palestinians.

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