NEW DELHI, June 16: The US tersely told India on Thursday it would be a mistake to proceed with the proposed gas pipeline from Iran via Pakistan as it could attract sanctions. “We think it will be a mistake to proceed with the construction of such a pipeline,” visiting Assistant Secretary of State for Arms Control Stephen G Rademaker was quoted by Press Trust of India as saying in Delhi.

“Primarily because we think such a pipeline would provide oil revenue to the Iranian government which would likely use such revenue to contribute funding to its weapons of mass destruction programme and to its support to terrorism,” Mr Rademaker said when asked about the reason for Washington’s view on the project.

The US has for long discouraged oil development in Iran. “We have in place legislation in the US that threatens sanctions against particular projects that will develop oil resources in Iran.”

Indian Petroleum Minister Mani Shankar Aiyar in Teheran recently has said India and Iran have agreed to form a special joint working group to thrash out technical, commercial, financial and legal issues for the pipeline to take off in early 2006.