Iran will not restore diplomatic ties with the United States until there has been a "fundamental change" in its policies towards it, President Mohammad Khatami said on Sunday.
"If we witness a fundamental change in American policies, a new situation will prevail," Khatami said after a reception for visiting Austrian President Thomas Klestil.
"We have no enmity towards anyone, but we also expect that others do not make enmity towards us," the official IRNA news agency quoted the president as saying.
On Saturday, US Vice President Dick Cheney had urged Iranian regime to bow to its people's demands for democracy and live up to its commitments not to develop nuclear weapons.
Speaking to the World Economic Forum, Cheney called on Iran's conservatives to "follow the example" of other Middle East states seeking democratic reform. "We call for the Iranian regime to honour the legitimate demands of the Iranian people," Cheney said. "There are growing calls for true democracy and human rights."