DATE=7/10/2000 TYPE=CORRESPONDENT REPORT TITLE=IRAN / GERMANY (L-UPDATE) NUMBER=2-264269 BYLINE=JONATHAN BRAUDE DATELINE=BERLIN CONTENT= VOICED AT: INTRO: Iranian President Mohammed Khatami has bitterly criticized opposition demonstrators who have dogged his visit to Berlin. Jonathan Braude in the German capital reports the Iranian leader made his comments at a news conference after talks with German officials. TEXT: President Khatami was speaking at a joint news conference with German Chancellor Gerhard Schroeder, after the first official engagements of his three-day visit to Germany. The two men spoke of their hopes for increased cultural and scientific ties, and Chancellor Schroeder announced Germany would increase its export credits to Iran under from about 100-million dollars to almost 500-million dollars. /// OPT /// Mr. Schroeder also said they had talked about Iran's attempts to reconcile traditional Muslim religious and cultural traditions with the needs of a modern, democratic state - and he said Germany understands the process is not one that could be completed overnight. /// END OPT /// And without going into detail, he said he and the Iranian president had discussed various questions where there were some disagreements between them. That was the nearest the German chancellor got to hinting at the human-rights issues he had raised with Mr. Khatami. But German government sources afterwards said the two men had a long discussion, where the chancellor raised the fate of a group of Iranian Jews who have been jailed for spying for Israel. The sources said he also raised the question of a group of Iranians arrested on their return home after attending a conference in Germany. At the news conference, Mr. Khatami was asked if he had a message for the Iranian protestors who were demonstrating against his visit at Berlin's landmark Brandenburg Gate. The Iranian President said he had no problem with honest opinions, honestly expressed, and every one of his opponents had the right to express themselves. What he said he could not accept was that the same people who had spread, what he called - waves of terror across Iran and killed thousands of people, could then go abroad and present themselves as peaceful demonstrators. /// KHATAMI ACT - IN FARSI - FADE UNDER /// The Iranian president said - you cannot spread waves of terror over a country and cause unrest and then go abroad and present yourself as democratic and say you want to express an opinion. Mr. Khatami said the opposition group is now fighting an Iranian president who has begun to introduce reforms in the country. He said he agrees that a person should express opposition opinions - but not with terror and bombs. He also said he hopes no European country would allow the group to continue its activities. Mr. Khatami's visit continues until Wednesday, and will include meetings with businessmen. He will also make a cultural visit to the city of Weimar, where the German poet Goethe spent much of his working life and said he was influenced by the Iranian poet Hafiz. President Khatami will unveil a monument to Hafiz in Weimar before returning to Tehran - with one more European government now ready to continue the process of improving its ties with Iran. (SIGNED) NEB/JB/JWH/AMAHL/RAE 10-Jul-2000 13:45 PM EDT (10-Jul-2000 1745 UTC) NNNN Source: Voice of America .