President Khatami arrived in Yerevan on 8 September for a two-day Armenian visit. The two sides signed agreements on bilateral cooperation and on cooperation in the energy, culture, and customs fields. The energy agreements include one on construction of a gas pipeline from Megri to Kadzharan in southern Armenia and a second under which Iran will provide a $30 million loan to finance construction. Khatami and Armenian President Robert Kocharian issued a joint statement emphasizing their shared belief that the Nagorno-Karabakh issue should be settled peacefully, and they also agreed on counterterrorism and counternarcotics efforts. Khatami visited the Blue Mosque in Yerevan and addressed the Armenian legislature. Khatami is accompanied by Foreign Minister Kamal Kharrazi, Energy Minister Habibullah Bitaraf, Economic Affairs and Finance Minister Safdar Husseini, and Commerce Minister Mohammad Shariatmadari. (Arminfo)