Iran slams Iraq "occupiers" at international meeting

STOCKHOLM, May 29 (Reuters) - Iran said on Thursday it was keen to play a major role in the reconstruction of Iraq, and lambasted the United States and its allies for "mistaken policies" in its neighbour.

Iran's foreign minister, Manouchehr Mottaki, told an international conference on rebuilding Iraq that its "occupiers" had only made the situation worse.

"Due to the mistaken policies pursued by the occupiers in Iraq, the situation of security in Iraq is now so grave that it has cast its shadow" over other aspects of life, Mottaki said at the meeting, which is chaired by Iraq and the United Nations and hosted by Sweden.

The minister, who spoke through a translator, said Iran had contributed $10 million to an Iraq reconstruction fund and signed a deal granting a $1 billion easy loan to Iraq to be repaid over 40 years.

"It seems that Iran is among the first countries to provide such facilities to Iraq. This evidences Iran's core policy to enhance its economic ties with Iraq in the long run."

Mottaki was one of many leaders and diplomats, including U.S. Secretary of State Condoleezza Rice, who addressed the conference in Stockholm.

He said cultural links gave Iran had an undeniable advantage in its ability to provide assistance to Iraq and it could play a significant role in reconstruction efforts.

Both Iraq and Iran have majority Shi'ite populations.

Mottaki told reporters later that Iran believed stability in Iraq was key for the region as a whole.

"That's why Iran always was a part of the solution in the region for the crisis, not a part of the crisis." (Reporting by Adam Cox and Simon Johnson; Editing by Caroline Drees)