March 2 (Bloomberg) -- Mahmoud Ahmadinejad said he had ``constructive'' talks with his Iraqi counterpart Jalal Talabani in Baghdad today and warned the U.S. that making ``accusations'' against Iran would increase America's ``problems.''

The two-day trip, the first visit to Iraq by an Iranian leader since at least the Islamic revolution in 1979, is intended to boost relations between the former foes at a time when the U.S. says Iran is seeking to destabilize its neighbor.

``We consider this visit an historic one,'' Iraqi President Talabani said at a joint press conference with Ahmadinejad, according to the Web site of Talabani's Patriotic Union of Kurdistan.

Iraq and Iran, both with majority Shia Muslim populations, fought a devastating eight-year war that ended in 1988 and killed and injured more than 1 million people on both sides. The two nations have increased political and economic ties since the fall of Saddam Hussein's Sunni Muslim-dominated regime after the 2003 U.S.-led invasion of Iraq.

``Visiting Iraq free of the dictator is a happy occasion,'' Ahmadinejad said, according to the PUK Web site.

Ahmadinejad is ``seeking to enter the sphere of American interests and challenge the U.S.,'' said Mashaallah Shamsolvaezin, an adviser to the Tehran-based Center for Scientific Research and Middle East Strategic Studies.

`Tell Mr. Bush'

He wants to show the U.S. that ``Iraq is part of Iran's essential circle of interests and that the U.S. needs to pay attention to Iran's interests too,'' Shamsolvaezin said.

Asked at a second press conference about comments by U.S. President George W. Bush that Iran supplies weapons to anti-U.S. militias, Ahmadinejad replied, according to the New York Times: ``You can tell Mr. Bush that making accusations about others will increase the Americans' problems in the region. They will have to accept the facts in the area. The Iraqi people do not like the Americans.''

He spoke in joint appearance with Iraqi Prime Minister Nuri al-Maliki, the Times said.

Bush yesterday said Iran must stop exporting weapons used to kill American troops in Iraq.

``The message needs to be `quit sending in sophisticated equipment that's killing our citizens,''' Bush said in a press conference at his ranch in Crawford, Texas. ``My message to him is to stop exporting terror.''

Iran `Very Helpful'

The Associated Press yesterday reported Ahmadinejad as saying three rounds of talks held with the U.S. so far had contributed to stabilizing security in Iraq.

Al-Maliki said today at the press conference with Ahmadinejad, according to the New York Times, that: ``Frankly, the position that Iran has taken recently was very helpful in bringing back security and stability.''

Ahmadinejad and Talabani earlier in the day held private 45- minutes talks that focused on economic, energy, political and social issues.

``We had good negotiations in a friendly, brotherly and very constructive atmosphere,'' Ahmadinejad said in comments broadcast live on state-run Iranian television. ``We have common opinions on all fields.''

The two governments have ``decided to expand collaboration in economic and political fields as much as possible,'' he said.

The U.S., Britain and France plan to seek a vote on March 3 in the United Nations Security Council on a draft resolution that would impose a third round of sanctions on Iran over its suspected pursuit of nuclear weapons. The international community is ``serious about continuing to isolate Iran until they come clean about their nuclear weapons ambitions,'' Bush said yesterday.

Iran says it's using nuclear technology for peaceful purposes.

To contact the reporters on this story: Ladane Nasseri in Tehran at lnasseri@bloomberg.net. Tarek Al-Issawi in Dubai at talissawi@bloomberg.net

Last Updated: March 2, 2008 16:33 EST