TEHRAN. Dec 11: The world's Muslim nations condemned terrorism in the name of Islam and demanded that Israel stop building settlements in occupied Arab land and Jerusalem in a joint declaration today that ended their three-day summit, reports AP.

The statement .followed debate by delegates of the 55-member Organization of the Islamic Conference.

The Tehran declaration

sharply criticised Israel for what it called state terrorism' and supported the creation of a Palestinian state with Jerusalem as its capital.

In the spirit of the opening speech by Iranian President Mohammad Khatami, the declaration called for interaction, dialogue and understanding among cultures and religions.'

The declaration alsourged states to deny asylum to terrorists.

The killing of innocent people is forbidden in Islam,' said the five-page statement, a copy of which was obtained by the Associated Press. It was to be read at the closing session.

The summit, which drew 28 heads of state, prime ministers and crown princes, served as a forum for Iran to forge ties with countries long wary of its 1979

Islamic revolution.

The declaration called for full respect for the dignity and the rights of Muslim women and enhancement of their role in all aspects of social life in accordance with Islamic principles.'

The declaration also criticised US attempts to penalize countries doing business with

Iran and Libya.

The declaration urged the United Nations to consider giving the Organization of the Islamic Conference a seat on the Security Council, a request Annan has already rejected.

In all, 142 resolutions were adopted on the find! day.

The resolutions were drawn up by Muslim foreign ministers in a separate meeting here last week, and are divided into political, cultural and economic texts.