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Earlier this year, a study by the US Department of Defence warned that Mexico was in danger of becoming a failed state because of the drug gangs.

Gang-related violence claimed the lives of some 6,000 people in 2008 and so far this year more than 1,000 have been killed as gangs fight both one another for territory and the police and troops sent to tackle them.

This week, the president opened the door to the discussions by abandoning longstanding restrictions on the ability of Cuban-Americans to travel freely to the island and send money to relatives there.

“I know there is a longer journey that must be traveled in overcoming decades of mistrust, but there are critical steps we can take toward a new day,” Mr. Obama said, adding that he was “prepared to have my administration engage with the Cuban government on a wide range of issues — from human rights, free speech, and democratic reform to drugs, migration, and economic issues.”

He said the United States needed to acknowledge long-held suspicions that it has interfered in the affairs of other countries. But, departing from his prepared text, he also said the region’s countries needed to cease their own historic demonization of the United States for everything from economic crises to drug violence.“That also means we can’t blame the United States for every problem that arises in the hemisphere,” he said. “That’s part of the bargain. That’s the old way, and we need a new way.”

On Cuba, the president’s words were as notable for what he said as for what he did not say. He did not scold or berate the Cuban government for holding political prisoners, as his predecessor, George W. Bush, often did.

But he also did not say that he was willing to support Cuba’s membership in the Organization of American States, or lift the 47-year-old trade embargo against Cuba, as some hemisphere leaders here want him to do.

“Let me be clear,” he said. “I am not interested in talking for the sake of talking. But I do believe we can move U.S.-Cuban relations in a new direction.”

The new tone from Washington drew warm praise from leaders like President Cristina Fernández de Kirchner of Argentina and President Daniel Ortega of Nicaragua. Mr. Ortega, who said he felt ashamed that he was participating in the summit meeting without the presence of Cuba, evoked images of the collapse of the Berlin Wall, saying, “I am convinced that wall will collapse, will come down.”

Mrs. Kirchner praised Mr. Obama for “what you did to stabilize the relationship from the absurd restrictions imposed by the Bush administration,” adding: “We sincerely believe that we in the Americas have a second opportunity to construct a new relationship. Don’t let it slip away.”

Mr. Obama’s speech on Friday night was only the latest in a string of overtures between the countries. On Thursday, Raúl Castro, Cuba’s president, used unusually conciliatory language in describing the Obama administration’s decision to lift restrictions on family travel and remittances.

“We are willing to discuss everything, human rights, freedom of press, political prisoners, everything, everything, everything they want to talk about, but as equals, without the smallest shadow cast on our sovereignty, and without the slightest violation of the Cuban people’s right to self-determination,” Mr. Castro said in Venezuela during a meeting of leftist governments meant as a counterpoint to this weekend’s summit meeting in Trinidad and Tobago.

On Friday, Mrs. Clinton responded, saying, “We welcome his comments, the overture that they represent, and we’re taking a very serious look at how we intend to respond.”

Earlier this week Brazilian officials signaled in Rio de Janeiro that President Luiz Inácio Lula da Silva, potentially flanked by the Colombian president, Álvaro Uribe, would raise the issue of accepting Cuba into the Organization of American States at the summit meeting. Cuba’s “absence is an anomaly and he is waiting for this situation to be corrected,” Marco Aurélio García, Mr. da Silva’s foreign policy adviser, told reporters.

On Friday, the secretary general of the O.A.S., José Miguel Insulza, said he would call for Cuba to be readmitted. And Mr. Chávez recently said he would refuse to sign the official declaration produced at the summit meeting because Cuba was not invited.

Clinton had pressed for Iranian participation in The Hague conference, stressing the importance of finding a regional solution to the insurgency in Afghanistan and Pakistan, and western officials were encouraged that Akhundzadeh, a deputy foreign minister and former charge d'affaires in London, was sent by Tehran.

Akhundzadeh told ministers from more than 70 countries at the meeting: "Welcoming the proposals for joint co-operation offered by the countries contributing to Afghanistan, the Islamic Republic of Iran is fully prepared to participate in the projects aimed at combating drug trafficking and plans in line with developing and reconstructing Afghanistan."

He repeated Tehran's criticism of the Nato role in Afghanistan, but used relatively moderate language, saying: "The presence of foreign forces has not improved things and it seems that an increase in the number of foreign forces will prove ineffective, too."

Akhundzadeh added: "The military expenses need to be redirected to the training of the Afghan police and army and Afghanisation should lead the government building process" - an apparent nod towards the Obama administration's decision to send 4,000 more American military trainers.

Western officials expressed hopes that the west and Iran could return to the close co-operation over Afghanistan that took place in the months after the 9/11 attacks. Iranian officials even helped the US target the Taliban, but the relationship cooled after Bush's "axis of evil" speech.

"There is a meeting of minds on drugs, development issues and the [August Afghan] elections, though not on foreign troops, on which they made clear their objections."

Malloch Brown acknowledged that Iran had done some "bad things" in both Afghanistan and Iraq, supplying weaponry to insurgents that had been used against British soldiers.But he argued: "This is Iran supporting its proxies because of a lack of diplomatic partnership around Iraq and Afghanistan. If this is a rapprochement, whether it is overall rapprochement or just aimed at stabilising Afghanistan, it offers the prospect of this behaviour getting moderated and hopefully stopping."

News of Mirsayfi's death emerged as officials announced the arrest of 27 people they said were involved in pornographic and erotic websites allegedly created by foreign powers aiming to foment a "soft revolution" against the Islamic regime.

The policy of trying to isolate Cuba also works—perversely enough—to bolster the Cuban regime. The U.S. embargo provides Cuba's leaders a convenient excuse—the country's economic travails are due to U.S. sanctions, they can claim, not their own failed policies. The lack of American visitors and investment also helps the government maintain political control.

There is one more reason to doubt the wisdom of continuing to isolate Cuba. However slowly, the country is changing. The question is whether the United States will be in a position to influence the direction and pace of this change. We do not want to see a Cuba that fails, in which the existing regime gives way to a repressive regime of a different stripe or to disorder marked by drugs, criminality, terror or a humanitarian crisis that prompts hundreds of thousands of Cubans to flee their country for the United States.

On Tuesday, Mrs. Clinton plans to attend a meeting in Honduras of the Organization of American States. Members of the group want to make an even clearer break with the past by moving to readmit Cuba, which the organization expelled in 1962, citing its alliance with the Communist bloc. Mrs. Clinton has fended off calls for Cuba to be offered membership until Havana moves to accept the group’s democratic principles. On Sunday, she reiterated that the United States would oppose the efforts of several Latin American countries to immediately reinstate Cuba.“We believe that membership in the O.A.S. comes with responsibility, and that we must all hold each other accountable,” she said. Cuba, for its part, has said it has no interest in returning to an organization that the official newspaper Granma referred to recently as “that decrepit old house of Washington.”

"It has been confirmed that those behind the terrorist act in Zahedan were hired by America and the arrogance's other hands," Sayyah told the semi-official Fars News Agency.

The explosion, which some officials and media suggested was a suicide bombing, took place on a religious holiday in the mainly Shi'ite Muslim country. More than 80 people were wounded.

Defense analyst Paul Beaver said it was "highly unlikely" that the U.S. administration of President Barack Obama, who is seeking to engage Tehran diplomatically after three decades of mutual mistrust, would support Sunni insurgents in Iran.

In April, Iran's intelligence minister said it had arrested a group of people linked to Israel who were planning bombings ahead of the June 12 election, in which hardline President Mahmoud Ahmadinejad is seeking a second four-year term.

A bomb attack in Zahedan in early 2007 which killed 18 Revolutionary Guards was claimed by Jundollah (God's Soldiers), an insurgent group that says it is fighting for the rights of Iran's Sunni minority but which Tehran says is part of al Qaeda.

"The terrorists, who were equipped by America in one of our neighboring countries, carried out this criminal act in their efforts to create religious conflict and fear and to influence the presidential election," Sayyah told state radio.

The 1979 revolution expropriated the assets of foreign investors and the nation's wealthiest families; oil had long been nationalized, but the mullahs seized virtually everything else of value--banks, hotels, car and chemical companies, makers of drugs and consumer goods. What distinguishes Iran is that many of these assets were given to Islamic charitable foundations, controlled by the clerics. According to businessmen and former foundation executives, the charities now serve as slush funds for the mullahs and their supporters.

Dozens of interviews with businessmen, merchants, economists and former ministers and other top government officials reveal a picture of a dictatorship run by a shadow government that--the U.S. State Department suspects--finances terrorist groups abroad through a shadow foreign policy. Its economy is dominated by shadow business empires and its power is protected by a shadow army of enforcers.

Ironically, the man most adept at manipulating this hidden power structure is one of Iran's best-known characters--Ali Akbar Hashemi Rafsanjani, who has been named an ayatollah, or religious leader. He was the speaker of parliament and Khomeini's right-hand man in the 1980s, president of Iran from 1989 to 1997 and is now chairman of the powerful Expediency Council, which resolves disputes between the clerical establishment and parliament. Rafsanjani has more or less run the Islamic Republic for the past 24 years.

He played it smart, aligning himself in the 1960s with factions led by Ayatollah Khomeini, then becoming the go-to guy after the revolution. A hard-liner ideologically, Rafsanjani nonetheless has a pragmatic streak. He convinced Khomeini to end the Iran-Iraq war and broke Iran's international isolation by establishing trade relations with the Soviet Union, China, Saudi Arabia and the United Arab Emirates. In the 1990s he restarted Iran's nuclear program. He is also the father of Iran's "privatization" program. During his presidency the stock market was revived, some government companies were sold to insiders, foreign trade was liberalized and the oil sector was opened up to private companies. Most of the good properties and contracts, say dissident members of Iran's Chamber of Commerce, ended up in the hands of mullahs, their associates and, not least, Rafsanjani's own family, who rose from modest origins as small-scale pistachio farmers.

Separately, Russia also agreed to allow the US military to fly troops and weapons across its territory to Afghanistan, allowing it to avoid using supply routes through Pakistan that are attacked by militants.

Under the 2002 Treaty of Moscow, each country is allowed between 1,700 and 2,200 deployed nuclear warheads and 1,600 delivery systems - meaning each side might only be required to decommission a further 25 warheads.

After three hours of talks at the Kremlin on Monday, Mr Obama and Mr Medvedev publicly signed a joint understanding to negotiate a new arms control treaty that would set lower levels of both nuclear warheads and delivery systems, including intercontinental ballistic missiles, submarine-launched missiles and bombers.

"Within seven years after this treaty comes into force, and in future, the limits for strategic delivery systems should be within the range of 500-1,100 units and for warheads linked to them within the range of 1,500-1,675 units," the document said.

The two countries also will set up a joint commission to co-operate over energy, and fighting terrorism and drug-trafficking. Military co-operation, suspended since last year's conflict between Russia and Georgia, will be resumed.

Correspondents also point out that the proposed cuts would still leave the US and Russia able to destroy each other many times over.

The US president said he was confident a legally binding disarmament treaty would be signed by the end of the year, when Start I expires.

I agree that our reputation with the American government and some European governments is not positive. But that's their problem. All peoples are fed up with the American government.

The Afghan government should have been given more responsibility in the last seven years. President Hamid Karzai said to me once: They don't allow us to do our work.

Are you seriously insisting on an American withdrawal from the region? Ahmadinejad: One has to have a plan, of course. A withdrawal can only be one of several measures. It must be accompanied by other, simultaneous actions, such as strengthening regional government. Do you know that narcotics production has grown fivefold under the NATO command in Afghanistan?

We have lost more than 3,300 people in the fight against drug smuggling. Our police force made these sacrifices while guarding our 1,000-kilometer border with Afghanistan.

Ahmadinejad: Look, more than $250 billion (€190 billion) has been spent on the military campaign in Afghanistan to date. With a population of 30 million, that comes to more than $8,000 a person, or close to $42,000 for an average family of five. Factories and roads could have been built, universities established and fields cultivated for the Afghan people. If that had happened, would there have been any room left for terrorists? One has to address the root of the problem, not proceed against its branches. The solution for Afghanistan is not military, but humanitarian.

Naturally, we cannot expect to see problems that have arisen over more than half a century resolved in only a few days. We are neither obstinate nor gullible. We are realists. The important thing is the determination to bring about improvements. If you change the atmosphere, solutions can be found.

the Afghan people have close historical ties to Iran. More than 3 million Afghan citizens live in our country

Ahmadinejad: We believe that the Iraqi people are capable of providing for their own security. The Iraqi people have a civilization that goes back more than 1,000 years. We will support whatever the Iraqis decide to do and which form of government they choose. A sovereign, united and strong Iraq is beneficial for everyone. We would welcome that.

Ahmadinejad: We pay no attention to the reports of American intelligence services.

Iran is not simply a medium-sized regional power that can be ordered around at will. Ironically, America's disastrous war in Iraq has allowed its fierce adversaries in Tehran to benefit from a massive shift of power in the Middle East.

Before his ascent to the office of president, not even diplomats stationed in Tehran and familiar with all of the ins and outs of Iranian politics were familiar with this short man with the sparse beard and piercing eyes. The fiery revolutionary, hardworking to the point of exhaustion and filled with contempt for earthly wealth, rose to power from humble beginnings and became the hope of all "Mostasafin," the disenfranchised millions without whom the Islamic Republic probably would not exist today and for whom Ahmadinejad has fashioned himself into an Iranian Robin Hood.

This places the Americans before the virtually impossible task of joining forces with Iran to resolve the classic Middle East conflict and its 30-year conflict with Tehran itself. For this reason, the Iraq question is also becoming increasingly urgent for Washington.

Obama knows that the United States could derive substantial benefits from cooperation with Tehran. Without Iran, for example, it will be almost impossible to bring peace to Afghanistan in the long term. In Afghanistan and Pakistan -- the center of conflict that Washington describes in its new strategic concept as a single unit known as "AfPak" -- the Americans and Shiite Iran have many interests in common. Tehran's rulers battled the Sunni Taliban radicals, whom they have always seen as dangerous neighbors and ideological foes, before the Americans did.

And Tehran, with the world's second-largest natural gas reserves and its third-largest oil reserves, has the capacity to do a great deal of damage to the international economy -- or help it overcome the global economic crisis.

Conversely, rapprochement with the United States and Europe would also bring enormous benefits to the Iranians. Without know-how from the West, the country will hardly manage to achieve the modernization it needs so urgently. With inflation approaching 30 percent and real unemployment exceeding 20 percent (12 percent, according to official figures), and more than a million drug addicts -- a distressing world record of addiction -- the country faces practically insurmountable problems.

Whether the internally divided Palestinians will manage to come to terms and form a unified government for the Gaza Strip and the West Bank is no longer in the hands of the inconsequential negotiators in Cairo, but will be decided instead by Hamas's patrons in Tehran. Tehran also decides whether the Lebanese Hezbollah or Hamas's extremists use primarily words to express their hostility toward Israel or, as is currently the case, resume their bloody terrorist attacks instead.

Ahmadinejad feels obligated to the permanently downtrodden members of society. As if he were one of them, he campaigned for president four years ago in Tehran's massive poor neighborhoods, traveled to the country's most remote places and promised the underprivileged their share of Iran's riches. He told them that he would fill their empty plates with the proceeds from the sale of oil, and that he would declare war on corruption and nepotism. The "era of oppression, hegemonic regimes, tyranny and injustice has reached its end," Ahmadinejad told supporters after his election.

But the political achievements of President Ahmadinejad have been more miserable than stellar. In addition to isolating his country even further in the world, he has ruined its economy with his chaotic economic policies. In the devastating assessment of Ali Larijani, the president of the Iranian parliament and Ahmadinejad's biggest domestic rival, whom he previously removed from his position as Iran's chief nuclear negotiator with the West: "The confusion is the result of the government arbitrarily dissolving offices and dismissing experts, ignoring parliamentary resolutions and stubbornly going its own way."

Nevertheless, it is quite possible that this man, who has probably done more damage to his country than any other president in the 30-year history of the Islamic Republic, will enter a second term this summer -- simply because he lacks a convincing and courageous opponent.

Moussavi is of a significantly more robust nature than Khatami. As prime minister during the years of the Iraq war, he successfully managed the country's wartime economy. Critics note, however, that Moussavi's tenure was marked by a sharp rise in arrests and repression. He has not held any public office in 20 years and is virtually unknown among younger Iranians, who make up about 60 percent of the population.

On the surface, the elegant Moussavi would undoubtedly represent Iran more effectively on the international stage than Ahmadinejad. He appears to be more open to negotiations with the Americans. And yet, when it comes to the central nuclear conflict, the new candidate is just as obstinate as the current president. At a press conference in Tehran just last Monday, he noted that he too would not back down on the issue.

Which candidate the powerful religious leader Khamenei ends up supporting will likely be the decisive question. When Ahmadinejad came into office, he kissed Khamenei's hand. The two men were long considered extremely close ideologically, although since then Khamenei has more or less openly criticized Ahmadinejad's economic policies. Only recently, however, the religious leader spoke so positively about the president that many interpreted his words as an endorsement of his candidacy. Many observers of Iranian politics believe Ahmadinejad, because of his lasting popularity in rural areas, will be elected to a second term.

There are no questions that the Iranian president does not answer with questions of his own. He insists, most of all, on a few core concepts. One of them is justice, but he defines what justice is. Another is respect. He claims that he and his country are not afforded sufficient respect. This desire for recognition seems almost insatiable.

In Ahmadinejad's view, "hagh chordan," or the act of trampling on the rights of the Iranians, is a pattern that constantly repeats itself and comes from all sides, leading to a potentially dangerous mix of a superiority and an inferiority complex -- but not the irrationality of which the president is so often accused, especially by the Israelis.