Rice, who said the funds would be used to broadcast U.S. radio and television programs into Iran and help pay for Iranians to study in America, requested the money in a supplemental budget request for fiscal year 2006.



Congress has already approved $10 million for such programs for the year, which begins on October 1.

Political analysts and Western diplomats are skeptical U.S. efforts to reach out to Iranians can work in a country where America is labeled the "Great Satan" and believed to be anti-Muslim, particularly because of a perception it favors Israelis over Palestinians.



The United States, which cut diplomatic ties with Iran after its 1979 revolution, is locked in a standoff with the Islamic republic to curb what it suspects are programs to build a nuclear bomb.

But the Bush administration has emphasized in recent weeks that it is not at odds with the people of Iran and said it wants to help them win freedoms from their government.

NUCLEAR CLASH

At the Senate Foreign Relations Committee, Rice said the Iranian government had increasingly isolated itself by pursuing nuclear programs in defiance of the international community.

Rice said she will visit the Gulf region next week to discuss Iran's nuclear programs with Tehran's Arab neighbors. She did not specify which countries she will visit.

A U.S. official said Rice is expected to visit Egypt, Saudi Arabia and the United Arab Emirates and discuss the election victory of the Palestinian group Hamas and Muslim outrage at European newspapers' publication of cartoons satirizing Prophet Mohammad.

The United States, which has wide-ranging sanctions against Iran in an effort to squeeze its economy, is also looking at possibly imposing further measures, Rice added.

Iran says its nuclear programs are for peaceful electricity generation.

But the United States won this month a years-long campaign to have Iran reported to the United Nations Security Council over the West's suspicions it wants to build a nuclear weapon.

Bush has made spreading democracy, especially in Muslim countries, a centerpiece of his foreign policy.

The program has had mixed results.

Countries such as Kuwait and Saudi Arabia have implemented some democratic reforms, including expanding voting rights.

But elections promoted by Bush have also opened the way to empowering militant groups opposed to U.S. policies. Most notably, in the Palestinian territories, Hamas is set to govern for the first time despite being designated a terrorist organization by the United States and the
European Union.

"The United States wishes to reach out to the Iranian people and support their desire to realize their own freedom and to secure their own democratic and human rights. The Iranian people should know that the United States fully supports their aspirations for a freer, better future," Rice testified before the Senate Foreign Relations Committee.

Over the past two years, Rice said, the State Department has invested more than $4 million in projects aimed at empowering Iranian citizens in their call for political and economic freedoms and in the current budget year will invest at least $10 million in such efforts.

The $75 million is in addition to that money, which Congress already has approved.

Rice said the United States is working with non-governmental organizations to develop a support network for political dissidents and human rights activists while paying for programs that train labor activists and help protect them from the "radical regime" in Tehran.

The United States has not had diplomatic ties with Iran since the 1979 storming of the U.S. Embassy in Iran and maintains broad economic sanctions against the Islamic regime. She said the State Department is working with the Treasury Department to ensure barriers are open that allows the United States to pay for scholarships and fellowships for Iranians.

"Through its aggressive and confrontational behavior, Iran is increasingly isolating itself from the international community," Rice said.

An Iranian official said Tuesday that his country has resumed small-scale enrichment of uranium, putting that nation on a path that others fear could be a step toward producing fuel for an atomic bomb. T

he U.S. and many European countries are maneuvering to bring Iran before the U.N. Security Council in hopes of pressuring Tehran into backing away from its nuclear program.

"They have now crossed a point where they are in open defiance of the international community," Rice said.

She declined to detail what sanctions the United States is pursuing, although she did acknowledge that the United States has analyzed the impact of oil sanctions on Iran.

Whatever the result, Rice said, the international community must be united in a punishment that sends a strong message to the Iranian regime without hurting the Iranian people. "You will see us trying to walk a fine line in actions we take," Rice said.

In addition to Iran, senators were expected to pepper Rice with questions on a host of international issues, many of which have arisen since she last appeared before Congress in October. Those include an impending takeover of the Palestinian government by Hamas, an Islamic group that won a decisive majority in Palestinian legislative elections last month.

"We will continue to insist that the leaders of Hamas must recognize Israel, disarm, reject terrorism, and work for lasting peace," Rice said.

On Tuesday, United States and Israeli officials denied reports that they were plotting ways to topple the militant group's incoming government unless it renounces its violent ideology and recognizes Israel's right to exist.

Also on the agenda during the hearing was the political and economic situation in Iraq.

In Iraq, the fledgling democracy's leading Shiite bloc has chosen Prime Minister Ibrahim al-Jaafari to serve another term and lead the country's new government. The U.S. wants al-Jaafari to form a national unity government with Shiites, Sunni Arabs and Kurds, hoping that will rein in the violence that has raged since Saddam Hussein's fall in 2003.

Although lawmakers acknowledge progress politically in Iraq, some express frustration over what they say is the administration's lack of adequate action on repairing Iraq's oil production infrastructure and fully restoring its water and electrical power. Rice was to appear before the committee on Tuesday, but the session was postponed a day because of Senate floor votes.

Associated Press Writer Liz Sidoti in Washington contributed to this story from Washington.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

Speaking at a hearing of the U.S. Senate Foreign Relations Committee, Rice said Washington is examining the full range of possible punitive sanctions on Iran.

The United States already prohibits the purchase of Iranian oil, one of a number of restrictons it has imposed.

"No one wants to deny the Iranian people or the Iranian nation civil nuclear power," she said, but "many different options have been put before Iran. They have chosen to isolate themselves instead."

The West fears that Iran may have a covert atomic bomb program. Iran maintains that its nuclear program is solely for peaceful purposes.

Russia's foreign minister, Sergei Lavrov, also called on Iran to suspend all nuclear-fuel enrichment work. But he reiterated Moscow's opposition to sanctions.

The Iranian Defense Ministry stated again on 15 February that Tehran is ready to defend itself against any threats.

Iran's determination to continue with its program was also underlined by a surprise visit paid by Iranian President Mahmud Ahmadinejad to the Natanz uranium enrichment plant.

"The international community has sent a very firm message by saying to the Iranians: 'Come back to reason. Suspend all nuclear activity and the enrichment of uranium and the conversion of uranium,"' he added.

"They are not listening to us."

China, which like France is a permanent member of the
U.N. Security Council, urged a diplomatic resolution of the standoff on Thursday, a day after the United States said Tehran was defying the international community by resuming enrichment.

Iran on Tuesday resumed feeding uranium gas into centrifuges for nuclear-fuel enrichment after a break of 2-1/2 years, stoking a diplomatic showdown with the West.

Douste-Blazy said the international community was united on the nuclear issue and that the Security Council would decide how to act after the head of the U.N.'s nuclear watchdog submits a report on the situation in March.

"It is Western propaganda that keeps on saying that Iran is seeking a bomb, but it is not true," Larijani, also the head of Iran's Supreme National Security Council, told France Inter radio.

Douste-Blazy's comments came two days after two days after Iran confirmed it has resumed sensitive uranium enrichment work, a process that can be used both to make fuel for a power station or the explosive core of a nuclear bomb.

"It's very simple: no civilian nuclear programme can explain Iran's nuclear programme," the minister told France 2 television. "Therefore it's a clandestine military nuclear programme."

Larijani retorted: "I am very sorry to hear such comments from him, France possesses a high position among the Iranians."

"It is better for France to use its position to solve the issue, complicating the situation is easy, but diplomats should refrain from harsh comments," he said.

"We should not hear the same comments from the EU countries as we are used to hear from the Americans," he added.

"I really and definitely think that France has the capability to come forward. The EU should maintain their own position, without influence," Larijani said.

He reaffirmed Iran's position that it was ready to continue negotiations with the Europeans.

Negotiations between Iran and Europe, supposed to have taken place in mid January, never materialized owing to Iran's resumption of enrichment related activities.

The United States, for their part, have regularly accused Iran of seeking nuclear weapons.

The row over Iran's nuclear ambitions -- which Tehran insists is for civilian nuclear energy only -- has sparked an international standoff which has led to the brink of UN Security Council intervention.

Earlier this month the United States and a European Union troika made up of Britain, France and Germany persuaded the watchdog International Atomic Energy Agency (IAEA) to report Iran to the Security Council for action.

The world body is awaiting a March 6 report by IAEA chief Mohamed ElBaradei before deciding how to proceed.

Asked about whether Iran would halt oil sales to the West, Larijani issued a veiled warning but also insisted Iran would never act irresponsibly.

"We will not take the first step. But if they take on a behaviour that changes the region's conditions, it may have an affect."

"We would not resort to any means for any end, we are a responsible nation," he added.

"We principally do not believe in such methods, the methods which will disturb the international norms," Larijani said.

Iranian Oil Minister Kazem Vaziri-Hamaneh also offered reassuring words about oil production from OPEC's second largest producer.

"There is no link between the oil and the nuclear issue," he told reporters. "We have no reason to stop our exports."

Iran has said that the uranium enrichment resumed at the Natanz plant is small scale in nature, for research purposes only, and not on an industrial scale.

"The international community has sent a very strong message to the Iranians: show reason, suspend all nuclear activities and uranium enrichment," Douste-Blazy said. "And they're not listening to us.

"That is the reason why, for the first time for days, the international community is united. It's not just the Europeans -- France, Germany and the British -- it's also Russia and China."

"If we want Tehran to honor its commitments to the international community and continue with its transparent nuclear program, then the International Atomic Energy Agency (IAEA) should resume its activities in Iran," the Russian Foreign Minister underlined.

"We should also urge Iran to return to the negotiating table," he said.

The Austrian Foreign Minister, whose country is the current rotating head of EU, also called on Tehran to take advantage of remaining time till the UN National Security Council takes up Iran's nuclear dossier.

He also said that all efforts should be focused on diplomatic means to resolve the nuclear row.

In related news, Iranian Ambassador to Moscow Gholam-Reza Ansari here Tuesday assessed Russia's proposal for joint uranium enrichment with Iran as "constructive".

Ansari's remarks were part of his address to reporters at the Russian State Duma (lower chamber of Parliament).

"The proposal has the potential of resolving the issue if its shortcomings and disadvantages are removed" he said.

"If the two countries' experts hold talks to discuss details of the offer they can undoubtedly find solutions to its shortcomings," he added.

He was optimistic on the outcome of talks scheduled to be held between the Iranian and Russian delegations on Feb 20 to discuss Russia's proposal to diffuse the crisis over Iran's nuclear activities.

Iran resumed small-scale feeding of uranium gas into centrifuge enrichment machines on Tuesday, officials close to the Vienna-based International Atomic Energy Agency (IAEA) said.

European Union powers had persuaded Tehran to suspend enrichment in November 2003 over fears it was pursuing a nuclear arsenal under cover of a civilian energy programme. Tehran says its programme is only for nuclear-generated electricity.

"They have now crossed a point where they are in open defiance (of the world community)," U.S. Secretary of State Condoleezza Rice told the Senate Foreign Relations Committee.

The United States, which has long imposed economic sanctions against Iran, was considering further measures, said Rice.

The so-called "extraterritoriality" element of U.S. sanctions against certain states that seeks to prevent non-U.S. firms doing business in Iran is deeply resented internationally.

Rice said U.S. President George W. Bush would ask Congress for $75 million (43 million pounds) to try to promote democracy in Iran. Critics say this might backfire as many Iranians are hostile to U.S. policies in the Middle East.

RUSSIA URGES COMPROMISE

Russian Foreign Minister Sergei Lavrov said Iran must suspend all atomic fuel enrichment work to give Moscow's proposal to defuse the nuclear standoff a chance of success.

He said imposing sanctions on Iran over fears it was secretly seeking nuclear arms would only make matters worse.

Russia backed an IAEA vote on February 4 to report Iran to the U.N. Security Council, which has the power to impose sanctions, but has floated its own idea for resolving the dispute.

It has proposed enriching Iranian uranium on its soil and returning it to Iran for use in atomic power reactors to prevent possible diversion of high-grade fuel for bomb-making.

Lavrov said after talks with EU leaders in Vienna that Russian-Iranian talks set for February 20 were based on a package agreed with Western powers trying to get Iran to curb its nuclear work in exchange for economic incentives.

"For this to happen, there must be a resumption of (EU-Iran) talks and it is clear that Iran must resume a moratorium on enrichment on its own territory," Lavrov told a news conference.

"Sanctions ... are simplistic. They will not help. Not in one single case have they ever helped," he said.

"If we want the (nuclear) Non-Proliferation Treaty not to be violated and if we want to avoid living in fear of a secret military nuclear programme in Iran, we must do all we can to maintain and develop the IAEA's ability to do its job."

Russia has significant trade interests in Iran, including construction of Tehran's first nuclear reactor and arms sales.

Lavrov said Iran must fully cooperate with IAEA investigations to resolve international concerns about its nuclear intentions before Moscow would support a complete nuclear fuel industry on Iranian territory.

Iran's decision to retaliate for being referred to the U.N. Security Council by resuming uranium enrichment and curbing some IAEA inspections has drawn widespread international criticism.

Austrian Foreign Minister Ursula Plassnik, whose country currently holds the rotating EU presidency, said Iran's new enrichment work had needlessly escalated tensions with the West and would damage Tehran's relations with the 25-nation bloc.

Iran has given conflicting statements on what is being done at its Natanz pilot fuel enrichment plant.

Gholamreza Aghazadeh, head of Iran's atomic programme, spoke of work on a "small laboratory scale", adding: "Injecting gas into one or a few centrifuges could not be termed enrichment."

A senior Iranian official denied any uranium hexafluoride gas had been injected into centrifuges.