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Deutsche Presse-Agentur reports tensions arose when several MPs strongly protested the announcement that the bill was "off the agenda" after six signatories had withdrawn their support for the legislation.
The proposed bill is in retaliation for similar measures applied to Iranians entering the United States.
Iranian President Mahmoud Ahmadinejad rejected the proposal during a speech in Shemiranat, north of Tehran, saying "we have no problems with the American people but with the attitude of the American administration."
A view echoed all around the world.