LONDON Group of Eight Foreign Ministers said on Saturday they welcomed encouraging political developments in Iran and called on it to play a more constructive role in world affairs. A communique issued after two days of talks here listed Iran's ratification of the chemical weapons convention, its stated commitment to developing a civil society based on the rule of law, including greater freedom of speech, and signs it was seeking a more positive foreign role.

Diplomats said the statement reflected developments in Iran since the election last summer of President Mohammad Khatami. Policy towards Iran has been a divisive issue for the eight countries attending the London meeting because of U.S. pressure to keep the country isolated. Influential U.S. senators urged President Bill Clinton on Friday to impose sanctions against three foreign companies for violating a U.S. law that prohibits large investments in Iran's energy sector.

Saturday's communique listed a string of further steps which Iran should take, urging it to build on moves which it had already made and play a more constructive role in world affairs. Among the eight countries backing the statement was Russia. Pressure on President Clinton to impose sanctions comes just days before he flies to Britain to join the other group of eight leaders for a summit in Birmingham. State Department Spokesman James Foley said on Friday that the decision is close on whether to apply sanctions, but he declined to say exactly when it would come.

I think we're in the final stages of making that decision. Whether it can be made before the summit or around the summit, I am not aware that we've made that decision, Foley told a news briefing. European nations are strongly opposed to the U.S. law, arguing its investment restrictions should not apply beyond U.S. borders to foreign companies. (Reuter)