Iranian President Mohammad Khatami is for peaceful settlement of the Nagorno Karabakh conflict "based on the principles of territorial integrity and sovereignty," the Iranian leader stated at a meeting with the faculty and students of Yerevan State University yesterday. M. Khatami also spoke in favor of the necessity "to neutralize any obstacles for peaceful development of the countries of the Caucasus." The President noted that Teheran will make efforts to resolve the Karabakh confrontation and to provide for peaceful coexistence of the countries involved.