President Hashemi Rafsanjani accused the United States Monday of trying to undermine his Islamic government and again denied Washington's assertions that Iran supports terrorism worldwide.

His comments came as the leader of one such group, Hezbollah, was quoted as publicly acknowledging that Iran is financing it.The United States recently reasserted claims that Iran has links to international terrorism, including suicide bombings in Israel. The United States is sure to raise its concerns Wednesday at an anti-terrorism summit in Egypt, which will be attended by President Clinton.

Rafsanjani dismissed the summit as part of a "propaganda ploy" by the Americans and called on the United States to prove its allegations.

"In principle, we condemn any form of terrorist action no matter who the perpetrators are," he told reporters. "Terrorism does not solve any problem."

The president did not answer directly when asked if he denounced the militant Palestinian group Hamas, which carried out recent bombings in Israel.

He reiterated previous government statements saying Iran has a political relationship with Hamas, but does not provide money or military support.

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"We support them as far as their national struggle is concerned. This is it. No more," Rafsanjani said.

In Lebanon, the leader of the Shiite Muslim group Hezbollah also denounced the summit in Egypt. Hezbollah guerrillas are fighting to oust Israel from the border enclave it occupies in south Lebanon.

"We don't hide Iranian support. There is no need to deny that we receive financial and political support from Iran," Sheik Hassan Nasrallah, Hezbollah secretary-general, was quoted as saying.

"We are not shy and they (Iranians) are not afraid about it," he was quoted as saying in an interview published Monday in the London-based Arabic language weekly Al Wasat. Hezbollah has long been reported to be financed and backed by Iran, but his comments were the first public acknowledgement by a senior Hezbollah leader.

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