UN special envoy Prakash Shah met Iraqi Deputy Prime Minister Tariq Aziz yesterday and handed over a letter from the UN Secretary General Kofi Annan.

``I have handed over the letter from the UN secretary general to Tariq Aziz... we will continue dialogue'' Shah was quoted by television networks as saying after the meeting.

In the letter the UN secretary general has appealed to the Iraqi leadership to change its decision to dissociate with the UN weapons inspection team so that their work can continue unhindered.

Shah said Aziz had told him that Iraq was ``prepared to continue the dialogue'' with the United Nations on this matter.

Shah arrived in Baghdad yesterday with the conciliatory letter from the UN chief aimed at ending the present imbroglio which may lead to yet another face off with Iraq.

Shah told Azizthat there was unanimous view in the Security Council that Iraq should continue its cooperation with the UN and UN Commission for Disarmament (UNSCOM) which Annan wanted to convey.

Meanwhile, the Iraqi News Agency carried a letter shot off to the UN security council by Aziz in which he dismissed the claims that Iraq hindered disarmament inspection work by the UN staff stationed at Baghdad.

Aziz accused the United States of trying to provoke a stand off between the UN and Iraq and said the statements from the UNSCOM were provocative.

Iraq is highly critical of Australian head of UNSCOM Richard Butler, who the Iraqis describe as an agent of the United States.

Butler and Mohammed el Baradei, head of the Vienna-based IAEA, monitoring Iraq's nuclear prowess, reported to the Security Council that Baghdad has stopped cooperating with them in carrying out their disarmament inspection work.

Iraq has demanded that the UNSCOM reduce its American influence and shift its base to Geneva or Vienna from New York.