Democracynow.org: Iran Rejects U.S. “Terror” Label.

Iran is brushing off the Bush administration’s vow to label the Iranian Revolutionary Guards a “terrorist” group. A Revolutionary Guards spokesperson said the Iranian force will continue to grow in size and prepare to retaliate in the event of a U.S. strike. The Washington Post reports European and Arab allies are expressing alarm at the administration’s new policy. Critics inside Iran have long claimed unilateral U.S. actions are strengthening the Iranian government’s control while isolating pro-democracy activists. But State Department spokesperson Sean McCormack said the move is justified.

State Department spokesperson Sean McCormack: "They now have tentacles into a range of different activities, into business activities, banking activities, we all know about their support for those groups going after our troops in Iraq, we've also talked about the supplying of arms to the Taliban in Afghanistan and there have also been reports about their linkages to Hezbollah and other terrorist organizations."