In an apparent turnaround, the United States military has conferred "protected status" on members of the armed Iranian People's Mujahideen Organisation currently based inside neighbouring Iraq. The same group appears on the US list of terrorist organisations, with some 3,000 members of the group having been disarmed and placed under US custody after the US-led invasion of Iraq.
The government in neighbouring Iran wants the Mujahideen members extradited to face trial in their home country, but with their new status they fall under the Fourth Geneva Convention, placing them under the protection of the International Red Cross.
"It looks like a contradiction. That means the American administration is split over the Mujahideen. I think the State Department is still working to appease the Mullahs. They are still hoping to strike a deal with the regime, and there are some circles in the diplomacy of the United States still hoping of reforming this regime from within, which has failed already. But also there are other sections in the American administration who think the Mujahideen have nothing to do with terrorism as they are actually an anti-fundamentalist force, using Islamic ideology against Islamic fundamentalism, and that has to be welcomed by the world community."
http://www.rnw.nl/hotspots/html/irq040727.html