Speaking to reporters after talks with Azerbaijani President Ilham Aliyev, Rumsfeld noted that Iran had been on a list of countries that the United States describes as terrorist states for many years.

"One of the gravest concerns the world faces is the nexus between a terrorist state that has weapons of mass destruction and terrorist networks," he said.

"So it's understandable that nations, not just in this region but throughout the world, are so deeply concerned about what's taking place in Iran."

Rumsfeld said he had discussed his concern over Iran's nuclear program with Aliyev, who recently hosted a visit by Iranian President Mohammad Khatami.

The Iranian leader told reporters in Tehran on Wednesday that his country had made "a lot of progress" in developing nuclear technology for peaceful purposes and "will not seek permission from anyone" to continue its program.

Rumsfeld's comments came at the end of a brief visit here during which he thanked the Azeris for providing troops to US-led coalitions in Iraq and Afghanistan.

Rumsfeld noted that the United Nations was looking for countries to provide additional troops to protect a UN effort to organize elections in Iraq.

But Azerbaijani Defense Minister Safar Abiyev, who joined Rumsfeld at the news conference, offered no indication that Azerbaijan was prepared to contribute more than the 150 soldiers it has already deployed in Iraq.

"Azeri peacekeepers are already in Iraq and have a mandate to fulfill and will continue to carry out their tasks," Abiyev said.

The Azeri minister called on the United States to support Azerbaijan in its long-running dispute with neighboring Armenia over the enclave of Nagorno-Karabakh, a territory located within Azerbaijan but inhabited mainly by ethnic Armenians.

Rumsfeld responded that that issue was being handled by the so-called Minsk Group and said Washington hopes for a peaceful resolution of the issue. He added however that the United States supports Azerbaijan's territorial integrity.

Azerbaijan was Rumsfeld's third stop on a trip that began in Oman. He was scheduled to arrive in Ukraine later Thursday.

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