LONDON -- The opposition Conservative Party backs the British government approach of engagement with Iran despite its traditional close association with right-wing U.S. policies.

"We are in favor of continuing dialogue with Iran," shadow Foreign Office Minister for the Middle East Alan Duncan told MPs Thursday.

He said that the Conservatives welcome the reforms that President Mohammad Khatami is trying to implement. "I think that all of us would wish to encourage that without making his life more difficult," he said.

Duncan was speaking in a parliamentary debate of the British government's response to a foreign affairs select committee report on foreign policy aspects of the war against terrorism. In its response, the foreign office said it welcomed the committee's conclusion that the government is "right to maintain its Constructive and whenever necessary critical engagement with Iran."

The UK backed the decision by the EU's General Affairs Council in June to launch negotiations on a trade and cooperation agreement with Iran, it also said, but added that the 15-nation group made it clear parallel progress was required on outstanding issues of concern, IRNA reported.

The foreign office made no mention of the report's praise for the UK government disagreeing with U.S. President George W. Bush's inclusion of Iran in his controversial 'axis of evil' in January.

"In our judgment, to bracket Iran with Iraq was mistaken -- Iraq is an unredeemed autocracy while Iran has a number of elements of democracy," the Foreign Affairs Committee reported during the summer.

In a separate report last December on British-U.S. relations, the All-Party Committee urged the UK government to continue the "bold" initiative to develop constructive relations with Iran.