WASHINGTON (AP) -- President Clinton on Monday removed Iran from the official list of drug problem countries, concluding the Islamic republic has carried out a successful program to eradicate opium poppies.

In a letter to members of Congress, Clinton said that while Iran continues to serve as a transit point for opiates heading for Europe, there is no evidence to suggest that significant quantities arrive in the United States.Clinton also deleted Malaysia from the list on grounds that it has not been used significantly as a transit point for U.S.-bound drugs. By deleting Iran and Malaysia, the list of drug problem countries was reduced to 28.

Clinton's determination was disclosed in a letter to key members of the House and Senate international relations and Appropriations committees.

Each year, the White House is required to report on countries that are either drug-source or drug-transit countries, or both. Those found to be not fully cooperating with U.S. counter-narcotics efforts can be subject to economic penalties.

Iran has been on the U.S. list as a major drug producer since 1987. Clinton's letter said Iran over the past few years has "reported success in eradicating illicit opium poppy cultivation." Opium poppy is the raw material from which heroin is derived.

A U.S. government review of Iran's claims "found no evidence of any significant poppy cultivation in the traditional growing areas," Clinton wrote.

Clinton's finding comes at a time when the administration is reaching out to Iran, attempting to establish a political dialogue for the first time in almost two decades.

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