May 5, 2002	Sunday	Safar 21, 1423

TEHRAN, May 4: Japanese Foreign Minister Yoriko Kawaguchi, visiting Tehran on Saturday, urged Iran and the United States to work towards repairing their relations in the interests of regional peace and stability.

While US President George W. Bush has dubbed Iran part of an “axis of evil” for allegedly pursuing weapons of mass destruction, Japan has pursued closer ties with Iran, the source of more than 10 percent of its oil imports.

“Relations between Iran and the United States would be helpful for regional and the world’s stability,” Kawaguchi’s spokesman quoted her as telling her Iranian counterpart Kamal Kharrazi.

Japan, along with European Union countries, has attempted a policy of engagement with the Islamic Republic by encouraging reformers around President Mohammad Khatami. The policy is in contrast to hardline condemnation by the United States.

Kawaguchi expressed Japan’s support for reform efforts in Iran and said: “Japan wants to help Iran in that direction in any possible way”, her spokesman told Reuters.

Iran’s Supreme Leader Ayatollah Ali Khamenei last week ruled out any talks with Washington, effectively putting an end to calls from Iranian reformists to open dialogue with the United States in order to stave off possible hostilities.

Tehran has repeatedly called on Washington to drop sanctions against Iran and release funds seized after the 1979 Islamic revolution before ties can be repaired.

“Iran believes it can build relations with any country based on mutual respect,” the spokesman quoted Kharrazi as telling Kawaguchi.

The Japanese foreign minister, who arrived from neighbouring Afghanistan, also discussed the reconstruction of the war-torn country.

Iran also asked for Japanese help in solving its unemployment problem, a major problem in the Islamic Republic where 700,000 new job-seekers enter the market each year.

“If Japan can promote investment in small and medium size enterprises, we would be delighted,” said Kharrazi.

Kawaguchi is due to meet President Mohammad Khatami on Sunday.

JOB CREATION: Iran sought help from Japan on Saturday to ease its unemployment, which President Mohammad Khatami said was reaching a critical level.

With a booming population and a sluggish economy, Iran is looking for outside investment and technological assistance to help create close to a million jobs a year.

“There are three million people without jobs. If we do not do something about the unemployment problem soon, we will face a crisis,” Khatami said at a ceremony to award productive workers.

“The government cannot come up with the money needed to create a million jobs a year. We need private and foreign investments,” he was quoted by Iran’s student news agency as saying.

Iranian Foreign Minister Kamal Kharrazi, in talks with his Japanese counterpart Yoriko Kawaguchi in Tehran on Saturday, asked for help to ease unemployment in Iran, which stands at about 16 percent.

“If J