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Japan mulls unlocking official loans to Iran: reports

TOKYO, May 27 (AFP) -Japan is considering lifting a US-inspired freeze on low-interest official loans to Iran as President Mohammad Khatami is seen to be pursuing moderate and realistic policies, press reports said Thursday.

Tokyo suspended such financing in 1993 as Washington led international criticism against Tehran's alleged support of terrorism and development of weapons of mass destruction.

"Under the Khatami administration, Iran has shown an improvement on problems of concern for the international community," a senior Japanese foreign ministry official was quoted by the Jiji Press news agency as saying.

"It is high time (for lifting the ban)," he added.


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