Khatami has condemned terrorism. but Iran continues to support antiIsraeli terrorist groups like Hezbollah and terrorizes Iranian exile opponents of the regime. Iran has made progress against illegal drugs and is beginning to reform its institutions. But allies of Khatami. such as the mayor of Tehran and the Interior Minister. are threatened with trials. which are forms of intimidation by the old guard. As Secretary of State Albright noted. Iran has welcomed large numbers of Afghan refugees. Iran has also improved its relations with its Arab neighbors in the Gulf. But its development of weapons of mass destruction must give these same neighbors considerable pause.
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refugees