TEHRAN The Iranian and foreign participants at Tehran conference on Palestine severely condemned a statement issued by the U.S. State Department calling some of the participants terrorist.

The representative of Hizbullah in Lebanese Parliament said the U.S. move is sign of the success of the conference. Ammar Mussavi stressed that the statement indicates to what extent the U.S. is sensitive on any free expression of views.

Foreign Ministry Spokesman Hamid Reza Assefi said that those fighting for liberation of their homeland could not be called terrorist. He added, "Not only Iran but all Muslim nations denounce the U.S. support for the Israeli state terrorism."

U.S. State Department Spokesman Philip Reeker on Tuesday said, "The outrageous and deplorable statements such as those ... do nothing to allay our concerns about Iran and it's ... opposition to the Middle East peace."

"Next week we'll release our annual patterns of global terrorism report, which I am sure will highlight a number of the organizations that have been there," he added.

Iranian MP from Kashmar Mohammad Reza Khabbaz said such reaction by the U.S. was quite natural. "The U.S. new measure shows that its slogan in favor of democracy is not true," he added.

A member of Majlis Presiding Board Soheila Jelodarzadeh congratulated the participants over the success of the conference, which made the U.S. furious. "Defense of human rights should be shown in deeds not in slogans and statements," she stressed.

Commenting on the same issue, the Secretary General of the International Conference on Palestine Ali-Akbar Mohtashamipour said on Wednesday, "Such baseless allegations will not only prevent a solution to the chaotic condition in the Middle East, but will further aggravate the situation.

Meanwhile, the Foreign Ministry Spokesman Assefi on Wednesday rejected as pure fabrication and unfounded' a claim raised by Israeli Prime Minister Ariel Sharon that Iran had set up a missile base in Lebanon.