U.S. sanctions to stay in place

KHARTOUM, Sudan (Reuters) -- Sudan has criticised a U.S. decision to extend unilateral sanctions against it for another year as "one-sided."

But thinks the move will not affect dialogue with the United States, a Sudanese newspaper said on Saturday.

"The decision is not in the interests of bilateral relations," Foreign Minister Mustafa Osman Ismail was quoted as saying by the al-Anbaa newspaper.

"Dialogue between the two countries will continue," he said, adding that negotiations were under way to lift the sanctions, which he labelled "one-sided and uncalled for."

The United States had renewed sanctions against Sudan, originally imposed in 1997, for another year on Thursday.

President George W. Bush, in a written statement, cited continuing concerns about Sudan's "record on terrorism and the prevalence of human rights violations" as his reasons.

The chill in Sudan's relations with Washington had thawed slightly in recent months before the sanctions renewal.

The United States named a peace envoy in September to help end an 18-year civil war and Secretary of State Colin Powell has said Washington is looking for ways to improve relations.

The United Nations Security Council lifted U.N. sanctions against Sudan in a 14-0 vote last month after the United States dropped its opposition.

But U.S. sanctions were left in place.

Sudan, once home to Saudi-born dissident Osama bin Laden, also remains on a U.S. State Department list of countries that sponsor terrorism.

The United States has named bin Laden, now living in Afghanistan under the protection of the ruling Taliban, as a prime suspect in September's attacks on New York and Washington.