"But that doesn't mean you want to go overboard," the official added. "Everyone at the Iranian Embassy isn't some kind of spy or revolutionary."
The official said that Rice, despite strongly agreeing that the United States should take a more aggressive approach, was urging caution on the tone of the report.
U.S. military officials in Iraq long have been concerned that Iranian Revolutionary Guards and other military and intelligence personnel are present in Iraq, and have been urging a stronger stance against the Iranians. On several occasions, they have requested broader authority to engage the Iranians, the U.S. official said.
This week the No. 2 U.S. military commander in Iraq, Army Lt. Gen. Raymond T. Odierno, said in an interview with USA Today that Iranians were supplying Iraqis with truck-mounted Katyusha rockets, armor-piercing rocket-propelled grenades and armor-piercing roadside bombs.
Odierno said serial numbers linked the rockets to Iran.
The growing hostility is angering Iraqi leaders, who have begun speaking out against the prospect of conflict between the United States and Iran in their country.
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paul.richter@latimes.com
Times staff writer Raheem Salman in Baghdad contributed to this report.