Washington ? The Bush administration has shelved plans to set up a diplomatic outpost in Iran, in part over fears it could affect the U.S. presidential race or be interpreted as political meddling, The Associated Press has learned.

The proposal to send U.S. diplomats to Tehran for the first time in three decades attracted great attention when it was floated over the summer, but has now been placed on indefinite hold as November’s election nears and Iran continues to defy demands to halt suspect nuclear activities, officials said.

Two administration officials familiar with the matter spoke on condition of anonymity to discuss internal administration deliberations on the sensitive subject.

The officials said a decision had been made to leave the decision to the next U.S. president because it could be seen as a reward for Iran’s nuclear intransigence, especially when Iran policy has become a key part of the campaign between Democrat Barack Obama and Republican John McCain.

Obama has called for unconditional direct talks with the leaders of adversaries such as Iran and North Korea, assuming that groundwork by lower-level officials indicated that the top-level talks would be fruitful.

McCain has ridiculed the suggestion as naive.

Thus, opening an interest section, or de facto embassy, in Tehran could be interpreted as a Republican president helping a Republican nominee by neutralizing a distinction that might make the Democrat appealing. Or, it could be seen as hurting McCain by leaving him to defend a more hard-line position than the current Republican president’s.