TEHRAN-- Foreign Minister Kamal Kharrazi and his Canadian counterpart Bill Graham in a telephone conversation on Saturday discussed mutual cooperation, the Middle East crisis and the issues mooted at the meeting of the Group of Eight nations.

Graham recalled the difference between Europe and the U.S. on the issue of Palestinian leadership, and stressed this has to be determined through democratic means, IRNA reported.

Kharrazi, for his part, said the U.S. policy on the Middle East conflict and President George W. Bush's stance that the Palestinian leadership has to be changed, has complicated the current tense situation in the region.