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BUSH OPPOSES SUIT AGAINST IRAN

WASHINGTON [MENL] -- The Bush administration has opposed an effort by the family of a slain opposition leader to sue the Iranian Defense Ministry.

The administration has supported Iran in rejecting a suit by the brother of a slain Iranian dissident who sought to collect a $2.8 million judgement from Cubic Defense Systems. Earlier, the Defense Ministry won a suit against Cubic for failing to honor a contract to the Iranian Air Force signed in 1977.

Officials said the administration was concerned that Elahi's victory could spark suits by terrorist victims against U.S. companies that owe money to Iran. The State Department has sought to use the billions of dollars in frozen Iranian assets as a bargaining chip in future negotiations to restore relations with Teheran.

"This has nothing to do with the nature of the Iranian regime and its involvement in terrorism," an official said. "It has to do with setting a precedent that could boomerang against the the U.S. government and business."

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