``America, and in particular the CIA, wanted to cover up its failure in the aftermath of the events that took place in Riyadh, Nairobi, Dar es Salaam, Capetown, Kampala -- and other places, God willing, in the future,'' bin Laden is quoted as saying.

The United States responded to the embassy attacks ``by arresting any person who had participated in the Islamic jihad in Afghanistan,'' bin Laden says in Time's January 11 issue set to appear on newsstands on Monday.

He says the two suspects being held in custody -- Wadih el-Hage and Mohamad Rashed Daoud al-'Owhali, allegedly his associates -- had nothing to do with the bombings.

A total of 258 people died and more than 5,000 were wounded by two massive car Bomb explosions, reportedly organised by Islamic extremists, at the USembassies in Nairobi and Dar-es-Salaam on August 7.

In retaliation the United States on August 20 launched cruise missile attacks on an alleged terrorist facility in Afghanistan and a pharmaceutical factory in Sudan.

The August 26 arrest of 'Owhali was hailed by US President Bill Clinton as ``an Important step forward in our struggle against terrorism,'' in a statement the next day.

Condemning the British and US attack against Iraq in December, bin Laden makes clear his anti-semitic worldview:

``The treacherous attack has confirmed that Britain and America are acting on behalf of Israel and the Jews, paving the way for the Jews to divide the Muslim world once again, enslave it and loot the rest of its wealth,'' the US magazine quotes bin Laden saying.

He has been in hiding since the US bombing of his bases in Afghanistan last August. His interview with Time was offered to a journalist taken in late December to bin Laden's encampment in the Afghan desert.

Throughout the interview, thesuspected terrorist reportedly held an AK-47 gun.

``Acquiring weapons for the defence of Muslims is a religious duty,'' says bin Laden, who does not deny trying to acquire chemical and nuclear weapons.

``Hostility toward America is a religious duty, and we hope to be rewarded for it by God,'' he is quoted saying. ``Thousands of millions of Muslims are angry. The Americans should expect reaction from the Muslim world proportionate to the injustice they inflict.''

Time also says that bin Laden denied that he has cancer but used a stick to help him walk.