TEHRAN Cuban leader Fidel Castro said in a speech here yesterday that not only Cuba, but all developing countries consider Iran as the flag-bearer of independence and freedom.

President Mohammad Khatami and Castro held their first round of talks in Tehran on Tuesday.

President Khatami pointed to his visit to Havana last year and said that ranking officials of the two countries are determined to develop bilateral relations.

He said that Iran and Cuba have excellent relations adding that ground should be prepared for utilizing the capacity of the two countries for economic cooperation. He called for removal of the obstacles in the way of implementing the accords already reached between the two countries.

President Khatami appreciated the efforts being made by the Cuban people and government to retain independence and make headway toward progress.

He hailed the Cuban government for its contribution to setting up south-south cooperation among developing nations adding that the Cuban nation's resistance to the pressures and embargoes has set a pattern for developing nations which yearn for independence and progress. President Castro said that Cuba is willing to develop relations with the Islamic Republic of Iran particularly in pharmaceutical technology, construction projects and other fields.

The Cuban leader briefed the Iranian president on the revolutionary movement in Cuba and the campaign of the Cuban government to maintain economic, educational and cultural independence and carry out development plans in Cuba.

Iranian Foreign Minister Kamal Kharrazi and Minister of Agriculture Jihad Mahmoud Hojjati were present at the meeting.

The Iranian ministers and Cuban delegation exchanged views on international issues including the trade embargo and plans in field of social security and national welfare.

Kharrazi presented a report on close relations between Tehran and Havana at the bilateral and regional level and called for speeding up implementation of the agreements signed by Iran-Cuba Joint Economic Commission.

He called for joint investment in the field of shipping, customs, fisheries, banking and textile industry.

The two sides decided to follow up the economic issues later with further negotiations.

Later in the day, Cuban leader Fidel Castro visited the mausoleum of the late Imam Khomeini and paid tribute to the Father of the Islamic Revolution.

He placed a wreath on the tomb of the late Imam Khomeini in remembrance of the Iranian revolutionary leader.

President Castro took office on December 2, 1976, reelected in December 1981, December 1986, March 1993 and February 1998.

Cuba was ruled by Spain from the 16th century until 1898, when the Caribbean island was ceded to the U.S. following Spain's defeat in the Spanish-American war.

Cuba became an independent republic on May 20, 1902, but the U.S. retained its naval bases on the island and until 1934 reserved the right to intervene in Cuba's internal affairs.

Fidel Castro led a revolutionary movement in Cuba and after a prolonged struggle since 1953 forced Batista regime to flee from Cuba on January 1, 1959. Heading a large delegation of high-ranking officials as well as businessmen, Castro is visiting Iran for the first time in his 24-year tenure as the head of Cuba in response to President Khatami's trip to Havana in September.

The Cuban leader, who flew in from Algiers after the first leg of a tour which will also take him to Malaysia, is also due to meet with Leader Ayatollah Khamenei, Parliament Speaker Mahdi Karrubi as well as other Iranian officials during his three-day stay in Tehran.