WASHINGTON Ñ A report by the Heritage Foundation said the United States should demand international cooperation against terrorism and state sponsors. The U.S.-led campaign should include diplomatic, economic, law enforcement and military tools.

Targets of the U.S.-led effort must be Iran, Iraq, Libya, Sudan, and Syria, researcher James Phillips said in the report. Other targets should include the Al Qaida network, Algeria's Armed Islamic Group, Hamas, Hizbullah and Islamic Jihad.

The Al Qaida network has relocated from Afghanistan to such countries as Somalia, Yemen, the Philippines, and Sudan, Middle East Newsline reported.

"States that continue to support terrorism, such as Iran, Iraq, Libya, Sudan, and Syria, should be isolated diplomatically, punished with multilateral economic sanctions, and threatened with military reprisals if necessary," the report said.

The report said the United States must destroy the regime of Iraqi President Saddam Hussein. The effort should include the bolstering of the Iraqi National Congress and the Kurdish community in northern Iraq.

Regarding Iran, the report recommends dialogue and economic sanctions until Teheran ends its hostile policies. The report said Iran must end terrorism, violent opposition to the ArabøIsraeli peace process and weapons of mass destruction programs.

"If Iran can complete this transition, Iranian-American relations could be normalized and the two countries could cooperate on a wide range of issues, including containing Iraq, stabilizing Afghanistan and Lebanon, and fighting international drug trafficking," the report said.

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