Iran Leader Courts Latin America Allies

MANAGUA, Nicaragua -- Iran's hardline president, touring Latin America in search of an alliance of "revolutionary countries," said the U.S. is trying to hide its failures in Iraq by accusing his nation of funding insurgents there.

Mahmoud Ahmadinejad ducked a direct question by reporters Sunday about whether Iran was arming and supporting insurgents responsible for countless attacks in Iraq.

Speaking on the sidelines of his meeting with Nicaraguan President Daniel Ortega, Ahmadinejad said the charges were merely an attempt by the United States "to cover their failures by other means."

"But they have been discredited and they can't recover from that," he said.

Ahmadinejad said the United States' "attitude won't solve their problems" in Iraq, and he accused the U.S. of ignoring the Iraqi people.

The Iranian president was in Managua as part of a whirlwind tour of Latin America's newly inaugurated leftist leaders. He met with close ally and Venezuelan leader Hugo Chavez on Saturday, then was scheduled to attend the Monday inauguration of Ecuador's new president, Rafael Correa, and meet Bolivian leader Evo Morales. All are outspoken critics of President Bush.

Ortega, who fought off a U.S.-backed insurgency during his first government in the 1980s, took a less confrontational position with Ahmadinejad, instead talking about how the Iranian leader will help the developing world.

"We are conspiring against hunger, poverty and misery," Ortega said.

Iran and Nicaragua said they would open embassies in each other's capitals, strengthening ties between two countries that have had little interaction yet share long and troubled histories with the U.S.

The paths of Nicaragua and Iran crossed in the 1980s during the Iran-Contra affair, in which the U.S. secretly sold arms to Iran to free American hostages, then used some of the proceeds to back Contra rebels fighting to overthrow Ortega.

But that was long forgotten on Sunday, when the two countries signed a development agreement largely targeting Nicaragua's economic and infrastructure problems. It called for the construction of dams and homes, and factories building everything from buses to bicycles. They also agreed to establish programs to improve drinking water, ports and the fishing industry.

Ahmadinejad spent much of his time lashing out at the United States.

During a visit to a trash-strewn neighborhood in the capital of Managua, he told hundreds of Nicaragua's poor: "The imperialists don't like us to help you progress and develop. They don't like us to get rid of poverty and unite people. But the whole world knows that Nicaragua and Iran are together."

Ortega has vowed to maintain relations with Washington and build a more moderate administration than his turbulent, Soviet-allied government of the 1980s. But, setting the stage for a careful balancing act, he has spent his first four days in office heavily courting three of Washington's most outspoken critics: Venezuela, Iran and Bolivia. Chavez promised millions of dollars in aid and support on Thursday, and Iran followed its lead.

Iran has long had close relations with Cuba and Venezuela. But the rising number of leftist leaders in Latin America and their growing frustration with Washington have given Iran an opportunity to expand its influence here.

"Our two countries have common interests, enemies and goals," Ahmadinejad said of Nicaragua. "We may be far apart, but we are close in heart."

Nicaraguans welcomed the Iranian leader, cheering his caravan as it passed through the capital and hoisting placards with Ahmadinejad's photo.

"We just want help for our country, and Iran has money," said Rafaela Morales, a 53-year-old first-grade teacher.