"They themselves freely admit that groups of Arab fighters are entering Iraq from Jordan, Syria, Saudi Arabia or Turkey to make war against them," said Rafsanjani, who remains a powerful figure within the Islamic regime.

"They themselves say they've become a punchbag for anyone who wants to have a go at them. The nightmare of Vietnam is rearing its head again for the Americans," he said.

Asked who was behind the spate of guerrilla attacks which have killed 52 US soldiers since Washington declared major combat over on May 1, coalition ground forces commander Lieutenant General Ricardo Sanchez said a whole host of groups, "probably" including Osama Bin laden's al-Qaeda network were involved.

"As long as Americans are here, people will come to attack them -- just like they're trying to attack American interests around the world," the US general told reporters in Baghdad Thursday.

Rafsanjani said he detected an easing of US policy towards Iran since the collapse of a wave of student protests in June which the Islamic regime blames on US agitation.

Only a "handful of good-for-nothings" had taken part in the 10 days of protests, "dashing the White House's hopes" of the overthrow of the Islamic regime and showing that US calls for change had no credibility among Iranians, he said.

"Very quickly (the Americans) changed their tone and (President George W.) Bush announced he could solve differences with Iran peacefully."

Rafsanjani said Tehran was unfazed by the twists and turns in US policy and intended to continue its "longstanding policy of detente".

He reiterated the regime's insistence that its nuclear programme is for civil purposes only, despite the atomic arsenals maintained in the region by India, Israel, Pakistan and Russia.

"We are not adventurists, we are not seeking nuclear weapons, but we will not accept any blackmail," he said, in reference to massive international pressure on the regime to sign an additional protocol of the Non-Proliferation Treaty permitting no-notice inspections of its nuclear facilities.

WAR.WIRE