Obama condemns Ahmadinejad, but still wants talks

By Laura MacInnis GENEVA/WASHINGTON (Reuters) - President Barack Obama on Tuesday condemned as "appalling and objectionable" a speech by Iran's president which denounced Israel as a racist state and prompted a walkout from a U.N. conference on racism.

Delegates at the troubled United Nations meeting, meanwhile, speedily adopted an anti-racism declaration the day after the dramatic protest by Western states at the comments by Mahmoud Ahmadinejad.

Ahmadinejad was the only head of state to address the Geneva conference, known as Durban II, which is being boycotted by about a dozen countries including the United States who fear it could be used to single out Israel for criticism.

On Monday the Iranian president, who has in the past raised doubts about the Nazi Holocaust -- commemorated by Jews that day -- denounced Israel as a "totally racist government" founded "on the pretext of Jewish sufferings."

Obama said in Washington: "I found many of the statements ... appalling and objectionable."

But he added after talks with Jordan's King Abdullah at the White House he still wanted talks with Iran.

"We will continue to pursue the possibility of improved relations and a resolution to some of the critical issues in which there have been differences, particularly around the nuclear issues," he said.

BROKEN TIES

The Obama administration is keen to improve relations with Islamic and other countries, but the U.S. president said Ahmadinejad's comments would hurt efforts to improve ties.

Washington cut relations with Iran after the Islamic revolution in 1979 and the taking hostage of Americans at the U.S. embassy in Tehran.

The United States and other Western countries are especially worried about Iran's nuclear energy program, which they fear is aimed at developing nuclear weapons.

Ahmadinejad's comments caused European countries not already boycotting the conference to walk out but drew applause from Islamic delegations. The remarks caused dismay among U.N. officials hoping for agreement on a declaration against racism.

But on Tuesday delegates -- including those who had walked out, except for the Czech Republic which stayed away -- approved the anti-racism declaration.

The text "reaffirms" a contentious 2001 document that refers six times to Israel and the Middle East. It was adopted by consensus and without debate at a public session, well before the end of the week-long meeting.

"This is very good news indeed," Navi Pillay, U.N. High Commissioner for Hunan Rights, told a news conference.

The text covers issues such as xenophobia, immigration, migration, slavery, genocide, discrimination against Roma and Gypsies and against people suffering from AIDS.